MITIGATION
I
PREPAREDNESS
I
RESPONSE
I
RECOVERY
I
STRATEGIC ADVICE
Finance’s Role in
Continuity of Operations (COOP) and
Emergency Response
March 12, 2014
Introductions
•
•
•
•
Name
Title
University
What is your role in
COOP and emergency
response? How do
you feel about it?
Presentation Overview
• Disaster Priorities
Exercise
• Financial Vulnerability
• Overview of COOP / BC
• Finance in COOP/BC
• Overview of Emergency
Operations / Response
• Finance in Emergency
Response
• Training and Exercises
• Tying it all together
Disaster Priorities Exercise
• Please consider the following
scenario and the 10 planning
issues.
• Do not attempt to develop
solutions.
• Come to a consensus on
ranking numerically the
issues in order of their
importance.
• Use the Problem Matrix Table.
• Select a spokesperson to
report out.
Disaster Priorities Exercise
• Scenario
o March 12th, 8:30am: a 6.4 earthquakes hits the region where
your campus is located.
o The University has experienced extensive damage:
−
−
−
−
−
Finance building
Building where IT servers are housed
Administration building
Ingress and egress routes blocked
Power outages
o Surrounding community has been affected
o The Governor has asked for a disaster declaration by the U.S.
President.
PRIORITY
1
Etc.
2
3
Number
ISSUE
A
PAYROLL WEEK
B
PROCUREMENT OF RESOURCES FOR EMERGENCY
RESPONSE
C
STUDENT LOANS AND FINANCIAL AID PAYMENTS
D
MAINTAINING INFORMATION FOR FINANCIAL REPORTING
E
SEND A REPRESENTATIVE TO THE EMERGENCY
OPERATIONS CENTER (EOC)
F
ACTIVATE EMERGENCY PURCHASING CARDS
G
UNNACCOUNTED FOR FINANCE STAFF MEMBERS
H
ISSUE PAYMENTS TO VENDORS AND CREDITORS
I
ALTERNATE WORK LOCATION
J
FEMA REIMBURSEMENT AND INSURANCE
Disaster Priorities Exercise
• Learning Points
1. There is no right or wrong answer. You are the senior officials make policy
decisions.
2. Would more information would be helpful? What type of information?
From what source would you be seeking this information? Will this source
be available to you in the event of an emergency?
3. Could any of these priorities or decisions be made in advance? Have they
been? If not, could they be adopted as policy in your plans?
4. Are the right people sitting at the table (i.e., people who have the authority
to set priorities and implement decisions)?
5. Communications are critical. How will information be coordinated? Do
you have a crisis communications strategy?
Financial Vulnerability
• Universities and colleges are
vulnerable to (expensive)
emergencies and disasters…
CSU Northridge earthquake, 1994
Pace University 9/11 terrorist attacks, 2001
New Orleans Universities in Hurricane Katrina, 2005
Virginia Tech shootings, 2007
University of Northern Illinois shooting, 2008
University of Alabama Huntsville workplace violence, 2010
Florida International University stabbing, 2010
UC Davis Pepper Spray Incident, 2011
University of Alabama Tornado, 2011
Penn State scandal, 2011
Boston Marathon Bombings, 2012
Vulnerability
Earthquakes
Tsunami
Wildfires
Floods
Drought
Criminal Acts
Hazardous Materials
Incidents
• Utility Failures
• Loss of Infrastructure
•
•
•
•
•
•
•
Emergency Response
Mitigation
and
Preparedness
Recovery
Continuity of Operations/ BC
COOP /
Business
Continuity
Emergency
Operations /
Response
$
$
$
$
$
$
$
$ $
$
$
$
$ $
I’mI’m
Continuity.
a PC.
I’m Emergency
I’m a MAC. Response.
COOP/BC vs.
Emergency Operations
• Emergency operations and
response is what needs to be
done because of an
emergency or disaster.
• Continuity of operations /
business continuity is what
needs to be done despite an
emergency or disaster.
COOP/BC vs.
Emergency Operations
[Time]
Emergency
Response
Initial
life
safety
actions
Emergency
Occurs
COOP
Emergency response
continues, then ramps
down; COOP actions
increase
COOP actions continue as needed, with an
attempt to ramp down and return to
normal operations
Peak of COOP
actions
Return to normal
operations
COOP/ Business Continuity
COOP/BC Elements
•
•
•
•
•
•
•
•
COOP/BC Management Team
Essential Functions
Succession of Leadership
Notification/Communications
Critical Resources
Vital Records
Interdepartmental Relationships
Alternate Facility Requirements/Relocation
Essential Functions
• Essential functions are the critical
activities performed by organizations,
especially after a disruption of normal
activities.
• Although all functions within operations
are important, some functions can be
delayed for 30 days without significantly
affecting the business operations of the
University.
Essential ≠ Important
Essential Functions (cont)
• Essential Functions include all functions:
o Explicitly assigned by law or grant/contract rules
o Integral to the Division and Department’s mission
o That provide vital support to another department or CSU campus
• Essential functions are those that enable an organization to:
o Provide vital services
o Exercise governance authority
o Maintain the safety of the entity’s community (e.g., staff, faculty, vendors,
students, and visitors)
o Sustain the industrial and economic base
• Identifying Essential Functions
o Departments will determine recovery time priorities for functions that
must be continued in all circumstances
o Basis for determining resource requirements
Essential Functions (cont)
• Prioritizing essential functions
- Ready.gov
COOP/Business Continuity Guidance
1. Continuity Guidance Circular 1
(CGC 1) Non-Federal Entities,
January 21, 2009
2. FEMA Continuity Guidance
Circular 2 (CGC 2), July 22, 2010
3. Cal EMA Continuity Guidance and
Plan Template, December 2009
4. CSU Executive Order 1014 –
California State University
Business Continuity Program
Creating a COOP Plan
From: Ready.gov
Creating a COOP Plan
ANALYSIS
(Understand
the
Business)
DESIGN
(Agree on
Continuity
Strategies)
IMPLEMENT
VALIDATE
(Document
(Rehearse,
Steps to Follow) test,
exercise,
review)
• ID
Functions
• Recovery
times
• What is
needed to
continue
functions
• Risk
mitigation
• Define
• Develop actionstrategies
oriented COOP
• Develop
Plan
Incident
• Develop
Management support plans:
• Get approval Disaster
of strategies
Recovery,
Relocation,
Communication
EMBED
(Awareness)
• Train
• Let
• Test
everyone
• Exercise
know what
• Review
to do in
and revise
disruption
plan
documents
Creating a COOP Plan
• COOP Planning Process
o Introductory meetings
o Meetings with senior
management
o Meetings with departments
o Document review
o Plan development
o Plan revisions
o Distribution of DRAFT Plan
o Electronic solutions (Kuali)
Creating a COOP Plan
• Plan for:
o
o
o
o
Utility outage
IT outage
Building Loss
Staff shortage
Creating a COOP Plan
• Base Plan
o Quick Guides
o Vulnerabilities, Planning
Assumptions, Authorities
o Essential Elements of COOP
Viability
o COOP Program Management
o Implementation
• Department Annexes
• Workaround Procedures
• Essential Functions Details
• Succession of Leadership
Finance in COOP/BC
• Dual role:
o Part of the overall
COOP organizational
structure
o A department with
essential functions
Finance in COOP/BC
• Essential part of the planning
team
• Critical essential business
functions:
o Procurement of goods and
services
o Accounts payable
o Accounts receivable
o Financial reporting
o Payroll
o Accounting
o Financial Aid/Student Loans
o Auxiliaries
Lessons Learned from the CO
• Are we actually ready to work from
home?
• Which campus is our sister campus
and is that campus ready to assist
us?
• Who do I need to call? How will I
notify the Finance department staff
members?
• What are our lines of succession in
an emergency?
• What the heck is my password?
• How do I continue to keep
information secure?
• Timing is everything.
• We need executive buy-in.
• Exercises are good.
COOP Implementation
4 Parts to COOP Implementation
1. Ascertain: Are we in a
COOP situation?
2. How do we manage the
event?
3. What must be continued?
4. What strategies are
needed to continue our
business?
COOP Implementation
Policy Group
COOP Coordination
Leader
Coordination
Unit
Facilities and
Logs Unit
External
Partners
Finance /
Documentation Unit
Departments
This lends itself to enabling an over-arching COOP mission and strategy
for the college, which would be described in the COOP Base Plan and
provide guidance for the departmental plans.
COOP Implementation
COOP Executive
Team
COOP Coordination
Team
Departments
Policy-level
decisions
Coordination
Decisions
Tactical Decisions
Emergency Operations / Response
Emergency Operations /
Response Elements
• Life safety, protection of property
and the environment, maintaining
reputation
• Emergency response structure
o
o
o
o
Policy Group
Emergency Operations Center
First Responders
External Partners
• Emergency Notification and Crisis
Communications
• Plans, training, exercises
Emergency Management Guidance
1. Higher Education Opportunity Act of 2008
(Clery Act Amendments)
2. The Guide For Developing High-Quality
Emergency Operations Plans for Institutions of
Higher Education
3. Comprehensive Preparedness Guide (CPG) 101
4. National Incident Management System (NIMS)
5. Homeland Security Exercise and Evaluation
Program (HSEEP)
6. National Preparedness Goal, National Response
Framework, National Recovery Framework
Emergency Response
Implementation
Policy Group
Emergency
Operations Group
Emergency
Responders
Policy-level
decisions
Coordination
decisions
Tactical decisions
Incident Command System
(ICS)
Another way to look at it
Command Staff
“Deciders”
OPERATIONS
SECTION
“Doers”
PLANNING
SECTION
“Thinkers”
LOGISTICS
SECTION
“Getters”
Policy Group
“Guiders””
FINANCE/ ADMIN
SECTION
“Payers”
Finance/Admin Section:
The Payers
• Main Responsibilities
o Monitors costs related to the
incident.
o Provides accounting,
procurement, time
recording, and cost analyses.
o Maintains documentation
for reimbursement and
insurance.
Finance/Admin Section:
The Payers
Finance / Admin
Section Chief
Procurement
Unit
Time Unit
Cost Unit
Compensation/
Claims Unit
Emergency Operations
Center (EOC)
“Where uncomfortable officials meet
in unfamiliar surroundings to play
unaccustomed roles, making
unpopular decisions based on
inadequate information, and in much
too little time.”
-Art Botterell
Emergency Operations
Center (EOC)
• EOC Functions
o Information collection and
evaluation
o Coordination
o Priority setting
o Resource coordination
o Communications facilitation
FEMA Public Assistance
• Proper documentation is a must
(track everything!)
• Coordination with Cal OES is
essential
• Pre-train if possible
• Go through the appropriate steps
to acquire resources
• Go through the appropriate steps
for reimbursement
Training and Exercises
• Training and
Exercises
o Develop a
multi-year
training and
exercise plan
Training and Exercises
• Training
o Train all emergency
personnel (decision
makers, operational staff,
responders)
o Train people on how to use
the plan, the guidance, and
the system
o Standardized courses from
the FEMA Independent
Study program
Training and Exercises
• Exercises
o Homeland Security Exercise and
Evaluation Program (HSEEP)
o Discussion Based
− Seminar; Workshop; Tabletop
o Operations Based
− Drill; Functional; Full-Scale
Tying it all together…
Emergency Response
Mitigation
and
Preparedness
Policy Group
Recovery
Continuity of Operations/
BC
COOP Coordination
Leader
Coordinatio
n Unit
Facilities
and Logs
Unit
Departments
Command Staff
“Deciders”
Finance /
Documentation
Unit
OPERATIONS
SECTION
“Doers”
PLANNING
SECTION
“Thinkers”
LOGISTICS
SECTION
“Getters”
Policy Group
“Guiders”
FINANCE/
ADMIN
SECTION
“Payers”
Information Flow
Emergency Response
Mitigation
President
COOP / BC
Emergency Operations
Center
Departments
Policy Group
$$$$$
BOT
Recovery
Continuity of
Operations/ BC
Emergency
Operations
COOP Coordination
Team
Incident
Command Post
First Responders
Takeaways
• What is something you
learned about Finance’s role
in continuity of operations
planning?
o COOP “to do list”
• What is something you
learned about Finance’s role
in emergency operations and
response?
o Emergency operations “to do
list”
• What else are you taking back
to your university from this
presentation?
Questions?