Lesson 11
Public‐Private Partnerships, Business Continuity and Contingency Planning
Dr. Peter Forster
Audio is required
Introduction
fotopedia.com 7/14/2011
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Objectives
By the end of this topic, you will be able to:
• Explain why the public‐private partnership is so critical to crisis and disaster management.
• Define consequence management.
• Describe DHS’s view of the public‐private partnership.
• Explain why risk shifted to the private sector.
• List the key components of a company’s response to crises and disasters. Copyright 2011
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Consequence Management
Impact of 9/11 ‐ $20B to 32B
• Majority of employees lost from private businesses
• Direct cost to property
• Effects on productivity
• Insurance loss
• Financial loss
• Changes in public behavior
• Corporate level loss
• Resilience
World Trade Center site
globalsecurity.org 7/14/2011
Copyright 2011
Fugate’s Presentation
• 72 hours ‐ communities need to stand on their own before FEMA is effective
• Why should we shift from a private sector oriented model 1 minute before a disaster to a government centric approach 1 minute after
Craig Fugate – Director of FEMA
www.flickr.com/photos/csis_er/5455
852551/sizes/l/in/photostream/
• Most systems do not scale to the catastrophic level
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Consequence Management
Measures to protect public health & safety, restore essential government services, provide relief to government, businesses, and individuals
2 Approaches
1. Direct involvement of the private sector in DHS initiatives
2. Corporate self‐assessment
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DHS Approach
This approach differentiates between national security and homeland security in terms of responsibility
• National security – federal responsibility
• HLS – shared responsibility for government all levels, private sector, & individual
“National Strategy Protection of Physical Infrastructure & Key Assets” = the driving document that breaks down critical infrastructure and key resources (CIKRs)
Janet Napolitano
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DHS Approach
Engage in risk management
• Private sector key to identifying & eliminating vulnerabilities
• Provide timely warning • Invest in security as business operations & customer confidence
• Understanding that some risk exceed ability to respond
Marriott Mumbai
www.flickr.com/photos/wander/1030568
/sizes/m/in/photostream/
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National Infrastructure Protection Plan (NIPP) National Risk Management Strategy
5 Sections
1.Protect CIKR v. specific threat
2.Identify CIKP, map interdependence, reduce vulnerabilities
3.Max efficient use of resources
4.Partnerships
5.Continuous improvement
Critical Infrastructure and Key Resources (CIKRs)
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National Infrastructure Protection Plan (NIPP)
5 Sections
1.Protect CIKR v. specific threat
2.Identify CIKP, map interdependence, reduce vulnerabilities
3.Max efficient use of resources
4.Partnerships
5.Continuous improvement
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Private Stakeholder and QHSR
• Engage private sector as a stakeholder
• Quadrennial Homeland Security Review (QHSR) – contingency planning from fed. gov. to small business
• Requirements of Public/Private Partnership
www.flickr.com/photos/planspark/3785533432/sizes/l/in/ph
otostream/
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Requirements of Public/Private Partnership (PPP)
1. Understand & deal with industry competitiveness issues:
– Proprietary information
– Protected Critical Infrastructure Information Program (PCII)
http://www.dhs.gov/files/programs/
editorial_0404.shtm
– Sector coordinating councils Copyright 2011
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Requirements of Public/Private Partnership (PPP) (cont)
Government needs to
2. timely disseminate information 3. make an effective business case to industry why cooperation is valued/vital
4. find ways state‐local‐private engagement occurs more readily with the federal government
Speaker of the House, Tip O’Neill and President Ronald Reagan
1985 Associated Press
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Private Sector Efforts
Soft Targets
Healthcare
Enterprise software Chips and systems manufacturers
Hardening of other targets leaves softer targets attractive, plentiful, and result in media attention
SCADA
“The Physical Protection of Critical Infrastructures and Key Assets”
http://www.dhs.gov/xlibrary/assets/P
hysical_Strategy.pdf
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Private Sector Efforts
Government History of Addressing Risks to Private Business
• Riot insurance
• Unemployment
• Worker compensation
• Disaster compensation 1. Insurance
2. Tort
3. gov’t programs
4. Charity
Hurricane Katrina – Restaurant
• Air catastrophe –
insurance & tort
• Flood – insurance & gov’t program charity
http://www.flickr.com/photos/au_tiger01/1102
82569/sizes/m/in/photostream/
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Terrorism Risk Insurance Act of 2002
• Insurance as part of national security
• Insurance is part of resilience
• Voluntary insurance
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Preparing the Organization
• Create a business plan 1. strategic focus
2. think ahead
3. prepare resources
• Deal with your employees
• Manage the issue and look to keep the business running
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Reducing Risk – A Private Sector Strength
• Evaluation of lessons learned
• Embracing best practices
• Stimulating innovation
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Case Study ‐ Walmart
Private sector sees same threats
• Watch video http://www.chds.us/?player&id=39
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Public – Private Cooperation
• Walmart: alarm central system
• Matching company direction w/ threat analysis
• Communications
• Multiple Touch points
• Federal (DHS/FEMA)
• State ‐ Emergency Management
• Store Managers at a local level
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Public – Private Cooperation
• Hurricane Dolly Sept ‘08 – best practice
• New preparedness objectives
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