Continuity Planning Overview
Bonnie Canal
Managing Partner
The Resiliency Institute
It’s Going to Happen
• All communities will have some type of disaster.
General consensus is natural disasters are
increasing in frequency and severity.
• How quickly can you move from response to
recovery?
• The top 10 costliest U.S. natural disasters
between 1980 and 2010 caused more than $501.1
billion in damage and up to 22,240 deaths. (National
Weather Service and the Insurance Information Institute)
The $4 Billion Weather Disasters
of November 2013:
1.Super Typhoon Haiyan ($5.8 billion)
2.November 17 tornado outbreak in the U.S. ($1.7
billion)
3.Flooding in Cambodia ($1 billion, the costliest
disaster in Cambodian history)
4.Ongoing U.S. drought damages listed for the first
time this year ($2.5 billion)
• These four disasters bring the world-wide
tally of billion-dollar weather disasters in
2013 to 39.
• This is the second highest yearly total of
billion-dollar weather disasters for the globe
since accurate disaster records began in
2000.
Partners in Resiliency
• Other government:
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Economic Development
Planning Commissions
Zoning
Safety & Permits
• Businesses
• Chamber of Commerce
• BNI
• Community Groups
• Faith-based
• Civic
• Social
• Others?
Preparedness Saves Money
Resilience
Planning
Resilience
Condition
Savings
•
Hazard mitigation (FEMA): $1 spent = $4 in future benefits.
•
Hazard preparedness: $1 spent = $15 in future benefits.
•
Capital will flow more easily to communities that are
prepared!
• If a community is prepared a disaster,
there are stupendous opportunity for
community and economic development.
• Where are the opportunities to leapfrog?
All Sectors are Impacted
• Social
• Economic
• Environmental
Focus on Resilience
• Recognize – government can’t do it all.
• Stress –citizens need to be involved, engaged and
prepared (managed expectations).
• Focus – on community-level efforts to prepare, protect,
respond, and recover.
• Benefit – if done properly can speed up recovery
process.
• End Game – lessen the time between response and
recovery.
• Resiliency Plan threaded through the others-must include all plans, master, strategic plan,
land use plan, etc.
• The resiliency plan becomes strategic plan.
• Shortens time gap for recovery money and
actual recovery.
Small Business:
Backbone of Economy
 29.2 Million Small Businesses in the US
 85% of small businesses employ 10 or
fewer
 Create more than 50% of the non-farm
GDP
 Have fewer resources and capital to
recover in the event of a Catastrophe
 15-40% of Businesses fail following a
Disaster
 94% of Small Business Owners believe
that a disaster could seriously disrupt
their business within the next 2 years
Sources: SBA Website 092009 & Corporate Executive
Board U.S. Small Business Market Report -Spring 2010 ,
Red Cross 2011
Main Goal
The goal for Business Continuity
Planning is –
to return to revenue-producing
activity as quickly as possible
Continuity Planning 101
Definition of Business Continuity Planning:
“Identifies an organization's exposure to internal and
external threats and synthesizes hard and soft assets to
provide effective prevention and recovery for the
organization, while maintaining competitive advantage
and value system integrity.”
We’re not Just Talking About a
Catastrophe...
• Natural Disaster/Extreme
Weather
• Power Outage
• IT Failure
• Telecommunication
Failure
• Fire
• Flood
• Utility Outage
• Environmental
Accident
• Pandemic Influenza
• Supply Chain
Disruption
Key Planning Issues
• Emergency/Crisis
Management Structure
• Human Factors
• Communications
• Security (physical and
logical)
• Reputation (PR)
Technology
Supply Chain
Legal
Public/Private
Partnerships
• Facilities
• Stakeholders
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Examples of Business Continuity
Risks
•
Have you considered financial, legal, regulatory penalties that could be
imposed if you fail to provide a critical service which you are contracted to
do?
•
Consider how each of your critical services could continue during a
prolonged power loss. ...Now think about a loss of power lasting for 24
hours.
•
Which of your critical services would be jeopardized if your building was
evacuated for a week with all access denied?
•
What services would be affected if access were denied for a whole month?
•
How many staff would be needed to continue to cover critical tasks and
how would you accommodate them?
Examples of Business Continuity
Risks
•
Do you have sufficient back-up for your data, both electronic and paper?
•
Do you have an alternative building or premises in which to work
effectively? Is this sufficient? Can staff work from home?
•
Do you need access to any services not currently available at your
temporary site?
•
Do you use any special software or stationery? How long can you manage
without that specific equipment and how long would it take to replenish
stocks?
Business Continuity PlanningOrganization Approach
1. Succession Plans
2. Accounting for Employees
3. Communications
4. Alternate Work Facilities
5. Essential Functions
Primary Question:
•Who do we depend on?
•Who depends on us?
What About the Supply Chain?
“To be completely Organizational Resilient,
ASK ALL VENDORS
in your Supply Chain IF THEY ARE RESILIENT.”
The Standard is Changing
National standards have recognized the personal
resilience gap and have evolved to address a more
dynamic model of planning that addresses needs before,
during and most importantly after an event.
In other words – they have evolved from readiness to
resilience.
Private Sector Responsibilities
Planning must consider the Maximum
Allowable or Acceptable Down Time before
the continued existence of a business is
threatened, and must identify resources required
to maintain or resume business activities at an
acceptable level.
Think about it…
Organizational Resilience depends on the
resilience of the people you rely on.
Risk Analysis
Personal Risk
Analysis
Annual Testing &
Evaluations
Personal Continuity Plans
Improved
Continuity
Planning
Model
Identify Dependencies
Recovery
Strategies
Recovery Plans
Response Plans
Benefits of Preparation

Mitigation of loss of life or injury

Business survival

Minimizing impact of business disruptions

Improved supply chain resilience

Satisfying customer business continuity requirements

Improved internal processes

Improved employee relations

Improved external relationships

Satisfy customer, shareholder, and stakeholder expectations

Potential advantage over unprepared competition

Lower operating expenses

Protection of brand and reputation
IBHS Tools For Small Businesses
Red Cross Tools For Small
Businesses
www.ready.gov
US Small Business Administration
Chambers of Commerce
 Develop a Plan for the Chamber
 Present Small Business Continuity Planning to
the largest potential audience
 Have the Chamber Endorse the process
 “Sell” Business Continuity Training and as a
Value-added service for the Chamber
 Provide the Training and Assistance
 Imbed Business Continuity into the Chamber
Processes
Tulsa Area United Way
• Developed a Plan for the United Way
operation
• Convinced them of the importance of
planning for their “Member Agencies
• Presented Small Business Continuity
Planning to the largest potential
audience
• Provided the Training and Assistance
Building resilience requires a holistic approach
that integrates risk reduction and balances social,
economic, and environmental goals.
End Game: lessen the gap between response and
recovery
Questions?
Bonnie Canal
Managing Partner
The Resiliency Institute
504-874-5474
bonniecanal@theresiliencyinstitute.com