The Impact of Corporate Preparedness. For Audio: (1) Listen through PC speakers, OR (2) Dial and use access code

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1 The Impact of Corporate Preparedness on the Bottom Line For Audio: (1) Listen through PC speakers, OR (2) Dial and use access code

2 Prepare to Survive. Bob Boyd President & CEO Agility Recovery For Audio: (1) Listen through PC speakers, OR (2) Dial and use access code

3 Why Are We Here? 15 40% The number of businesses that fail following a natural or manmade disaster.* 35% The number of small to medium sized businesses that have a comprehensive disaster recovery plan.** 94% Number of small business owners who believe a disaster could seriously disrupt their business within the next two years.*** 51% Number of Americans who have experienced at least one emergency situation involving lost utilities for at least 3 days, evacuation from their home or office, loss of communications with family members or had to provide first aid to others.**** *Insurance Information Institute, **Gartner, ***American Red Cross and FedEx Small Business Survey, 2007, ****American Red Cross/Harris Poll Survey, 2009,

4 Management Concerns 1. Profit Growth 2. Sustained & Steady Top Line Growth 3. Customer Loyalty & Retention 4. Stakeholder Satisfaction 5. Corporate Reputation 6. Excellence in Execution 7. Regulatory Compliance 8. Economic Stability/Instability

5 Importance of a Disaster Recovery Plan Reputation: Impacts the availability to customers and vendors Revenue: Responsibility: Requirement: Losses and costs of an outage. Retention of Client base and revenue streams To customers, shareholders, employees, and the Community Such as audits that require a plan in place Regulation: That require a preparedness or disaster recovery plan

6 Balance Sheet - Assets Tangible assets an asset that has physical form and is capable of being appraised at an actual or approximate value Cash, Accounts Receivable Property, Plant & Equipment Inventory Intangible assets an asset that does not have physical form Patents Trademarks Goodwill Intellectual Property

7 Balance Sheet - Assets Corporate Preparedness = Protecting Essential Assets In the event of an interruption, the affect can be diminished or completely avoided with proper preparedness efforts Goal: Safeguard market value Goal: Safeguard operational capabilities Corporate Preparedness = Strengthening Brand & Reputation Communicating corporate preparedness and resiliency with stakeholders can provide a competitive advantage

8 Example #1: Local Insurance Agency ReadySuite Member is an independent insurance agency in Dexter, MO Declared a disaster following an ice storm in 2009 Agility delivered a generator to power their building within 7 hours following the storm Opened their offices to the local community as a warming shelter Secured new business because they were the only business open in SW Missouri for days following the storm

9 Balance Sheet - Liabilities Liability Claim against the assets; or legal obligations of a person or organization, arising out of past or current transactions or actions Corporate Preparedness = Reduction or avoidance of an interruption with provisions for: Litigation Damaged inventory/equipment Asset impairment Property Plant Equipment Inventory Environmental Claims Employee benefits

10 Example #2: Commercial Janitorial Firm ReadySuite Member is one of the largest privately held providers of commercial and office janitorial services in all of North America Declared a disaster following a burst pipe in 2009 Was back up and running within days following the event The company was being sold and the new investors were due onsite in days Sale went through investors did not execute the MAC clause following the interruption

11 Profit & Loss Statement Corporate Preparedness = Revenue Insures current revenue flow Increase revenue from existing clients Generate new revenue from new clients Corporate Preparedness Impact on Expenses Reduce costs Generate savings = additional return on investment

12 Example #3: Construction Company ReadySuite Member is one of the Southeast Louisiana s resources for highway heavy and civil construction projects. Declared a disaster following Hurricane Katrina Was back up and running within days following the event Secured between $3 and $5 million contracts for debris removal while competitors were scrambling

13 Profit & Loss Statement - Revenue Corporate Preparedness Impact on Revenue Flow Allows a company to maintain operations following an interruption and return to work generating revenue quickly Protects core operations and revenue flow Helps to minimize/avoid impact of less disastrous events Preparing for major interruptions can minimize/avoid the impact of smaller disruptions (smaller disruptions can reveal significant vulnerabilities)

14 Profit & Loss Statement - Revenue Corporate Preparedness Impact on New & Existing Clients Organizations are placing greater emphasis on safety and security in order to minimize disruptions to their operations Competitive advantage Able to grow existing customer base and increase retention rates Ability to adapt to changing environments Flexibility in corporate response

15 Example #4: Regional Bank ReadySuite Financial Member declared a disaster on April 8, 2010 due to a fire in a tenant s office They were back in business days later operating in their parking lot out of a mobile unit Communicating to stakeholders that they were: Protecting their income streams Upholding regulatory requirements Ensuring accessibility no matter what The ability to re open quickly and continue to service customers will help retain customers in a volatile market

16 Profit & Loss Statement - Expenses Corporate Preparedness Impact on Managing Legal Costs Legal Obligations Common law negligence Specific legislation/regulations Contractual obligations

17 Profit & Loss Statement - Expenses Corporate Preparedness Impact on Lowering Insurance Costs Better Policy Terms Premium pricing policy Deductible Levels Corporate Preparedness Impact on Lowering Costs of Capital Ability to repay debt Provides return to stockholders Rating agency evaluation Equity investors analysis

18 Example #5: Distribution Firm ReadySuite Member is a familyowned wholesale distributor of premium smoked meats. Declared a disaster following a thunderstorm that had knocked out power to the area. The distributor had secured generators to service its refrigeration unit, but was told that Wal Mart had taken all the local units. Agility worked with our vendors to secure a large generator in time to avoid a $10 million insurance claim.

19 Prepare to Survive. The Agility Approach

20 What is your risk? There s no such thing as a minor disruption. Any event that prevents work from happening can be catastrophic for a business. In the past two years, Agility responded to over 560 disaster events. Including: DCH Credit Union Tornado ASI Federal CU Burst Pipe Bank 34 Arson County Wide Insurance Ice Storm Montgomery Barnett Hurricane Barnes Dennig CPA Burst Pipe Cowan Insurance Server Failure Mayfield Kentucky Power outage Planning gives you the ability to understand and mitigate your risk, and quickly recovery from the impact of a crisis.

21 Regional Events/Risk Proactively reached over 3,500 members in 2010 during events Demonstrated impact of Roadmap to Recovery discussions Reviewed risks, communication plans, risk assessments, contact processes and any action items identified during roadmap. Offered advice, guidance and assurance that Agility is there if the event should materialize and impact their operations.

22 Agility Expertise With Agility, you don t need to be all things to all people. In the midst of a disaster, it s nearly impossible to try to run your business and recover it at the same time. The responsibilities are too numerous, the must do list too long and the emotional demands too taxing for one person to handle. That s the reason companies turn to Agility. We take care of everything you need to get your business back in business, freeing you to focus on what matters most your people, your customers and your community.

23 ReadySuite Membership In exchange for a small monthly fee, you can have access to all of our knowledge, expertise and resources. We ll help you develop a customized plan and get prepared for any crisis. Our Promise: If you have a disaster we will rescue your business. We will deliver any or all of our four key recovery elements: Power Technology Space Connectivity

24 Agility Membership Membership Lifecycle Agility provides robust, easy to implement recovery solutions for an affordable monthly membership fee. Membership Features Immediate protection myagility Planning Portal Alert Notification 24 hour access Ongoing education programs Testing

25 myagility Family Most organizations agree that employees are their most valuable asset Steps taken to protect your employees and help them prepare personally for disaster are often the most important myagility Family is a powerful web based tool for Agility member employees and their families myagility Family is provided free to all employees of every Agility Member organization

26 myagility Family This Secure, Password protected Preparedness Portal Includes: Personal Preparedness Plan Templates Weather Forecast Alert System Automated Reminder Service Contact Alert Notification System Virtual Safe Deposit Box for Critical Documents

27 ReadySuite Recovery Solution Whatever you need, whenever you need it. When disaster hits, Agility will be there on the scene, providing you with any, or all, of the critical elements you need to keep your business in business. ReadySuite: Immediate protection 48 seat office space 5 Intel servers Power generation Phone and Internet connectivity Testing Option myagility Planning Portal

28 Agility Recovery Process Agility bridges the gap between disaster and survival.

29 Prepare to Survive. Questions? For any inquiries, please contact: Bob Boyd Agility Recovery *This presentation has been recorded and a link will be sent out tomorrow to all registrants. **To request a copy of the slides from today s presentation, please

30 REMINDER: September is National Preparedness Month! Agility Recovery is a National Preparedness Month Coalition Member FOUR Educational Webinars in September featuring National Speakers. Visit for more information under EVENTS 9/7/ Culture of Preparedness - The 72 Hour Rule Guest Speaker: Former FEMA Administrator, Chief David Paulison 9/14/ The 10 Commandments of Disaster Preparedness Guest Speaker: FEMA Public Affairs Officer 9/21/ Resilient America - Personal and Community Preparedness Guest Speaker: Red Cross Public Affairs Liaison 9/28/ Survivor Panel - Real World Lessons Learned

31 Prepare to survive. For more than twenty years, thousands of businesses have relied on Agility to help plan for and recover from the unthinkable. We re ready when you are.

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