Introduction. Introduction. Introduction. A Best Practices Approach To Developing & Sustaining Corporate Emergency Supply Caches

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1 April 22- A Best Practices Approach To Developing & Sustaining Corporate Emergency Supply Caches April 22- Introduction This is not just a presentation. It is an interactive discussion with integrated Q&A along the way Effective sustainable supply provisioning is a continuing challenge due to its complexity, budget requirements, multiple vendor development, expiration monitoring and many other time and resource consuming factors The session presents a case study that outlines what we have learned over past 7 years. It provides you with the methodology to properly equip your facilities with effective levels of supplies managed preparedness Introduction April 22- With these best practices, you can Align what you procure with your particular situation/environment Save money by budgeting more effectively Avoid over buying Match the supplies you procure to the types of disasters you could potentially face with a preparedness checklist that will help you manage this important task Introduction April 22- The information we present today was just published (March 2013) in the peer reviewed paper Business Continuity and Emergency Planning, England Volume 6, No. 3 Published by Henry Stewart Publications-London, England

2 April 22- April 22- Brief Profile... Nexis Preparedness System and comprehensive approach, unique in the industry Livermore, CA corporate headquarters, showroom & kit assembly and distribution center Fortune 500 list of clients Company website is physical preparedness have not existed in the past Determined need to organize disaster preparedness into an easier-to-accomplish process provisioning factor, false 3-day kits, no consideration for Basal Metabolic Rate (BMR), hydration) Seeing more and more companies embrace preparedness and making the investment Companies increasingly believe that preparedness has ROI April 22- Typical Gaps & Deficiencies in Physical Preparedness 1. Failure to consider potential disaster risks for each of your locations individually and acquiring the proper supply mix accordingly 2. Not varying provisions for shelter in place versus evacuation scenarios 3. Under or over preparing based on employee population 4. Not having an appropriate amount of food and water to comfortably sustain employees 5. Thinking that a 1-day kit is really a 3-day kit 6. Not understanding the quantities and ratios of supply mix (kits vs. trauma vs. toilets vs. lighting, etc.) 7. Mismatch on how much storage space is required versus how much is available 8. Difficulty in keeping track of expiration dates on perishables including medical supplies 9. Throwing away supplies at the end of their life instead of repurposing them April Consider potential disaster risks for each of your locations individually and acquire the proper supply mix Preparedness approach must relate to disaster susceptibility Earthquake/ Severe Weather Hurricane Tornado/ Severe Weather/ Flood Hurricane/ Severe Weather

3 April Vary provisions for shelter-in-place versus evacuation scenarios Identify Disaster zones via IBHS* -Where available use additional resources to determine disaster type (ABAG, USGS, etc.) Site Specific Kits Determine correct kit contents for disaster zone Site Specific Supply Mix Be sure overall supply assortment relates to disaster type April 22- Topic: Vary provisions for shelter-in-place versus evacuation scenarios Example: Hurricane = evacuation whereas earthquake = shelter in place. SF Bay Area-estimates when Hayward Fault ruptures are for 1734 roads to be some period of time Is your emergency plan designed for evacuation and re-entry of your buildings? Are you prepared to provide for employees stranded in the parking lots? Are your communication tools adequate for both evacuation and shelter-inplace scenarios? Have you trained for and drilled the deployment of emergency supplies? * Insurance Institute For Business & Home Safety April Prepare based on employee population attrition or surge Two Ways to Approach Preparedness: Attrition Many businesses and institutions Apply a 100%-50%-25% employee factor Surge - Health care, utilities (infrastructure), private sector responders, local, state and federal agencies Frequency April 22- Employee Commute Distance Analysis 39.5% of Company Employees live <10miles from work. 60.5% >10 miles NetApp Employee Commute Distance Miles % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Frequency Cumulative % Miles Employees Cumulative % % % % % % % % % % % % % % % % % % % % % More %

4 April 22- business! Readiness-Initial response to a disaster for overall employee base-2-3 days Recovery-Provide support for multiple weeks for recovery team comfort and provisioning April 22- forget the recovery side of your business! Poll: Are you prepared for attrition or surge? How many people are on your recovery team and for how many days do you plan for them to operate? Have they trained with your response team? Do you know how to mobilize emergency resources? Does your plan include resources to stay overnight and operate in shifts on a 24/7 basis? April Provide sufficient food and water to comfortably sustain employees Emergency Food how much is needed? There are no Red Cross / FEMA guidelines for emergency food due to wide variety of factors BMR (Basal Metabolic Rate) is one metric to determine caloric need. BMR is what a body consumes at rest just to survive BMR for a 185 lb For a 135 lb calories Water how much is needed? Red Cross / FEMA guidelines recommend ½ gallon per person per day for consumption April 22- Harris Benedict Formula Consideration Used to calculate true caloric requirements by factoring activity level Added to the BMR calculation Result is referred to as the Active Metabolic Rate or AMR. If a person is sedentary: calorie calculation = BMR 1.2. If a person is lightly active: calorie calculation = BMR If a person is moderately active: calorie calculation = BMR If a person is very active: calorie calculation = BMR If a person is extra active: calorie calculation = BMR 1.9.

5 April 22- Topic: Provide sufficient food and water to comfortably sustain employees and provide for recovery April day kit CAUTION: Many promote a 3-day survival kit that contains a 2400 calorie food bar and a total of 3 of water Poll Prior to this session, were you aware of BMR guidelines and Harris Benedict factors? How have you calculated the amount of emergency food and water you need to adequately sustain your employees and teams? Is your approach aligned with your response and recovery plans? How will the resources be distributed and accounted for? Typical Levels Observed 2400 calorie bar 800 cal per day 42% BMR (male) Recommended Levels 3600 calorie bar x cal per day 126% BMR (male) April When a -is only a 1-day kit Emergency Water Requirements: The Red Cross /FEMA recommend at least ½ gallon of water per person per day for consumption (an additional ½ gallon is recommended for hygiene) Typical Levels Observed Recomm. Supply Level April 22- Topic: 3 Day or 1 Day Kit A Crucial Choice Poll How are you prepared to distribute emergency food and resources? Are your response and recovery teams trained? Aqua Blox 8.5 oz per day 13% of minimum Aqua Literz in kit plus bulk supplement 67.6 oz per day 106% of minimum Have you designed or required an emergency kit? What are your essential ingredients for a 3 day kit? Have you considered your special dietary needs employees?

6 April Quantities and ratios of supply mix (kits vs. trauma vs. toilets vs. lighting, etc.) Not an easy task! agency standards where they exist Use common sense in calculating quantities needed for all other items Ask vendor(s) to provide calculation data for ratios of how to purchase related things. Example: emergency sanitation requires toilets, chemicals, liners, deodorizer, privacy shelter, toilet paper or wet wipes April 22- Topic: Supply Quantities and Ratios Your Management Expects You to Know Poll If you currently procure supplies, how do you calculate the quantity and ratio to purchase? Are you comfortable setting up tents, privacy shelters and lavatories? Do you know the ratio of each multi user items to employees? (toilets, lanterns, search & rescue, etc.) 7. Supply storage April 22- In earthquake country, supplies should be stored outside of the building if at all possible. (Shipping containers are perfect!) Other disaster zones supplies can be stored indoors Get vendor to provide cubic dimensions of highest quantity and largest cubic space requirement items Ideally store supplies on shelving for rapid access When calculating shelving requirements, factor in stack factors (loading efficiency), weight distribution, etc. In cold weather climates, be sure to acquire water that is manufactured with freezing in mind if storage is not in a heated location Storage Solutions April 22-

7 April 22- Topic: Storage Options- Where the Resources Meet the Sustaining Annual Budget Poll Have you aligned your risks, including cold and warm weather, and storage options? Are you aware of supply item vulnerabilities? Is storage and resource mobilization a working component of your emergency and response plan? Do you have a plan to easily transport your supplies from your storage area(s) to the point of use and/or distribution? Could your storage option become a communication hub (EOC?), medical treatment center, executive management safe-haven, etc. once the resources have been deployed? April Keep track of expiration dates of perishables Documents compliance with disaster preparedness plans Ensures supplies are viable (no expired products) Minimizes risk Documented employee coverage in known hazard zones Supplies are viable (not expired) so no repercussion from using expired items during an event. Supports ability to donate certain supplies prior to expiration date Avoids throwing items in landfill (items get second, immediate usage) Good for the local community Possible tax benefit depending on accounting practices 8. Keep track of expiration dates of perishables April 22- Item Description Approx Shelf Life Eye Wash Solution 4 oz. 2 years BZK Antiseptic Wipes 2. Antibiotic Ointment Packet Hour Green Lightsticks 4 years 30 Min High Intensity Yellow Lightsticks 4- Dust Masks 4 years 3" x 5 yards. Elastic Bandage Adhesive Tape 1" x 10 yards. Alkaline D Battery 5-7 years Aqua-Blox Survival Water Emergency Water (Aqua-Liters) Bandage Sheer 1" x 3" CPR Shield Emergency Food Bars Industrial Duct Tape 2" x 50 yards. Latex Gloves Vented Safety Goggles 7 years MREs 1-7 years* *Shelf life drops dramatically if not stored below room temperature April 22- $80, wasted and trashed!

8 Topic: Emergency Supply Expiration Management April 22- Poll: Why should you care about monitoring the expiration dates? What resources expire first, last and never? Do you have the ability to monitor your perishable resources over a 5-20 year time horizon? Are they aligned with your plan and team training? What is your reaction to donating supplies to a nonprofit, such as a homeless shelter, just prior to their expiration? April 22- One more thing to potential legal exposure! April 22- Consider the Risk Legal Exposure And Risk of legal exposure and liability is another very important reason to prepare businesses for disasters Foreseeability- Example: Earthquakes have and will continue to occur in California. The impact resulting from an earthquake may be foreseeable and under some circumstances can be mitigated, at least partially. April 22- Topic: The Future of Emergency Supplies and You Poll Legal liabilities and emergency suppliesdo you believe they are connected? -level management and board of directors are aware that physical preparedness of the workplace can help mitigate their legal exposure? Are your C- protect the welfare of your employees?

9 April 22- ROI and Standards New ISO standard on Business Continuity Management will help drive more companies to achieve compliance and get serious about an effective and measurable level of readiness Preparedness ROI studies show returns ranging from 4:1 all the way up to 108:1 The Nexis preparedness system April 22- worth it! April 22- What Does Nexis Preparedness Systems Do? Prepare organizations nationwide for disasters Keep them prepared by monitoring supply status and replenishing prior to expiration Enhance corporate resilience & sustainability A one-stop source for all preparedness resources Operate kit-assembly facility-livermore, CA Helps facilitate donation of perishables to worthy causes before they expire In short, NPS April 22- Corporate Preparedness Process Value-Added Service Elements-The Complete Solution Analysis & Fulfillment Monitoring & Maintenance Training & Employee Personal Preparedness Site hazards overview Determine objectives duration, attrition, site specific Precision supply calculation (software tools) Inventory supplies existing and new Monitor inventory tracking and compliance reporting Donation notification & connection prior to expiration Employee personal preparedness seminars Employee personal supply discount program

10 April 22- Effective employee preparedness can range from $60-$130 per employee, depending on days of provision, depth of preparedness and other factors Cost per employee per year ranges from $12 to $26 per year. After initial cost, replenishment after is about 50% of the initial purchase Category # of Employees Total Cost Annual Cost Over 5 years April 22- Enterprise Preparedness Benchmarking Data $/Person Over 5 Years Replenishment 5 Years** Bio-Tech 1,000 $77,075 $15,415 $77 $38,000 Semiconductor 267 $24,000 $4,800 $89 $12,000 Medical Device 332 $27,000 $5,400 $81 $13,500 Technology 137 $17,000 $3,400 $124 $8,500 Bio-Tech 750 $63,750 $12,750 $85 $31,875 Bio-Tech 450 $56,531 $11,306 $126 $28,261 Law Firm* 310 $21,626 $4,325 $70 $10,813 Financial* 2551 $152,737 $30,547 $60 $76,369 Nutrition 662 $82,307 $16,486 $125 $41,154 Technology 700 $76,700 $15,340 $110 $38,350 *Storage space limited **Approximate cost-varies by initial product mix Typical $60 scenario Supply scenarios April 22- Typical $120 scenario April hr kit Day 2/3 bulk food/water Lighting 72 hr kit Bulk water Hygiene water Lighting Generators Computer Demo Sanitation Sanitation First Aid & Trauma First Aid & Trauma S&R Floor Warden Recovery Team

11 April 22- The End managed preparedness

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