1 Emergency Preparedness for Design Firms RLI Design Professionals Design Professionals Learning Event DPLE 244 September 16, 2015
2 RLI Design Professionals is a Registered Provider with The American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-aia members are available on request. This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.
3 Copyright Materials This presentation is protected by US and International Copyright laws. Reproduction, distribution, display and use of the presentation without written permission of the speaker is prohibited. RLI Design Professionals
4 Course Description Wherever you live and work, your business is inevitably exposed to emergency situations. They might include natural disasters like windstorms, floods, earthquakes, or winter storms. Emergency situations can also involve man-made disasters like fires, chemical emergencies, or episodes of terrorism on varying scales. Increasingly technology threats, including cyber incidents, are becoming more catastrophic as cyber criminals become more savvy. How will you protect your income and assets when disaster strikes?
5 Course Description Your Firm s Exposure to Emergency Situations Natural Disasters Hurricanes Earthquakes Wildfires Man-Made Disasters Fires Workplace Violence Terrorism Technology Disasters Cyber Breaches Software Corruption System Failures
6 Course Description Your Firm s Response to Emergency Situations First Line of Preparedness Protect People, Property, Operations, Others Next Step Business Continuity This course will outline a spectrum of emergency preparedness tips for design firms.
7 Learning Objectives Participants in this course will learn more about: Protecting people; Protecting property; Protecting operations; and Protecting others.
8 Key Terms Disaster Preparedness is the process of ensuring that an organization: (1) has complied with the preventive measures, (2) is in a state of readiness to contain the effects of a forecasted disastrous event to minimize loss of life, injury, and damage to property, (3) can provide rescue, relief, rehabilitation, and other services in the aftermath of the disaster, and (4) has the capability and resources to continue to sustain its essential functions without being overwhelmed by the demand placed on them. Preparedness for the first and immediate response is called emergency preparedness.
9 Key Terms According to Techopedia: business continuity involves designing and creating policies and procedures that ensure that essential business functions/processes are available during and after a disaster. Business Continuity can include: replacement of staff, service availability issues, business impact analysis, and change management.
10 NOAA s Climate Prediction Center Credit: NOAA
11 Not Happening to You? 2015: Summary of Disasters 803 Tornadoes Reported Hurricanes, Tropical Storms Floods Florida Kentucky Louisiana Ohio Texas Wildfires
12 Not Happening to You? A Look at Technological Disasters Computer Virus Software/System Failures Cyber Attack Hackers Theft
13 Important to You? The Insurance Information Institute states that up to 40 percent of small businesses affected by disaster will never reopen. According to the National Flood Insurance Program, from 2010 to 2014, the average commercial flood claim amounted to nearly $89,000.
14 Considerations Property Valuation Improper valuation of commercial property Underinsured commercial property Beyond Property Coverage, there are Operational Issues to Consider 75% of companies without business continuity plans fail within 3 years of a disaster
15 The Result? Risk Reputation
16 How to Plan for an Emergency Step 1: Prepare Analyze Hazard types and risks to your business Possible physical damage to property Shutdown impacts Cost and revenue loss estimates Available physical and financial resources Recovery estimates and alternative survival
17 How to Plan for an Emergency Step 1: Prepare Establish an Emergency Response Plan Document Contingencies and Checklists Create a Phone Tree Establish a Meeting Location Train your Staff Conduct Drills Maintain Proper Response Equipment
18 How to Plan for an Emergency Step 2: Respond Evacuate all Employees and Visitors: Evacuation Route Alarm System Report Emergencies Fire, Police, Medical: Include Non-emergency Contacts for Local Organizations Contact Appropriate Regulatory Agencies: HAZMATS Natural Disasters Notify Appropriate Internal Personnel: Management Property Damage Coordinator
19 How to Plan for an Emergency Steps 3 & 4: Recover and Restore Search and Rescue Salvage Property File Reports with Regulatory Agencies Employ Business Continuity Plan
20 Business Continuity Plans Step 1: Set Up the Program Objectives Scope Assumptions
21 Business Continuity Plans Step 2: Organize Personnel Facility Equipment Supply Financial Resources
22 Business Continuity Plans Step 2: Organize the People Roles, Responsibilities, Lines of Authority, Delegation, Coordination Senior Management Emergency Response Team Business Continuity Leader Information Technology Internal Firm Management Project Management
23 Business Continuity Plans Step 3: Analyze the Business Impact Identify Recovery Time Objectives for: Business Processes Information Technology Recovery Point Objectives for Data Restoration
24 Business Continuity Plans Step 4: Identify Business Continuity Strategies and Requirements Detailed procedures, resource requirements, and logistics: To execute recovery strategies For relocation to alternate worksites Networks Servers Laptops/Desktops For recovery of IT: Wireless Devices Data Applications
25 Business Continuity Plans Step 5: Create Workarounds Document procedures for manual workarounds Step 6: Manage Incidents Define procedures Incident Detection and Reporting Alerting and Notifications Activating Business Continuity Plan Activating Emergency Operations Center Assessing Damages Developing and Finalizing a Plan
26 Business Continuity Plans Step 7: Train & Test Training for business continuity planners Testing schedules, procedures, and forms Business recovery strategies IT strategies Exercises Step 8: Maintain & Improve the Program Schedules, triggers, and assignments for review Corrective action to address deficiencies
27 Business Continuity Plans Step 9: Distribute the Plan [Your Name Here] Business Continuity Procedures
28 And what if you re asked to perform services after an emergency?
29 Know the Good Samaritan Laws
30 Understand your Coverage Coverage applies: as long as an employee is rendering services that he/she is legally qualified to perform on behalf of his or her employer; and regardless of whether or not a fee is collected. Another important risk management component: We recommend that all employers have a clear policy on moonlighting and providing volunteer services. In general, the policy can either: prohibit moonlighting and volunteer services completely, or may permit either (or both), but only with the permission of an employee's manager or a designated member of senior management.
31 Think About Contracting Some Considerations: What is the scope of your services? Can you get an adequate fee in consideration of the risk? Will a Limitation of Liability or Indemnification provision protect you from: Resale of the property? Third party visitors? Faulty client-furnished information?
32 Insurance Coverage Electronic Data Flood Insurance Business Income Extra Expense Contingent Business Interruption (supply chain) Privacy Protection
33 Consult Resources Federal Emergency Management Agency National Fire Protection Association
34 2015 National Preparedness Month Events Week 1: September 1-5 th Flood Week 2: September 6-12 th Wildfire Week 3: September th Hurricane Week 4: September th Power Outage Week 5: September th Lead up to National PrepareAthon Day (September 30 th )
35 This concludes The American Institute of Architects Continuing Education Systems Program Laurel Tenuto, Client Risk Management Coordinator Marie Bernier, Senior Risk Management Consultant
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