You Can t Sue a Disaster. Assess your risk, plan for disruption, protect your firm

Transcription

1 You Can t Sue a Disaster. Assess your risk, plan for disruption, protect your firm

2 Speaker Bios Stacy Colvin Partner Hunton & Williams LLP Practicing law since 1993, Stacy advises on the development and implementation of policies and procedures designed to mitigate risk and enhance legal and ethical compliance, including physical and informational security, business continuity, document preservation, records management, and social media. Her general business litigation practice has included professional liability defense, internal investigations, corporate governance and securities litigation. She has tried cases before juries and judges in state and administrative courts. Bob Boyd President & CEO Agility Recovery Bob joined Agility nearly ten years ago and has helped lead Agility s transformation of the disaster recovery industry. Bob holds an MBA from the McColl School of Business, a B.S. from Davidson College

3 Overview 1. Understand Your Risk 2. Address the Realities 3. Set Goals 4. Get Started Today!

4 Understand Your Risk Top Business Risks 1. Power Loss 2. Loss of Sales & Customers 3. Length of Recovery 4. Uninsured Loss (for continuing operations) 5. Uninsured Loss (for destruction of physical property)

5 Understand Your Risk 2012 Year in Review 47 Presidentially Declared Disasters, 32 states and territories 11 disasters causing over $1 Billion in damage Second most costly year, 2 nd behind 2011 $14 billion disasters Largest Atlantic hurricane on Record: Sandy Winds extending 1,100 miles in diameter Preliminary estimates of losses due to damage and business interruption estimated at $65.6 billion, making it the 2 nd costliest Atlantic hurricane

6 Understand Your Risk

7 Understand Your Risk Agility Recovery Member Events by Category Alerts and Declarations 4,423 Total Events

8 Understand Your Risk Recoveries Categorized by Need

9 Reality Check for Law Firms

10 Reality #1 Revenue is essential Clients (current and future) Fee arrangements Timely Billing Timely Collection Payroll Overhead and Expenses Profit

11 Reality #2 Reputation is a law firm s ultimate asset Excellent client service Client confidence Client testimonials Attract and retain legal talent

12 Reality #3 Revenue and reputation depend upon satisfied clients Revenue Reputation Firm Must Be: Responsive Reliable Prepared Results Oriented Efficient Secure Satisfied Clients

13 Reality #4 Risk is a fact of life An essential part of a lawyer s job is to advise clients about risk Clients retain lawyers to: Help identify and evaluate potential legal risks Help make informed decisions Help mitigate risk Nothing is certain

14 Reality #5 Do as I say, not as I do approach is NOT viable Law firms should identify and evaluate their own business risks, take appropriate steps to mitigate those risks, and be prepared to respond to crisis events when they occur

15 Reality #6 A disaster doesn t have to turn into a disaster. A law firm s reputation and revenue are in jeopardy if the firm cannot resume normal business operations soon after a disaster strikes. Don t let a disaster become a disaster: Loss of physical location Inability to communicate with clients, courts, opposing counsel, etc. Loss of critical files and work product Inability to perform normal business functions Unhappy clients

16 Reality Law Firms are part of clients supply chain Clients rely on legal counsel during crisis events If lawyer is not available, client may go elsewhere

17 Reality #7 (con t) Law Firms are part of clients supply chain A company s supply chain includes all of the businesses and individual contributors involved in creating the company s product from raw materials to end user sales Businesses compete supply chain to supply chain A company s success is based in part on efficient and effective supply chains A business interruption impacting one part of supply chain = inefficient breakdown in the supply chain Services law firms provide are part of the supply chain Failure to provide timely services to a client can disrupt a client s supply chain Client may be unhappy

18 Reality #8 Clients KNOW law firms are part of their supply chains Expect firm to be at least as prepared as they to respond to a disaster Expect firm to have an effective business continuity plan in place Expect firm to be able to describe their plan in detail RFP questions Client audits Data security verifications Outside counsel guidelines

19 Reality #9 Disasters do NOT eliminate ethical responsibilities Ethical duties Represent clients competently and diligently Maintain client confidentiality and communications Safeguard clients property ABA Model Rules of Professional Conduct Model Rule 1.1 (competence); Rule 1.3 (diligence); Model Rule 1.4 (communications); Model Rule 1.6 (confidentiality); Model Rule 1.15 (safeguarding property); Model Rule 1.16 (terminating representation)

20 Reality #10 Failure to prepare may lead to liability Attorneys have a duty to represent their clients interests and safeguard their property NO MATTER the circumstance Breach of duty if not prepared Clients may be injured Claim monetary damages Small disaster may be more hazardous than major one. Cost to prepare is less than price to recover if recovery is possible

21 Reality #11 It is a question of when, not if If you believe you can accomplish everything by "cramming" at the eleventh hour, by all means, don't lift a finger now. But you may think twice about beginning to build your ark once it has already started raining. Max Brooks The Zombie Survival Guide: Complete Protection from the Living Dead

22 How do you get started?

23 Incorporate Business Continuity into Your Firm s Strategic Plan

24 Think and Prepare Like Corporations Corporations engage in Enterprise Risk Management ( ERM ) Purpose of ERM = improve visibility of risks before they have an adverse impact on an organization so that management decisions can be evaluated in advance, i.e., identify and manage risks facing corporation Corporations identify strategic and operational risks when conducting an ERM assessment Strategic Risks Decline in core product demand Competitor infringement Margin pressure Investor loss of confidence Operational Risks Poor IT integration Operational setbacks Poor demand forecasting

25 Review Your Firm s Strategic Plan Where is your firm today? Where does management want to be? Productivity Profitability Operating Margins Size Geographic Scope Services Provided Growth Areas Infrastructure necessary to support client expectations or achieve goals

26 Communicate with Firm Management Address how identifying and planning for business disruptions will further your firm s strategic goals Incorporate disaster preparedness and business continuity planning into your firm s strategic plan Emphasize importance of advance planning

27 Get Leadership Support Practical tips to getting management team on board

28 2. Get Leadership Support Focus on fundamentals Start simple Concrete steps Keep costs down Stress need for physical location recovery Build your case!

29 2. Get Leadership Support Demonstrate the need Establish risks and rewards Estimate cost of downtime Loss of revenue Harm to reputation Potential loss of clients Outline required resources Budget and Staff Reinforce competitive advantage

30 2. Get Leadership Support Anticipate and then discuss outcomes management might expect Assessment of likely risks Disaster prevention procedures Recovery plan and documentation Recovery solution Plan testing and maintenance Training of employees Communication with supply chain

31 Recruit a Team? Determine if you need help working on this program.

32 3. Build Your Team Benefits of a Team Multiple perspectives More time Accountability in numbers Better chance for completing More buy in Characteristics of a Strong Team Chairperson or leader Representatives from key departments Direct line to management

33 Plan for Basic Office Safety Is your physical location safe and prepared?

34 4. Office Safety 1. First Aid Kits Install, update and resupply 2. CPR training 3. Fire safety Awareness, extinguishers 4. Evacuation planning Building and area evacuation 5. Shelter in place training Earthquake, tornado, hurricane, active shooter

35 4. Office Safety Assemble emergency supplies or go kit Important records Operating system install disks Licensing keys and passwords Letterhead Office supplies Cash is king! Mobile phone Chargers Extra batteries Pens and Pencils

36 Ensure Your Data is Safe Is it safe, protected and accessible? Are you sure?

37 5. Protect Your Data Assumption: Everyone Backs Up Data Has it been tested? Recently? Data Back Up Basics Automated daily Multiple sites Hardened locations Tested from multiple locations (home, secondary location) Tested from multiple data channels Tested frequently Does everyone know how to access data remotely? Do you have paper files?

38 Assess Your Risk Which threats are most likely to impact your firm?

39 6. Assess Your Risk Office location Office construction or design Past emergencies Process or system failure Neighbors Potential impacts

40 Mitigate Risk Where Possible Are there changes you can make to protect your firm?

41 7. Mitigate Risk Question to ask yourself Are there any improvements or changes that I can make to mitigate or eliminate our risks? ABC Law Firm Location: Tornado Alley Mitigation Options Brace and Strap Roof Reinforce Building More Resistant Doors Designate Safe Room Clean Up Debris Trim Trees Remote Data Back Up Risk Elimination Options: Move to Arizona!

42 Create a Communication Plan When and how will you communicate with stakeholders?

43 8. Communications and Phone list Complete Updated Comprehensive Include personal contact info Include emergency contact info

44 8. Communications Text messaging Develop policy and practice Alert notification system Free weather alerts Company wide system Call in recording system Social network platform

45 Educate Employees Do employees know what to do should disaster strike?

46 9. Educate Employees At the very least, employees should know: The plan Their role Where to find the plan How to access data Where to look for information and updates should disaster strike Don t forget new hires!

47 Test Your Plan Testing can be used to show bugs but never their absence.

48 10. Test Your Plan Conduct a Table Top or Desktop test Involve all departments Add unexpected or creative twists Not about pass/fail Involve outside suppliers, vendors and partners Keep log of activities, questions and concerns Conduct post review exercise Make improvements to plan Re educate employees Assess Your Business Test, Evaluate, Revise Put It On Paper

49 What are next steps?

50 Taking the Next Steps 1. Review Insurance Coverage 2. Outline Critical Functions 3. Create a Plan to Resume Critical Functions 4. Plan for Alternate Work Space 5. Prepare Your Supply Chain 6. Diversify Your Vendor/Supplier Network

51 Taking the Next Steps Attend Agility Webinar: Business Survival: Agility s Disaster Recovery Solution June 12, 2:00 3:00pm EDT Learn more about Agility s affordable disaster solution that makes disaster planning easy. Discounts available for ALA and ABA members. agilityrecovery.com/events Get Weekly Disaster Recovery Tips: 52 Tips enewsletter Join to receive quick, digestible tips to prepare your firm. agilityrecovery.com/about/52 tips

52 Questions? Bob Boyd President & CEO Agility Recovery