Small Business Continuity & Recovery. Diana L. McClure Director, Public Safety Strategies Institute for Business & Home Safety

Transcription

1 Small Business Continuity & Recovery Diana L. McClure Director, Public Safety Strategies Institute for Business & Home Safety

2 Insurance Company Investment in Loss Control Plus Water Damage IBHS A national nonprofit association that engages in communication, education, engineering and research Mission Reduce deaths, injuries, property damage, economic loss and human suffering caused by natural disasters

3 We Know How to Keep Businesses Open & Preserve Jobs

4 Small Businesses Backbone of Our Economy...and Vulnerable Population About one half population within 50 miles of coast CA 34 million By 2010, about 74 percent of U.S. population will live in coastal areas Small businesses 98 % of all firms in US Employ 50% of workforce 85% of small businesses employ 10 or fewer 44% of nation s payroll Generate 41% of nation s business receipts

5 What Is a Disaster? Cause Aftermath of disaster Prepare/plan Take steps to mitigate and reduce risks and impacts Cope/adapt to changed environment Open for Business the antidote to head in the sand

6 IBHS Tools For Small Businesses Interactive web-based & Print/CD Available for download at

7 IBHS & GPP... + NEDRIX? Common purpose Help small businesses prepare Bring planning tool(s), BCPs and small businesses together DRII pro bono work, continuing education credits CPAC in NC Los Angeles, CA

8 What To Do Fill out 13 key forms for business continuity & recovery + property protection checklist Download forms from Save in more than one medium Store at alternate site(s) Update periodically Test/revise

9 Information Needed Employees (including owner) Can you communicate with your employees...? Suppliers/Vendors What if your suppliers can t deliver? Key Contacts Who do you need to contact in case of emergency? What about your key customers? Critical Business Functions (for survival) What are they? Are you ready? Recovery Location Where?

10 Information Needed Vital Records Are they protected duplicated? Critical Telephone Numbers Plans to stay open for business? Supplies Available? Equipment / Machinery / Vehicles Can you protect these items? Do you have alternatives available for recovery location?

11 Information Needed Computer Equipment and Software Do computers need to be operational to resume business operations? Voice/Data Communications What do you rely on to communicate with your employees, customers? Miscellaneous Resources What do you need to set up your recovery location? Disaster Response Checklist Do you have a disaster response plan in place?

12 Circle of Help Professional Help Neighborhood help Next-door Neighbor help Self & Family Help Help in seconds Help in minutes Help in minutes/hours Help within days/weeks

13 Employee Contact Information Name: Position: Key responsibilities: Home Address: City/State/Zip Code: Home Phone: Cell Phone: Office Phone: Pager/Beeper: Fax: Home Work Emergency Contact: Emergency Contact Phone: CALL ORDER: (priority, 1 st, 2 nd, 3 rd, )

14 Key Suppliers/Vendors Status: Current Supplier/Vendor Back Up Supplier/Vendor Company Name: Contact Person: Materials/Service Provided: Street Address: City: State: Phone: Cell Phone: Fax: Website address: Recovery Notes:

15 Key Contacts Name of Business/Service: Type: Accountant Ambulance Service Bank Billing/Invoicing Service Benefits Administration Building Manager Building Owner Building Security Creditor Electric Company Emergency Management Agency Fire Department Gas/Heat Company Hazardous Materials Hospital Insurance Agent Insurance Company Key customer/client Local Newspaper Local Radio Station Local Television Station Payroll Processing Police Department Public Works Department Small Business Administration Office Telephone Company Other Explain:

16 Key Contacts...cont d Service Provided or Relationship to Business: Account Number: (If relevant) Primary Contact: Street Address: City: State: ZIP Code: Phone: Cell Phone: Fax: Website address: Alternate Contact: Alternate Contact Phone Number: Alternate Contact Recovery Notes:

17 Key Business Functions Business Function: Priority: High Medium Low Who Provides the Input to Those Who Perform the Function? Employee(s): Vendor(s): Key Contact(s): Employee in charge: Timeframe or Deadline: Money Lost (or Fines Imposed) If Not Done: (If relevant) Who Uses The Output From This Function? Employee(s):) Vendor(s): Key Contact(s): Who Performs This Function? Employee(s): Vendor(s): Key Contact(s): Brief description of procedures to complete function: Recovery Notes:

18 Recovery Location Recovery Location Address: City, State, Zip: Phone line(s) (voice): Re-route current number To be established Phone line(s) (fax): Re-route current number To be established Phone line(s) (data): Re-route current number To be established Building owner or manager phone: Directions to recovery location: Business Functions to be performed at recovery location: Employees who should go to recovery location: Recovery Notes:

19 Vital Records Name of Vital Record: Media Back ed Up? Media for Backups How Often? Where Stored? Can Records Be recreated? Business Function It Supports Network Hard drive Laptop CD Diskette Print Microfilm Other Y/N Network Hard drive Laptop CD Diskette Print Microfilm Other Hourly Daily Weekly Monthly Quarterly Semi-Annually Yearly Never Y/N Explain: Explain: Recovery Notes:

20 Critical Telephone Numbers Phone Number Type (Enter Code) Status (Enter Code) Description Solution (Enter letter) Related Business Functions L Local LD Long Distance 800 Toll free F Fax C Cell O Other C Currently in use E Will establish during recovery (e.g. hotline, main line, toll free customer service line, dialin to network) Reroute to recovery location New Number Recorded Message Other (explain) Recovery Notes:

21 Supplies Item Item Order Number Quantity Supplier/Vendor(s): Related Business Functions Recovery Notes:

22 Equipment/Machinery/Vehicles Item: Model: Status: Currently In Use Will lease/buy for recovery location Primary Vendor/Supplier: Alternate Vendor/Supplier: Recovery Location for Install: Related Business Function(s): Backup Available: Yes No Order Time for Replacement: Recovery Notes:

23 Computer Equipment and Software Item: Type: Computer Hardware Computer Software Status Currently in use Will lease/buy for recovery location Primary Supplier/Vendor: Alternate Supplier/Vendor: Title & Version or Model No. (Enter Unknown if hardware/software is to be leased/bought for recovery location) Serial Number: Purchase/Lease Date: Purchase/Lease Price: Recovery Install Location: Quantity (equipment) or No. of Licenses (software): License Numbers: Recovery Notes:

24 Voice/Data Communications Type of Service: Telephone PBX w/acd PC Data Communications Cell Phone Fax Machine Two-way Radio & Pager Other Explain Description & Model Number Status: Currently in use Will lease/buy for recovery location Voice Communications Features: Voice Mail Speaker Conference Conversation recorder Other Explain:

25 Voice/Data Communications cont d Data Communications Features: Cable DSL T-1 Dial-up Other Explain Primary Supplier/Vendor: Alternate Supplier/Vendor: Recovery Install Location: Recovery Notes: Quantity:

26 Miscellaneous Resources Item Quantity Primary Supplier/Vendor Alternate Supplier/Vendor Recovery Install Location Chairs Desks Extension/drop cords, surge protectors and power strips File Cabinets Mail Bins Portable air conditioners/fans Safes Tables Waste baskets Other: Explain:

27 Disaster Response Checklist NOAA Weather Radio Working smoke detectors and fire extinguisher First Aid Kit Flashlights and lightsticks AM/FM Radio, battery operated, or wind-up radio Bottled water Nonperishable food and utensils Paper supplies Tools and other supplies Blankets Camera Cash/ATM and credit card Emergency contact list

28 Incident Response, Recovery & Restoration Move to a safe place Leave building Shelter-in-place Determine the type and extent of the incident Alert employees Activate Open for Business continuity/recovery plan Manage the incident Restore your business Debrief

29 Testing and Updates Test plan concepts and procedures frequently Identify tasks or components that do not work as expected. Identify missing tasks or contacts Reinforce individual and team roles and responsibilties Confirm and reinforce dependent interractions with others Increase BCP Awareness Update and keep your plan current

30 What about Costs? No Cost... Review insurance coverage options with insurance agent Write short list of recovery actions Identify and meet with fire and police officials Identify weather services, etc. to maintain weather watch

31 No Cost Actions Instruct employees on action plans (what to do if no phones, etc.) Identify alternate means of communicating with employees Establish meeting place in the event of a disaster Practice evacuation drills & review recovery plan

32 Actions Under $100 Purchase First Aid kit Purchase NOAA Weather radio Tone alert Specific Area Message Encoding program radio for your area Buy flashlights, batteries, pens, paper, band-aids, etc. for disaster kit Buy camera & film

33 Actions from $100 - $500 Purchase small electric generator and spare fuel 6 months after the 2003 NE blackout, over 60% of small businesses had no backup power Implement vital records off-site storage program (small business)

34 Windstorms Hurricane, High Wind, Tornado/Hail Commercial Checklist Roof condition Asphalt shingle roofs Roof-to-wall straps Horizontal projections Vertical projections Exterior windows/doors - design pressure Exterior doors deadbolt & 3 hinges Exterior double doors Impact-resistant windows and doors Exterior lightning protection system Surge protectors on electronic systems

35 Earthquake Risk Assessment - Commercial Building Configuration & Features Type of foundation Building design: box-like building Roof with no openings Light roofing materials Absence of large ground floor openings Absence of brick or stone veneer Slab on grade Crawlspace or basement foundation wall system - continuous concrete or masonry wall system Crawlspace of basement foundation wall system - wood stud cripple wall Pier or pile foundation system - wood, concrete, or steel

36 Earthquake Checklist - Commercial Tempered glass or safety film Natural gas lines with flexible connections Major appliances braced Hangers < 12 long to support mechanical & plumbing systems Electronic equipment secured Suspended ceilings braced Cabinet/file drawer latches Cabinets/bookcases & storage racks secured Earthquake insurance

37 Flood Checklist - Commercial In a Special Flood Hazard Area V-zone, Coastal A-zone, Noncoastal A-zone Base flood elevation Design flood elevation Does your community participate in the NFIP? Electrical, plumbing, HVAC meet building code requirements Open foundation in V- zone or Coastal A-zone A-zones, coastal or non-coastal: minimum of 2 openings on multiple wall of each enclosed area

38 Freezing Weather - Commercial Secondary moisture barrier Heat sources directly under roof Recessed light fixtures sealed and insulated Attic penetrations sealed Access doors to attic insulated, sealed, weather stripped or gasketed Water or sprinkler supply piping in exterior walls insulated Unoccupied space over 24 hours - inspect

39 Wildfire Risk Assessment Wildland/urban interface Your risk is the highest if: History of wildfires Dry season > 3 months/yr Wildland within 100 feet of building Steep forested terrain Fuel sources <30 feet from building In rural area Nearest fire hydrant is > 50 feet away Limited access for fire trucks

40 Wildfire Checklist Survivable space around building Roof condition Roofing materials Class A fire rated Eaves enclosed, soffits screened Exterior vents <1 foot x 1 foot, screened Exterior walls covered with non-combustible siding Double-pane tempered glazing on exterior windows and doors Monitored smoke alarm system Automatic fire sprinkler system

41 Open for business Contact: Diana L. McClure Available at the end of January 2005 at Interactive, webbased version available to policyholders of IBHS member insurance companies