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Organizational Resiliency “You Need To Do Your Part”

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Presentation on theme: "Organizational Resiliency “You Need To Do Your Part”"— Presentation transcript:

1 Organizational Resiliency “You Need To Do Your Part”

2 Organizational Resiliency

3 ORGANIZATIONAL RESILIENCY “Incidents that you don’t prepare for are the ones that will put your company into crisis”

4 ORGANIZATIONAL RESILIENCY “The only thing tougher than planning for disasters or emergencies is explaining why you didn’t”.

5 ORGANIZATIONAL RESILIENCY “Good judgment usually comes from experience. Experience usually comes from failure”.

6 ORGANIZATIONAL RESILIENCY Statistically 44% of businesses who do not plan for emergencies fail after a major event

7 How Much Notice Will You Have? “There cannot be a crisis today; my schedule is already full” – Henry Kissinger

8 How Much Notice Will You Have?

9 March 2014 Auditor General’s Report: Catastrophic Earthquake Preparedness

10 How Much Notice Will You Have? “Emergency Management BC is not adequately prepared for a catastrophic earthquake.”

11 “One of the main causes for this lack of progress is that preparing for a catastrophic earthquake has not been made a priority” How Much Notice Will You Have?

12 “Since this Office’s report in 1997, successive governments have decided to allocate scarce public resources to meet more immediate pressing demands, rather than to adequately prepare the province for catastrophic earthquake that may or may not occur” How Much Notice Will You Have?

13 “EMBC staff has demonstrated great dedication in attempting to meet the competing demands of its broad mandate, which includes coordinating government’s response to floods, fires, avalanches, and other emergencies throughout the year.” How Much Notice Will You Have?

14 “In 2013, EMBC responded to approximately 6,000 incidents related to dangerous goods spills, search and rescue events, major floods, fires, landslides, and avalanches.” How Much Notice Will You Have?

15 “However, given the frequency and demands of these “regular” emergencies, catastrophic earthquake planning has become a lesser priority within EMBC” How Much Notice Will You Have?

16 April 23, 2014

17 JUNE 8 - JUNE 23, 2013

18 “an estimated 180, 000 workers that lived downtown were evacuated” “some of the country’s largest energy corporations were forced to contact staff through social media channels to notify them that their workplaces were no longer accessible” Calgary Floods

19 “others asked available staff to log in remotely if they could do so safely” “others set up makeshift satellite offices outside areas affected by the flood and asked workers to convene at the nearest one instead of overloading the computer systems by logging in remotely all at once” Calgary Floods

20 “while the cost of Calgary’s floods to local businesses is still being tabulated, the overall economic cost is estimated to be more than $1 Billion” Calgary Floods

21 “…businesses in the impacted regions…had to rely on their business continuity and disaster recovery plans to stay open and competitive with rival companies in other parts of the world not impacted by the severe weather..” Calgary Floods

22 OCTOBER 10, 2013

23 October 10, 2013 “…the fire broke out sometime before 3:40am…” “By 6 a.m, the E.L Lewis building that once housed the Copp’s Family shoe store had collapsed.”

24 October 10, 2013 “… by 6:50 a.m. the flames had broken out again in a least one neighbouring business…”


26 Continuity vs. Recovery CONTINUITY Get the business back up and running as quickly as possible RECOVERY Address the potential damage at the original site Plan to bring the business back to pre-incident levels of activity


28 What is Business Continuity? Ability of the key operations of a firm to continue without stoppage, irrespective of the adverse circumstances or events.

29 Business Impact Analysis (BIA) An exploratory component to reveal any vulnerabilities A planning component to develop strategies for minimizing risk.

30 Identify Critical Operations What Operations Are essential to keep the company functioning? Business Impact Analysis (BIA)

31 Identify Critical Operations Identify Necessary Resources Resources ESSENTIAL for critical operations? – Staff – Materials & Supplies, Equipment – I.T

32 Business Impact Analysis (BIA) Identify Critical Operations Identify Necessary Resources Complete a Hazards, Risk, Vulnerability and Impact Analysis Identify the potential hazards Assess the Risk – What is the likelihood of the hazard taking place? Low Medium High

33 Business Impact Analysis (BIA) Identify Critical Operations Identify Necessary Resources Complete a Hazards, Risk, Vulnerability and Impact Analysis Potential Vulnerabilities – Communications – Equipment – Transportation – Finances – Vital Records – Reputation – Staff – Market share – Suppliers

34 Business Impact Analysis (BIA) HAZARDS + VULNERABILITIES = IMPACT


36 Business Continuity Planning Strategies

37 B.C.P Strategies Staffing Cross training Contractors (on-call) Retired employees

38 B.C.P Strategies Staffing Operations Food, water Back up power source Backed Up Files Contact Lists Financial Records

39 B.C.P Strategies Staffing Operations Alternate Sites Pre-established M.O.U’s Other Branches Competitors

40 B.C.P Strategies Staffing Operations Alternate Sites Communication Plan Cadillac Fairview Staff Stakeholders Clients Media

41 Emergency Communications Cadillac Fairview Emergency Notification System (C.F.E.N.S)

42 Successfully Deployed


44 Communications Who advises the media that you’re still in business? How do you advise the media that you’re still in business? Is there a common “statement” that is created to give to clients if they call? Be aware of social media sites like Twitter and Facebook etc for erroneous information


46 B.C.P Strategies Staffing Operations Alternate Sites Communication Plan Corporate Reputation

47 A logo identifies your company in the marketplace. In a quick, visually symbolic way, a logo represents your company to the outside world.

48 Case Study

49 Corporate Reputation September 11th, 2001 – an employee of Midwood Ambulance raced into a Starbucks location near the World Trade Center looking for bottles of water to treat the victims of the terrorist attack. Water was one of the commodities in short supply moments after the planes struck the Twin Towers. – Rather than giving them the water, Starbucks charged $130.00 for three cases, which the ambulance employees had to pay out of their own pockets. – The President of Midwood called Starbucks headquarters a few days later to complain about the incident and was reportedly told by a Starbucks employee “that this could not have happened.”

50 Corporate Reputation On September 17th he then faxed Orin Smith, CEO of Starbucks, repeating his complaint. Reportedly, he did not get an immediate response. It was not until the story began to be repeated on the Internet and reported in the major newspapers that Starbucks finally contacted Al Rapisarda, President of Midway Ambulance, offering its regrets and refunding the $130.00 paid by Midway’s employees. Thirty years of building a national brand was put in jeopardy for $130.00 and an inability to execute a crisis plan.

51 Corporate Reputation Management at Starbucks did not have a real crisis on September 11th; the crisis only began once they ignored the problem. Most professionals agree that the existence of a working crisis plan and its successful implementation must be viewed as important to the survival of business.

52 Corporate Reputation Have updated company information readily available Keep the telephone numbers of key personnel readily available Practice your crisis communication plan, and schedule annual training exercises. Speak with a single voice. Use only one spokesperson. Make certain staff understand how to execute the company’s plan, including calling the correct contact person if media telephones/shows up Be open, honest and factual with the media. Keep your message simple. Make certain that everyone can clearly understand and follow the situation. Use a steady hand – never panic.

53 Business Recovery Strategies

54 Insurance Liability Business Interruption Property Loss

55 Business Recovery Strategies Insurance Investment Rebuild Repair Upgrade Post event mitigation

56 Business Recovery Strategies Insurance Investment Information Technology Hardware Server PCs Printers Software Licenses Viruses Malware

57 Business Recovery Strategies Insurance Investment Information Technology Cost Options Identify options and alternative approaches Costs and benefits


59 Mitigation Strategies Eliminate the Risk Relocate But where to?

60 Mitigation Strategies Eliminate the Risk Reduce the Risk Lessen the chances of a hazardous event from occurring – fire prevention – good housekeeping, – regular maintenance on equipment – training

61 Mitigation Strategies Eliminate the Risk Reduce the Risk Reduce the consequences Reduce damage losses to materials and equipment Reduce the loss of business By: – Developing the plan – Training – Exercising the plan

62 Who’s Responsibility Is It?

63 Who’s Responsible for It? Coordination of office evacuation

64 Who’s Responsible For It? Have an overall Emergency Plan

65 Who’s Responsible For It? Provide power for fire and life safety systems

66 Who’s Responsible for It? Provide emergency power to continue business

67 Who’s Responsible For It? Develop an Office Emergency Plan

68 Who’s Responsible For It? Provide building-wide information in respect to incidents when appropriate


70 Case Study #1 It’s 10:06am, the Fire Alarm activates. The initial alarm is on the 14 th floor. 5 minutes later the building goes into “full evacuation” It is learned that there is an actual fire and fire crews are on scene “attacking the fire” and the building has been evacuated Due to the fire, the associated clean up and general safety, Cadillac Fairview advises that fully reoccupation of the building (business as usual) will resume the next day. Cadillac Fairview are allowing a small number of representatives in the building to retrieve belongings.

71 CASE STUDY #2 The power goes out in the downtown core at 9:30am. Cadillac Fairview informs that BC Hydro reports that it may be restored by noon. Cadillac Fairview now advises BC Hydro says 4:00pm Noon the next day When the next day comes, it could be by 4:00pm BC Hydro is uncertain when power will be restored 3 days later, power is fully restored to the downtown core.

72 Questions? Victor Smart 604-638-3362

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