1. Developing an Emergency Management Plan Richard G. Zilg Deputy District Director, New Jersey

2. Developing an Emergency Management Plan Up to 40% of businesses affected by a natural or human-caused disaster never reopen. (Source: Insurance Information Institute) www.sba.gov2

3. Developing an Emergency Management Plan No plan can cover every eventuality, but a good one will be versatile enough to maximize your business’s chances for survival! There are Five elements to a successful EMP. They are…. www.sba.gov3

4. Developing an Emergency Management Plan Program Management Planning Implementation Testing and Exercises Program Improvement www.sba.gov4

5. Developing an Emergency Management Plan Program Management Organize, develop and administer your preparedness program Identify regulations that establish minimum requirements for your program. Includes the following areas: Program Coordinator & Committee Performance Objectives Program Administration Laws & Authorities www.sba.gov5

6. Developing an Emergency Management Plan Program Management (cont) Program Coordinator & Committee The program coordinator should be assigned by management to lead the development of the preparedness program and will be responsible for achieving the goals and objectives that have been established by management The program committee will provide input into the preparedness program and will assist with the development, implementation, evaluation and maintenance of the program. The Committee should include employees with knowledge of all aspects of the business. Performance Objectives Performance objectives are milestones on the path to achieving your preparedness program’s goals. Objectives should be developed for all aspects of the program. Include hazard prevention/deterrence, risk mitigation, emergency response and business continuity.preparedness program’s goals. Consider goals and objectives for managing risk, investing in resources, establishing capabilities through training and exercising and complying with regulations. Consider both short-term objectives for the development of the program and long-term objectives that may require more significant planning or investment. www.sba.gov6

7. Developing an Emergency Management Plan Program Management (cont) Program Administration The program coordinator is accountable to management for achieving program goals. Effective program administration is necessary to coordinate activities, review the program and initiate action to improve the program. Administration would include addressing and reviewing the following areas:program coordinatorgoals Program Scope Program Budget Program Development Schedule Finance and Administrative Procedures Program Reviews www.sba.gov7

8. Developing an Emergency Management Plan Program Management (cont) Laws & Authorities Federal, state and local laws and regulations define minimum requirements for emergency management and business continuity. The program coordinator working with the program committee and external representatives should confer with environmental, health, safety and security professionals within the business to determine which regulations are applicable and need to be incorporated into the preparedness program.program coordinatorprogram committee Regulations may apply to hazard prevention, risk mitigation, emergency response and business continuity. www.sba.gov8

9. Developing an Emergency Management Plan Planning Gather information about hazards and assess risks Conduct a business impact analysis (BIA) Examine ways to prevent hazards and reduce risks Includes the following areas: Risk Assessment Business Impact Analysis Hazard Prevention & Deterrence Risk Mitigation www.sba.gov9

10. Developing an Emergency Management Plan Planning (cont) Risk Assessment A risk assessment is a process to identify potential hazards and analyze what could happen if a hazard occurs. A business impact analysis (BIA) is the process for determining the potential impacts resulting from the interruption of time sensitive or critical business processes.business impact analysis As you conduct the risk assessment, look for vulnerabilities—weaknesses—that would make an asset more susceptible to damage from a hazard. Vulnerabilities include deficiencies in building construction, process systems, security, protection systems and loss prevention programs Business Impact Analysis A business impact analysis (BIA) predicts the consequences of disruption of a business function and process and gathers information needed to develop recovery strategies. Potential loss scenarios should be identified during a risk assessment. Operations may also be interrupted by the failure of a supplier of goods or services or delayed deliveries. There are many possible scenarios which should be considered.risk assessment Identifying and evaluating the impact of disasters on business provides the basis for investment in recovery strategies as well as investment in prevention and mitigation strategies.recovery strategiesinvestment in preventionmitigation strategies www.sba.gov10

11. Developing an Emergency Management Plan Planning (cont) Business Impact Analysis (cont) Items to consider in the BIA: Lost sales and income Delayed sales or income Increased expenses (e.g., overtime labor, outsourcing, expediting costs, etc.) Regulatory fines Contractual penalties or loss of contractual bonuses Customer dissatisfaction or defection Delay of new business plans or operations www.sba.gov11

12. Developing an Emergency Management Plan Planning (cont) Hazard Prevention & Deterrence Many hazards can be prevented. Occurrences such as workplace accidents, fires, hazardous chemical spills, machinery breakdowns, criminal and cyber invasion can all be avoided by good planning, security measures and/or maintenance. Natural hazards such as flooding, earthquakes and hurricanes cannot be prevented. However, there are still opportunities to reduce damage from natural hazards via Risk Mitigation. Risk Mitigation Hurricanes, earthquakes, tornadoes and other natural hazards cannot be prevented. Technological hazards such as a regional power outage cannot be prevented by an individual business. But both can result in property damage and business disruptions. Mitigation strategies might include: Site selection Construction standards Backup power, including ups units Insurance Policies www.sba.gov12

13. Developing an Emergency Management Plan Implementation Implementation of the preparedness program includes identifying and assessing resources, writing plans, developing a system to manage incidents and training employees so they can execute plans. These resources might include: Resource Management: Resources needed for responding to emergencies, continuing business operations and communicating during and after an incident should be identified and assessed. Resource Management Emergency Response Plan: Plans to protect people, property and the environment should be developed. Plans should include evacuation, sheltering in place and lockdown as well as plans for other types of threats identified during the risk assessment. Emergency Response Planrisk assessment Crisis Communications Plan: A plan should be established to communicate with employees, customers, the news media and stakeholders. Crisis Communications Plan Business Continuity Plan: A business continuity plan that includes recovery strategies to overcome the disruption of business should be developed. Business Continuity Plandisruption of business Information Technology Plan: A plan to recover computer hardware, connectivity and electronic data to support critical business processes should be developed. Information Technology Plan www.sba.gov13

14. Developing an Emergency Management Plan Implementation (cont) Employee Assistance & Support: The business preparedness plan should encourage employees and their families to develop family preparedness plans. Plans should also be developed to support the needs of employees following an incident. Employee Assistance & Supportfamily preparedness plans Incident Management: An incident management system is needed to define responsibilities and coordinate activities before, during and following an incident. Incident Management Training: Persons with a defined role in the preparedness program should be trained to do their assigned tasks. All employees should be trained so they can take appropriate protective actions during an emergency. Training www.sba.gov14

15. Developing an Emergency Management Plan Testing & Exercises You should conduct testing and exercises to evaluate the effectiveness of your preparedness program, make sure employees know what to do and find any missing parts. Testing the plan, and exercising its elements, helps you to: Train personnel; clarify roles and responsibilities Reinforce knowledge of procedures, facilities, systems and equipment Improve individual performance as well as organizational coordination and communications Evaluate policies, plans, procedures and the knowledge and skills of team members Reveal weaknesses and resource gaps Comply with local laws, codes and regulations Gain recognition for the emergency management and business continuity program www.sba.gov15

16. Developing an Emergency Management Plan Program Improvement Following an actual incident, a critique should be conducted to assess the response to it. Lessons learned from incidents that occur within the community, within the business’ industry or nationally can identify needs for preparedness program changes. Other improvement measures include: Program Reviews Changes that should trigger a review of the program include the following: Regulatory changes New or changed processes New hazards identified; vulnerability to hazards changes Tests, drills or exercises identify weaknesses Post incident critiques identify issues Funding or budget level changes www.sba.gov16

17. Developing an Emergency Management Plan Program Improvement (cont) Program Reviews (cont) New product or service launched or withdrawn Company, division or business unit acquired, integrated or divested Significant changes to critical suppliers or supply chain Significant increase in the workforce population on-site Significant changes to site, buildings or layouts Changes to surrounding infrastructure When doing the review, also see if: Plans and procedures have been reviewed and are up-to-date Team rosters have been updated to ensure membership is current Contact information for team members, public agency contacts, contractors, vendors and suppliers Resources (e.g., systems, equipment, and supplies) are in place and properly maintained www.sba.gov17

18. Developing an Emergency Management Plan Protect Yourself and Your Assets Generally, it takes several years to build a successful business and hours or minutes for a disaster to destroy it. Businesses that are unable to access their critical data for an extended period may have more difficulty recovering. Disasters ruin businesses and create financial hardship on families. Proper preparation allows businesses to recover quickly. www.sba.gov18

19. Developing an Emergency Management Plan For step by step instructions and examples: http://www.ready.gov/business Alternative planning, great links and recovery information: http://www.sba.gov/content/disaster-planning Business-focused preparedness tools & information : www.PrepareMyBusiness.org. www.PrepareMyBusiness.org www.sba.gov19

20. Richard G. Zilg Deputy District Director NJ District Office 2 Gateway Center Newark NJ, 07102 Tel. 973-645-2434 Fax: 202-481-5171 Email: - richard.zilg@sba.gov Or visit our office web site at www.sba.gov/njwww.sba.gov/nj www.sba.gov20 Developing an Emergency Management Plan