Friday, October 31, 2008

Earthquakes in Northern Texas

Northern Texas experienced two minor earthquakes (2.5 and 3.0 magnitude) in the Dallas-Fort Worth area today. No significant damage was reported.

According to the U.S. Geological Survey website:

Most of North America east of the Rocky Mountains has infrequent earthquakes. Here and there earthquakes are more numerous, for example in the New Madrid seismic zone centered on southeastern Missouri, in the Charlevoix-Kamouraska seismic zone of eastern Quebec, in New England, in the New York - Philadelphia - Wilmington urban corridor, and elsewhere.


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Why Are We Not Preparing?

A 2006 Time article lamented that despite a series of disastrous events over a four year period – including terrorist attacks and multiple hurricanes – that Americans still do not prepare themselves.

Granted, some amount of delusion is probably part of the human condition. In A.D. 63, Pompeii was seriously damaged by an earthquake, and the locals immediately went to work rebuilding, in the same spot--until they were buried altogether by a volcano 16 years later. But a review of the past year in disaster history suggests that modern Americans are particularly, mysteriously bad at protecting themselves from guaranteed threats. We know more than we ever did about the dangers we face. But it turns out that in times of crisis, our greatest enemy is rarely the storm, the quake or the surge itself. More often, it is ourselves.


So, what does it take to get people to prepare for disasters? Retired U.S. Army General Russel Honore recently remarked at the Louisiana Association of Nonprofit Organizations annual conference that the country needs to build a culture of preparedness. One of his suggestions included a law that would require gas stations and pharmacies to have generators.

Legislation isn't the key, however. Laws don't change cultures. Instead, our culture can be altered by affecting change in a few areas, individual perception, institutional behaviors, and political priorities. Appropriate change could occur by following a template:

Urgency – Establish a sense that a change needs to occur soon to avoid predictable consequences.

Create a guiding coalition – Every movement needs leadership. To date, the guiding coalition for preparedness has too often been government and legal authorities. This is the wrong group to lead change as they often have a tendency to dictate change that improves their ability to react to a disaster rather than prevent it.

Create a strategic direction – Preparedness must be attached to bigger goals to justify the effort to do it. For example, individuals should prepare so they and their family are able to survive. Likewise, businesses should be ready so they can continue to function and serve their customer base.

Get buy-in – Once a direction is established, others must embrace it in order for it to become effective.

Build on the gains – When some people begin to embrace it others will begin to follow.

To be sure, many are preparing. But the culture is still not prevalent.

Wednesday, October 22, 2008

Survey Identifies Key Planning Trends

A recent AT&T study reveals some interesting trends in preparedness. The study is published annually for the last seven years and includes approximately 500 participants.

Before we get into the findings, it is important to understand that the study has significant limitations. First, only IT executives are questioned. Other executives may view things differently and should be included.

Second, the survey is conducted in five cities or metropolitan areas: Seattle/Portland, Chicago, New York, Raleigh/Durham, and San Antonio/Houston. The geographically disperse areas are tallied and averaged to produce a “national” perspective. Participating companies had a minimum of $10 million in annual revenue.

On to some key findings.

1 in 5 do not have a plan – 80% of respondents said they have either a business continuity or disaster recovery plan. The study does not distinguish between the two, although there are significant differences in the preparedness profession. BC relates to overall business functions while DR refers specifically to digitally stored data. The lack of distinction suggests that more than twenty percent of companies surveyed do not have appropriate planning in place.

30% do not consider planning a priority
- The study finds 30 percent of those surveyed don't consider disaster planning a priority. This is a remarkable figure when one considers the responding audience. IT executives are generally more diligent in backing up data and protecting their systems than business owners are about planning to protect processes. If 30% of IT executives don't see the urgency, polling other executives on the same question is likely to produce an even higher percentage.

Disaster-stricken areas plan more - Companies in areas where disasters have struck recently appear to be more planning-oriented. Hurricane-prone Texas firms were more likely to test their plans than Chicago-based businesses. A similar trend can be seen when comparing New York to Seattle/Portland.

Larger companies plan more - Larger companies (500+ employees) are more likely to plan than smaller businesses (fewer than 100 employees).

Although the survey may have shortcomings that fail to reveal accurate numbers, it does signify some important trends that make it worth a read. I just hope that next year they will offer a little more clarity to separate business continuity from disaster recovery. Read the full report.

Disaster Preparedness Consulting, LLC

Wednesday, October 15, 2008

Insurers Drop Man-made Floods from Policies

According to a recent report by the Times-Picayune, insurers plan to specifically exclude flooding caused by man, such as levee and dam breaches. Insurers opted to change their policies as a result of Hurricane Katrina related litigation over engineering failures in the levee system.

The change will begin taking effect for homeowners and businesses across the country and extend to Guam, Puerto Rico, and the Virgin Islands in January 2009.

The impact of the policy change remains to be seen. Just as an example, much of southern Louisiana's wetlands are controlled by some form of man-made systems. Does that effectively rule out flood insurance for half of the state?

If levees send rising water downstream and cause a flood in a community with no levee system further down a river or on a tributary, does that constitute man-made flooding?

Disaster Preparedness Consulting, LLC

Tuesday, October 14, 2008

Are You Included in Government Disaster Planning?

Following the terrorist attacks of 2001, most people agreed that we needed to replace our “need-to-know” information sharing model – what I like to call the Cold War information flow model. A more open, multi-directional model was needed then and remains so now.

Sadly, we're still not there. In his 2007 book, The Edge of Disaster, Stephen Flynn suggested that the government does a poor job of including the private sector and needs to improve information flow about the planning process. Flynn focused specifically on the role of large companies who own roughly 95% of the country's critical infrastructure and want to play a role in strengthening it against terrorist attacks and natural disasters. However, their assistance is often turned away for a variety of reasons.

My own personal experience has been similar, but on a smaller scale. Here is just one example. While working on a disaster plan for my daughter's school, I recently went to the local police department to learn about their plans for schools in a disaster or attack. Unfortunately, it was a fruitless endeavor that ended up being an interrogation of my credentials to write such a plan rather than offering any help whatsoever.

As the police officer summarily dismissed my abilities and completely disregarded my questions, I couldn't help but think that either he still embraced the old, “need-to-know” information-sharing model or his department did not have a plan. That is a shame in either case. It leaves everyone in an awkward position. The school cannot anticipate what to expect from the “authorities” in a crisis situation until they are in the midst of one, which will diminish the effectiveness of a response.

Having spent the last seven years teaching law enforcement officers about terrorism prevention and catastrophe preparedness, I understand that the Cold War mindset is still well entrenched. For the safety of the community, it is well beyond time to move past that line of thinking.

I will conclude this entry with two thoughts:

First, I challenge anyone to give a valid reason for law enforcement to keep disaster planning a secret. Some might argue that they are trying to keep criminals from knowing how to take advantage of a given situation. True, but that is at the cost of preparedness for the broader community. Which is the greater need?

Second, as a member of the community, it is your responsibility to insist you be involved in the planning process. There are many organizations out there that promote broader participation. So get involved because leaving preparedness in the hands of first responders is a reactive measure that offers recovery assistance at their discretion. Honestly, is that how you want to plan for your survival?

Saturday, October 4, 2008

Disaster Planning Helps in a Down Economy

As the economy gets worse, many business owners are understandably worried about cutting costs, dealing with a shrinking revenue stream and getting access to loans. One oft-overlooked way of addressing these fears and building resiliency is to have a disaster plan. The ultimate effect of a plan is to either prevent or mitigate the effects of a disaster. And if you think about it, a sinking economy is, in some ways, a disaster.

Below are some advantages to planning that could help recession-proof your business.

Identifies key operations that need protection – The planning process requires that a business' operations be identified and prioritized. Some may be absolutely necessary, which would dictate that protective measures are taken to ensure survival. You may not want or be able to invest as much to protect the lower priority functions. With a plan, you will have an objective way of determining where to put your resources.

Can identify duplicate or unnecessary costs – It is not uncommon during the identification of key operations to find unnecessary or repetitive costs. Perhaps it has been a while since you've looked at your supply sources, which could reveal two different departments are buying the same product from two different suppliers at significantly different prices. The planning requires you to look at processes and, consequently, associated costs.

Can identify ways to streamline key functions – As with identifying key operation priorities and costs, disaster preparedness planning may reveal ways to streamline key functions. Examining your processes often times gives a “bird's eye” view of the business that suggests improvements.

Provides a competitive edge in a tougher environment – One thing every business owner looks for is an advantage over the competition. Disaster planning offers the benefits mentioned above, but it also gives that extra edge of readiness in the face of adversity. Many businesses still do not plan for crises, so being prepared is certainly a step above the rest.

Ensures proper insurance – Last, but not least, a plan helps to ensure you have insurance specific to your business. Unfortunately, some learned the hard way from Hurricane Gustav that business interruption insurance does not cover loss of electricity. While many companies were undamaged, they remained close due to loss of power and filed an insurance claim. Insurance is not a one-size-fits-all solution. A plan helps to identify your specific needs and match coverage to them.

All of the above measures provide advantages in a down economy that no business can afford to be without. Those who opt not to have a plan are playing a risky game, one in which they are gambling against unknown odds.

Thursday, October 2, 2008

5 Disasters That Could Hit Any Business

Around my hometown on the Gulf Coast, people tend to think of disasters as products of mother nature, particularly hurricanes. But there are many more that could strike at any given moment. The same is true for any part of the country. Below are five basic disasters that should be part of any preparedness plan.


1) Data Revelation – It's no secret that hacking occurs every day. No matter how safe you think your data is, there are any number of ways for it to get lost, stolen, or revealed to the wrong people. For instance, Blue Cross/Blue Shield recently made the news for unintentionally disclosing personal data on 1,700 of its agents, including social security numbers, addresses, birth dates and other sensitive information. Your data is never more than one mistake away from landing in the wrong hands.

2) Natural Disaster – Let's face it, no matter where you are natural disasters can and will occur. Some appear out of nowhere with no warning while others are known for days before they strike. Any natural disaster has the potential to wreak havoc from simply keeping customers away with severe weather to knocking whole buildings down.

3) Theft – Another fact of life is theft. Stolen equipment or inventory can have devastating effects on a business. The effects can range from a mess to clean up to severe damage to critical business operations.

4) Public Relations Crisis – Most businesses overlook the possibility of a public relations problem, but all it takes is one incident that can take away a whole product line or, worse still, damage your reputation. Let's say one of your major suppliers recalls a product line for safety reasons. The product constitutes a significant percentage of your shelf inventory, but suddenly, you are losing sales during the busiest season. In another example, perhaps a customer or former employee has filed a lawsuit against you following an accident on your property. To make matters worse, the media has sided with them and is making you out to be an uncaring person.

5) Terrorism – The potential for attacks by radical groups are a fact of life these days, they can take many forms ranging from small, harmless events to full-scale devastation. We're not talking just about Al Qaida, but any group that wants to capture public attention. That could include SUV-burning environmentalists to the D.C sniper shootings of 2002. Think of the businesses that suffered, such as gas stations, as people stayed off the streets. A 2007 FBI report on the sniper threat in the U.S. stated: “[S]nipers could possibly target many components of the civilian infrastructure, such as schools, churches, post offices, retail stores, gas stations, movie theaters, and so forth. Although appearing random, the engagement of a range of these types of targets over time may give the impression that nowhere is safe from a potential attack.”

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