Small Business Continuity & Recovery

Diana L. McClureDirector, Public Safety Strategies

Institute for Business & Home Safety

Insurance Company Investment in Loss Control

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

www.ibhs.org

Plus Water Damage

We Know How to Keep Businesses Open & Preserve Jobs

Small Businesses – Backbone of OurEconomy. . .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

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”

IBHS Tools For Small Businesses

Interactive web-based&

Print/CD

Available for downloadat www.ibhs.org

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

What To Do • Fill out 13 key forms for

business continuity & recovery + property protection checklist

• Download forms from www.ibhs.org

• Save in more than one medium

• Store at alternate site(s)• Update periodically• Test/revise

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?

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?

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?

Self & Family Help-----------------

Help inseconds

Next-doorNeighbor help

Help in minutes

Neighborhood help

Help in minutes/hours

Professional Help

Help within days/weeks

Circle of Help

Employee Contact InformationName: __________________Name: __________________

Position:Position:

Key responsibilities:Key responsibilities:

Home Address:Home Address:

City/State/Zip Code:City/State/Zip Code:

Home Phone:Home Phone:

Cell Phone:Cell Phone:

Office Phone:Office Phone:

Pager/Beeper:Pager/Beeper:

Fax:Fax:

Home Email:Home Email:

Work Email:Work Email:

Emergency Contact:Emergency Contact:

Emergency Contact Emergency Contact Phone:Phone:

CALL ORDER:CALL ORDER: (priority, (priority, 11stst, 2, 2ndnd, 3, 3rdrd, …), …)

Key Suppliers/VendorsStatus:

Current Supplier/VendorBack Up Supplier/Vendor

Company Name:

Contact Person:

Materials/Service Provided:

Street Address:

City:

State:

Phone:

Cell Phone:

Fax:

Email:

Website address:

Recovery Notes:

Key ContactsName of Business/Service:

____________________• Type:

AccountantAmbulance ServiceBankBilling/Invoicing ServiceBenefits AdministrationBuilding ManagerBuilding OwnerBuilding SecurityCreditorElectric CompanyEmergency Management AgencyFire DepartmentGas/Heat Company

Hazardous MaterialsHospitalInsurance AgentInsurance CompanyKey customer/ClientLocal NewspaperLocal Radio StationLocal Television StationPayroll ProcessingPolice DepartmentPublic Works DepartmentSmall Business Administration OfficeTelephone CompanyOther

Explain: ______________

Key Contacts. . .cont’dService Provided or Relationship

to Business: _____________________

Account Number:(If relevant)

Primary Contact:

Street Address:

City:

State:

ZIP Code:

Phone:

Cell Phone:

Fax:

Email:

Website address:

Alternate Contact:

Alternate Contact Phone Number:

Alternate Contact Email:

Recovery Notes:

Key Business FunctionsBusiness Function: _____________

Priority: High Medium Low

Employee in charge:

Timeframe or Deadline:

Money Lost (or Fines Imposed) If Not Done: (If relevant)

Who Performs This Function? Employee(s):Vendor(s): Key Contact(s):

Who Provides the Input to Those Who Perform the Function?

Employee(s):Vendor(s):Key Contact(s):

Who Uses The Output From This Function?

Employee(s):)Vendor(s): Key Contact(s):

Brief description of procedures to complete function:

Recovery Notes:

Recovery LocationRecovery Location

Address:City, State, Zip:

Phone line(s) (voice): Re-route current number To be established

Phone line(s) (fax):Re-route current numberTo be established

Phone line(s) (data):Re-route current numberTo 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:

Vital RecordsName of Vital Record:

Recovery Notes:

Y/N

Can Records

Be recreated?

Where Stored?

HourlyDailyWeeklyMonthlyQuarterlySemi-AnnuallyYearlyNever

NetworkHard driveLaptopCDDiskettePrintMicrofilmOther

Explain:___

Y/N

NetworkHard driveLaptopCDDiskettePrint MicrofilmOther

Explain:___

Business Function It Supports

How Often?Media for Backups

Backed

Up?

Media

Critical Telephone Numbers

Recovery Notes:

Solution(Enter letter)

Reroute to recovery location

New Number

Recorded Message

Other (explain)

________________________

Related Business Functions

Description

(e.g. hotline, main line, toll free customer

service line, dial-in to network)

Status(Enter Code)

C Currently in use

E Will establishduring recovery

Type(Enter Code)

L LocalLD Long

Distance800 Toll freeF FaxC CellO Other

PhoneNumber

Supplies

Recovery Notes:

____________________________________

Related Business FunctionsSupplier/Vendor(s):QuantityItem Order

Number

Item

Equipment/Machinery/VehiclesItem: _____________________

Model:

Status:Currently In UseWill lease/buy for recovery location

Primary Vendor/Supplier:

Alternate Vendor/Supplier:

Recovery Location for Install:

Related Business Function(s):

Backup Available:YesNo

Order Time for Replacement:

Recovery Notes:

Computer Equipment and SoftwareItem: ___________________

Type:Computer HardwareComputer Software

StatusCurrently in useWill 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:

Voice/Data CommunicationsType of Service:

TelephonePBX w/ACDPC Data CommunicationsCell PhoneFax MachineTwo-way Radio & PagerOther

Explain _______________

Description & Model Number ___________

Status:Currently in useWill lease/buy for recovery location

Voice Communications Features:

Voice MailSpeakerConferenceConversation recorderOther

Explain: ________________

Voice/Data Communications – cont’d

Data Communications Features:

CableDSLT-1Dial-upOther

Explain ______________

Quantity:

Primary Supplier/Vendor:

Alternate Supplier/Vendor:

Recovery Install Location:

Recovery Notes: __________

Miscellaneous ResourcesChairs

Desks

Extension/drop cords, surge protectors and power strips

File Cabinets

Mail Bins

Portable air conditioners/fans

Safes

Tables

Waste baskets

Other:Explain: _________

Recovery Install LocationAlternate Supplier/Vendor

Primary Supplier/Vendor

QuantityItem

Disaster Response ChecklistNOAA Weather RadioWorking smoke detectors and fire extinguisherFirst Aid KitFlashlights and lightsticksAM/FM Radio, battery operated, or wind-up radioBottled water

Nonperishable food and utensilsPaper suppliesTools and other suppliesBlanketsCameraCash/ATM and credit cardEmergency contact list

Incident Response, Recovery & Restoration

Move to a safe place• Leave building• Shelter-in-place

Determine the type and extent of the incidentAlert employeesActivate Open for Business continuity/recovery planManage the incidentRestore your businessDebrief

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

What about Costs?No Cost . . .

Review insurance coverage optionswith insurance agentWrite short list of recovery actions

Identify and meet with fire and police officialsIdentify weather services, etc. to maintain weather watch

No Cost ActionsInstruct employees on action plans (what to do if no phones, etc.)

Identify alternate means of communicating with employeesEstablish meeting place in the event of a disaster

Practice evacuation drills & review recovery plan

Actions Under $100Purchase First Aid kitPurchase NOAA Weather radio

Tone alertSpecific Area Message Encoding –program radio for your area

Buy flashlights, batteries, pens, paper, band-aids, etc. for disaster kitBuy camera & film

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)

Windstorms – Hurricane, High Wind, Tornado/Hail

Roof conditionAsphalt shingle roofsRoof-to-wall strapsHorizontal projectionsVertical projectionsExterior windows/doors - design pressure

Exterior doors –deadbolt & 3 hingesExterior double doorsImpact-resistant windows and doorsExterior lightning protection systemSurge protectors on electronic systems

Commercial Checklist

Earthquake Risk Assessment - Commercial

Building design: box-like buildingRoof with no openingsLight roofing materialsAbsence of large ground floor openingsAbsence of brick or stone veneer

Type of foundation

Slab on gradeCrawlspace or basement foundation wall system -continuous concrete or masonry wall systemCrawlspace of basement foundation wall system - wood stud cripple wallPier or pile foundation system - wood, concrete, or steel

Building Configuration & Features

Earthquake Checklist - Commercial

Tempered glass or safety filmNatural gas lines with flexible connectionsMajor appliances bracedHangers < 12” long to support mechanical & plumbing systems

Electronic equipment securedSuspended ceilings bracedCabinet/file drawer latchesCabinets/bookcases & storage racks secured

Earthquake insurance

Flood Checklist - CommercialIn a Special Flood Hazard Area – V-zone, Coastal A-zone, Non-coastal A-zone

Base flood elevationDesign flood elevation

Does your community participate in the NFIP?

http://www.fema.gov/fema/csb.shtm

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

Freezing Weather - CommercialSecondary moisture barrierHeat sources directly under roofRecessed light fixtures sealed and insulatedAttic penetrations sealed

Access doors to attic insulated, sealed, weather stripped or gasketedWater or sprinkler supply piping in exterior walls insulatedUnoccupied space over 24 hours -inspect

Wildfire Risk Assessment

Your risk is the highestif:History of wildfiresDry season > 3 months/yrWildland within 100 feet of buildingSteep forested terrain

Fuel sources <30 feet from buildingIn rural areaNearest fire hydrant is > 50 feet awayLimited access for fire trucks

Wildland/urban interface

Wildfire Checklist

Survivable space around buildingRoof conditionRoofing materials Class A fire ratedEaves enclosed, soffits screenedExterior vents <1 foot x 1 foot, screened

Exterior walls covered with non-combustible sidingDouble-pane tempered glazing on exterior windows and doorsMonitored smoke alarm systemAutomatic fire sprinkler system

Open for business• Available at the end

of January 2005 at www.ibhs.org

• Interactive, web-based version available to policyholders of IBHS member insurance companies

Contact:Diana L. McClure

dmcclure@ibhs.org