Circumspex

Profiting from a Business Continuity Plan

In an article in the Winter Edition 2010 of the Disaster Recovery Journal Eric Pitcher presents his case for recognizing the many benefits of developing a business continuity plan. He opens the article with a description of the marketing advantage achieved by property owners who have adopted meaningful plans, Next he makes recommendations concerning the potential cost savings available through the creation and maintenance of disaster plans. He argument is detailed below:

Save costs through insurance reduction


Corporate insurance is expensive and getting more so every
 year. Leveraging the business continuity plan, as well as its
 owner’s knowledge of the environmental and business related
risks, can help the company reduce the cost of insurance directly enhancing the company’s bottom line. How do you get started?

Talk to the corporate treasury department and have them present a
 sanitized version of your business continuity plan to the insurance
 company.

Give special attention to the frequency of tests and the results, as well as
any research that was produced regarding the likelihood of each risk.


Simply having an up-to-date business continuity plan may qualify the
 company for discounts and can be used in cost negotiations.

 

 

Profiting from a Business Continuity Plan

Disaster Plan by Spreadsheet?

Reviewing a recent discussion thread on a business continuity forum I was struck by a few comments. These were recommendations that companies could just prepare a plan in a word document or an excel spreadsheet for company use. Hmmm.  Let's think about that for a moment.

A few questions come to mind

• If your server goes down how does everyone access it?
• How are changes made and distributed throughout the company?
• How do you guarantee that you control access to different levels of information?
• Where do you access building floor plans?
• How do you collect and maintain your physical property assets?

That is just a little food for thought.  If the risk management segment of your business plan is relegated to a static office document you must have a high level of risk tolerance. When disaster strikes a business, a spreadsheet with phone numbers and insurance policy will not guarantee your ability to service your clients and maintain a healthy financial organization.

Circumspex' Mistick to Join the Faculty at the Restoration Leadership Institute

The Restoration Leadership Institute is the leader in providing value-added training to the property damage restoration industry. We provide a wide range of affordable courses that the restoration industry requires. Our courses help businesses stay on the cutting edge and dominate in their markets.

From the very beginning, our goal has been to facilitate courses from industry experts in the property restoration field. Instructors come from nationally recognized schools and are renowned as industry experts. Classes are limited to designated sizes based on each topic. This method has traditionally proven to be most conducive to learning.

For more information on the courses we offer, view our Course Catalog. Check out our Course Schedule to view courses we are currently offering at http://www.restorationleadership.com/

Red Cross suffers fire, issues caution for others




Following an electrical fire that broke out in the restroom of the local Heart of Tennessee Chapter early Sunday morning, the Red Cross would like to remind other businesses to prepare for disasters. The fire was contained within the restroom but destroyed the ceiling and damaged the restroom causing the chapter to shut down Blood Services from collecting blood for two days. 



“We were very fortunate the fire wasn’t any worse because it could have caused some major damage,” said Red Cross CEO Greg King. “Local businesses should definitely have a plan in place of how to continue operations after a disaster such as a fire, flood or tornado.”
Businesses should not risk operating without a disaster plan. While reports vary, as many as 40 percent of small businesses do not reopen after a major disaster like a flood, tornado or earthquake. These shattered businesses were unprepared for a disaster and they had no plan or backup systems.

A disaster plan should consider three subjects: human resources, physical resources, and business continuity. 

“So often we respond to fires in the community that it was a role reversal when the fire was actually in our building, “King said. “Our Continuity of Operations Plan, helped us respond quickly with minimal interruption to our operations.”



For additional information and a brochure about how to develop business continuity plan as well as other resources contact the Heart of Tennessee Chapter via e-mail at chapter@hot-redcross.org. 

The Heart of Tennessee Chapter of the American Red Cross provides vital emergency assistance to help victims of local disasters in Rutherford, Bedford, Cannon, Franklin, Coffee & Moore counties. Over the past year the Chapter trained nearly 15,000 people in CPR & First Aid, Babysitting and Aquatics training, and provided pre-deployment briefings and emergency communications for over 640 active duty military personnel and their families. Over 13,177 pints of information please call 615) 893-4272 or log on to www.midtnredcross.org.life-saving blood were collected from the community last year. All of these services are made possible by over 320 dedicated local Red Cross volunteers as well as through generous gifts from

 

Winter Weather Reminders for Your Home

  Each year, poorly maintained furnaces and the improper use of heating, cooking and lighting equipment cause  thousands of fires in the United States. To protect yourself against risk of fire, the following precautions are  recommended:

•  Install smoke detectors on each floor of your home and test the detectors
monthly.

•  Equip your home with Type ABC fire
extinguishers.
•  Have your furnace cleaned and inspected
annually by a qualified technician.

•  Never use a range or oven to heat your
home. They can cause burns and are a
source for potentially toxic fumes.

•  If you use an electric space heater, read
and follow the manufacturer’s instructions.
Do not overload circuits, and be
sure to keep the heater away from curtains,
drapes and other flammable
material.

• Never try to thaw frozen pipes with a
blow torch or open flame.

• Never discard ashes inside or near your
home. Place them outdoors in a covered
metal container away from your home
and other structures.
• Keep fire hydrants clear of snow so they are accessible to emergency responders.


What Pandemic?

Worldwide governments and public health officials are looking askance at the World Health Organization. After hundreds of millions of dollars and man hours people are wondering just how the WHO could get it so wrong. Statistics reflect the fact that the number of reported cases have been declining since November.

Passing somewhat under the radar is the fact the the WHO changed the official definition of "pandemic" early this year. The new definition is not based on the number of sick or dead.  Rather it is now only tied to the widespread nature of an outbreak. Imagine that!  For more on this story please follow this link:

columbiavalleynews.com/.../what-pandemic-a-call-to-revise-the-international- health-regulations-and-reform-who

INSIGHTS 2010 The Restoration Conference

We will be conducting a full day of training regarding Circumspex web based disaster planning application on Sunday January 17th at the Hyatt in Miami. The program will begin at 8 AM and continue until 5 PM.

The first session will review the historic evolution of the business continuity and disaster planning. Mid-day we will have hands on training in Circumspex. Finally we offer disaster gaming with all participants. We will work through a variety of industry specific disaster scenarios to heighten awareness of risks and develop strategies for mitigation and recovery.

We will also be exhibiting at the trade show.  This show has quickly become the industry leader in providing educational offerings on technical and business operations. It also provides a superb opportunity to share beverages and experiences with the premier contractors in the restoration industry.

Sensitive Building Information Published on the Internet

Bouncing around the internet recently I was amazed to find so much sensitive property information being made available to the public. I trolled through dozens of multi-million dollar high rise properties who "proudly" posted details of their building systems and related emergency procedures in plain view for any internet searcher.
Stop and consider for a moment the liability and risk created by posting the location of fresh air intakes, fuel storage, utility entrances, private tenant phone numbers or the prescribed escape routes for all named tenants. Emergency tenant handbooks that are invitations for disaster.

Supply Chain Vulnerabilities

WHEN ASSESSING RISKS FOR COMMERCIAL OR INDUSTRIAL CLIENTS TODAY IT IS IMPORTANT TO RECOGNIZE THE FACT THAT "NO MAN IS AN ISLAND". IN OTHER WORDS THE HEALTH AND FINANCIAL WELL BEING OF THESE BUSINESSES IS  VERY RELIANT UPON THEIR SUPPLY CHAIN.  ESPECIALLY IN THE CURRENT ECONOMY, WHEN COMPANIES ARE WORKING TO MAINTAIN MARKET SHARE WHILE CONTAINING COSTS IN EVERY WAY POSSIBLE THE RELIANCE ON THE "JUST IN TIME CONCEPT" MAKES BUSINESSES EVER MORE VULNERABLE TO DISRUPTIONS IN THEIR SUPPLY CHAINS. 

AT THE MOST BASIC LEVEL MANAGERS MUST CONSIDER: A) WHAT CAN POSSIBLY GO WRONG; B) WHAT IS THE LIKELIHOOD OF THE EVENT; C) WHAT ARE THE IMPACTS ON THE BUSINESS.  THESE IMPACTS MAY CUT ACROSS A BROAD SWATH.  THESE EVENTS MAY IMPACT SALES, CASH FLOW, CUSTOMER SATISFACTION, AND STOCK VALUE AMONG OTHER CONSIDERATIONS.

ONCE RISKS TO THE ORGANIZATION HAVE BEEN IDENTIFIED THEY ARE THEN PRIORITIZED BY THEIR LIKELIHOOD OF OCCURRENCE.  OFTEN THIS INFORMATION IS THEN GIVEN VISUAL REPRESENTATION THROUGH THE USE OF VULNERABILITY MAPS. WITH THIS INFORMATION IN HAND A BUSINESS MAY CONSIDER STRATEGIES TO REDUCE OR MANAGE THE RISKS TO THE ORGANIZATION AND THE MEMBERS OF ITS SUPPLY CHAIN WITH A GOAL OF LESSENING THE NEGATIVE IMPACTS AND FACILITATING A SPEEDIER RETURN TO NORMAL OPERATIONS.

G20 Provides Practice for Disaster Plans

All over Pittsburgh this weekend, business located within the city are implementing their business continuity plans. Many of them may not even realize they have - or ever needed - such a plan, but the G20 coming to town has forced businesses large and small to make adjustments to the way they do business.

Companies have moved their IT operations to hot sites outside the central business district. Others have implemented strategies to have employees work from home. Security forces have been either hired or strengthened and supplies stocked to handle incidents such as broken windows.

There have been a number of challenges to be considered in preparing for the days Pittsburgh hosts dignitaries from around the world. Protests and riots are an obvious consideration. The closure of vehicle traffic around the convention center and resulting loss of parking has caused some consternation. Many companies have closed for two business days, realizing the road closures and traffic trauma would prevent their employees from arriving and departing from work in any normal way. They've had to decide how to handle those days for their hourly-paid workers. They've decided that for some functions, two business days is a tolerable down time.

Schools and universities in the area are also affected, and many have also closed. Carnegie Mellon University, with its many programs and projects that run on a 24/7 schedule, can't schedule a closure. For some programs, there is no tolerable down time. Individual professors, however, are making decisions about conducting their classes. Those professors are considering the same factors facing businesses in the area and making their decisions.

Whatever strategies have been employed, and whatever they're called, all are truly part of a business continuity plan. Planning for business operation during a disruptive event is a simple definition of our industry. Companies that had plans previously in place are getting valuable practice in exercising their plans. Others are beginning to understand the complexities involved in planning and hopefully recognizing the need to keep those plans and continue to work on them.

There are lots of events that can disrupt business operations. In Pittsburgh this week it's the G20 Summit.