Circumspex Disaster Planning Blog

The Costa-Concordia Tragedy: Failed Leadership and Flawed Operational Risk Management

The cruise ship Costa Concordia tragedy should never have happened.  The Masters and Captains commanding these magnificent passenger vessels are among the most trained, experienced and seasoned maritime professionals afloat.  They are hand- picked to represent the best of the sea going professions to sail the capital investments of the leading shipping lines of the world.   Likewise, the crews assigned to vessels such as the Costa Concordia receive the best training that is on the market.  The qualification processes in every phase of ship board operations, from navigation to engineering, is rigorous, demanding and unforgiving.  Moreover, the systems installed onboard to guide and operates the Costa-Concordia were at the cutting edge of navigational and engineering technologies.

 

Yet, the ship ran aground.  In well charted waters.  In waters that were known to be rife with navigational hazards and, at worst, with hazards potentially fatal to the ship itself.  The ship and Captain had navigated these waters on numerous occasions as part of a standard routing and navigation  plan.  The threats were known.  Yet on the night of January 13, 2012, the Costa Concordia committed the most egregious of maritime sins by steaming into shoal water with seemingly with little or no concern for the risks involved.

 

Certainly, this is not the first time a prominent commercial vessel has gone aground.  Sadly, it will not be the last.  This, then, begs the question:  Why?

 

The prudent mariner, prior to departure from a port or anchorage, will “lay down” a navigational track on charts of areas that it expects to transit on its journey.  Starting with “large scale charts” (small area with greater definition for hazards associated with inland/ near coastal navigation and to aid visual navigation), the ship’s navigation team deliberately “plots its course” out of harbor or anchorage areas.  Tides, depths, obstructions, navigational aids are all considered to ensure the ship’s safe navigation out of “restricted waters.”    Once clear of inland navigational hazards, the ship’s track then shifts to a “small scale” chart (large area) for its “lower risk” open water transit.

 

This navigational planning process is deliberate, focused and intended to mitigate risk to the integrity of the vessel while in its most vulnerable (and high risk) environment.  Add the variables of weather (wind, fog, visibility, sharpness and crispness of radar and visual navigational aids) and other maritime traffic in the vicinity and the risk factor to ship safety increases exponentially.   The navigational plan is then briefed, critiqued and “challenged” by all members of the bridge and navigational teams to insure that the plan has addressed all key factors as well as ensuring that each member of the “ship control team” understands where, when and how the ship will maneuver.  This last process is deliberate and perhaps the most critical phase.  Nothing is left to chance when it concerns the ship’s navigational safety.

 

Why then, after all of the preparation, all of the planning and all of the briefings, did the Costa Concordia “run aground” on Friday, 13 January, 2012 with the resultant tragic loss of life?  Some will say “human error.”  Some, particularly those closely vested with the ship’s safety, will cite “systems failure.”  Others will even go as far to lay blame on the navigational charts (given that mariners have plied these waters for the past 3000 years, it is somewhat doubtful at best).

 

The answer, I submit, lies deep within the human conditions of hubris, ego and arrogance.  Each of these elements, when taken individually, are fatal flaws unto themselves.  When combined in total in the singular being of the lead decision maker (Captain/Master of the vessel in this case), the results are, predictably, tragic.  The Captain’s decision to navigate extraordinarily close to the shore on the evening of the 13^th of January was prompted by nothing more than a “spur of the moment decision” to thrill the passengers with a close “fly by” of  Isola del Giglio.

 

Hubris, ego and arrogance, as embodied by the Captain, intervened so thoroughly and  completely that even the most experienced mariner (and qualified) onboard  utterly failed to consider the fundamental principle of considering operational risk management (ORM) into his decision to deviate from the established navigational track.  All of the navigational planning and preparations became subordinate to his own hubris.  Moreover, the Captain’s own persona created an environment whereby subordinate staff members either failed (out of negligence) or were so intimidated by his authoritarian style of leadership that nothing was said (out of fear for their own careers).  Had there been even a scintilla of consideration for the extraordinary risk that was being assumed by the Costa Concordia in this capricious, spur of the moment decision, this disaster most certainly would have been averted.  The fact that the Captain was not even posted on the bridge but cavorting with his passengers during this most risky of maneuvers is evidence enough to point to his embedded fatal flaws.  Sadly, it is only through the loss of life that these personal (and professional) shortcomings came to light. 

 

The loss of life and the suffering of the survivors is tragedy enough.  The tragedy will be compounded, however, if simple lessons learned are not taken from this incident and applied across the board and amongst all manner of disciplines that require planning and preparation to mitigate risk in dynamic operational environments.  First and foremost amongst these lessons is that any decision contains its own inherent risk.  This risk must be recognized, considered and assessed in the context of ongoing operations and within the risk framework established by organizational leadership.  Secondly, operational risk management must be conducted by leadership in light of previous planning considerations and risk mitigation efforts.  This alone should act as a brake mechanism that stops the “sequence of bad decision making” or, at the very least, serves as an impetus to challenge any contemplated deviation from an established plan.  Thirdly, and most important, is the recognition of the human condition (ego, arrogance and hubris) when inserted into organizational decision making processes.  Specifically, the examining of any change in a plan in order to flesh out the root cause for the change.   Is the decision to affect a change operationally imperative or is leadership decision making compromised by the dominance of hubris, arrogance or ego.   If it is the latter, the organizational climate must be such that it permits, without prejudice, the leader to be professionally challenged by those who see the decision for what it is or isn’t.

Written by John Kunert CBRM CBRA

Senior Planner

Circumspex LLC

 

Business Continuity Plan Testing: “Knowledge is Power “

Business Continuity Plan Testing is technically noted as the 5^th stage (nestled between plan development and plan maintenance) of the Business Continuity Planning Process.  Its objective is to serve as the litmus test to determine the plan’s “adequacy, reliability and effectiveness”.[1] In so doing, it ensures that the analytical efforts engaged in the planning process forms a sound premise for the plan construct and, moreover, is consistent with the organization’s assessment of its needs to sustain itself through possible business interruptions.

 

 A tall order indeed and perhaps the Decisive Point on the path to achieving organizational resiliency.

 

At the core of the “adequacy, reliability and effectiveness” testing triangle (equal lateral:  all sides in equal “tension”) is the actual event that serves as the driver for the testing process.  For purposes of the discussion, it matters not the type or nature of the event.  What is of primary importance is that the testing event involves the business continuity team that will be implementing the plan at the moment of calling.  Herein lies the “Center of Gravity” for organizational resiliency in responding to threats to business continuity.

 

The actual link between the testing event and the business continuity may be identified as Organizational Level of Knowledge on the actual business continuity plan (BCP). I would even go as far as saying that this knowledge, in order to embody the concept of resiliency, must encompass the plan in total and NOT the stove piped columns of knowledge that individual business continuity plan response teams generally are empowered with in order to execute their individual finite pieces (of the plan). 

 

The link of Organizational Level of Knowledge is supported by several knowledge sub-components that support and foster resiliency.

 

The first, and most critical, is the premise that Knowledge, specifically of the business continuity plan in total AND the premise(s) on which it is founded, constructs an innate sense of resiliency within each response team member.  It enables them not only understand/execute their respective part better, but, of greater significance, to seize initiatives when they appear and to make the right decisions and take the right actions as a dynamic situation dictates.  This is de-facto empowerment.

 

Secondly, mastery of the Knowledge contained in the BCP mitigates the paralyzing affects of the “shock and awe” syndrome when initially confronted with a disaster or serious interruption to business continuity.  Individuals will respond as the BCP dictates due to the fact that the knowledge imparted by effective training of the BCP overwhelms “uncertainty and mental gridlock,” both of which are known human phenomena to circumstances that stress normal thought processing patterns.

 

Third, and perhaps more subtle than the previous two points, is the fact that a thorough knowledge of the BCP by key participants will maximize training opportunities when scheduled.  The maximization occurs not only in the organizational resiliency sense but also from a fiscal stand point as well.  Training demands planning (time, staff resource allocation) and productive participation (time saved by addressing new material/issues and not constantly re-plowing old ground).  All of this affects the bottom line and is a significant enough consideration that cannot be overlooked.

 

John Kunert CBRM, CBRA

Senior Planner

CIRCUMSPEX

 

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[1]Sentryx , Advanced Business Continuity and IT Disaster Recovery Planning: Course Notes, 2008, Section 9, page2, 2008.

Resiliency and the Business Continuity Plan: Are They Related?

Or are they mutually exclusive? Is the concept of “resiliency” the framework within which an effective business continuity plan is constructed? If not, it should be. If not, the Business Continuity Plan (BCP) isn’t worth the electrons that store it within the system.

RESILIENCE is defined by Merriman-Webster as follows:
“The capability of a strained body to recover its size and shape after deformation caused especially by compressive stress,”and “an ability to recover from or adjust EASILY to misfortune or change.”

Both definitions address the ability of the main body to adjust and adapt to external forces that are exerted in a non-complementary fashion. In other words, unannounced disruptions to the status quo. Moreover, the emphasis is on the ease by with that adaptation is realized.

Much has been said regarding “Organizational Resiliency” and the need for the Business Continuity Plan to achieve that end. One can almost hear the mantra chorused by senior management when the notion of “organizational resiliency” is challenged by vested stakeholders: “….of course we are resilient….We have a Plan!”

But are they? Upon further review…

It may be interpreted that true “resiliency”, in the context of responses to external stresses, has two distinct components:

1. The BCP
2. The Organization

The glue that hold these two key resiliency elements in the proper tension is the ability, capability and will of the people within the organization to seamlessly respond to external organizational stimuli that results in unanticipated “misfortune or change” to key processes, infrastructure or capabilities.

It is certainly one thing to “brace for shock” when a threat is anticipated and known. People prepare. Management focuses more tightly on risk mitigation. Redundancy, perhaps rarely (or never) relied upon, is “given the warning” to step into action on moment’s notice. The probability of an effective response with the associated positive outcome is certainly “Good.” With a little training in between those odds may go to “Excellent.” Great.

It is all together different when the “misfortune or change” is more akin to the “bolt from the blue.” In this scenario, it is a “come as you are party” and, hopefully, the party preparations included a heavy dosage of organizational socialization, training, and testing of the BCP. In the average organization, what are the odds of the perfect nexus of these elements? Add the “surprise” element and we have the recipe for, at best, a “failed response.” Not Good.

In both scenarios, both organizations could have made the rhetorical claim (or claims if extraordinarily confident) before the event that they were, in fact, “resilient.” In fact, neither would meet the true litmus test or resiliency: “ An ability to recover from or adjust EASILY to misfortune or change.” The “ramp up” in the “brace for shock” scenario comes at a cost both in terms of time and the illusion of preparation. In this case, any deviation from the set plan serves as the prologue to failure. In the “bolt from the blue scenario, the notion of “adjusting easily to misfortune or change” was doomed to failure at first contact.

As stated earlier, the factors that empower an organization’s true resiliency are the ability, capability and will of the people within the organization. The challenge for senior leadership (note the term “leadership” used vice “management”. “Will” cannot be managed in the clinical sense however leadership inspires individuals from within, hence “will” is re-enforced) is to allow the growth of ability, development of capability and engendering the sense of empowerment amongst all echelons of the organizational structure to ACT as leadership expects them to act in the absence of direct supervision. The early stages of an event that “causes misfortune or change” are the most critical. The right actions taken at the right time by the people who have the opportunity to do so can only happen if they are trained (ability and capability) and empowered. This, in the final analysis, is Resiliency.

A page from history exemplifies this last point quite clearly. During the Second Battle of Guadalcanal in 1942, the light cruiser USS San Francisco (CA 38) suffered over 32 major caliber hits during an intense night action with significantly superior Japanese forces. With senior leadership killed, a severely compromised propulsion plant, “next to nothing” for electrical generation and on the verge of sinking, the ship continued to put “rounds down range” to the enemy. They continued to “fight another day.” Under these extraordinary circumstances, the crew of that ship demonstrated extraordinary “Resiliency.” Inspired leadership instilled the will to perform and training, on the part of every crewmember, to the tenets of their “contingency plan”, empowered them to prevail. They were, in every sense of the definition, RESILIENT.

By:  John Kunert, Senior Planner @ Circumspex LLC

Unexpected Loss or Theft of Critical Identification Information: What’s Your Contingency Plan?

Much has been said regarding personal identity theft.  Even more has been written with respect to the devastating consequences that personal identity theft can have on one’s own livelihood and economic health; even mental health if one considers the fact that one’s own “digital persona” is now embodied in that of another.  This “digital persona” has the potential, both literally and figuratively, to steal not only one’s financial resources (Bank Accounts, Credit Cards) but also one’s “identity” in the cyber-world that controls one’s access to health care (Medicare, Medicaid),  earned benefits (Veteran’s Assistance and Programs, Social Security) and even employment opportunities (or loss of present employment).

What to do?  What’s next?  How do I respond?  Moreover, how do I mitigate the risk from this ever happening to me in the first place?

Before I begin, allow me to quantify my remarks.  I recently “lost” a piece of critical personal identification while proceeding through a routine TSA check point at a major regional airport.  Unfortunately (for me), the ID contained my social security number as well as my birth date.  The two most centric pieces of data to one’s personal identity.  My initial response was not what I could call the most efficient or even “pre-planned.”  It was sheet panic over the magnitude of the loss and the knowledge of what “could be.”  It was my personal Armageddon.    Upfront and personal.  Fortunately, the four hour plane ride that followed allowed me to focus on my next step(s). 

What to do if you find or even suspect that personal information has been compromised.  First and foremost, assume the worst.  Then act.  Go on the offensive and take charge of your counter attack.  The following are the “what next’s.”  By acting you’ve already begun the initial response. 

1.  Notify ALL of your financial institutions IMMEDIATELY that you suspect that your personal information has been compromised.  From your credit card companies to the banks where you maintain accounts.  LET THEM KNOW specifically what information has been stolen or lost (e.g. SSN, Birth date, Account number(s), security codes).  This should be done as soon as you can get a dial tone!

2.  Call the Social Security Office at:  1-800-772-1213 or access their web site at http://www.socialsecurity.gov  .  Report your circumstance, particularly if your SSN has been compromised.

3.   Visit the Federal Trade Commission website http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm  for information on how to post a fraud alert and, once reported, obtain a Fraud Alert Confirmation number.   

4.  Through the FTC and/or on your own, notify one of the three major credit monitoring agencies ( e.g. Equi Fax at 1800-525-6285)of a potential fraud.  They will track any activity under you personal identity (Social Security number).

That all said (and beside the issue of losing your data in the first place), the following are steps to hedge and or mitigate the risk to personal identity compromise:

1.  Have a plan in advance where all of your key contact data (banks, credit card companies, creditors etc) is both secure and readily accessible.  A product such as CIRCUMSPEX ( https://www.circumspex.com )  is the ideal platform in which to launch and store a personal identity theft/compromise plan and all contact data.

2.  Properly secure all data.  Minimize the amount of personal “data” that is on your person day to day.  Examine that data such that you are continually aware of  what you have in your back pocket.  Always ask the question: “what is my exposure should I lose and/or have my wallet/purse stolen/misplaced?”  Carry one piece of personal identification and, preferably, one that doesn’t include your SSN and birth date.   Keep in mind what is on your personal computer/laptop and keep them “clean” to minimize exposure should they become lost or stolen.

3.  Destroy (SHRED) all correspondence that contains any information relative to account data (all accounts e.g. phone and utility bills, banking, credit cards) prior to disposing.

4.  When presenting personal identification for official purposes (Transportation Safety Authority screenings, banks, store check cashing etc), maintain a deliberate mental focus on how/where/who has their hands on that ID.  Be deliberate in its return to you and its SAFE STORAGE on your person.  Never mind the impatient person behind you.  They can wait.  Your personal security AND, moreover, piece of mind, cannot!

Don’t let happen to you what happened to me.  Be ready.  Be prepared.  Be prepared to take charge of a personal identity theft counter-attack should the worst occur!

Critical Processes In Business Continuity Planning

This is very good primer on the components of critical process investigation. Analyzing the business organization and its entire operational footprint is instrumental to developing a proper continuity strategy.

This begins with identifying mission‐critical functions throughout the organizational landscape, including agency functions (interdependent services performed by agency processes and sub‐processes), enterprise functions (services dependent upon agency‐level functions) and processes (series of actions or operations that implement functions).Identifying mission‐critical functions can be a tedious task, and no two organizations will follow the sameprocess or end up with the same list.

When identifying mission‐critical functions, the following should be considered:

• Functions that support the organization’s primary mission statement

• Functions that support other agencies’ mission critical functions

• Functions that must be recovered immediately and quickly

• Functions that have a high‐dollar value

• Functions that have high client/customer impact

• Functions with political implications or ramifications

• Functions with legal requirements or liabilitiesAn executive Business Impact Analysis (BIA) tool can facilitate this process, helping planners and organizersunderstand the effects and impacts of interruption on the viability and vitality of operations and criticalbusiness functions, especially financial activities, including maintaining collections, processing payments,operating a supply chain, handling payroll and so forth.

BIA is the backbone of the BCM planning process but cannot stand alone without full approval, backing and support from the highest level managers.Risk analysis and Risk assessment are additional processes which support the BCM planning process. Risk analysis involves identifying probable threats and associated threat value to an organization and its assets and analyzing related vulnerability. Risk assessment evaluates existing environmental and physical controls and security, followed‐up by assessing their adequacy relative to potential threat.

 

Read more in paper written by Tittel & Koreic    Understanding the need for Business  Continuity Management and Disaster  Recovery Planning

Circumspex: September is National Preparedness Month

            It only seems appropriate with this rash of hurricanes that September is National Preparedness Month. I know it seems a bit simple that we should have to  be reminded about this when The Weather Channel and CNN fight it out to be the ultimate hurricane source 24/7. 

            A variety of Federal, State and local entities provide a broad spectrum of information concerning disaster preparedness FEMA, NOAA, Homeland Security are all top of mind. However, the Small Business Administration and the Centers for Disease control also offer some great insightful topics.  Here's a sampling from the SBA,

           

Develop a solid emergency response plan. Find evacuation routes from the home or business and establish meeting places. Make sure everyone understands the plan beforehand. Keep emergency phone numbers handy. Business owners should designate a contact person to communicate with other employees, customers and vendors. Individuals and business owners should ask an out-of-state friend, colleague or family member to be a "post-disaster" point of contact, supporting the flow of information about short-term relocations, recovery, additional sources of assistance, etc.

        Make sure you have adequate insurance coverage. Disaster preparedness begins with having adequate insurance coverage -- at least enough to rebuild your home or business. Homeowners and business owners should review their policies to see what is or isn't covered. Businesses should consider "business interruption insurance," which helps cover operating costs during the post-disaster shutdown period. Flood insurance is essential.

 

 Visit us at Circumspex.com  The premier disaster planning tool designed by Certified Property Managers for America's leading property professionals.

Mistick's Circumspex Disaster Planning

CIRCUMSPEX WEB BASED BUSINESS CONTINUITY AND EMERGENCY RESPONSE PLANNING

Circumspex is one of the most dynamic business continuity and emergency planning tools available today. It is completely adaptable to a wide variety of property types and uses. Circumspex was built on more than 25 years of disaster recovery and property management experience. This program guides users through the creation of a comprehensive disaster plan that can identify and eliminate many risks, while developing procedures to reduce the potential impact of others.
Circumspex combines traditional disaster planning techniques with dynamic Internet-based information access. Clients use Circumspex to identify and remedy existing problems, then collect information on business process, occupants, building systems and content information. With this information organized, customers then plan to proactively respond to emergency situations. Once the necessary information has been collected for your plan you can store it and upload it to the secure CIRCUMSPEX servers through the convenient web portal. With your business continuity and emergency plan stored online, you can access it from virtually any computer or cell phone / PDA with Internet capability. The plan and other special instructions can then be shared with your emergency team, incident command group or entire organization.
The online capability of Circumspex helps during the planning process as well as during an actual response. Work with a few others or a whole team to complete your plan. You can divide tasks, then share information and collaborate on your overall progress by logging into Circumspex online.

Mistick on Circumspex & Alternate Contractors

Today was filled with questions about disaster response logistics as Hurricane Gustav drones through the Caribbean. Retail, big box, property managers and insurers scramble to find solution sets in the face of impending abuse.
One of the tasks we regularly assist our clients with is the identification of alternate suppliers and contractors. In local emergency situations locating needed materials and means is challenging but manageable. When regional disasters occur you may be forced to reach out hundreds of miles away from your facility. Obviously the time to build this resource bank is not five days before impact.
Taking the time and energy to develop a strong bench can make the difference in your business' survival. When you search for distant resources be sure to collect references, certificates of insurance, health and safety plans as well as training and certification information. Equally important is your ability to secure pricing for services. Some service contractors charge different rates in disaster locations. Be an informed consumer.
Circumspex will provide you with a framework to organize your resources for disaster recovery. Be on the lookout for our new demo available soon.

Mistick on Disaster Plan Maintenance

A question for those of you with disaster plans for your business---How do keep your disaster plan current? Or have you kept it current?
In our consulting business we frequently find that many businesses complete some original plan and promptly put it away on a bookshelf. You can't allow your plan to become stagnant and collect dust. As employees change, equipment is replaced or insurance policies renewed your plan must be updated. The changes must be made, the author of those changes recorded and the revised plan distributed to the appropriate team members.
How do you accomplish this task? How far behind the changes does the document lag? If you are a big company with a change committee this may be an easy feat. For most organizations it requires concerted effort at regular intervals to assure effectiveness,

CIRCUMSPEX FOR PROPERTY MANAGERS

Circumspex addresses property managers’ needs for a comprehensive business continuity and disaster planning tool that is easy to access and intuitive in operation. It meets their demands for a sophisticated product geared to small and mid-sized companies who need the depth of features without a cumbersome price point. Circumspex maximizes critical group thinking to yield effective plans without being an onerous process for managers who are always under performance pressures.