Challenging Environment In Asia Requires Emergency Response
1. Challenging Environment in Asia
Requires Response Planning
Anthony Lee, CBCP, CPP
1 October 2009
1
Agenda
Major Business Disruptions
Definition of Emergency
Business Disruption Effects
The need for Crisis Management
Emergency Response Planning
Case Study – Morgan Stanley, World Trade
Center, NY
1
2. Business Interruption Incidents
Jan to Sep 2008
Incidents Cases Incidents Cases
Adverse Weather 75 Power Failure 47
Bomb Scare 53 Software fault 33
Burst Water Main 10 Telecoms failure 21
Civil Disturbance 6 Terror Alert/Attack 3+
Fire 108 IT Equipment Failure 7
Explosion 6 Virus 0
Gas Leak 89 Earthquake 1+
HazMat Incident 21 Other 6
Industrial Action 15
Source: Thin Ice newsletter, Q3 2008
2
What is an Emergency?
“An unplanned event that can cause deaths or
significant injuries to employees, customers or
the public; or that can shut down your business,
disrupt operations, cause physical or
environmental damage, or threaten the facility’s
financial standing or public image”
- FEMA
2
3. Characteristics of a Major
Catastrophic Event
Sudden, unplanned, calamitous event
Unable to provide critical functions
Loss of entire building use, and severe damage
A number of response organizations are involved in
response/recovery
Communication is limited or poor
Accurate, timely info is limited or unavailable
Emergency services are centralized, government-driven,
government-
subject to inertia
3
Characteristics of a Major
Catastrophic Event
Informal, unstructured immediate response from survivors
Limited access to basic supplies
Virtually, no infrastructure services remain e.g. power, water
Transportation is constrained e.g. flooded or damaged roads
Severe impact on associates – preoccupation with family
Regional economic disruption due to lack of exchange
mediums (Cash is king)
Restoration and rehabilitation can take months or years
3
4. Top 3 Disaster Concerns in SGP
Fire
Utilities Surge
Outbreak of Diseases
Source: NCS BCP Index Survey, April 2009
4
Business Disruption Effects
Facilities Denial - Business Premises
unavailable or inaccessible
Staff Denial – Employees unavailable or
severely distracted
Infrastructure Denial – IT/Telecom-related
IT/Telecom-
resources down
4
5. Emergency Response &
Preparedness
All-
All-hazards approach requires 5 plans:
Prevention Plan
All-hazards Emergency Ops Plan (EOP)
All-
Mitigation Plan
Recovery Plan
Continuity-of-Operations Plan (COOP)
Continuity-of-
Source: NFPA 1600 standard
5
Why is BCP important?
43% of business experiencing major disasters
never re-open
re-
29% close within 3 years
<50% of organizations have BC plans and at least
90% never test the plans
75% of businesses are unable to function without
IT/telephones within 14 days
Source: i-notes, Sep-Oct 2008, India Insure
5
6. Need for Crisis Management
“A disaster can strike any organization, large
or small. Organizations spend years
building their brands but a single event
could wipe out this investment”
6
Emergency Response Planning
Clearly identify the operational risks and
business impact
To alleviate the impact of the event
To survive the crisis in progress and ease its
effects as far as possible
Rapid response to reduce injuries and protect
assets leading to smooth business recovery
6
7. Emergency Response Plan
Set of procedures for Emergency Response
Team to react and respond to any incident
To create a framework for the allocation of
resources
To assign responsibilities
Plan, exercise & review
7
Case Study – Morgan Stanley
WTC Twin Towers
Twin Towers - two 110-storey buildings
110-
WTC has another 5 smaller buildings
Tower 1 - 1,368 feet (414 meters) tall
Tower 2 - 1,362 feet (412 meters) tall
Each tower has 104 passenger elevators
~50,000 people worked in WTC complex
7
8. Case Study – Morgan Stanley
WTC Twin Towers
Occupied 22 floors of Tower 2 (South Tower, 2WTC)
Investment bankers on 73rd floor etc
Rick Rescorla, Head of Security
Rescorla,
Got MS employees to take responsibility for their survival
Frequent, surprise fire drills
Employees to meet in hallway between the stairwells and go
down the stairs to 44th floor
Slow evacuation….he started to time them with stopwatch,
and they got faster!
8
Case Study – Morgan Stanley
WTC Twin Towers
Taught employees on basics of fire emergencies
9/11, 8:46am: Rescorla heard an explosion and saw Tower 1
(North Tower, 1WTC) burning from his office window
Over PA system, Port Authority NY official
told people of Tower 2 to stay at their desks!
8
9. Case Study – Morgan Stanley
WTC Twin Towers
Rescorla grabbed his bullhorn, walkie-talkie and cell phone,
walkie-
and ordered MS employees to get out
Smooth evacuation by MS including 250 visitors in class
9:03am: Rescorla on 44th floor, second plane hit Tower 2
about 38 floors above
Building shook - he sang to distract employees from fear
Successfully evacuated 2,687 employees
Last seen on 10th floor, heading up, before Tower 2 collapsed
at 9:59am
9
Case Study – Morgan Stanley
WTC Twin Towers
Only 13 employees including Rescorla and 4 of his security
officers were left inside Tower 2
Tower 1 collapsed at 10:28am
Tower 1, 101st to 105th floor: Investment Bank Cantor
Fitzgerald lost 658 employees
Total 2,751 people died in 9/11 WTC terrorist attacks
Estimated 17,400 people at WTC Complex at time of attacks
including ~14,000 people in Twin Towers
9
10. Simple Rule of Human Nature
“The best way to get the brain to
perform under extreme stress is to
repeatedly run it through
rehearsals beforehand”
10
Emergency Response Plan:
Contents
Emergency organization
Emergency notification
Roles and responsibilities
Invocation and mobilization
Emergency procedures including facility evacuation
Communication with BCP Support Teams,
Management and Business Partners
Training, conduct of drills
10
11. Roles and Responsibilities
Security and Fire Safety Professional
BCP Professional
Management – Incident Commander, Management Team,
Emergency Response Team
Human Resources
Corporate Communications
Info Technology and Telecoms
Associates
11
Training
Emergency Response Team training – first aid, CPR
for medical first responders
Associate training – emergency alarm, evacuation
procedures
Security Officer training
Drills and drills….
Post incident critiques
11
12. Communications
Summoning emergency assistance
Alerting affected associates
Call tree for notification of BCP teams
Event message to staffs and business partners
Media communications
12
Emergency Procedures
Responding to the alarm
Utility systems
Identify types of scenarios e.g. fire, flood, power
failure, earthquake, medical emergency
Action Checklists – KISS
Prevention and Preparedness
Response
Recovery
12
13. Crisis vs. Disaster
“A Crisis is not a Disaster.
Failure to Plan for a Crisis
is a Disaster”
13
The End
Networking*Information*Education*Advocacy*Certification
13