Panel Presentation on private sector preparedness, small business, and community resilience. November 17, 2009. San Francisco California.

1. Fritz Institute 17-Nov-09
Business of Community Resilience
The Role of Small Business in Community
Preparedness, Response and Recovery
Realities, Changing Expectations, and Resources
America's small businesses form the backbone of the nation's economy.
Small businesses alone account for more than 99% of all companies with employees,
employ 50% of all private sector workers and provide nearly 45% of the nation's payroll.

2. SMBs and The Global Reality
Small and mid-sized businesses (SMBs) are the lifeblood of the
global economy. Comprising more than 99 percent of all businesses,
SMBs employ more than half the world’s workers. Most of the world’s
patents and more than half of the world’s GDP come from small and
mid-sized business.
While SMBs are powerful forces in the world’s economy, they
often run lean and forgo basic protections against business risks due
to lack of time, budget and staff resources.
Source: Global SMB Disaster Preparedness Survey. Symantec. September 2009
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3. SMBs and The Myth of Recovery
When SMBs were asked what would happen if they lost all their
computers in a disaster (such as a fire) and had to rebuild…
Two thirds (67 percent) believe their customers would either ― wait
patiently until the SMBs systems were back in place or they ― would
call the SMB to get what they could and would wait patiently for the
rest until systems were back in place.
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4. SMBs and The Reality of Preparedness
Most SMBs (76 percent) report they live in a region that is
susceptible to natural disasters (such as hurricanes, tornadoes,
earthquakes).
SMBs also report they frequently experience outages or downtime.
The average SMB experienced three outages within the past 12
months, with the leading causes being virus or hacker attacks, power
outages or natural disasters.
With this kind of exposure, and with the confidence SMBs display
about their disaster preparedness, one would think SMBs have solid
disaster recovery plans in place. However almost half (47 percent)
report they do not have a plan to deal with such disruptions.
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5. National Preparedness
Public Law 110-53 – Title IX – Private Sector
PL 110-53: Requires the Department of Homeland Security (DHS) to provide for the
development of a private sector led voluntary certification program for all-hazards business
emergency preparedness. The program is to reflect existing best practices and standards.
http://intelligence.senate.gov/laws/pl11053.pdf
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6. Title IX
Implementing Recommendations of the 9/11 Commission
Excerpts from Federal Register Notification (Vol. 73, No. 248, pp
79140-79148, December 24, 2008):
— Private-sector preparedness is not a luxury; it is a cost of doing business in
the post-9/11 world. (pg 79140)
— In implementing recommendations of the 9/11 Commission (pg 79141):
DHS is to identify and promote specific standards for private sector preparedness, e.g.
NFPA 1600.
Conformity to the standard(s) will establish the standard of care owed by a company and its
employees.
Companies can benchmark their disaster preparedness, emergency management,
business continuity and enterprise risk management programs against the standard(s).
Insurance and credit rating services can benchmark conformity with the standard(s) to
assess insurability and creditworthiness.
Companies can use conformity with the standard(s) to promote investor confidence.
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7. National Preparedness
DHS – PS-Prep Resource Center
http://www.fema.gov/privatesector/preparedness/index.htm
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8. Standard & Poor’s
Announcements Regarding Enterprise Risk Management
Nov 2007: Request for Comment – Enterprise Risk Management Analysis for Credit
Ratings of Nonfinancial Companies
Jan 2008: Corporate Disclosure Improves, Greater Transparency Still Needed
S&P ERM Analytical Framework
Corporate Governance Earns Marks for Disclosure
Beyond Compliance, Business Risk Disclosure is Spotty
May 2008: S&P to Apply Enterprise Risk Analysis to Corporate Ratings
How S&P Defines ERM
Effect on Ratings
Next Steps in Implementation of ERM Analysis
Jun 2008 : Enterprise Risk Management Ratings of Nonfinancial Corporations (FAQ)
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9. Regulations, Standards, Guidelines
& Best Practice
Mandatory - Established by Congress
Regulation or Regulatory Body (e.g. FFIEC)
Voluntary until adopted by
Standard government – Established by
SDOs (e.g. NFPA 1600)
Voluntary –
Guideline / Best Established by Subject
Practice Matter Experts, based
on experience
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10. Planning Tools : Small & Medium Business
PS-Prep Crosswalk – Alignment w/Standards
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11. Planning Tools : Small & Medium Business
PS-Prep Crosswalk – Purpose & Value
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12. Planning Tools : Small & Medium Business
DHS
Ready Business provides practical steps and easy-to-use templates
business owners and managers can use to help plan for
emergencies, disasters and disruptions.
The practices recommended in Ready Business reflect the
Emergency Preparedness and Business Continuity Standard (NFPA
1600).
Ready Business provides useful links to resources providing more
detailed business continuity and disaster preparedness information.
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13. Planning Tools : Small & Medium Business
Ready.Gov
http://www.ready.gov/business/
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14. Planning Tools : Small & Medium Business
Ready.Gov
http://www.ready.gov/business/
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15. Planning Tools : Small & Medium Business
Institute for Business & Home Safety
http://www.disastersafety.org/
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16. Planning Tools : Small & Medium Business
Institute for Business & Home Safety
http://www.disastersafety.org/
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17. Planning Tools : Small & Medium Business
Ready Utah
http://bereadyutah.gov/business/index.html
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18. Planning Tools : Small & Medium Business
Ready Rating Program
http://www.readyrating.org/
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19. Planning Tools : Small & Medium Business
Ready Rating Program
http://www.readyrating.org/DetailedGuideBusOrg/Overview.aspx
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20. For More Information
Doug Nelson CBCP, PMP
925.270.5800
dnelson@bc-solutionsinc.com
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