Disaster Planning The Ten Commandments of Success June 2014

Disaster Planning

The Ten Commandments of Success

June 2014

Speaker

Steven Sachs

Executive Vice President

Director of Real Estate and Hotel Practice

Willis NA

steve.sachs@willis.com

410-584-8935

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Session Objectives

Practical Hands On Information For You to Utilize in Developing Catastrophe Planning

Catastrophe Planning Follows Basic Risk Management Process

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What to Take Away

Understand the wide-ranging impact of a successful disaster response program

Recognize the critical elements of a disaster recovery plan

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Expect the Unexpected

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Preparation

Preparation of Emergency / Catastrophe Plan Risk Manager is Facilitator Put Together a Team - Use All

Resources• Operations (field)• Disaster Tested Manager• Insurer / Broker / Consultant

Model Approach

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Preparation

Preparation of Emergency / Catastrophe Plan Local Customization Quality Control Procedures

· Approval · Audit

Use of Technology

Operating Units Versus Corporate Headquarters

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Risk Management Process

Identify Types of Catastrophic Situations That Could Affect Your Operations

Casualties (Fire, Natural Disaster)

· Use your own engineering reports / loss history

· EQ / Flood / Windstorm analysis by insurer / broker / consultant

Cyber Attacks

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Risk Management Process

Terrorism / Extortion

Third Party Criminal Acts

Interdependencies (or where in the food chain are you?)

• Have you named all of your key suppliers and/or recipients?

• ID secondary suppliers and/or recipients

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Risk Management ProcessAttempt to Measure Impact to Company's Assets and/or Earnings

Liability (Life Safety)

Business Impact (maintain/improve market share)

Goodwill / Image

Lowered Productivity

• (e.g., Employee Downtime)

Value of Key Employees

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Critical Success Factors

Quick Response Team Resources

Headquarters Operations

Share Plan With Your Underwriters

• Align coverages and expectations

Manage Corporate expectations

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PreparationKey Items To Be Included In Plan

• Specialty Emergency Contractors

• Communications

• Utilities

• Security

• Transportation

• Engineering Services

• Hot site for IT

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• General Contractors

• Roofers

• Plumber / HVAC

• Sprinkler Contractors

• Glass / Glazers

• Cyber Resources

• Trauma Counseling

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Pre-event HoursEstablish Home Office Responsibilities

Establish Primary and Alternate Field Headquarters

• Food

• Clothing

• Staff

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• Phone Book

• Cash

• Security

(Police/National Guard) Headquarters

Pre-Event Hours

• Conduct Pre-Event Conference Calls When Possible (Hurricane and Flood)

• Establish Pre-Event Checklist to Include:

- Food - Materials/Supplies

- Clothing - Contractors Committed

- Accounting Cost Codes

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Summary

• Facilitate– Bring Resources Together

• Develop Model Plan

• Establish Quality Control Procedures

• Responsibility / Authority– Use Technology if Possible

• Distribute

• Audit

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Post-Event Actions

Implement Emergency / Catastrophe Plan

Quick Response Team

Establish Objectives

Media / Public Relations

Psychological Support Services for Employees

Coordination with Insurers

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The Ten Commandments1. Preparation, Preparation, Preparation leads to “360

degree credibility”

2. Follow the Risk Management Process

3. Make sure that you have coverage and no surprises (Policy Workshops)

4. The Risk Manager should be a facilitator and identify the best resources inside and outside of the company

5. There must be Quality Control which includes:• Practice• Required Updates• Audits

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The Ten Commandments6. Where you are exposed to Natural Catastrophes,

pre-commitment of key contractors and resources is critical.

7. Establish a Quick Response Team is critical

8. Establish Home Office responsibilities

9. Conduct Pre-event Conference Calls when possible (commencing 7 days out on named storms)

10.Share the plan with your underwriters

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Questions?

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