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Emergency Preparedness for Design Firms
RLI Design Professionals
Design Professionals Learning Event
DPLE 244
September 16, 2015
RLI Design Professionals is a Registered Provider with The American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-AIA members are available on request.
This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.
Copyright Materials
This presentation is protected by US and International Copyright laws. Reproduction, distribution, display and use of the presentation without written permission of
the speaker is prohibited.
© RLI Design Professionals
Course Description
Wherever you live and work, your business is inevitably exposed to emergency situations. They might include
natural disasters like windstorms, floods, earthquakes, or winter storms. Emergency situations can also involve
man-made disasters like fires, chemical emergencies, or episodes of terrorism on varying scales. Increasingly
technology threats, including cyber incidents, are becoming more catastrophic as cyber criminals become
more savvy. How will you protect your income and assets when disaster strikes?
Course DescriptionYour Firm’s Exposure to Emergency Situations
Natural DisastersHurricanesEarthquakesWildfires
Man-Made DisastersFiresWorkplace ViolenceTerrorism
Technology DisastersCyber BreachesSoftware CorruptionSystem Failures
Course Description
Your Firm’s Response to Emergency Situations
First Line of Preparedness—
Protect People, Property, Operations, Others
Next Step—
Business Continuity
This course will outline a spectrum of
emergency preparedness tips
for design firms.www.ready.gov
Learning Objectives
Participants in this course will learn more about:
• Protecting people;
• Protecting property;
• Protecting operations; and
Protecting others.
Key Terms
Disaster Preparedness is the process of ensuring that an organization:
(1) has complied with the preventive measures,
(2) is in a state of readiness to contain the effects of a forecasted disastrous event to minimize loss of life, injury, and damage to property,
(3) can provide rescue, relief, rehabilitation, and other services in the aftermath of the disaster, and
(4) has the capability and resources to continue to sustain its essential functions without being overwhelmed by the demand placed on them.
Preparedness for the first and immediate response is called emergency preparedness.
Key Terms
According to Techopedia:
…business continuity involves designing and creating policies and procedures that ensure that essential business functions/processes are available during and after a disaster.
Business Continuity can include:– replacement of staff, – service availability issues, – business impact analysis, and– change management.
NOAA’s Climate Prediction Center
Credit: NOAA
Not Happening to You?
2015: Summary of Disasters
• 803 Tornadoes Reported
• Hurricanes, Tropical Storms
• Floods•Florida
•Kentucky
•Louisiana
•Ohio
•Texas
• Wildfires
Not Happening to You?
A Look at Technological Disasters
• Computer Virus
• Software/System Failures
• Cyber Attack
• Hackers
• Theft
Important to You?
The Insurance Information Institute states that “up to 40 percent of small businesses affected by disaster will never reopen.”
According to the National Flood Insurance Program, from 2010 to 2014, the average commercial flood claim amounted to nearly $89,000.
Considerations
Property Valuation
• Improper valuation of commercial property
• Underinsured commercial property
Beyond Property Coverage, there are Operational Issues
to Consider
• 75% of companies without business continuity plans fail within 3 years of a disaster
The Result?
Risk
Reputation
How to Plan for an Emergency
Step 1: Prepare
Analyze
Hazard types and
risks to your
business
Possible physical
damage to property
Shutdown impacts
Cost and revenue
loss estimates
Available physical
and financial resources
Recovery estimates
and alternative
survival
How to Plan for an Emergency
Step 1: Prepare
Establish an Emergency
Response Plan
Document Contingencies and Checklists
Create a Phone Tree
Establish a Meeting Location
Train your Staff Conduct Drills
Maintain Proper Response
Equipment
How to Plan for an Emergency
Evacuate all Employees and Visitors:
Report Emergencies—Fire, Police, Medical: Include Non-emergency Contacts for Local Organizations
Contact Appropriate Regulatory Agencies:
Notify Appropriate Internal Personnel:
Step 2: Respond
•Evacuation Route
•Alarm System
•HAZMATS
•Natural Disasters
•Management
•Property Damage Coordinator
How to Plan for an Emergency
Steps 3 & 4: Recover and Restore
Search and Rescue
Salvage Property
File Reports with Regulatory Agencies
Employ Business Continuity Plan
Business Continuity Plans
Scope
Objectives
Assumptions
Step 1: Set Up the Program
Business Continuity Plans
Step 2: Organize
Personnel Facility Equipment
SupplyFinancial
Resources
Business Continuity Plans
Step 2: Organize the PeopleRoles, Responsibilities, Lines of Authority,
Delegation, Coordination
Senior Management
Information Technology
Business Continuity
Leader
Internal Firm Management
Project Management
Emergency Response
Team
Recovery Time Objectives for:
• Business Processes
• Information Technology
Recovery Point Objectives for Data Restoration
Business Continuity Plans
Step 3: Analyze the Business Impact
Identify—
Detailed procedures,
resource requirements, and logistics:
To execute recovery strategies
For relocation to alternate worksites
For recovery of IT:
Networks Servers
Laptops/Desktops
Wireless Devices
Applications
Data
Business Continuity Plans
Step 4: Identify Business Continuity
Strategies and Requirements
Document procedures for manual workarounds
Business Continuity Plans
• Incident Detection and Reporting
• Alerting and Notifications
• Activating Business Continuity Plan
• Activating Emergency Operations Center
• Assessing Damages
• Developing and Finalizing a Plan
Define procedures
Step 5: Create Workarounds
Step 6: Manage Incidents
Training for business continuity
planners
Testing schedules, procedures, and forms
• Business recovery strategies
• IT strategies
Exercises
Business Continuity Plans
Schedules, triggers, and assignments
for review
Corrective action to address deficiencies
Step 7: Train & Test
Step 8: Maintain & Improve the Program
Business Continuity Plans
Step 9: Distribute the Plan
[Your Name Here]
Business Continuity Procedures
And what if you’re
asked to perform
services after an
emergency?
Know the Good Samaritan Laws
Understand your Coverage
Coverage applies:• as long as an employee is rendering services that he/she is
legally qualified to perform on behalf of his or her employer; and• regardless of whether or not a fee is collected.
Another important risk management component:We recommend that all employers have a clear policy on moonlightingand providing volunteer services. In general, the policy can either:
• prohibit moonlighting and volunteer services completely, or • may permit either (or both), but only with the permission of an
employee's manager or a designated member of senior management.
Think About Contracting
• What is the scope of your services?
• Can you get an adequate fee in consideration of the risk?
• Will a Limitation of Liability or Indemnification provision
protect you from:
Resale of the property?
Third party visitors?
Faulty client-furnished
information?
Some Considerations:
Insurance Coverage
Electronic Data
Flood Insurance
Business Income
Extra Expense
Contingent Business Interruption (supply chain)
Privacy Protection
Consult Resources
Federal Emergency Management Agency
www.fema.gov/recovery-resources
www.fema.gov/small-businesses
www.ready.gov/make-a-plan
National Fire Protection Association
www.nfpa.org
2015 National Preparedness Month Events
• Week 1: September 1-5th Flood
• Week 2: September 6-12th Wildfire
• Week 3: September 13-19th Hurricane
• Week 4: September 20-26th Power Outage
• Week 5: September 27-30th Lead up to National PrepareAthon Day (September 30th )
www.ready.gov/september
Laurel Tenuto, Client Risk Management Coordinator [email protected]
Marie Bernier, Senior Risk Management [email protected]
This concludes The American Institute of Architects Continuing Education Systems Program