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"MARKETS-BASED STRATEGIES TO CO-OPT EMP/ BLACK SWAN EVENTS” EMP Defense Council (sm) Entire Contents Copyright August 2011 by David A. Palella. All rights reserved.

EMP Defense Council(sm) - Presentation by Desi Ivanova

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This PowerPoint was prepared during Sept 2011 by Ms. Desi Ivanova, Head of Worldwide Business Development for the EMP Defense Council(sm) -- How will your company prepare for, and profit from, EMP -- and other black swan events ?

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Page 1: EMP Defense Council(sm) - Presentation by Desi Ivanova

"MARKETS-BASED STRATEGIES TO CO-OPT EMP/ BLACK SWAN EVENTS”

EMP Defense Council(sm)

Entire Contents Copyright August 2011 by David A. Palella. All rights reserved.

Page 2: EMP Defense Council(sm) - Presentation by Desi Ivanova

“EMP PART 1”:  HTTP://WWW.YOUTUBE.COM/WATCH?V=FVU08Y9XJ0U

“EMP PART 2”:  HTTP://WWW.YOUTUBE.COM/WATCH?V=0ODJKYTZXG8

What is an EMP?

Page 3: EMP Defense Council(sm) - Presentation by Desi Ivanova

What is an EMP?

Electromagnetic pulse (EMP) is a burst of electromagnetic radiation resulting from high energy explosion such as:

Solar flare Nuclear explosion Geomagnetic storm Fluctuating magnetic fields Coronal mass ejection (CME)

Results: rapidly changing electric fields and magnetic fields

Consequences: damaging current and voltage surges

Page 4: EMP Defense Council(sm) - Presentation by Desi Ivanova

History of EMP events

1859 Carrington Event Mother of all Geomagnetic Storms

1921 New York Railroad Storm 1940 Easter Sunday Storm1989 Quebec Blackout Storm 2003 Halloween Storms

2 & ½ weeks of CMEs U.S.$ 1 billion in damages loss of a U.S.$ 450 million satellite (Midori-2) __________________________________________

NEXT EMP event = high probability in the next 1-5 yrs

Source: http://www.solarstorms.org/SRefStorms.html

Page 5: EMP Defense Council(sm) - Presentation by Desi Ivanova

EMP Disaster Scope

Total loss of information and communications systemsTotal loss of electrically powered systems Healthcare equipment and facilities Entire defense system Trucking and transportationGas stations and refineriesWater purification and deliveryAutomobile and Trucking InfrastructuresCommercial production of food and goods____________________________________Planes in the air, nuclear power plant control

systems, acute-care / intensive-care medical equipment, elevators and building heating & cooling systems could cease functioning immediately, leading to 100s of thousands of deaths in a few minutes or hours

Page 6: EMP Defense Council(sm) - Presentation by Desi Ivanova

EMP Awareness

The United States EMP Commission Authorized by the United

States Congress in Fiscal Year 2001, and re-authorized in Fiscal Year 2006 “The functioning of society and the economy

is critically dependent upon the availability of electricity. Essentially every aspect of American society requires electrical power to function. Continued electrical supply is necessary for sustaining water supplies, production and distribution of food, fuel, communications, and everything else that is a part of our economy.” “ No currently available modeling and simulation tools exist that can adequately address the consequences of disruptions and failures occurring simultaneously in different critical infrastructures that are dynamically interdependent.” “ The Commission recommends that research be conducted to better understand infrastructure system interdependencies and interactions, along with the effects of various EMP attack scenarios.”

Page 7: EMP Defense Council(sm) - Presentation by Desi Ivanova

Black Swan Events

"Black Swan Theory" refers to unexpected events of large magnitude and consequence and their dominant role in history. Such events, considered extreme outliers, collectively play vastly larger roles than regular occurrence. Examples:

Internet, Personal computer, World War I, September 11

Characteristics: The disproportionate role of high-impact, hard to predict,

and rare events that are beyond the realm of normal expectations in history, science, finance and technology

The non-computability of the probability of the consequential rare events using scientific methods

The psychological biases that make people individually and collectively blind to uncertainty and unaware of the massive role of the rare event in historical affairs

Page 8: EMP Defense Council(sm) - Presentation by Desi Ivanova

Imagine the Unimaginable

“The Book of Eli”: This is what the Earth will look like after an EMP event…

Page 9: EMP Defense Council(sm) - Presentation by Desi Ivanova

Small Example – Big Impact

The “Great Southwestern Black-out” Seven million customers in the Southwest U.S. & Mexico

affected by one small mistake by a lineman in Yuma, Arizona – power outage lasted from 7 –24+ hours

Lingering effects of the power outage; sewage spills; direct and indirect economic losses

“The blackout will likely cost the greater San Diego region more than $100 million in economic losses, mainly in lost productivity. But the 12-hour event might also provide a mini-boost to the local economy as people spend to replenish supplies such as batteries and flashlights.” Source:

http://www.signonsandiego.com/news/2011/sep/09/effect-of-power-outage-linger, 09 Sept 2011 – San Diego Union-Tribune

___________________________________________Past electric power blackouts = Baseline for

assessing the impact of future EMP events

Page 10: EMP Defense Council(sm) - Presentation by Desi Ivanova

Why should you prepare?

Ensure an adequate Business Continuation Plan for your organization

Prevent from catastrophic losses Protect your data and critical information systemsPrepare Staff and Management for immediate EMP

responseOffer leading solutions in case of EMP event Prevent from EMP-related lawsuits and audit failure

IEEE, ANSI (the American National Standards Institute), NIST (the National Institute of Standards & Technology), UL (Underwriter’s Laboratory), CPSC (the Consumer Product Safety Commission), ISO (the International Standards Organization), will establish both voluntary and mandatory standards for EMP resistance in products

Prepare for extended periods of economic and civil instability Prepare for prolonged period of great civil unrest, riots, theft and

wide spread violence

Page 11: EMP Defense Council(sm) - Presentation by Desi Ivanova

Our Value Proposition

Receive an EMP Certification Prepare for major disruptive events/ “Black Swan Events” Receive a customized assessment of EMP impact on your

organization/industry Receive a customized check-list with EMP prevention

measures Human Factors Design & Organizational Design for EMP

Preparedness and Corporate Robustness / Resiliency Rapid Connections & Introductions to EMP-savvy partners

in the areas of Insurance, EMP Risk Mitigation, EMP Hardening, Utilities/Power- Generation Planning, Telecommunications and Product Design

Supply-chain Hardening Strategies & Tactics Monetize the threat of EMP events as a business

opportunity New Product Innovation or Product Line-Extension Strategies to

Monetize on EMP events or “Black Swan Events” Marketing, Advertising & Positioning Strategies for those events

Page 12: EMP Defense Council(sm) - Presentation by Desi Ivanova

EMP Council

Mike R. Doerr

Chief Technical Advisor - Aviation

EMP DEFENSE COUNCIL(sm)

San Diego, California

cell: 760-805-1001

email:  [email protected]

Desimira Ivanvoa

Business Development Advisor

EMP DEFENSE COUNCIL(sm)

San Diego, CA

cell: 619-850-6780

email: [email protected]

http://www.DesimiraIvanova.com

David A. Palella

Founder

EMP DEFENSE COUNCIL(sm)

San Diego, California

cell: 619-787-5767

email: [email protected]

Paul Hendershot

Chief Economist

EMP DEFENSE COUNCIL(sm)

San Diego, California

cell: 585-503-6730

email:  [email protected],

[email protected]

Page 13: EMP Defense Council(sm) - Presentation by Desi Ivanova

EMP DEFENSE COUNCIL ON LINKEDIN:

HTTP://WWW.LINKEDIN.COM/E/VGH/3702799

EMP DEFENSE COUNCIL ONLINE:

HTTP://EMP411.BLOGSPOT.COM

(619) 850-6780 TEL

Thank you!