Transcript Slide 1

Be Prepared – Business Continuity
Planning – Financial Resiliency
Information Sharing – Response
Kathryne Daniels, CTP
Western Region - Treasury Sales Manager, SVP
Global Treasury Solutions – Public Sector Banking
Bank of America Merrill Lynch
August 8, 2013
The average is 34 a year….through 2007
• Fire
• Earthquake
• Fishing losses
• Severe storm
• Volcano
• Snow
• Tornado
• Severe Drought
• Earthquake
• Typhoon
• Coastal Storm
• Severe Ice Storm
• Freeze
• Mudslide
• Landslide
• Flood
• Tsunami
• Bio-Hazards
• Power Failure
• Comm. Failure
• Cyber
• Human
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Planning
 Why is it critical that every agency has a business continuity plan in place?
– Businesses continuity planning can mitigate operational and customer impact, strengthen communities and serves as
the foundation to national economic resiliency.
– Pre-Planning is key to understand risks, vulnerabilities and consequences for both the planner and their dependencies.
– Readiness supports deterrence when possible, response actions - and provides for relief to the organization and the
responder community while establishing conditions to recover.
– Team Members in Collaboration identify, prioritize and coordinate response and recovery activities. These connections
must transcend organizations internally and externally.
– Lessons learned, adapted and applied, are essential for informed, efficient living business continuity plans.
 What are some key areas that agencies can work with their financial institution to help prepare for any emergency?
– The key to know your relationship manager and have contact information readily available
– Planning based requirements should align organizational needs with bank services
– Understand the breadth of bank services to ensure “contingencies” can be considered
– Discuss “out of box” scenarios with Relationship Manager to explore the “what if” circumstances– Cash on Sunday?
 Why is information sharing between the public and private sector important?
– Timely intelligence for responsible decisions
– Informed prioritization of response and restoral of service
– Coordination of activities
– Consistent messaging to communities for stability, direction, restoral of public trust and confidence
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Planning
Local emergency management offices can help identify the hazards in your area and
outline the local plans and recommendations for each.
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Evaluate the hazards and your vulnerabilities
Identify the key activities that require continuity
Identify key roles in a Disaster
Develop and document the plan(s) to include process and procedures needed
Test and update plan(s) as appropriately
Resources:
 www.ready.gov/business
 www.sba.gov/content/disaster-preparedness
 www.redcross.org/prepare/disaster-safety-library
 www.readyrating.org
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Planning: Infrastructure
 Utilities
– You may not have electricity or water (Sewer vs. drinking – water heater)
 Building
– You may not have an office, back-up office space?
– Normal level of security is gone?
 Generators for back up – tested?
 Supplies are essential - to 72 hours (diapers to bottled water – cafeteria?)
 Assembling Management team
 Contacting Customers/Clients
 Technology Solutions:
– Communications (GETS, WPS, SMS, Social Media, Reunification Stations)
– Car charger and inverters
5 MS counties hardest hit by Katrina – there were NO cell towers and cable service was also destroyed in
addition to power and land lines for phones. There was no water. Main traffic arteries were gone (not
just damaged). There were not have enough satellite phones and that was the only communication
method working in the first few days. Gov Barbor stated that MAJ General Cross (National Guard) was
doing communications used the Civil War - runners were the only thing that worked and you had to just
hope they could get through.
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Planning: Insurance, State and Federal Aid
 Preparation for insurance claim – appraisals up to date? Do you know how to contact
your insurance agent?
 Have copies of policies on hand
 Know claim procedure
 What about disasters for which you have no advance notice? Know the FEMA Public
Assistance Policy
 Know which of your roads are part of the Federal Highway Program.
 Have a copy of your State’s Mutual Aid Agreement
 Purchase Business Interruption Insurance
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Planning: Plan, Practice and Prepare Yourself
Don’t wait to plan until your Agency/Organization is on the 11 o’clock news
– Practice worst case and increasingly complex scenarios
– Practice both events with warning and no warning, like Earthquake.
– Coordinate exercises and testing with partners
– Leverage Homeland Security Exercise and Evaluation Program (HSEEP)
– Consider an All Hazards approach
Learn – Connect – Achieve – Suggest
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Financial Resiliency: Payroll
 Pre-date ACH payroll run (early warning)
 Distribution of checks ahead of time (early warning)
 With warning some clients were able to distribute payroll in the form of cash two days
ahead of a storm
– Note added advantage of not having increased absences due to time spent
looking for places to cash checks
 Encourage direct deposit
 Cross-train employees on payroll issuance
 Remote payroll
– Ensure ACH software is on this computer
 Payroll Checks Alternatives
– Cash Pay
– Disaster Pre-paid Card (non-activated)
 Vaulted by client
 Activated after disaster/PIN activated
 Requires Direct Deposit of Payroll approval by employees
 Data updates and distribution critical to success
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Financial Resiliency: Information Management
 Have remote site/sister site from which you can run accounting functions
– Identify a contingency location
– Partner with other cities or counties (private institutions)
 Access bank’s web portal from any PC which provides instant remote access validated
with a digital certificate or other security devices.
– Flash Drive
– Network Drive
– Floppy Disk
 Ensure all passwords and 800 numbers are on hand
 Test site regularly
 Have outside company/courier take backup tapes to secure location/above ground
vault daily
 Eliminate paper backups
– Imaging/scan all documents-benefits:
 Information is at fingertips
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 Major reduction in storage requirements
Financial Resiliency: Purchasing/Disbursements/Vendor Payments
 Purchasing Card
– Either implement for regular purchases or have on hand for emergency purchases
– Know how to contact the program administrator to modify spending limits or
approve merchant category codes.
– Expanded purchasing authority as required
 Remote processing
 Automate vendor payments
 Positive Pay
– Have 800 numbers on hand for exceptions
– Select default choice for exceptions according to your preference
– Know the default that is applied if you do not make a pay-return decision.
– Determine in advance what alternative arrangements are available
– Find out if your bank posts banner messages on their web portal with reminders;
and if their ARP department makes "best efforts" calling initiatives to contact
clients that had not called in before the decision deadline.
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Financial Resiliency: Deposits and Cash Needs
 Get cash ahead of time – order from banking center with two-day notice if possible
 Distribute extra cash among several key employees vs. having it with one person
 Stop depositing cash to have extra on hand
 Identify key banking centers for deposits and employee check-cashing
– Know where alternative banking centers are located so staff can be directed
to them in event of closures. If you have web access you can always look for
banking center locations at your bank’s website.
 Use of mobile ATMS/banking centers
 Access for private critical infrastructure to restore our communities
 Consider hidden icon on own website for employees to reference
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Financial Resiliency: Receivables Processing
 Use of RDS (Remote Deposit Service)
 Use of lockbox
 Web based invoicing/payments
 Remote computer
 Have all passwords and 800 numbers with you
 “What does the post office/Fed Ex/UPS do if your building is gone?”
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Financial Resiliency: Merchant Services
Merchant Services backup processing
• With the loss of electricity your credit card machine will not function.
• Be sure to have your providers back up procedures handy so you can continue to
make credit card sales (perhaps use of a “knuckle buster” and voice authorization as
cash may not be available).
• Determine in advance your procedures in the event the phone lines are unavailable
for voice authorizations (continue to accept payment from known customers only?).
• Be sure to have the voice authorization phone numbers and your merchant ID on
hand, as well as your merchant processors customer service number.
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Financial Resiliency: Vendor Payments and Partners
 Check stock
– Keep stored in safe room
– Use blank check stock
 Alternatives
– Online wire and ACH payment initiation – templates
– Electronic payments (virtual card and ACH)
 Review the vendor’s business contingency plans to ensure that any mission critical
services can be restored within an acceptable timeframe
 Review the vendor’s program for contingency plan testing
 Ensure vendor interdependencies are considered for mission critical services and
applications
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Financial Resiliency: Wire Transfers and Investments
Wire Transfers
 Initiate critical wires via bank’s online web-based system
 Complete and maintain a telephone wire transfer agreement
 Have wire room telephone number at hand
 Have designated PINs activated and available
Investments
 Have your investment account number or tax identification number with you
 Have your investment representative’s phone number with you
 Know what happens if your investment matures on the date of the disaster. Do you
have plans on what to do?
 If using an online service, ensure your digital certificate is on your laptop, flash drive,
network drive or floppy disk and is current.
– Test a minimum of once a year
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Information Sharing
“The most important information sharing occurs before the
information is required”
The Homeland Security Information Network (HSIN)
A national secure and trusted web-based portal for information sharing and collaboration
between federal, state, local, tribal, territorial, private sector,and international partners engaged
in the Homeland Security mission.
FEMA National Business Operations Center
In a crisis, close collaboration between the Federal Emergency Management Agency (FEMA) and
the private sector is critical to protecting citizens and rebuilding communities. The National
Business Emergency Operation Center (NBEOC) is envisioned as a groundbreaking new virtual
organization that serves as FEMA’s clearinghouse for two-way information sharing between public
and private sector stakeholders in preparing for, responding to, and recovering from disasters.
National Network of Fusion Centers
State and major urban area fusion centers (fusion centers) serve as focal points within the state
and local environment for the receipt, analysis, gathering, and sharing of threat-related
information between the federal government and state, local, tribal, territorial (SLTT) and private
sector partners
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Sandy
Caribbean and Bermuda
Southeast
Mid-Atlantic
Northeast
Key Team Members
Federal Emergency Management Agency
Jersey City, New Jersey & New York City
In-Action Outcome
Situation Reports
Open and Closed Businesses
Real-time communications
Private Associations (All Hazards Consortium)
Curfew and Transportation Status
American Red Cross
National Weather Service – NOAA
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Damage Assessment Mapping
Flood Gauges
US Airways Flight 1549
January 15, 2009
Flight from New York City to Charlotte
Bank of America associates onboard
Key Team Members
Federal Aviation Administration
New York Police Department
Port Authority of New York and New Jersey
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In-Action Outcome
Associate well being
Common operational picture
Secure return of personal property
Earthquakes
California
Haiti
Chile
Key Team Members
In-Action Outcome
United States Geological Survey
Logistics
Santa Clara County
California Emergency Management Agency
Damage assessments
Reentry access protocols
Estimated time of recovery
California Utilities Emergency Association
Fusion Centers
American Red Cross
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Relief funding requirements
“Ground truth”
Evacuation routes and shelters
Hurricanes / Tropical Storms 2008
Six major storms in three months
Key Team Members
 Tropical Storm Dolly
 Hurricane Gustav
 Tropical Storm Eduardo
 Hurricane Hanna
 Tropical Storm Fay
 Hurricane Ike
In-Action Outcome
Evacuation routes; pre-staging
Federal, State and Local Emergency
Management Agencies
Department of Homeland Security
Financial Sector Coordinating Council
American Red Cross
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Shelters
Survivor assistance – FEMA Process
Situational awareness
Mobile Banking Center deployments
Critical Infrastructure prioritization
Wildfires
2009 California Wildfires (July – October)
71 individual fires
Burned more than 336,000 acres
Neighborhood evacuations
Unpredictable weather impact
Key Team Members
In-Action Outcome
City and County of Los Angeles
Containment status
California Resiliency Alliance
Fire maps
California Department of Forestry and Fire
Protection
Buffer zones
American Red Cross
Supplies needed (essential services)
California Emergency Management Agency
Resource requests
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Public assembly areas
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