Transcript Capabilities Briefing

Impact of Disasters on the
Transportation Sector
Ralph Petti, MBCI, CBCP
President, Continuity First, Inc.
Member, North Carolina Chamber of Commerce
North Carolina League of Transportation & Logistics
Annual Conference – Myrtle Beach, SC
June 22, 2012
Agenda
•
•
•
•
•
Welcome/Overview
• Credentials
Disasters
• Major global disasters
• Affecting global transportation – and you!
Transportation Sector
• Transportation issues faced
• Increasing supply chain trends
Preparing for Disasters
• What are the options?
• What can you do about it?
Next Steps
• Business Impact Analysis
• Gap Analysis
• Understanding the consequences
About Continuity First, Inc.
•
•
•
•
•
•
•
•
•
Incorporated in April, 2005 by executives of industry-leading firms
Many team members have 30+ years of disaster planning experience
Headquartered in the Richmond, Virginia area
Regional offices throughout the United States
International clientele in Central America, Southeast Asia and Europe
SBA “Small Business/Woman/Minority Certified (SWAM)”
Extensive team of certified Business Continuity experts
Focused on Public- and Private-Sector Collaboration
Award-winning team with recognition from Sen. Mary Landrieu (D-LA) for
our efforts to train and recover citizens of The Gulf Region from disasters
• Member, North Carolina State Chamber of Commerce with clients
and partners in over two dozen N.C. counties and gov’t agencies
As you all well know…
Every company relies on some form of transportation
to conduct their business and transportation is a
key part of the world’s critical infrastructure,
and…
It is difficult for companies in the transportation sector
to respond when major roads, airports and shipping lanes
are closed and supplies are needed most critically.
However, most companies do not have a testable plan for:
“Disaster Recovery” – backing up their data and networks
“Business Continuity” – identifying specific business processes
< This becomes a major area of concern for all involved >
Continuity First - Global References
Definition of: A Disaster
“The result of a hazard
impacting a community”
Source: Federal Emergency Management Agency (FEMA)
TSA’s Mission
Transportation Security Administration
(Homeland Security)
“The Transportation Security Administration protects
the Nation’s transportation systems to ensure freedom
of movement for people and commerce.”
(TSA, Mission, Vision, and Core Values, accessed November 17, 2007
Source: Federal Emergency Management Agency (FEMA)
Key USA Disaster Recovery Statistics
• 93% of Americans are not prepared for a disaster at home
• 61% of all small businesses do not have a plan at all.
• 40% of all businesses that do not have a disaster plan will
go out of business within two weeks of a disaster event.
Source: Federal Emergency Management Agency (FEMA)
“Businesses MUST prepare themselves…”
- US Department of Homeland Security
Disaster events in 2011
•
Nationally
– Hurricanes – Gulf, Eastern
– Tornadoes – in 30 States!
– Earthquake – Northeast
– Fires – Pacific/Southwest
– Ice Storms – Northeast/Midwest
– Flooding – Midwest/Cedar Rapids:’08
– Drought – Southwest/Midwest
– Power Outages – Everywhere
and….
– Fukushima – A “BLACK SWAN”
• Earthquake
• Tsunami
• Nuclear Compromise
Major Global Disasters
Crisis
Year
Crisis
Year
Tornados in AL,
MO and MA?
2011
Islamabad
Bombing
2008
Support Flight
Accident
2010
Airline Flight 3054
2007
Major University
Crisis Response
2010
Gulf Coast
Hurricanes
2005
Haiti Earthquake
2010
Brookfield
Shooting
2005
So. American
Earthquakes
2010
Pinnacle Air Flight
3701
2004
Binghamton
Shootings
2009
Corporate Air
Flight 5966
2004
H1N1 Response
2009
Islamabad
Bombing
2004
Butte, Mont. Crash
2009
Jakarta Bombing
2003
Major Global Disasters:
Crisis
Year
Crisis
Year
Airline 236
Accident
2001
Fortune 500 Co.
Shootings
1999
Terrorist AttacksNYC, DC
2001
American Airlines
1420 Accident
1999
Major Tech Office
Shootings
2000
Amtrak Train
Derailment
1999
Singapore Airlines
006
2000
Littleton, CO
Shootings
1999
Alaska Airlines
261 Accident
2000
Oklahoma City
Bombing
1995
Executive Air
Accident
2000
East Coast
Hurricanes
1993
Saudi Arabian
Airlines Hijacking
2000
World Trade Center
First Bombing
1993
Egypt Air 990
2000
So Cal Earthquake
1993
The Impact of Disasters
on the
Transportation Sector
Transportation Sector – Some Issues Faced
Traditional
• Logistics
• Operator Accreditation
• Asset Management
• Route Planning
• Employee Training
• Fuel Costs
• Operator Shortfalls
• Increased Freight Rates
• International Competition
• Human Resources/Compliance
• Supply Chain Dependence
•
Additionally – The Impact of Disasters
Actual Impacts of Disasters: Transportation
•
•
•
•
•
•
•
Airports Closed
• September 11, 2001
Roads Closed – it happens every day
• Kansas City example
Ports Closed
• Port Authority
Railways Closed
• Passengers and Freight
Bridges
• Minnesota Bridge, Midwestern Floods
Supply Chain failures
• Breakdown of one entity
Many more – fuel shortages, strikes, weather, etc.
Disaster Consequences in Transportation
Traditional
• Logistics……………………………….Late runs, Service Level concerns
• Operator Accreditation……………….Replacement credentials
• Asset Management…………………..Accounting, accountability
• Route Planning……………………….Change and misinformation
• Employee Training…………………...Postponed due to priorities
• Fuel Costs………………………........Using alternate suppliers
• Driver Shortfalls……………………...Alternate routes on local roads
• Increased Freight Rates…………….Just In Time delivery issues
• International Competition……………Others can step into your account
• Human Resources/Compliance….…Great scrutiny at time of disaster
• Supply Chain dependence……........Perhaps, the most difficult to control
< ATOD – At Time of Disaster >
Global Studies reflect Supply Chain growth
•
Travel & Transportation CEOs are clear about their plans
to leverage partners as a source of innovation
•
In 2012 – 67% of Travel & Transportation CEOs
interviewed planned to partner extensively
•
In 2008 – 47% of that same group interviewed
made that same claim in the 2008 CEO study.
Source: IBM Global CEO Study with face-to-face interviews with
more than 1,700 CEOs in 64 countries and 18 industries
Dated: May, 2012
Choose “prepared” Supply Chain partners
•
Perhaps, you are protected – what about your Supply Chain partners?
•
Have they protected themselves from disasters as well as you have?
•
It takes just ONE Supply Chain partner to put you out of business.
So, what can you do about it?
As Wal-Mart, Target, Boeing, Capital One and other major companies do:
Require your partners to have a Testable Recovery Plan!
Preparing for
Disaster Events
Some very important questions to ask yourself:
•
•
•
•
Who is in charge (and accessible) at time of disaster?
What is the real cost of a disruption to your business?
Where do you recover your business if you relocate?
When do you make the decision to mobilize resources?
and…
• How can I be accountable to both my family and business at the same
time – if there is a choice to be made?
• How long does it take us to recover from a disruption?
• How do we reach our employees out on the road?
Due to today’s liability laws, and just plain common sense,
all businesses need answers to all of these questions
Disaster Planning Tools are available to all
businesses – but, what do you really need?
•
•
•
•
•
•
•
•
•
•
•
Gap Analysis
Risk Assessment
Business Impact Analysis
Emergency Preparedness
Crisis Management Plans
Disaster Recovery Plans
Business Continuity Plans
Evaluation of Current Plans
Notification/Messaging
COOP/COGS interfacing
Disaster Planning software
for companies in all sectors
•
•
•
•
•
•
•
•
•
•
•
•
Workplace Violence
Transportation Solutions
Healthcare Solutions
Content Management
Workplace Recovery
Employee Preparation
Shelter At Home
Shelter In Place
Human Resources
Nuclear Threat Response
Pandemic Planning
Exercise & Testing
Where do you begin?
•
What are you doing right now?
•
•
•
•
•
•
Are you backing up your data off-site every day?
Have you developed the procedures to recover your business?
Have you designated certain people in succession roles?
Do you maintain alternate facilities to run the business?
Have you ever truly tested your recovery processes?
What plans do you have?
•
•
•
•
•
Disaster recovery of data and network systems?
Business Continuity of business processes?
Crisis Management Plans?
Emergency Management Plans?
Coordination with police, fire, medical facilities nearby?
YOU ARE PROBABLY DOING THIS NOW
Record Retention & Back-up Procedures
But, Have You Planned for Your Business
Beyond Data Protection and Backup?
• Developed procedures to recover your critical business functions
• Accounts Receivable?
• Logistics?
• Communication?
• Verify that recovery procedures work as planned?
• Trained employees on response beyond emergencies?
• Planned for the impact of Supply Chain failures?
• Do you have a place from which you can run your business that is
absolutely ready to go, and no one can get in front of you to take it?
Next Steps
What else can you do to prepare?
•
Take stock of what you are doing right now
•
Make sure that these plans are current (well beyond Y2K)
•
Understand your Supply Chain partners a little better
•
Test your plans to see where how proficient your team is
•
Act to address any weaknesses or gaps
•
Major companies (including a few in this very room)
do what they need to do to be successful
Business Impact Analysis
A process designed to prioritize business functions by
assessing the potential quantitative and qualitative
impacts that might result if an organization were to
experience a business interruption event.
Financial, Customer, Operational,
Legal, Regulatory, etc.
GAP Analysis
A process designed to expose the gaps which
may exist in your recovery program that could
prevent your management organization from
continuing to run your business successfully
– to potentially save lives –
during the likelihood of a disaster event
Recovery Plan
A checklist and specific process of the steps required
to recover your business, including:
• Strategies
• Trigger Points
• Recovery Procedures
• Recovery Teams
• Communication
• Awareness of the plan to all employees!
Can you really separate business & family?
Potential business consequences:
 Loss of Customers.
 Loss of Revenue.
 Loss of Image, Reputation, Competitive Position.
 Unavailability of management to be accessible when needed most
Potential personal consequences:
 Your family is affected.
 Your community is affected.
 Unable to contact your loved ones.
 Unable to get status information.
With effective business planning, family impact is less!!
Impact of Disasters on the
Transportation Sector
Ralph Petti, MBCI, CBCP
President, Continuity First, Inc.
Member, North Carolina Chamber of Commerce
www.ContinuityFirst.com
Toll Free: 888.977.7475
Direct line: 908.310.6381
Annual Conference – Myrtle Beach, SC
June 22, 2012