OVERVIEW

CRISIS MANAGEMENT--DISASTER RECOVERY--BUSINESS CONTINGENCY

(All The Same)

WHAT’S AT RISK?

People:Employees, managers, business partners, the public

Property:Land, buildings, equipment, inventory, work in progress

Operations:Supply/distribution channels, utilities, key vendors, contracts

Information:Records, data, media, systemstelecommunications

Intellectual

Property:Proprietary research, trade secrets, patents, copyrights, unique employee skills/knowledge,

trademarks

Financial:Cash flow, investments, analysts’ ratings, credit lines, stock price, adverse forecasts

Reputation:Public image/perception, market share, brand recognition, adverse publicity

Expectation from others:

Investors and

shareholders:Continued growth of asset value, earnings potentials

Customers:Delivery of reliable, safe, high quality products

Employees:Safe work environment, continuing employment benefits

Media:Access to accurate, timely information

DISASTER

A disaster is any event that causes disruption of a company’s operations or business functions for a period beyond the maximum acceptable downtime. Maximum acceptable downtime is the period of time that operations or business function can be shut down without having a significant impact on the company’s revenue stream, public credibility, regulatory compliance, etc.

Disaster planning is a plan to prepare for and respond to incidents such as floods, earthquakes, and windstorms.

Emergency response planning deals with a specific incident such as fire, explosion or chemical spill.

Business continuity planning is strategic. It is a plan to keep the operation running after damage and prepares for the worse case scenario, whether it be from human error, natural hazards, etc. This plan is also designed to improve the company’s ability to recover. Factory Mutual Global (a reputable insurance company) suggests a five-phase approach: Planning, Prevention and Control, Preparation, Response, and Restoration.

PREPARATION AND PLANNING

The first phase is planning; it’s where the organization is at present. Planning involves the accumulation of information that will help the Crisis Management Team and the Emergency Management Team to prepare for and respond to a disaster situation. The following is a list detailing the preparation. Interestingly, most departments have plans to recover from loss; albeit, more rigor is required to ensure the data and systems are fail-safe.

  • Determine the goals and objectives of the plan:
  • The maximum allowable downtime and the most financial burden that can be tolerated.
  • The continuation of critical and important unit operations in the event of an interruption.
  • The recovery of normal operations in the event of an interruption.
  • The timely notification of appropriate departmental officials in a predetermined manner as interruption severity or duration escalates.
  • The offline backup and availability, or alternate availability, of critical components including data files, software, hardware, voice and data communications, documentation, supplies and forms, people, inventory lists, and alternate methods for performing activities electronically and/or manually.
  • Any required changes in user methods necessary to accomplish such alternate means of processing.
  • The periodic testing of the plan to ensure its continuing effectiveness, documentation of the business unit’s plan for response, recovery, resumption, restoration, and return after severe disruption.
  • Assign responsibilities
  • Key functions for the recovery process
  • Review current plans, emergency response plans, IS recovery plans
  • Assess risk and identify threats
  • Identify key functions
  • Operations, safety, HR, IS finance, facilities
  • Perform a business impact analysis
  • From property insurance carrier or risk management firm
  • Determine budgetary requirements
  • From each key function, the quicker the recovery the more it will cost
  • Create plan(s)
  • Use software
  • Determine training
  • Training and testing

Strategy and actions are necessary to protect company assets - real and intangible - from actual or potential threats to long-term viability posed by a catastrophic incident, a non-physical event, or a series of negative developments that escalate to crisis. Crisis Management relies on a balanced assessment of potential impact on company operability, image, and liability.

PROPOSED NOAO SIMPLIFIED GOAL

NOAO would strive to recover from a disaster with minimum impact on astronomer’s observation time, instrument construction, and research and development within the current financial budget.

ORGANIZATIONAL STRUCTURE

Three groups are identified in the NOAO organization to respond to a disaster:

  • The Crisis Management Team would be involved in planning, prevention, control, guiding the response, andrestoration. This team is a group of senior managers and is usually located remote from the disaster site.
  • The Emergency Management Team plans the details of the response and coordinates the restoration of the disaster. This team is usually located near the disaster site and is comprised of local managers.
  • First Response Team is “where the rubber hits the road.” This team is at the site responding to the disaster and follows the directions of the Emergency Management Team.

STRATEGIC MANAGEMENT TEAM (SMT)

The SMT consists of a group of higher level senior managers with specialty skills, such as operations management, human resources, public relations, legal, security, finance, etc. They develop strategies and provide guidance and support to the emergency site. In the NOAO organization, the SMTis the NOAO Management Committee whichreports directly to the NOAO Director. It also provides resources and other assistance required by the Emergency Management Team.

The responsibility for strategic guidance may be transferred to a higher management level CMT if the effects of the emergency escalate.

The SMT responsibilities include:

  • Provide strategic direction, guidance, and resource support to the Emergency Management Team.
  • Notify and keep higher levels of management informed (AURA and NSF).
  • Coordinate strategic level contacts with government and law enforcement authorities at proper levels.
  • Define a strategy for dealing with the media and ensure that media contacts at all levels conform to this strategy.
  • Assure compliance with relevant international statutes and regulations.
  • Document the strategic aspects of the emergency.

EMERGENCYMANAGEMENT TEAM (EMT)

The EMT coordinates actions undertaken to manage the consequences of a physical incident that threatens life, environment, and assets. In addition, the EMT incorporates both the operational responses and the supporting staff functions, such as legal, insurance, public relations, human resources, security, etc. Within the NOAO organization, the EMT would consist of members of site management and emergency response personnel. It oversees the immediate and tactical response to an emergency and manages other aspects within the responsibility of the site manager.

The EMT responsibilities include:

  • Direct response in the field.
  • Take all possible steps to safeguard personnel and other company assets.
  • Control and contain access to the site of the emergency.
  • Direct the clean up of the emergency.
  • Manage all aspects of the tactical response to the emergency.
  • Notify the CMT of the emergency; determine and provide resource assistance required by response personnel.
  • Keep the CMT informed.
  • Ensure all aspects of the local response to the emergency conform to relevant local statutes and regulations.
  • Document on-site aspects of the emergency, its effects, and the response by the EMT.
  • Conduct and document a thorough investigation of the emergency.

EMERGENCY RESPONSE TEAM (ERT)

The ERT coordinates actions taken at the site of a physical incident to preserve life, environment, and assets. Emergency Response incorporates the actions of company, municipal emergency services, and other authorities/agencies.

Overview of Crisis Management

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