The Latest Development

in

Facility Management

Preparedness for Disasters

and

Business Resumption Plan

Presented

By

Lau Po Chi

17th October 2002

1.Introduction

Communities will face disasters such as fire, storms, flood, earthquake, large-scale accidents, explosion, terrorism and disease.

Buildings will suffer structural damage from wind, earthquake, fire, flood and vandalism. Cars, aircraft and ships will be involved in accidents. Business will face a wide range of sudden events that threaten their existence. However, we as individual do not often face disaster or crisis situation on our own, and therefore, look upon disaster only as a rarity. This attitude resulted in less than adequate attention given to the areas of potential risks. The September 11 (2001) event has changed this attitude and awaken us to the impact of the tragedies of this disaster when in full view of the world, the American World Trade Centre was destroyed to rubbles by terrorists.

  1. Definitions

Let’s examine the definitions of the following key words. The Oxford Dictionary defines:

(a)Disaster

(b)Crisis

(c)Risk

Oxford Dictionary

Disaster – great or sudden misfortune, terrible accident (e.g. a great flood, a fire, an earthquake, a serious defeat in war, the loss of a large sum of money) 災禍 ,災難

Crisis - time of difficulty, danger or anxiety about the future

苦難危難的時期,危機緊要關頭

Risk – possibility or chance of meeting danger, suffering loss, injury etc.

遭遇危難,受損失或傷害等之可能或機會;危險,風險

  1. The need to assess potential Risk Points

In many cases, potential risks and problems build up over time. Since we see the area on a regular basis, the risks often go unnoticed. We tend to overlook the problems, and evolution from a secure and safe environment to a risky one gradually takes place. We are often blind to our own risks.

  1. Case Study
Case No. 1

The Incorporation Owners of Sun Hing Building﹝新興大廈業主立案法團﹞scaffolding collapse is a case in point. In October, 1997 the court ordered the building owners to pay $25.7 million damages to a plumber left paralyzed from the neck down in a scaffolding collapse. The existence of the scaffolding (was in fact defective but no body was bothered to check whether it was defective or not) constituted a danger and in effect it created a trap for those who relied upon it.

Case No. 2

「嘉利大廈火災」occurred in 1996 is a typical case of a total loss after a disastrous fire when over 100 victims died or injured. The gutted building had been closed and unoccupied since then.

Case No. 3

A few weeks ago, an outbreak of fire occurred in AIA Building of the New World Centre in Tsim Sha Tsui when it was put out almost immediately and occupants evacuated in an orderly manner. Business was recovered to normal after a matter of a few hours.

Case No. 4

On Monday, 14th October 2002 SCMP reported a large explosion occurred in Bali, Indonesia, resulting almost 200 dead and many injuries.

5.Murphy’s Law

Murphy’s Law is our motto when we have to deal with risk assessments. We should critically assess all potential risk points, some of which should, in my view, include the following:

Physical security of the facility

Entrance points into your facility

EVA/fire evacuation area

Environmental conditions in your operation, including the following:

Electrical installation

Fire suppression/fire detection

HVAC

Fire fighting installation and equipment

Lifts/lift engine rooms

Smoke doors/staircase/staircase landings

Refuse chutes and refuse rooms

Training

Policies and procedures

Business recovery plan

  1. Disaster Recovery and Restoration plan

(A)Objectives

The ability to overcome a disaster depends on the ability of an organization to pull its resources together in a logical manner, delegate responsibilities to designated teams, and ultimately put all the pieces back together. The objective is to resume business to normal as soon as possible, say within 24 hours.

When the plan is developed make sure that the plan is consistent with the overall direction of the company. The objectives are to:

Protect human life

Minimize loss and risk to the company

Maximize recovery and the return to normalcy

Protect the company legal ramifications/suits

Maintain competitive position

Preserve customer confidence and good-will.

7.The Action Plan Outline

Action plan polices + procedures

Testing

Maintenance of the plan

Training

8.Conclusion

We should re-address our security needs – post September 11. We are often blind to our own risks. We should spend some time to get prepared and organize ourselves and others to handle these situations. All of us need to learn the skills necessary to deal with all sorts of disasters so that our organizations and our own jobs have chance to survive when things go wrong.

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Urban Property Group

Lau Po Chi