May 17, 2012

Risk Management Required for Top HR-Related Organizational Concerns

Photo courtesy of employeeleasingquotes.com

Areas of risk for many organizations often come from departments of that organization being overlooked for the true risk potential hidden in the day-to-day operations of that department.  Business continuity planners and risk management team members need to always be aware of and plan for controlling those risks.  Such is the case for the posting below which brings our attention to some top HR compliant concerns for risk and threat potential to those SMB’s…..

AssumptionUnlike their large enterprise company counterparts, small and mid-sized companies (SMB’s) too often do not have the time and resources to build and maintain proper information management systems and processes beyond those required to support their core business objectives.  However, that fact does not take away the potential need for risk mitigation capabilities often necessary to protect those companies from issues those companies may fail to recognize as true threats to their company.

In a recent whitepaper posted on the Trinet website, the topic of risk management regarding the top five (5) HR compliance related potential risks for SMB’s  is presented in a clear manner that should make business continuity and private sector preparedness teams (PS-Prep) aware of these potential threats to their organizations.

A quick summary of the major HR compliance related concerns for SMB’s presented in this whitepaper are:

  1. More training is needed in the areas of employment discrimination and/or sexual harassment for employees in SMB’s.
  2. SMB’s spend up to 80 per cent more per employee on federal regulatory compliance (i.e. HIPAA, COBRA and FMLA) than large enterprises.
  3. For most SMB’s, the human resource “department” is one person too often wearing too many hats and being too much of an HR generalist – and therein lies a risk.
  4. The growing need for more and more administrative paperwork can create potential and substantial errors in HR activities for employees when all of these independent areas are not properly connected and accessible on a timely basis to meet regulatory requirements.
  5. For too many SMB’s, HR functions are simply not being coordinated effectively enough – yet decisions are too often being made to accept this as a “..will have to make due” acceptable condition.

If some of these points listed above are beginning to sound too much like situations that exist in your organization, then, click here to download this whitepaper (registration may be required).

Also, and if applicable, please pass this information along to appropriate HR and risk management teams in your organization.

Business Continuity Benefits List Created by Results of a Recent Survey

Photo courtesy of wilkins-consulting.com

Business continuity planning teams must always be ready to offer upper management a list of the benefits to the company gained from by having a current, tested and continually improving business continuity/disaster recovery plan.  As a result, our staff receives inquiries for assistance in organizing a list of benefits received from having a BC plan, and expressed in language meaningful to upper management.

To fulfill that request our staff offers the results of a recent survey conducted by Continuity Central in the U.K. and recommends that this summary report of findings be added to the resource list of all active BC/DR team members whether or not your company resides in the U.K.

A quick summary of some of that report’s highlighted benefits coming from business continuity planning:

  1. Business continuity plans can significantly reduce the cost of disruptions for your organization.
  2. BC plans can make the difference between having to close your business or be able to be open for business.
  3. Companies with BC plans very often can benefit from insurance premium discounts while it can preserve brand value and company reputation levels.
  4. Customer confidence in doing business with your company can be higher when your customers perceive your efforts to be more resilient.
  5. Business continuity can provide competitive advantage and regulatory or compliance driven benefits to the company.

Click here to read more about and view some of the survey respondent’s input(s) to this timely and relevant topic as related to ongoing risk mitigation and risk management activities performed by so many more companies today.

Continuity Central is an often referenced website  by our staff, and, one that most business continuity planning teams should add to reading resource bookmark list.

Brookings Report Reveals Deeper Understanding of Current Disaster Response Trends

Photo courtesy of ravica.com

What would be your reaction if you were told that 2011 was a below-average year regarding both the number of disasters that occurred in that year as well as the number of people affected by those disasters?

If you were somewhat skeptical of that claim, then you should read the full report just released by the Brookings Institution entitled “The Year that Shook the Rich: A Review of Natural Disasters in 2011”.

In that report you will find many statements that might or might not challenge: (1)  the disaster preparedness activities that your family has decided to implement, (2) the community preparedness steps taken by the readiness and disaster recovery teams in the community where you live, or (3) the risk management and business continuity plans decided by management to support the organizational resilience objectives of the company where you work.  Nonetheless, our staff recommends this report as a valuable reading resource to be added to your preparedness related reading list.

A quick summary of some of the other major finding in this study are:

  1. Examples from last-year’s disasters in the rich world show that investment in disaster risk reduction and preparedness pay off and are cheaper than post-disaster reconstruction.
  2. Disaster plans and defenses need to be adjusted to a new and shifting “normal.”
  3. The interconnections between disasters (especially mega-disasters), media coverage and humanitarian funding means that humanitarian funding tends to be directed toward disasters that have higher media coverage rather than to those with disaster-affected populations in greater need of assistance.
  4. More work is needed to recognize the positive contributions which older people can make in reducing the risks from disasters, in disaster response and in recovery and reconstruction.
  5.  Developed countries were particularly hard-hit by disasters in 2011 as evidenced by floods in Australia, earthquakes in New Zealand, an earthquake/tsunami in Japan and a series of disasters in the United States. While natural disasters result in higher economic losses in rich countries, fewer people tend to be affected and loss of life is less than in developing countries.
  6. Several positive trends in international humanitarian response were evident in the course of 2011, including promising developments in international disaster law, greater emphasis on disaster risk reduction and preparedness, and better communications during crises, including the use of social media in disaster response.

Click here to read a short article written by Elizabeth Ferris and Daniel Petz for more details and information regarding the summary points listed above as well as others stated in the executive summary of the report.

Click here to read and download the full Brookings Institution report.

If applicable, please pass this information along to those risk management and business continuity planning teams in your company, those first responder and disaster recovery training teams in your community, and to those family members who recognize the need to promote personal preparedness skills within their families and to their friends.  It is also a good reading resource for those private sector entities working on their PS-Prep strategy planning activities.

Private Sector & Government Experts Present Continuity Planning and Management Conference

For many of our readers who are in charge of disaster preparedness, crisis management and contingency planning teams for their organizations or communities within which they live or work, an upcoming event is being offered 2-4 April 2012.

For the first time in its history, the Contingency Planning and Management Conference and Expo is taking place in Washington, D.C., and collocating with GovSec– the Government Security Conference & Expo featuring the U.S. Law Enforcement Conference & Expo – to give attendees more robust free programming and entry to the larger GovSec trade show.

According to Don Berey, event director for both Contingency Planning and Management and GovSec, “The individuals who attend GovSec and Contingency Planning and Management – whether they are from the private or public sector – share many of the same interests, such as preparing for and responding to threats to their businesses, agencies and the homeland, as well as ensuring continuity and protecting critical infrastructure, and, by bringing these two events together into a single location, we’re giving our attendees a chance to see a wider breadth of products and services in the expo, as well as a broader opportunity to learn from each other at our educational sessions.”

Topics being presented at the conference will include:

-Continuity Planning

-Continuity of Operations (COOP)

-Disaster Recovery

-Emergency Response

-Risk Assessment

-Data Protection, Availability and Recovery.

If applicable, please pass this information along to those associates in your organization who are also members of business continuity, risk management or disaster recovery teams.

Click here to obtain more information about this valuable BC/DR related event.

About Contingency Planning and Management

The Contingency Planning and Management Conference and Expo is a leading event for the risk management community at large, including individuals in both the public and private sector who focus on business continuity, COOP, data recovery, contingency planning, security and emergency management.

About the Security, Safety, and Environmental Protection Group

GovSec is a member of the Security, Safety, and Environmental Protection Group – a division of 1105 Media, Inc. Comprised of the Security Products, Occupational Health & Safety, and Environmental Protection brands, as well as events and ancillary products related to these brands, it is an industry leader in every category it includes.

Business Continuity Awareness Week 2012 and an Opportunity to Play BC24 Free

With Business Continuity Awareness Week 2012 approaching, (19-23 March), the Business Continuity Institute (BCI) has recently announced a special offering regarding BC24 the internet Business Continuity Management (BCM) game. The BC24 game helps businesses understand the value of effective BCM and provides those businesses with a reason to change the way they deal with and plan for disasters and other potentially disruptive incidents or events.

In essence, BC24 is a single scenario game involving a flood and a supply chain failure and all its consequences right from operational impacts to potential threats to the reputation of that business. Written by professional e-learning and gaming professionals, it avoids the use of BCM jargon, so anyone can play the game and there is value in it for everyone who does. All you need is internet connection and a standard browser. And it only takes 15 minutes to complete!

The BC24 game is normally available on a license fee-basis only —-but, the BCI is making it available to businesses free of charge throughout the Business Continuity Awareness Week 2012 – i.e. 19-23 March 2012.

Is your business up for the challenge and ready to find out how resilient it may be?

As presented in an earlier posting about BCAW2012  —take full advantage of this year’s Business Continuity Awareness Week— be part of and attend many other similar offerings regarding business continuity, risk management, disaster preparedness and recovery, along with free webinars and presentations from BC/DR professionals from around the world.

To get started and to play the BC24 online incident simulation game, click here.

ATT Becomes First U.S. Private Sector Company Certified to a DHS-Selected Standard under the PS-Prep™ Program

The DHS PS-Prep™ program has been on this website’s radar screen for quite some time, and, with the announcement of this press release by DHS regarding ATT’s certification to one of the standards selected by DHS under the Voluntary Private Sector Preparedness Program (PS-Prep™) an important step has been taken, as Secretary Napolitano states “…to further enhance the readiness and resiliency of our Nation.”

AT&T’s certification is the first under the PS-Prep™ program, administered by DHS’ Federal Emergency Management Agency (FEMA). The PS-Prep™ program enables private sector organizations to enhance their capabilities for planning, responding to, and recovering from natural disasters and other threats while at the same time supporting its role as a critical component of a secure and resilient Nation under the National Preparedness Goal.

Hopefully, DHS will expand the list of participating entities in the PS-Prep™ program in the coming year.

Click here to read the full press release.

And, if applicable, please pass this information along to those PS-Prep™ strategy planning and risk management teams in your organization.

Disaster Recovery Efforts to Gain from New FEMA – AmeriCorps Partnership

So many organizations and communities across the United States need assistance to more effectively prepare for, respond to, and recover from all types of disasters.  To that point, many business continuity planning groups have a strong reliance on help from organizations like DHS and FEMA in their primary and contingency plans.  Therefore, it is a positive bit of news recently released where and when the Department of Homeland Security’s (DHS) Federal Emergency Management Agency (FEMA) and the Corporation for National and Community Service (CNCS) announced an innovative new partnership designed to continue to strengthen the nation’s ability to respond to and recover from disasters while also expanding potential career opportunities for young people.

This new effort will promote an ethic of national service and civic engagement by mobilizing corps members and community volunteers to provide critical disaster services. Once trained by FEMA and CNCS, members will provide support in areas ranging from working directly with disaster survivors to supporting disaster recovering centers to sharing valuable disaster preparedness and mitigation information with the public. The first members will begin serving in August 2012 and the program will reach full capacity within 18 months.

Click here  to read more about this announcement and pass this along to those business continuity, disaster recovery and risk management team members in both your organization and the community within which that organization resides.

U.S. First Responders & Medical Infrastructure Not Prepared for Fukushima-level Reactor Disaster — PSR Report

Photo courtesy of Kyoto News AP

A recently released report by the Physicians for Social Responsibility (PSR) group claims that no meaningful progress has been achieved in improving the ability of first responders and medical professionals to react to a similar Fukushima-level disaster in the United States.

The major factors complicating progress on preparedness initiatives in this area were stated to be;

  1. Growing population near nuclear facility locations,
  2. Aging reactors in too many of those locations, and
  3. Lack of Government coordination driving less than needed results to mitigate related risks.

How serious is the potential emergency response problem? The PSR report further points out that:

  1. Over the past 40 years populations have grown markedly in the 10- and 50-mile established evacuation zones surrounding operating U.S. commercial nuclear reactors.
  2. Nearly all spent nuclear fuel ever created by U.S. commercial reactors, approximately 72,000 tons, has accumulated and is still stored at U.S. reactor stations.
  3. Severe weather/natural disaster events approaching those of Fukushima are no longer uncommon in the U.S.
  4. Plume pathways from a severe reactor accident would never behave according the simple 10-mile radius paradigm central to the basis of current U.S. emergency planning for reactor emergencies. Neither would a 50-mile or greater radius, used by the Environmental Protection Agency (EPA), for radiation contaminated food and water interdiction as numerous radiation hot spots have been identified in Japan more than 100 miles from Fukushima.
  5. The U.S. has not developed the programs to educate the public on radioactivity and radiologic hazards before possible accidents happen.
  6. U.S. reactor stations do not have a uniform, robust infrastructure to transmit critical status data to the NRC, nor do they have a “black box” recording real-time data on events for post-accident analysis.
  7. Existing U.S. emergency preparedness drills do not consider prolonged station black out, severe regional natural disasters, or multi-reactor events.

While this topic will most likely remain a highly debated and controversial topic for a long time, the potential danger and risk of a disruptive incident stemming from nuclear power related facility is real.  And the question is always asked, “If and when such a disaster occurs, what will it mean to me, my community and where I work?”  This report should get your attention enough to start answering some of those questions…..

Business continuity and disaster preparedness planners in companies and communities located within 10-50 miles from any of the United States’ aging nuclear reactor sites should add this report to their next meeting agenda — to not only build awareness of these issues but perhaps to encourage their organization and the community to seek more information and remain better informed about timely updates regarding this critical potential risk and how it relates to their own business continuity strategies.

Click here to read the full PSR report.

Our staff has also listed below a few related articles regarding this pending risk and offers them as additional reading resource materials for your BC/DR teams:

PSR Report: U.S. First Responders, Medical Infrastructure not Prepared for Fukushima-Level Reactor Crisis in the United States

IAEA and WANO mark anniversary of Fukushima accident, increase cooperation

Lessons for the Pacific Northwest: Japanese Death Toll Could Have Been Worse

If applicable, please pass this information along to those risk management and disaster preparedness planning team members in your own organization or community.  And, if you work at a private sector organization located in a risk prone area, then perhaps, your PS-Prep strategy planning team members would like to add this material to their in-house reading resource library.

Increased Risk Management Implementation into Corporate Culture Now Claims to Fuel Better Performance

According to Jonathan Blackmore, Ernst & Young advisory risk partner for Europe, the Middle East, India and Africa has said in a recently released E&Y report, “…..many executives have no idea what the return on their risk investment is … if they say that their return is neutral, I tell them that I don’t think that’s good enough.”

That comment pretty much matches the inputs and comments that our staff receives whenever the topic of investment(s) in risk prevention or even risk mitigation implementation strategies are proposed.  And, with minimal basic or empirical research done in this area, most risk management consultants or in-house risk team leaders still have a challenge to convince upper management that investments in disaster preparedness activities should be properly and adequately funded in any fiscal year budget.

That effort may have received a boost of support now judging from the results claimed in a new report —“Turning Risks into Results:  How Leading Companies Use Risk Management to Fuel Better Performance” — recently announced by Ernst & Young.

The study found that the companies that ranked in the top 20% for investments in risk-focused personnel, processes and technology generated nearly three times the earnings before interest, taxes, depreciation and amortization (EBITDA) than the companies ranked in the bottom 20%.

Using a global survey (based on 576 interviews with companies a review of more than 2,750 analyst and company reports), the report assessed the maturity level of risk management practices and then determined a positive relationship between risk management maturity and financial performance.  The report also claims to have identified the leading risk management practices that differentiated the various maturity levels and organized them into specific risk components.  Given those claims and assumptions, the findings of the report go on to suggest that:

  1. The top-performing companies (from a risk maturity perspective) implemented on average twice as many of the key risk capabilities as those in the lowest-performing group,
  2. Companies in the top 20% of risk maturity generated three times the level of EBITDA as those in the bottom 20%,
  3. Financial performance is highly correlated with the level of integration and coordination across risk, control and compliance functions integrated into the culture of the organization and management teams.
  4. Effectively harnessing technology to support risk management is the greatest weakness or opportunity for most organizations.

Also according to the report, “…to turn risk into results, the companies in the top 20%, for example, talk about risk with external stakeholders. They perform stress tests to validate how much risk is tolerable. They put in place standardized assessment and reporting tools and incorporate risk issues into business planning. And they monitor risk and manage it with the help of technology.”

Good risk management goes beyond keeping the business out of trouble and protecting the brand, according to the E&Y report. It includes embedding risk management into performance management and optimizing risk management functions.

Click here to read the full E&Y report, and pass this information along to those business continuity, risk or crisis management and disaster preparedness team members in your organization.

For those smaller private sector companies, perhaps, introducing this content to their PS-Prep strategy planning teams would be a good idea as well.

Please let us know your thoughts and comments regarding this newly released report.

Photo courtesy of risk_measurement.presentermedia.com

Business Continuity Management + Supply Chain Management = Supply Chain Continuity Management

Jan Husdal  is an often referenced writer on the topic of supply chain risk management — and, our staff values his comments and ideas on this critical component of global business continuity.

In addition, our staff receives many queries on the topic of supply chain management, and, several have requested a recommendation of a good book to address this topic.

With those two thoughts in mind, our staff would like to quote a recent statement by Husdal regarding a book he had just reviewed on the topic — Husdal states “…as far as I can see, this is the first book that explains in detail why and how business continuity thinking should be part of supply chain management. It successfully marries Business Continuity Management with Supply Chain Management, thus creating Supply Chain Continuity Management.

The book referenced above is titled “A Supply Chain Management Guide to Business Continuity” by Betty A. Kildow, and in that book, Kildow illustrates how a well-functioning supply chain is the key to a well-functioning business.

We welcome our reader’s suggestions for other supply chain management related book titles that they have read and would like to pass on to others….

If applicable, please pass this information along to those risk management, disaster preparedness and supply chain continuity management team members in your organization.

Click here  to read Husdal’s full review of this book.