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Ensuring Operational Survival After a Disaster Business Continuity Planning for Nonprofits. Presented by Santa Barbara County Voluntary Organizations Active in Disaster. Credits Presentation content originally prepared by or based on work from:.
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Ensuring Operational Survival After a DisasterBusiness Continuity Planning for Nonprofits Presented by Santa Barbara County Voluntary Organizations Active in Disaster
CreditsPresentation content originally prepared by or based on work from: • Grace McIntosh & Natalie SchaeferAmerican Red Cross • Tracey VardasSLO County Office of Emergency Services • Mike ManchakEconomic Vitality Corporation • Ready Business by www.ready.gov • Small Business Administration • California Volunteers & Fritz Institute • University of Missouri Outreach and Extension
Facilitators • James Caesar, Campus Emergency Manager UC Santa Barbara • Eric Dahl, VOAD Coordinator Santa Barbara & San Luis Obispo Counties
Could it Happen to Your Organization? YES! One in four companies experienced a disaster in the last five years.
Santa Barbara County Facts • 91% of Americans live in places at moderate to high risk of earthquakes, volcanoes, tornadoes, wildfires, hurricanes, flooding, high-wind damage or terrorism. • Santa Barbara County: moderate to high risk category. • Santa Barbara County has experienced over 60 disasters since 1900.
What Could Be the Consequences? • 68% of business never reopen after losing their computers. • 75% of businesses without business continuity plans fail within three years of a disaster.
What Could Be the Consequences? After a major flood, fire, terrorist attack, or widespread pandemic influenza, local businesses, nonprofits, and government agencies could be disrupted for days, weeks, and even months.
How Long Would It Take Your Organization to Recover? Paso Robles Earthquake, 2003
Imagine • 40% of your employees are too sick to report to work. • Your business will be shut down for at least two weeks. • Suppliers will not deliver critical resources for three to four months.
Many Disasters Can be Prevented The most common - and preventable - disasters for which insurers pay often unnecessary claims each year are caused by: • Fires • Water leaks • Power outages • Virus attacks • Facility liability issues • Human errors Advanced planning can prevent these disasters!
Reasons Given for Not Preparing • Haven’t thought about it. • Think it won’t will happen. • Think nothing would be effective. • Don’t want to think about it. • Don’t know how to prepare. • Takes too much time. • Costs too much money.
Four Stages of Denial • It won’t happen. • If it does happen . . . it won’t happen to me. • If it does happen to me . . . it won’t be that bad. • If it happens to me and it’s bad . . .there’s nothing I can do about it anyway.
Are any of these reasons really good enough to justify not being prepared?
What is Business Continuity Planning? The process of developing arrangements and procedures in advance that enable an organization to respond to an event so that critical business functions continuewith planned levels of interruption or essential changes.
The Benefits of Business Continuity Planning In the event of a natural or man-made disaster, a BCP can: • Protect the health and safety of staff, volunteers, and clients. • Enable you to continue meeting the needs of clients who depend on your services. • Protect your reputation, partner agencies, and community.
Plan the Project to Ensure Success • Gain Institutional Support • Sponsor • Key influencers • Manager • Consultant • Plan the Project • Set milestones • Assign team members • Plan tasks • Prepare for challenges
Ten Planning Milestones • Conduct project kick-off meeting • Prioritize critical resources and operations • Sponsor employee preparedness presentations • Complete crisis management plan • Secure lists of primary and alternate suppliers and contractors
Ten Planning Milestones • Secure lists of primary and alternate distributors and partners • Complete emergency communications plan • Complete payroll, AR & AP continuity plan • Review insurance coverage • Protect IT infrastructure and data
Maintain and Exercise Your Plan • Assign a coordinator • Establish a plan maintenance schedule • Review and update every 6 months • Test annually