A Proactive Key for Enhancing Profitability

Alex Rainold, Managing PartnerThe Alexander E. Rainold

Consultancy

Can provide Back-Up/Relief to Crisis Action Team Members

Oil Field Experience in• Emergency Management• Environmental Regulatory Compliance Military Experience in• Crisis Logistics

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Oil Spills• Catastrophic Spill/Pipeline Breaks/HAZMAT Is an oil spill an acceptable/unacceptable business risk?

Weather • Hurricane/Tornado/Flood/Lightning Strike

Is weather an acceptable/unacceptable business risk?

Mandatory Evacuation • Parish/County Government-Ordered Evacuation (Hurricane Katrina)

Can you operate elsewhere for 2 months or more?• Fire/Explosion/Other Employee Endangerment

Is government-ordered evacuation an acceptable/unacceptable business risk?

Terrorist Acts Are terrorist acts an acceptable/unacceptable business risk?

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A pro-active long-term solution

Emphasis: Uninterrupted Customer Service

Focus: Organizational effectiveness

Mission-based, with measurable objectives

• Service delivery

• Responsive

• High availability

Meets compliance agency requirements

Effective cost-control tool

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The OLD Reactive Methodology

• Disaster Recovery = 1980’s Reactive Thinking

• Business Continuity = 1990’s Transitional Thinking

• Infrastructure and IT-based

• Employee and business process-based

The New Proactive Methodology

• Business Resiliency = 21st Century (Post-9/11) Thinking

• Part of planned operations rather than a reaction to some event you hope won't happen

• Business process redundancy at geographically separated facilities

• Succession planning

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Establishes a structure to evaluate every facet of an organization

Promotes organizational flexibility–key to avoiding interruption to customer service while executing recovery plans in the event of an unexpected contingency

Allows an organization respond to normal organizational activities

• Acquisitions/divestitures/rightsizing/market fluctuations

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Business Resiliency is All-EncompassingBusiness Resiliency is All-Encompassing

In Disaster/Contingency Scenarios• BR reduces costs associated with traditional Disaster

Recovery• Dramatically reduces/eliminates employee travel and per diem

expense• Reduces number of costly testing exercises that fatigue an

organization

• BR produces a leaner, more agile organization structure• Quicker response: streamlines linkage to all organization levels• Less downtime: stay connected to your customers• Lessens “reputation risk”

Side Benefit: In normal operations, BR results can be used to right-size employee population• Identifies non-essential business functions• Eliminates redundant employee effort• Reduces payroll costs• Protects against work stoppages

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Business Resiliency is Cost EffectiveBusiness Resiliency is Cost Effective

DISASTER RECOVERY BUSINESS RESILIENCY

1. Pick a mission statement: a. “Uninterrupted customer

service” b. Recovery time objective (RTO) - 24 hours?/120 hours?, etc. c. Other?

2. Conduct formal vulnerability assessment

a. Which risks are acceptable?

b. Which are not?

3. Write a plan to mitigate the risk4. Formulate a robust DR budget 5. Test the plan6. Document and fix the shortfalls7. Repeat the process annually

1. Pick a mission statement: a. “Uninterrupted customer

service”

2. Conduct formal vulnerability assessment

a. Which risks are acceptable?

b. Which are not?

3. Establish small, redundant, geographically separated work locations

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Disaster Recovery vs. Business ResiliencyDisaster Recovery vs. Business Resiliency

Does your plan adequately address all of these areas?

• Command and Control Are your own key teams quickly responsive, accountable, and well trained? Crisis Leadership—have your leaders been tested?

• Communications In an emergency, how quickly can you connect with your organization’s First

Responders, i.e., in the middle of the night? When was your last all-employee recall drill? Results-percent actually contacted? Can your customers call you if you primary call center goes down? How soon can your vendors respond?

• Computers• When did you last field test your IT system at a site located “out of harm’s way”?• When was your “IT Data Recovery Plan” exercised? Is it up-to-date?

• Intelligence• Are you on a first-name basis with all state, parish/county, and municipal First

Responders and Planners and what are their cell phone numbers?• When was the last time each one of those partners visited your facility and

vice-versa? When did you last test your plan?

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Identify critical business functions

Conduct formal vulnerability analysis

Analyze your present DR plans

Field test your present DR plans

Write improved contingency plans

Ensure regulatory compliance

Move your company from reactive, DR-based, planning and testing, to a proactive business resiliency platform

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20 + years emergency management experience

• Boeing at the US Strategic Petroleum Reserve, Whitney Bank, US Air Force

Environmental compliance

Extensive contingency plan writing and plan auditing experience

Logistics plans and programs experience

• USAF in Operation Desert Storm

Extensive formal training• USAF Logistics Plans and Programs course

• USAF Contingency Planners’ course

• USAF Personnel in Support of Contingency Operations course

• US Dept. of Homeland Security National Incident Management Structure course

• Coastal Community Readiness training, National Hurricane Conference (certificate)

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US Strategic Petroleum Reserve Oil Pollution Act (OPA 90) compliance Environmental Protection Agency interface Wrote Spill Prevention, Control and Countermeasure Plans

[SPCCs] Facility Response Plans Clean Water Act Regulatory compliance HAZMAT spill reporting Oil spill response Emergency response planning “Spill Control and Countermeasures” Plans (SPCCs) Environmental audit team leader Spill prevention trainer

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US Strategic Petroleum Reserve Oil Spill on-scene spill exercises Emergency response planning Hurricane/tornado training

US Air Force Crisis Action Team- Operation Desert Storm

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Initial assessment and/or implementation project plans

Formal vulnerability analysis

Tailored response plans

• Budget-sensitive

Quick-reaction checklists

EOC/Command Post training/exercises

Damage mitigation

Long-term business resiliency strategies

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Our Deliverables (Work Products)Our Deliverables (Work Products)

For immediate response, contact:The Alexander E. Rainold

Consultancy

Alex Rainold, Managing Partner

Office: (504) 861-8225

Mobile: (205) 317-5312

aer@rainold.com

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