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
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