1. Challenging Environment in Asia
Requires Response Planning
Anthony Lee, CBCP, CPP
1 October 2009
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Agenda
 Major Business Disruptions
 Definition of Emergency
 Business Disruption Effects
 The need for Crisis Management
 Emergency Response Planning
 Case Study – Morgan Stanley, World Trade
Center, NY
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2. Business Interruption Incidents
Jan to Sep 2008
Incidents Cases Incidents Cases
Adverse Weather 75 Power Failure 47
Bomb Scare 53 Software fault 33
Burst Water Main 10 Telecoms failure 21
Civil Disturbance 6 Terror Alert/Attack 3+
Fire 108 IT Equipment Failure 7
Explosion 6 Virus 0
Gas Leak 89 Earthquake 1+
HazMat Incident 21 Other 6
Industrial Action 15
Source: Thin Ice newsletter, Q3 2008
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What is an Emergency?
“An unplanned event that can cause deaths or
significant injuries to employees, customers or
the public; or that can shut down your business,
disrupt operations, cause physical or
environmental damage, or threaten the facility’s
financial standing or public image”
- FEMA
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3. Characteristics of a Major
Catastrophic Event
Sudden, unplanned, calamitous event
Unable to provide critical functions
Loss of entire building use, and severe damage
A number of response organizations are involved in
response/recovery
Communication is limited or poor
Accurate, timely info is limited or unavailable
Emergency services are centralized, government-driven,
government-
subject to inertia
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Characteristics of a Major
Catastrophic Event
Informal, unstructured immediate response from survivors
Limited access to basic supplies
Virtually, no infrastructure services remain e.g. power, water
Transportation is constrained e.g. flooded or damaged roads
Severe impact on associates – preoccupation with family
Regional economic disruption due to lack of exchange
mediums (Cash is king)
Restoration and rehabilitation can take months or years
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4. Top 3 Disaster Concerns in SGP
Fire
Utilities Surge
Outbreak of Diseases
Source: NCS BCP Index Survey, April 2009
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Business Disruption Effects
 Facilities Denial - Business Premises
unavailable or inaccessible
 Staff Denial – Employees unavailable or
severely distracted
 Infrastructure Denial – IT/Telecom-related
IT/Telecom-
resources down
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5. Emergency Response &
Preparedness
All-
All-hazards approach requires 5 plans:
 Prevention Plan
 All-hazards Emergency Ops Plan (EOP)
All-
 Mitigation Plan
 Recovery Plan
 Continuity-of-Operations Plan (COOP)
Continuity-of-
Source: NFPA 1600 standard
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Why is BCP important?
 43% of business experiencing major disasters
never re-open
re-
 29% close within 3 years
 <50% of organizations have BC plans and at least
90% never test the plans
 75% of businesses are unable to function without
IT/telephones within 14 days
Source: i-notes, Sep-Oct 2008, India Insure
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6. Need for Crisis Management
“A disaster can strike any organization, large
or small. Organizations spend years
building their brands but a single event
could wipe out this investment”
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Emergency Response Planning
Clearly identify the operational risks and
business impact
To alleviate the impact of the event
To survive the crisis in progress and ease its
effects as far as possible
Rapid response to reduce injuries and protect
assets leading to smooth business recovery
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7. Emergency Response Plan
Set of procedures for Emergency Response
Team to react and respond to any incident
To create a framework for the allocation of
resources
To assign responsibilities
Plan, exercise & review
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Case Study – Morgan Stanley
WTC Twin Towers
Twin Towers - two 110-storey buildings
110-
WTC has another 5 smaller buildings
Tower 1 - 1,368 feet (414 meters) tall
Tower 2 - 1,362 feet (412 meters) tall
Each tower has 104 passenger elevators
 ~50,000 people worked in WTC complex
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8. Case Study – Morgan Stanley
WTC Twin Towers
Occupied 22 floors of Tower 2 (South Tower, 2WTC)
Investment bankers on 73rd floor etc
Rick Rescorla, Head of Security
Rescorla,
Got MS employees to take responsibility for their survival
Frequent, surprise fire drills
Employees to meet in hallway between the stairwells and go
down the stairs to 44th floor
Slow evacuation….he started to time them with stopwatch,
and they got faster!
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Case Study – Morgan Stanley
WTC Twin Towers
Taught employees on basics of fire emergencies
9/11, 8:46am: Rescorla heard an explosion and saw Tower 1
(North Tower, 1WTC) burning from his office window
Over PA system, Port Authority NY official
told people of Tower 2 to stay at their desks!
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9. Case Study – Morgan Stanley
WTC Twin Towers
Rescorla grabbed his bullhorn, walkie-talkie and cell phone,
walkie-
and ordered MS employees to get out
Smooth evacuation by MS including 250 visitors in class
9:03am: Rescorla on 44th floor, second plane hit Tower 2
about 38 floors above
Building shook - he sang to distract employees from fear
Successfully evacuated 2,687 employees
Last seen on 10th floor, heading up, before Tower 2 collapsed
at 9:59am
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Case Study – Morgan Stanley
WTC Twin Towers
Only 13 employees including Rescorla and 4 of his security
officers were left inside Tower 2
Tower 1 collapsed at 10:28am
Tower 1, 101st to 105th floor: Investment Bank Cantor
Fitzgerald lost 658 employees
Total 2,751 people died in 9/11 WTC terrorist attacks
Estimated 17,400 people at WTC Complex at time of attacks
including ~14,000 people in Twin Towers
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10. Simple Rule of Human Nature
“The best way to get the brain to
perform under extreme stress is to
repeatedly run it through
rehearsals beforehand”
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Emergency Response Plan:
Contents
Emergency organization
Emergency notification
Roles and responsibilities
Invocation and mobilization
Emergency procedures including facility evacuation
Communication with BCP Support Teams,
Management and Business Partners
Training, conduct of drills
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11. Roles and Responsibilities
Security and Fire Safety Professional
BCP Professional
Management – Incident Commander, Management Team,
Emergency Response Team
Human Resources
Corporate Communications
Info Technology and Telecoms
Associates
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Training
Emergency Response Team training – first aid, CPR
for medical first responders
Associate training – emergency alarm, evacuation
procedures
Security Officer training
Drills and drills….
Post incident critiques
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12. Communications
Summoning emergency assistance
Alerting affected associates
Call tree for notification of BCP teams
Event message to staffs and business partners
Media communications
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Emergency Procedures
Responding to the alarm
Utility systems
Identify types of scenarios e.g. fire, flood, power
failure, earthquake, medical emergency
Action Checklists – KISS
 Prevention and Preparedness
 Response
 Recovery
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13. Crisis vs. Disaster
“A Crisis is not a Disaster.
Failure to Plan for a Crisis
is a Disaster”
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The End
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