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Resilience In Action: Lessons Learned From Hurricane Sandy, Paige Poore, IBM Client Community Meeting, 23.5.13
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Resilience In Action: Lessons Learned From Hurricane Sandy, Paige Poore, IBM Client Community Meeting, 23.5.13

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  • 1. © 2013 IBM CorporationResilience in Action- Lessons Learned from Hurricane SandyPaige PooreDirector, IBM Business Continuity Management
  • 2. © 2013 IBM Corporation2Resilience in action = constantly evolving
  • 3. © 2013 IBM Corporation3Lessons Learned fromSuperstorm Sandy= KnowledgeIdentify Areas of Focus= EnhanceElevate the DiscussionC - suite Engagement= EffectivenessLearnElevate IdentifyResilience in action =constantly evolving
  • 4. © 2013 IBM Corporation4LEARNLearn from experience– Lessons Learned
  • 5. © 2013 IBM Corporation5LESSONSLEARNEDHurricane SandyIBMObservationsAdditional Lessons Learned –non IBM examples
  • 6. © 2013 IBM Corporation6Lessons Learned fromSuperstorm Sandy= KnowledgeLearnIdentifyBased on the lessonslearned and yourunique businesssituation - Identifywhere you want tofocus,
  • 7. © 2013 IBM Corporation7Resilience in ActionIn addition to the lessons learned from Hurricane Sandy,Consider new risks on your horizon.Where do you want/need to enhance?An evolving story…..Lessons Learned - New Strategic RisksExpansion into Growth MarketsConsolidationAcquisitions, MergersAdditional Considerations –Changing Employee DemographicsWork from Home Strategies / TestingPlanning: Business Impact vs. EventsWhich ones are applicable to your unique situation?
  • 8. © 2013 IBM Corporation8Lessons Learned fromSuperstorm Sandy= KnowledgeIdentify Areas of Focus= EnhanceLearnElevate IdentifyElevate thediscussion. Drive C-Suite engagement tobe effective
  • 9. © 2013 IBM Corporation9Resilience in ActionElevate the discussion to drive C-Suite EngagementUse language the business understandsTake an Enterprise ViewLower the barriers of adoption
  • 10. © 2013 IBM Corporation10Lessons Learned fromSuperstorm Sandy= KnowledgeIdentify Areas of Focus= EnhanceElevate the DiscussionC - suite Engagement= EffectivenessLearnElevate IdentifyResilience in action =constantly evolving
  • 11. © 2013 IBM Corporation11We are all facing the same challengesTHANK YOUfor the opportunity to share insights and learn from each other!!Hurricane Sandy & Lessons Learned – Parting Thoughts
  • 12. © 2013 IBM Corporation12Reference Detail – Lessons Learned from Hurricane Sandy
  • 13. © 2013 IBM Corporation13LESSONSLEARNEDHurricane Sandy
  • 14. © 2013 IBM Corporation14Resilience in ActionSuperstorm Sandy Facts• Damage estimates over $70 billion in the US•Property damage, loss of business, an increase in living expenses, loan delinquencies and more.•Insurance claims estimated to be between $10 and $20 billion (lots of exclusions for flooddamage)•Over 72,000 New Jersey homes or businesses damaged or destroyed.• Over 125 deaths in the US• 2 days of downtime for the NYSE:1st time in 30 years due to a weather-related event• Immediate economic impact of Sandy:•Output of US factories, mines & utilities fell 0.4% in Oct/12•Overall retail sales fell 0.3% in Oct/12•Nov/12 report jobless claims surged 78,000 to 439,000• (FCC) At one point, 25% of cell towers in Superstorm Sandy’s path were affected.• Wireless carriers AT&T, T-Mobile, Verizon and Sprint were all impacted.• Over 18,000 flights cancelled• Over 8.5 millions homes and business without power (some over 2 weeks)
  • 15. © 2013 IBM Corporation15Resilience in ActionWith Hurricane Sandy growing and the unpredictable path… thethreat for power outages was a large area of the United States andCanada.
  • 16. © 2013 IBM Corporation16Resilience in ActionOct 22 – “Tropical Storm” Sandy, 40 mph windsOct 24/25 – Becomes Category 1 Hurricane, 110 mph windsOct 28th - Warning of potential ‘super-storm’Sandy’s Status Date• W Oct 22 Oct 22: Tropical Depression 19 officially became“Tropical Storm Sandy”, 40 mph windsOct 24 – 25: Becomes a Category 1 Hurricane,crosses Caribbean,& Jamacia, 80 mph winds. 20” +rain in Hispaniola, Over 50 people die in Haiti.Oct 26 : Hurricane strikes Cuba, 110 mph winds, slightturn, crosses BahamasOct 27 : Turns NE, weakens but re-intensifiesOct 28: Warning that Sandy could turn into a“powerful super-storm”• Sandy continued moving NE along coast, Max. windsof 80 mph.• Additional contributors: High-pressure cold frontnorth of Sandy started forcing Sandy Northwesttowards US coast.With full moon, storm surgeexpected to be 12 feet.• Sandy expanded to 1,000 milesOct 23Oct 24Oct 25Oct 26Oct 27Oct 28Oct 29Oct 30Oct 31Nov 1Nov 2Nov 3Nov 4Nov 5Nov 6Nov 7Nov 8Nov 9Moving off into Atlantic? No
  • 17. © 2013 IBM Corporation17Resilience in ActionOct 29 - Sandy hits New JerseyOct 30 - moves inland, impacting NY and NE regionSandy’s Status DateOct 22Oct 29: Sandy makes a sharp turn NE towardsNew Jersey.• Numerous weather systems collide• Up to 36 inches of snow in parts of Virginia, WestVirginia and North Carolina.• Around 8:00 pm, Sandy hits New Jersey.• Storm downgraded to a “post-tropical nor’easter”.• Full Moon caused storm surges of 14 feet.• Regional power and Telco (voice & data) outages.Oct 30: Sandy moving inland, weakening• Storm was still impacting New York and Northeastregion because of the “back-side” of the storm.• Over 8.5 millions homes and business withoutpower (some over 2 weeks)Oct 23Oct 24Oct 25Oct 26Oct 27Oct 28Oct 29Oct 30Oct 31Nov 1Nov 2Nov 3Nov 4Nov 5Nov 6Nov 7Nov 9
  • 18. © 2013 IBM Corporation18LESSONSLEARNEDIBMObservations
  • 19. © 2013 IBM Corporation19LESSONSLEARNEDAdditional Lessons Learned –non IBM examples
  • 20. © 2013 IBM Corporation20Resilience in ActionPEOPLE – does your business continuity plan adequately address your people?Questions to ask ….• Are your employees and their families safe?• Will people be available? Where do employees go to work?• Who are decision makers during a crisis and where are they?Actions to Consider…Primary focus of BCP should be your employeesHave alternate locations for employees to workConsider having alternate teams availableClear definition of roles prior, during and after disaster
  • 21. © 2013 IBM Corporation21Resilience in ActionCOMMUNICATIONS – how does your business continuity plan address disruption tovoice and/or data communications?Questions to ask ….• How / When / Who / What… to communicate to your employees, customers, suppliers, media and publicat large?• How do employees communicate with your company?• What methods of communications do you use (landline, cell, internet, social media, etc.)?• Telecommunications redundancy?Actions to consider…Create an communications plan for internal & external, especially who should and should not speakfor the company.Create centralized number, email address, web site or social media guidelines for use during crisiseventsConsider alternate communication tools: satellite phones, cell phones outside of affected region,common email address, wireless cards for laptops, text messaging
  • 22. © 2013 IBM Corporation22Resilience in ActionPOWER – how does your business continuity plan address loss ofpower?Evaluate for…Risky location such as in basements or below sea level;Lack of maintenance or inconsistent maintenanceInadequate fuel supply (and inability to get it during disaster conditions);Inadequate power from generators because generator capacity does not mirror the growth in equipmentActions to Consider…Consider location of redundant power suppliesEnsure redundant power supplies are testedEnsure adequate fuel supply - Have multiple contracts with different suppliesEnsure redundancy capacity at the correct levels to support critical infrastructure, Include inchange management processHave contracts for acquisition of generators
  • 23. © 2013 IBM Corporation23Resilience in ActionSUPPLY CHAIN – does your business continuity plan address whatyou will do if your supply chain(s) can not deliver their products orservices to you?Example ….Company were not aware of which suppliers they were dependent on and when a supplier had adisaster, the company lost the products/services they expected from the supplier, creating anotherdisaster.Which supply chains put you at risk and are they single source (i.e. Telco’s)?Actions to Consider…Identify your critical suppliersUnderstand the impactIdentify a risk mitigation strategy for critical suppliers
  • 24. © 2013 IBM Corporation24Resilience in ActionBCP – is your Business Continuity Plan accessible and up-to-date?Questions to ask ….BCP’s outdated or not available at time of crisisEmployees not aware of BCP and their roles and responsibilities during a crisis.BCP’s were not tested.No or limited availability of data and hardwareActions to Consider…Keep BCP current & Integrate plan with IT and business change managementTest plan annually or more often - “table top exercises”Create crisis teams to manage crisis eventsReinforce/Communicate importance of BCP (from the top) and that everybody isresponsible and plays a critical role.