Business Of Community Resilience Current Envt Smb Issues V2r0 17 Nov 2009

Fritz Institute 17-Nov-09 Business of Community Resilience The Role of Small Business in Community Preparedness, Response and Recovery Realities, Changing Expectations, and Resources America's small businesses form the backbone of the nation's economy. Small businesses alone account for more than 99% of all companies with employees, employ 50% of all private sector workers and provide nearly 45% of the nation's payroll.

SMBs and The Global Reality Small and mid-sized businesses (SMBs) are the lifeblood of the global economy. Comprising more than 99 percent of all businesses, SMBs employ more than half the world’s workers. Most of the world’s patents and more than half of the world’s GDP come from small and mid-sized business. While SMBs are powerful forces in the world’s economy, they often run lean and forgo basic protections against business risks due to lack of time, budget and staff resources. Source: Global SMB Disaster Preparedness Survey. Symantec. September 2009 November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 2 2

SMBs and The Myth of Recovery When SMBs were asked what would happen if they lost all their computers in a disaster (such as a fire) and had to rebuild… Two thirds (67 percent) believe their customers would either ― wait patiently until the SMBs systems were back in place or they ― would call the SMB to get what they could and would wait patiently for the rest until systems were back in place. November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 3 3

SMBs and The Reality of Preparedness Most SMBs (76 percent) report they live in a region that is susceptible to natural disasters (such as hurricanes, tornadoes, earthquakes). SMBs also report they frequently experience outages or downtime. The average SMB experienced three outages within the past 12 months, with the leading causes being virus or hacker attacks, power outages or natural disasters. With this kind of exposure, and with the confidence SMBs display about their disaster preparedness, one would think SMBs have solid disaster recovery plans in place. However almost half (47 percent) report they do not have a plan to deal with such disruptions. November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 4 4

National Preparedness Public Law 110-53 – Title IX – Private Sector PL 110-53: Requires the Department of Homeland Security (DHS) to provide for the development of a private sector led voluntary certification program for all-hazards business emergency preparedness. The program is to reflect existing best practices and standards. http://intelligence.senate.gov/laws/pl11053.pdf November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 5 5

Title IX Implementing Recommendations of the 9/11 Commission Excerpts from Federal Register Notification (Vol. 73, No. 248, pp 79140-79148, December 24, 2008): — Private-sector preparedness is not a luxury; it is a cost of doing business in the post-9/11 world. (pg 79140) — In implementing recommendations of the 9/11 Commission (pg 79141): DHS is to identify and promote specific standards for private sector preparedness, e.g. NFPA 1600. Conformity to the standard(s) will establish the standard of care owed by a company and its employees. Companies can benchmark their disaster preparedness, emergency management, business continuity and enterprise risk management programs against the standard(s). Insurance and credit rating services can benchmark conformity with the standard(s) to assess insurability and creditworthiness. Companies can use conformity with the standard(s) to promote investor confidence. November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 6 6

National Preparedness DHS – PS-Prep Resource Center http://www.fema.gov/privatesector/preparedness/index.htm November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 7 7

Standard & Poor’s Announcements Regarding Enterprise Risk Management Nov 2007: Request for Comment – Enterprise Risk Management Analysis for Credit Ratings of Nonfinancial Companies Jan 2008: Corporate Disclosure Improves, Greater Transparency Still Needed S&P ERM Analytical Framework Corporate Governance Earns Marks for Disclosure Beyond Compliance, Business Risk Disclosure is Spotty May 2008: S&P to Apply Enterprise Risk Analysis to Corporate Ratings How S&P Defines ERM Effect on Ratings Next Steps in Implementation of ERM Analysis Jun 2008 : Enterprise Risk Management Ratings of Nonfinancial Corporations (FAQ) November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 8 8

Regulations, Standards, Guidelines & Best Practice Mandatory - Established by Congress Regulation or Regulatory Body (e.g. FFIEC) Voluntary until adopted by Standard government – Established by SDOs (e.g. NFPA 1600) Voluntary – Guideline / Best Established by Subject Practice Matter Experts, based on experience November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 9 9

Planning Tools : Small & Medium Business PS-Prep Crosswalk – Alignment w/Standards November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 10 10

Planning Tools : Small & Medium Business PS-Prep Crosswalk – Purpose & Value November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 11 11

Planning Tools : Small & Medium Business DHS Ready Business provides practical steps and easy-to-use templates business owners and managers can use to help plan for emergencies, disasters and disruptions. The practices recommended in Ready Business reflect the Emergency Preparedness and Business Continuity Standard (NFPA 1600). Ready Business provides useful links to resources providing more detailed business continuity and disaster preparedness information. November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 12 12

Planning Tools : Small & Medium Business Ready.Gov http://www.ready.gov/business/ November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 13 13

Planning Tools : Small & Medium Business Ready.Gov http://www.ready.gov/business/ November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 14 14

Planning Tools : Small & Medium Business Institute for Business & Home Safety http://www.disastersafety.org/ November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 15 15

Planning Tools : Small & Medium Business Institute for Business & Home Safety http://www.disastersafety.org/ November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 16 16

Planning Tools : Small & Medium Business Ready Utah http://bereadyutah.gov/business/index.html November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 17 17

Planning Tools : Small & Medium Business Ready Rating Program http://www.readyrating.org/ November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 18 18

Planning Tools : Small & Medium Business Ready Rating Program http://www.readyrating.org/DetailedGuideBusOrg/Overview.aspx November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 19 19

For More Information Doug Nelson CBCP, PMP 925.270.5800 dnelson@bc-solutionsinc.com November 17, 2009 - Business of Community Resilience and SMBs (D. Nelson) 20 20

Business Of Community Resilience Current Envt Smb Issues V2r0 17 Nov 2009

by Doug Nelson on Nov 29, 2009

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Business Of Community Resilience Current Envt Smb Issues V2r0 17 Nov 2009 Presentation Transcript