During this highly informative event, Agility Recovery will highlight stories of survival from news-making disasters as well as the most commonly experienced isolated events. From these experiences we will detail the lessons learned with regard to business continuity and disaster recovery strategy. Drawing from recent recoveries, we will incorporate lessons on the top threats to business and the most commonly made mistakes. Topics will include: •A retrospective of 2012's major events causing business interruptions •The latest trends in business continuity planning •Steps and tools your organization needs in order to be prepared •Actionable ideas that can be implemented today to increase your organization's preparedness

1. 2012 Year In Review:
Valuable Lessons & Best Practices
For copies of the slides presented during today’s session,
please visit:
http://agil.me/2012lessons
Bob Boyd, President & CEO
Agility Recovery
Joe Loddo, Acting Director for Business Development
US Small Business Administration
For Audio: (1) Listen through PC speakers, OR (2) Dial 702‐489‐0001 and use access code 351‐020‐432

2. 1. SBA Disaster Assistance Summary
2. 2012 Year‐In‐Review
3. Disaster Lessons Learned
Agenda

3. SBA Disaster Assistance
Summary
Joseph Loddo
Deputy Associate Administrator
U.S. Small Business Administration’s
Office of Disaster Assistance

4. 2012 Disaster Activity
• In 2012 the SBA made disaster loans to businesses and
residents recovering from tornadoes, earthquakes, wildfires,
drought and Hurricane Isaac, which affected Alabama, Florida,
Mississippi and Louisiana.
• Last year the SBA approved 19,893 disaster loans for more than
$1.1 billion.
• Of those, 1,294 disaster loans were made to businesses, for a
total of $102 million.
2012 SBA Disaster Response

5. 2012 Disaster Activity
• Hurricane Sandy accounted for the surge in disaster loan
making during the last quarter of 2012.
• A total of 11,983 disaster loans have been approved in the
states affected by Hurricane Sandy, for a total of $822 million.
Of those, more than 1,290 business disaster loans were
approved for $102 million.
• Based on the recovery costs, Hurricane Sandy is turning out to
be one of the most devastating disasters in U.S. History.
• Since October 30th the SBA has approved nearly the same
amount of loans it made for all of 2012.
2012 SBA Disaster Response

6. SBA Disaster Loan Assistance
• The SBA makes disaster loans to homeowners, renters,
businesses of any size and non‐profit organizations.
• Businesses can apply for up to $2 million to rebuild and
replace real estate, machinery, inventory destroyed by the
disaster.
• SBA also offers an Economic Injury Disaster Loan, which is a
working capital loan that allows the business to cover
operating expenses it would have been able to handle if the
disaster had not occurred. The limit for that loan is also $2
million.
2012 SBA Disaster Response

7. 2012 Year‐In‐Review
Bob Boyd
President & CEO
Agility Recovery

8. ‐ 47 Presidentially Declared Disasters, Affecting 32
states and territories
‐ Eleven disasters causing over $1 Billion in Damages
(2nd behind 2011’s 14 Billion Dollar disasters)
‐ The largest Atlantic hurricane on Record:
Hurricane Sandy (winds extending 1,100 miles in diameter)
‐ Preliminary estimates of losses due to damage and
business interruption are estimated at $65.6 billion,
making it the 2nd costliest Atlantic hurricane, behind only
Hurricane Katrina.
‐ NOAA has said that it is likely that the total cost of the
disasters in 2012 will exceed 2011 even with three
fewer total billion‐dollar weather events.
2012 Disasters

9. 2012 Disasters
Data current as December 6, 2011

10. 2012 Disasters

11. 47 Total Disaster Declarations (FEMA.gov)
2012 Federally Declared Disasters

12. 2012 US Natural Disaster Figures

13. Agility Recovery Events
by Category including Alerts & Disaster Declarations
4,423 Reported Events
Isolated
Events
3.1%
Hurricane Tornado
Sandy 16.5%
Winter Storm
27.2%
0.4%
Thunderstorm
s
9.4%
Other
TS/Hurricane
9.1%
TS/Hurricane
Isaac
34.2% Wildfires
0.0%
2012 Agility Recovery Event Summary

14. Agility Disaster Recoveries
Categorized by Recovery Type
180 Total Events
Other Technology
Internet
2% 9%
6% Space
Full Mobile 4%
7%
Phone/Fax
Redirection
19%
Power
53%
2012 Agility Recovery Event Summary

15. Lessons Learned

16. 1. The Reality of Risk
2. Failure to Prepare Employees
3. Preparing Your Supply Chain
4. Dependence on Technology
5. Practice, Practice, Practice
6. Obtaining Proper Insurance Coverage
7. Proper Communication Saves Lives, Time & Money
Lessons Learned

17. Lessons Learned…
The Reality of Risk

18. Some Disasters Happen with little to NO Warning
West Liberty, KY
Reality of Risk

19. Prepare yourself, your business & your family
for 72 Hours…or more.
New York, NY
Reality of Risk

21. Disasters Come in Many Forms

22. Top Threat Risks to Business
NFIB RESEARCH FOUNDATION REPORT
1. Power Loss
2. Loss of Sales & Customers
3. Length of Recovery
4. Uninsured Loss
(for continuing operations)
5. Uninsured Loss
(for destruction of physical property)
NFIB Research Foundation Rep

23. Lessons Learned…
Failure to Prepare Employees

24. A. Employees’ Plan Knowledge
1. Do they Know the plan?
2. Do they know where to find the plan?
3. Do they know their primary role?
4. Have you shared the plan with new hires?
Failure to Prepare Employees

25. B. Work from Home Strategy
1. Productivity suffers
2. Inability to login to networks ●●●●●●●●●●
●●●●●●●●
‐ Phone/Internet Outages
‐ Power Outages
3. Unwillingness to report to duty
‐ Family or Property in peril
4. Distractions
5. Child Care Issues
Failure to Prepare Employees

26. C. Cross‐Training Employees
1. Critical Functions must continue
2. Certain areas/departments may experience greater
demand
3. Longer/Odd Hours may
require additional staffing
For this checklist and others,
please visit:
http://www.PrepareMyBusiness.org
Failure to Prepare Employees

27. D. Transportation Issues
1. Mass Public Transportation Shut Down
a) Car Pooling
b) Overnight accommodations nearby
2. Fuel Shortages
a) Storage of Fuel for Critical vehicles/staff
b) Fuel vendor for deliveries
3. Restricted Access to non‐Residents
4. Damaged/Destroyed Vehicles
Failure to Prepare Employees

28. E. Family Preparedness
1. Do they have a plan?
2. How can your organization help?
a) Workshops
b) Checklists
c) Emergency Kits
3. Suggested Sites:
a) Ready.gov
b) RedCross.org
c) Do1Thing.com
Failure to Prepare Employees

29. Lessons Learned…
Preparing Your Supply Chain

30. A. 3rd Party IT: BOTTLENECK
B. Power/Communication Vendors: BOTTLENECK
C. Payroll Companies
‐ Do you know their Recovery Plan?
‐ What is the process for an interruption during Pay Cycle?
‐ Are they integrated into your Exercise?
D. Attorney/CPA Firm
‐ Can you reach them following in interruption?
‐ Are they involved in your planning process?
E. Delivery/Shipping Partners
‐ What is the protocol for an interruption?
‐ How will any delay from these partners affect your business?
Preparing Your Supply Chain

31. Lessons Learned…
Over‐Dependence on
Technology

32. • Cell networks can be compromised by
physical interruptions caused by weather
events, or simple network congestion
caused by a flood of users
• Must maintain alternative means of
communication with customers, partners,
suppliers and employees
• Utilize multiple carriers within your
organization
• Have at least one land‐line in your facilities
• Establish a communication hub/partner
outside your immediate area who can
communicate on your behalf
Over‐dependence on Cellphones

33. A. Limitations of Outsourced IT
1. Staff/Time Limitations
2. Responsiveness During Disaster
3. Communications Gaps
Dependence on Outside IT Staff

34. B. Lack of Focus on Physical Recovery Elements
Data Shouldn’t be the Only Recoverable Asset
1. Office Space
2. Work spaces (desks, chairs, etc.)
3. Hardware (Servers, desktops, copy, fax)
4. Power (Know demand ahead of time)
Narrow Focus on DATA

35. Lessons Learned…
Practice, Practice, Practice

36. A. Test Data Restoration
‐ Can you restore with the information at hand?
‐ How long will it take?
‐ Can you recover to new/different hardware?
‐ Do you have access to the necessary software?
B. Test Alert Notification
‐ Can you activate the system remotely?
‐ Can more than one person access the system?
‐ If you utilize a phone tree, is it updated?
Failure to TEST Your Plan

37. C. Test Employees’ Knowledge of the Plan
‐ What happens if YOU aren’t there?
‐ If the office burns tonight, what is their first step?
‐ Can they access email/text messages/voicemail remotely?
D. Test Vendors’ Resilience
‐ Involve vendors/partners/suppliers in your exercises
‐ Know their recovery plan and be able to integrate it into
your own plan
E. Know Your Power Needs
‐ No other takeaway MORE IMPORTANT from the aftermath
of Sandy
‐ Caused multiple, complicated, costly delays
‐ A SIMPLE test would have shown this shortcoming for all
entities
Failure to TEST Your Plan

38. Lessons Learned…
Obtaining Proper Insurance

39. A. Mitigating Physical Losses
1. Asset Management Program
2. Accurate Inventories
3. Safeguarding Assets prior to storm/event
4. Turn off utilities ahead of time
5. Postpone Deliveries
6. Move assets to secure locations
7. Ensure your locations are secured properly and all
necessary repairs made ahead of time (roof, support
structures, hurricane/storm shutters)
8. Ensure battery and/or generator backup for
sewer/storm water pumps are operable
Failure to Properly Insure

40. B. Coverage Limits/Exclusions
1. Power Loss
2. Type of Interruption
3. Type / Cause of Damage
C. Operational Downtime Cost
‐ Do the Exercise, establish a cost estimate
D. Lost Revenue
‐ Do you have enough coverage?
E. Added Expenses
1. Recovery Costs
2. Temporary accommodations
3. Travel Expenses
Failure to Properly Insure

41. Proper Communications

42. Communications Failures
1. Network Interruption
2. Mobile Devices
‐ Single Carrier for entire company?
‐ Chargers for mobile devices?
3. Single Means of Communication
‐ One email server
‐ Unfamiliarity with texting
‐ Single phone system, with no backup
or means for simple transfer/forwarding
‐ No land lines in the office or at
leadership teams’ homes
Single Point of Failure ‐ Communications

43. Single Communicator/Spokesperson
1. Often the CEO or President
2. Single person inhibits:
a. Leadership to employee communications
b. Decision‐making ability
c. Organization to stakeholder communications
d. Media Relations
Single Point of Failure – Generator/Spokesperson

44. • Create a Crisis Communication Plan
• Have multiple redundant means of reaching
employees and key contacts independent of
terrestrial phone lines and a single cellular
network as much as possible
• Keep Emergency Contact Lists Updated
• Utilize Online Message Boards
• Maintain Access to Your Website
• Keep Those Outside your Organization
Informed
• Have a Media Relations Strategy and
Plan
For a Crisis Communications Checklist, Visit: http://agil.me/crisis‐comms
Proper Communications

45. QUESTIONS?
Bob Boyd, President & CEO
Agility Recovery
bob.boyd@agilityrecovery.com
704‐927‐7922
Today’s session has been recorded.
Links to the archived recording will be emailed
to all registrants automatically tomorrow.
For copies of the slides presented during today’s session,
please visit http://agil.me/2012lessons

46. Future Educational Webinars from the SBA & Agility:
February 12th: “Crisis Communications Planning ‐ The Keystone of
Disaster Recovery Response”
March 13th: “Five Things You May Not Know About SBA
Disaster Assistance”
Register for any upcoming webinars at:
http://www.PrepareMyBusiness.org
Future Webinars