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1. Business Continuity Awareness
Longmont Chamber Leads Group
Tuesday 10 NOV 2009
Andy Amalfitano

2. Are you Ready?
© AmalfiCORE Business Solutions pg 2 of 14

3. Topic: Business Continuity
- preparing small business to recover from a crisis
Audience: Longmont Chamber Leads lunch meeting
Objective: At the end of this session, we will
 be familiar with common preparedness terminology
 be familiar with what business continuity means to our small
business
 identify some risks and exposures
 have new ideas on how to mitigate some of those risks.
Presented By: Andy Amalfitano, AmalfiCORE Business Solutions
Date: Tuesday November 10, 2009
__________________________________________________________
Agenda
Introduction
1. Why bother?
2. Business Impact
3. Risk
4. Mitigation
5. Recovery
6. Scenarios
7. Lessons Learned
© AmalfiCORE Business Solutions pg 3 of 14

4. 1. Why bother?
Reasons why most small businesses either will not, cannot, or don't want to.
 "I frankly can't be bothered, the likelihood is just too small"
 "If it does happen, it won't happen to me"
 "If it does happen to me, it won't be too bad"
 "If it happens to me and it's bad there is nothing I can do to stop it"
 "I'm small, I don't have much to lose"
 "It cost too much and takes me away from my real job of selling products
and services"
 "It cost too much to hire someone to do this"
 "If it ain’t broke, don’t fix it.”
 "I don't do it at home, why should I do it at work"
Statistics and Info
 "25-40% of businesses that undergo a major disaster event, do not reopen, and of those that do
reopen, over 25% do not survive past 2 years" [Source: US Dept of Labor -SBA]
 OSHA regulations for an emergency plan (new and coming)
 About 38% of us say we simply would rather not think about what would happen in a crisis.
 44% of Americans say they don’t believe in worrying about things that may or may not happen in
the future.
 In the typical small business, there is little or no IT support staff and owners find data complicated to
manage.
Weather: Tornado
 May 2008 - three Tornados: The super-cell near Windsor was a massive ¾ of a mile wide. Rated by
the National Weather Service as an EF3 on the Enhanced Fujita Scale with winds in excess of 136
mph, tore a path 35 miles long.
 Result: More than $193 million in damage making it the worst tornado in Colorado history.
 Affected: 5000 autos damaged or destroyed, 80 homes destroyed, 3000 homes damaged, 38
businesses and municipal buildings damaged (Brown Cow Dairy, Treasure Island Mobile Home park
permanently destroyed and will not be rebuilt)
© AmalfiCORE Business Solutions pg 4 of 14

5. Weather: Snow storms
 2006: Two separate blizzards within one week over holidays.
 Colorado Holiday Blizzard I - Dec. 26th 2006. Fourth largest storm in state history. Crippled the
region, forcing closures of Interstate Highways 25, 76 and 70, U.S. Routes 36 and 85. Drifts over
6-8 feet. The city of Denver was shut down, the US Mail was undeliverable, and a state wide
disaster was declared. Many grocery stores, department retailers and other service institutions
were shut down or severely limited in supplies.
 Colorado Holiday Blizzard II - 2nd storm, Dec 28-29, 2006. Prompted run on supplies at grocery
stores, hardware stores , streets impassable.
 Other snow storms:
 2003: Record-setting blizzard March '03. Covered 5 state region. 56 miles of I-70 was closed
west of Denver, I-25 and I-80 to Wyoming, communities isolated.
 1997: October blizzard worst early storm for this month 1-3 ft in 24 hours
 1989: Blizzard develop rapidly, huge drop in temperatures, sub-zero, wind and 2 feet of snow
in front range cities
 1986: February produced floods due to quick melt, many major roads closed 1 day
 1982: Christmas Eve Blizzard, ice and snow, roads impassable
 1979, 1977, 1951, 1949, 1927, 1913, 1888 other significant snow storms occurred
 According to RMIIA, Colorado's top most costly windstorms are:
 $20 million in insured damage occurred along the Front Range on April 8-10, 1999.
 $20 million in insured damage occurred in Boulder County on Jan. 17, 1982.
 $10 million in insured damage occurred along the Front Range on Jan. 28-29, 1987.
 $7 million in insured damage occurred along the Front Range, Colorado Springs, Eastern Plains
on December 30, 2008.
 $5.2 million in insured damage occurred along the Front Range on Oct. 29, 1996.
 $3 million in insured damage occurred along the Front Range on Feb. 2-3, 1999.
Transportation Woes:
What happens if a strike, the flu, an attack, a chemical spill, weather or other event causes our
transportation system to slow down for a day or two?
Our supplies, products, and parts come by the following modes of transport:
 Truck 40%
 Rail 37%
 Multiple 14%
 Water 5%
 Air 1%
 Other 1%
© AmalfiCORE Business Solutions pg 5 of 14

6. 2. Business Impact Analysis - BIA
Describe the most critical, core and essential functions of a business.
Name those few things that you would absolutely have to continue in the
event of a crisis, disruption or a disaster.
 Examples of small business critical functions
o Day to day survival is a primary goal
o Make payroll, cover rent, pay vendors and suppliers
o Service existing customers
o Find the next customer and generate sales
o Maintain power and other utilities
 What are your most core, critical, essential functions?
o ______________________________________
o ______________________________________
o ______________________________________
o ______________________________________
o ______________________________________
o ______________________________________
© AmalfiCORE Business Solutions pg 6 of 14

7. 3. Risks and Exposures
The weighing of an identified threat against the probability of it occurring.
Service Impact Analysis
5 4 3 2 1
Non-
A-Priority Vital High Medium Low Essential
not at
B-Risk all 1 day 2 days 5 days 1 month
C-Alternative none 25% 50% 75% 100%
Guidelines
Enter the details of all those core services which need to be analyzed in order
to determine their criticality.
A. Priority
How necessary is the service in an emergency? Is there a statutory or regulatory
obligation to be met? Does this service have a direct impact on the customer base
or the public at large?
B. Risk
How long can the service recipient manage without that service impacting on their
business or welfare?
C. Alternative
Could some or all of this service be delivered by an alternative means or from a different
source? How much of the service can be provided in this
manner?
Example:
Service and A: B: Risk C: Score
Location Priority Alternative
customers 5 5 4 100 Vital
power 5 5 4 80 High
vendors 5 4 4 80 High
suppliers 4 4 4 64 Medium
payroll 3 5 4 60 Medium
mail 3 3 3 27 Low
new ideas 2 2 3 12 non-essential
© AmalfiCORE Business Solutions pg 7 of 14

8. 4. Mitigation, Planning, and Readiness
What do we already have in place, how can we create a viable plan, how ready are we?
Critical Function Have today... Need to do ...
a. people and safety
b. utilities
c. protect data
d. protect brand, image,
identity
e. plan for staff backup
f. financial backup
g. alternate sites
h. vital records safe and
recreate
i. test it, train for it,
document it, keep it up to
date
© AmalfiCORE Business Solutions pg 8 of 14

9. 5. Response and Recovery During the Crisis or Disruption
So how will we respond, what will we do to continue our business, how will we
recover?
 Be Self-reliant
 ACT now!
 Follow the plan
 Communicate
 Restore critical functions
 Be ready for the second wave
 Remember and learn
© AmalfiCORE Business Solutions pg 9 of 14

10. 6. Scenarios
A. Restaurant Loses Power
On a Saturday afternoon one fine November day in Longmont Colorado, a
restaurant completely loses power due to bad wiring in the kitchen. Most of the
tables are full of hungry customers.
One by one, the wait staff approaches each table to inform them they will not be
able to take their order due to the power outage. When questioned about
cooking on gas ranges, the wait staff replies:
"Oh, no, it's not the kitchen, we can cook just fine. It's the food ordering system and cash
registers, we cannot place the order or ring it up and cannot process credit cards without
power. I'm so sorry. Please come back another time."
 Why bother?
 Business Impact
 Risk
 Mitigation
 Recovery
 Lessons Learned
© AmalfiCORE Business Solutions pg 10 of 14

11. B. Medical Office Complex Gets the Flu
The regular seasonal flu, although less common, is actually more severe than the
newest H1N1 flu. While the government distributes the new vaccines to high risk
medical facilities, a clinic in Longmont has not yet received their shots.
Over the course of two weeks, 35% of the medical office staff suffers flu-like
symptoms and are ordered to stay home. Affected are physicians, nurses,
physician assistants, medical technicians, day surgery staff, receptionists, and
even the janitors.
Patients are notified that their appointments, procedures, surgeries, check-ups
and even their flu shot appointments are all postponed until further notice.
One patient complains that they really need their procedure because the doctor said so.
"Can I speak with the doctor". "No, I'm sorry, the doctor is sick, too. Perhaps we could check
with another physician." "No, my insurance won't cover that."
 Why bother?
 Business Impact
 Risk
 Mitigation
 Recovery
 Lessons Learned
© AmalfiCORE Business Solutions pg 11 of 14

12. 7. Lessons learned
We call it an "After Action Report"- AAR
When you get a chance during or immediately after the event, try to document
 What happen?
 What you did about it?
 What you'll do different next time?
 What you should do to get ready for the next time?
What did we learn today - one thing?
____________________________________________________________________
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_____________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
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© AmalfiCORE Business Solutions pg 12 of 14

13. Pitch
 AmalfiCORE to learn more
 www.amalficoreblog.com <blog>
 www.amalficore.com <web and contact>
 Free consultation about your disruption readiness
 Links and references
 Business readiness site:
http://www.ready.gov/business/index.html
 Community Emergency Response Team
https://www.citizencorps.gov/cert/
 Score: non-profit connected to SBA:
http://www.score.org/explore_score.html
© AmalfiCORE Business Solutions pg 13 of 14

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