ACTE Executive ForumDisaster Drill

Bruce McIndoe, CEO

iJET Intelligent Risk SystemsNovember 15, 2005

Response Time Impacts Level of Loss

Response Time

Cost$

Preparedness Impacts Response Time

Response Time

Cost$

Preparedness

Planning

Mitigation

Communication

Exercises/Drills

Operational Risk Management

» Risk of disruption to a company’s ability Risk of disruption to a company’s ability to conduct business - a result of to conduct business - a result of inadequate or failedinadequate or failed

» Internal ProcessesInternal Processes

» People & SystemsPeople & Systems

» Or External EventsOr External Events

» Travel Issues are Operational Risk IssuesTravel Issues are Operational Risk Issues

Emergency Management

““Emergency Management” Emergency Management” when an event affects a when an event affects a specific product, location, or specific product, location, or line of businessline of business

Crisis Management

““Crisis Management” Crisis Management” when an event when an event affects the entire business or brand affects the entire business or brand reputation, driving significant loss in reputation, driving significant loss in shareholder valueshareholder value

Business Continuity Planning

» ““BCP”BCP”» An all-encompassing activity covering An all-encompassing activity covering

both disaster recovery planning and both disaster recovery planning and business resumption planningbusiness resumption planning

» Tends to be heavy IT focusTends to be heavy IT focus» Should cover all aspects of the Should cover all aspects of the

businessbusiness

9-Step Readiness Process

1Establish Response

Organization

2Conduct

Risk Assessment

3Identify

ResponseResources

4Develop

ProtectiveActionPlan

5Develop

CrisisCommunication

Plan6Provide

For Well-BeingOf All Involved

7Prepare

RecoveryPlan

8Train

Personnel &Exercise

Plan

9Maintain& Update

Plan

Planning Cycle

Travel Manager’s Challenge Today

1. Higher level of care expected for 1. Higher level of care expected for “customers”“customers”

2. Hands-on preparedness for your 2. Hands-on preparedness for your organizationorganization

3. Integrating these efforts into the 3. Integrating these efforts into the organization’s BCP programorganization’s BCP program

4. Responding to and recovering 4. Responding to and recovering from incidentsfrom incidents

“Reduce T&E by 10%”, Your CFO

What is Travel Risk Management?

» A well defined process to identify risks, prepare A well defined process to identify risks, prepare travelers pre-trip, monitor threats, and respond to travelers pre-trip, monitor threats, and respond to incidents as they arise.incidents as they arise.

» Benefits include:Benefits include:

» More productive and prepared employeesMore productive and prepared employees

» Reduced number of costly “incidents” Reduced number of costly “incidents”

» Lower cost of responseLower cost of response

» Reduced corporate liabilityReduced corporate liability

» Higher “Duty of Care” for all personnelHigher “Duty of Care” for all personnel

Basic Program Building Blocks

Planning Training24X7

MonitoringIncident

Response

Feedback

Proactive Reactive

Travel Risk Management Plan

» Travel Safety & Security PolicyTravel Safety & Security Policy» Country/City Risk Rating & Travel Country/City Risk Rating & Travel

AlertsAlerts» Travel Risk Assessment & Travel Risk Assessment &

ProcessProcess» Pre-Travel Responsibilities & Pre-Travel Responsibilities &

ProcessProcess» Communication PlanCommunication Plan» Evacuation Plan & ProceduresEvacuation Plan & Procedures» Emergency Contacts, Safe Emergency Contacts, Safe

Havens, etc.Havens, etc.

Data Requirements

» Employee LocatorEmployee Locator

» Traveler, Expat, Business LocationsTraveler, Expat, Business Locations

» Employee Emergency ProfileEmployee Emergency Profile

» Nationality, Gender, Passport, Blood Type, etc.Nationality, Gender, Passport, Blood Type, etc.

» Key Contact InformationKey Contact Information

» Department/Location, Office #, 24 Hr #, etc.Department/Location, Office #, 24 Hr #, etc.

» Crisis Management Team (CMT)Crisis Management Team (CMT)

» Role, Name, Location, 24 Hr Numbers, etc.Role, Name, Location, 24 Hr Numbers, etc.

» Safe Haven LocationsSafe Haven Locations

Security• Risk AssessmentRisk Assessment• Crisis & Evacuation Crisis & Evacuation

PlansPlans• Emergency contact infoEmergency contact info• Up to date itineraryUp to date itinerary

HR/Legal• Focus on expatsFocus on expats• Responsible for Responsible for

employeesemployees• Policy & proceduresPolicy & procedures• Corp. insurance programsCorp. insurance programs

Medical• Pre-trip health planningPre-trip health planning• ImmunizationsImmunizations• Medical assistance and Medical assistance and

evacuation for evacuation for international travelersinternational travelers

Travel• Advisor and Knowledge Advisor and Knowledge

BaseBase• Books Trip & Handles Books Trip & Handles

Travel IssuesTravel Issues• Provides ReportingProvides Reporting

Employee

Multidisciplinary Process

Lessons Learned form Katrina/Rita

» Big disasters cause big problemsBig disasters cause big problems» Local decision making failed or was incapacitatedLocal decision making failed or was incapacitated» Communications broke downCommunications broke down» Information systems not designed for Emergency Information systems not designed for Emergency

ManagementManagement» ““Domestic” travel was not monitoredDomestic” travel was not monitored» Travel involved both in getting people out and Travel involved both in getting people out and

getting people ingetting people in» Dealing with own recovery effortDealing with own recovery effort» Needed to maintain on-going operationsNeeded to maintain on-going operations

Big Disasters – Big Problems

» Multiple issues at one Multiple issues at one timetime

» Little depth in Little depth in organization to delegateorganization to delegate

» Resources redirected to Resources redirected to “crisis support”“crisis support”

» On-going business On-going business processes sufferprocesses suffer

Local Decision Making

» Both Government and Organizations defer Both Government and Organizations defer to local incident management teamto local incident management team

» Fail to consider when this team is not Fail to consider when this team is not functioningfunctioning

» ““Corporate” takes on responsibilityCorporate” takes on responsibility» May not have local perspective or good May not have local perspective or good

informationinformation» Decision making becomes slow and Decision making becomes slow and

fragmentedfragmented

Communications FAILED

» Major contributor to response and recovery failuresMajor contributor to response and recovery failures» Organizations need backup communications plansOrganizations need backup communications plans» Need multi-media – terrestrial, satellite and radioNeed multi-media – terrestrial, satellite and radio» Should be “hardened” location in each major metro Should be “hardened” location in each major metro

areaarea

» Power Generator with Fuel SupplyPower Generator with Fuel Supply

» Backup Internet (Satellite) & CommsBackup Internet (Satellite) & Comms

» Shelter in place resourcesShelter in place resources

Where is the data I need?

» Information systems not designed to support EMInformation systems not designed to support EM» Needed information on facilities in effected areaNeeded information on facilities in effected area» Needed information on employees in facilities, Needed information on employees in facilities,

expatriates, travelers, etc.expatriates, travelers, etc.» Did not have updated Emergency Contact Did not have updated Emergency Contact

InformationInformation» Did not have responsible manager informationDid not have responsible manager information

Lack of Travel Data

» Highlighted gaps in travel program policy Highlighted gaps in travel program policy and data consolidationand data consolidation

» Conscious decision to not “track” domestic Conscious decision to not “track” domestic traveltravel

» Impacted both preparedness and responseImpacted both preparedness and response» More important in dealing with regional More important in dealing with regional

impactsimpacts

Travel Busy on Both Ends

» Pressure from management to move people Pressure from management to move people from area - Evacuationfrom area - Evacuation

» Pressure from management to move people Pressure from management to move people into the area – Response & Recoveryinto the area – Response & Recovery

» Lacked response resources in advanceLacked response resources in advance» Competed with other organizations for Competed with other organizations for

scarce resourcesscarce resources» Lack of good information for decision Lack of good information for decision

supportsupport

Travel Department Recovery

» Local travel office may have Local travel office may have been impactedbeen impacted

» Strong emotional tiesStrong emotional ties» More pressure on More pressure on

departmentdepartment» First hand experience faced First hand experience faced

by employees impactedby employees impacted

Business as Usual

» Major issue for US domestic operationsMajor issue for US domestic operations» Rest of world still “operating as normal”Rest of world still “operating as normal”» Travel manager becomes incident manager Travel manager becomes incident manager

or key member of CMTor key member of CMT» Distracted from “running the business”Distracted from “running the business”» Lack of depth – 24x7 job fatigueLack of depth – 24x7 job fatigue

Summary

» Protection of human assets is a Protection of human assets is a multidisciplinary effortmultidisciplinary effort

» Best approach is a risk Best approach is a risk management frameworkmanagement framework

» Training is critical to overall Training is critical to overall successsuccess

» Prevention and decision support Prevention and decision support through real-time intelligence & through real-time intelligence & communicationcommunication

» Planning for response minimizes Planning for response minimizes impactimpact

Enhancing Your Role

» Learn the LanguageLearn the Language» Be the “Transportation Officer”Be the “Transportation Officer”» Own the Travel Risk Management PlanOwn the Travel Risk Management Plan» Get Involved in Evacuation PlanningGet Involved in Evacuation Planning» Be Proactive and CollaborateBe Proactive and Collaborate» Think and Act StrategicallyThink and Act Strategically

When you are called upon - Be Prepared

Questions & Discussion

“There are no dumb questions”

Key Messages

» Consolidation/Integration of asset informationConsolidation/Integration of asset information» Notification of threat/exposure assessmentNotification of threat/exposure assessment» Response integration across providersResponse integration across providers» Company “owned” (branded) programCompany “owned” (branded) program» Automated compliance monitoringAutomated compliance monitoring» Consistent initial and on-going corporate Consistent initial and on-going corporate

communicationcommunication» Robust telecom infrastructureRobust telecom infrastructure» Global backup repository for key informationGlobal backup repository for key information