Function: Recovery and Restoration
Business recovery and restoration, or business resumption, goes right to a facility's bottom line: keeping people employed and the business running.
Function: Recovery and Restoration
Other Functions
- Function: Direction and Control
- Function: Communications
- Function: Life Safety
- Function: Property Protection
- Function: Community Outreach
- Function: Administration and Logistics
Planning Considerations
Consider making contractual arrangements with vendors for such post-emergency services as records preservation, equipment repair, earthmoving or engineering.
Meet with your insurance carriers to discuss your property and business resumptions policies (see the next page for guidelines).
Determine critical operations and make plans for bringing those systems back on-line. The process may entail:
- Repairing or replacing equipment
- Relocating operations to an alternate location
- Contracting operations on a temporary basis
Take photographs or videotape the facility to document company assets. Update these records regularly.
Continuity of Management
You can assume that not every key person will be readily available or physically at the facility after an emergency. Ensure that recovery decisions can be made without undue delay. Consult your legal department regarding laws and corporate bylaws governing continuity of management.
Establish procedures for:
- Assuring the chain of command
- Maintaining lines of succession for key personnel
- Moving to alternate headquarters
Include these considerations in all exercise scenarios.
Insurance
Most companies discover that they are not properly insured only after they have suffered a loss. Lack of appropriate insurance can be financially devastating. Discuss the following topics with your insurance advisor to determine your individual needs.
- How will my property be valued?
- Does my policy cover the cost of required upgrades to code?
- How much insurance am I required to carry to avoid becoming a co-insurer?
- What perils or causes of loss does my policy cover?
- What are my deductibles?
- What does my policy require me to do in the event of a loss?
- What types of records and documentation will my insurance company want to see? Are records in a safe place where they can be obtained after an emergency?
- To what extent am I covered for loss due to interruption of power? Is coverage provided for both on- and off-premises power interruption?
- Am I covered for lost income in the event of business interruption because of a loss? Do I have enough coverage? For how long is coverage provided? How long is my coverage for lost income if my business is closed by order of a civil authority?
- To what extent am I covered for reduced income due to customers' not all immediately coming back once the business reopens?
- How will my emergency management program affect my rates?
Employee Support
Since employees who will rely on you for support after an emergency are your most valuable asset, consider the range of services that you could provide or arrange for, including:
- Cash advances
- Salary continuation
- Flexible work hours
- Reduced work hours
- Crisis counseling
- Care packages
- Day care
After a site emergency, assess the impact of the event on business neighbors and the community and take appropriate action. How you handle this issue will have long-lasting consequences.
Resuming Operations
Immediately after an emergency, take steps to resume operations.
Establish a recovery team, if necessary. Establish priorities for resuming operations.
Continue to ensure the safety of personnel on the property. Assess remaining hazards. Maintain security at the incident scene.
Conduct an employee briefing.
Keep detailed records. Consider audio recording all decisions. Take photographs of or videotape the damage.
Account for all damage-related costs. Establish special job order numbers and charge codes for purchases and repair work.
Follow notification procedures. Notify employees' families about the status of personnel on the property. Notify off-duty personnel about work status. Notify insurance carriers and appropriate government agencies.
Protect undamaged property. Close up building openings. Remove smoke, water and debris. Protect equipment against moisture. Restore sprinkler systems. Physically secure the property. Restore power.
Conduct an investigation. Coordinate actions with appropriate government agencies.
Conduct salvage operations. Segregate damaged from undamaged property. Keep damaged goods on hand until an insurance adjuster has visited the premises, but you can move material outside if it's seriously in the way and exposure to the elements won't make matters worse.
Take an inventory of damaged goods. This is usually done with the adjuster, or the adjuster's salvor if there is any appreciable amount of goods or value. If you release goods to the salvor, obtain a signed inventory stating the quantity and type of goods being removed.
Restore equipment and property. For major repair work, review restoration plans with the insurance adjuster and appropriate government agencies.
Assess the value of damaged property. Assess the impact of business interruption.
Maintain contact with customers and suppliers.
Last Modified: Tuesday, 21-Mar-2006 08:36:47 EST