Contingency Planning.

As we mentioned in our 31 May post (http://safetyrich.blogspot.com/2011/05/planning.html), OSHA requires written plans on several subject. While OSHA requires an Emergency Action Plan (EAP), Contingency plans are required mainly by insurance companies to ensure their clients are prepared to mitigate loss in the case of a catastrophe.

Experts are reporting the Hurricane Irene that raked up the East coast at the end of the third week in August 2011, caused more loss than any other natural disaster in history. At one time, more than 7.4 million folks had no electricity. One restaurant owner from South Carolina spoke in an interview about how he had more than 80 employees waiting for him to reopen. Thinking about the economic impact of the storm will boggle the mind. Dealing with a disaster is even more difficult if no plan is in place.

Imagine being able to open a plan and start going down a series of checklists and plans that were made when all was well. Plans to restore data, rebuild facilities and restart cash flow.

When writing a Contingency Plan, start with the assumption that a total loss has occurred: a hurricane, tornado, fire or explosion has wiped out everything. Although, as we shall see, all is not lost regardless of the level of destruction – IF planning for the worst case has been done properly.

This list of items is not intended to be complete, but to create a starting point – all companies are different.

DATA – Backing up data to a tape drive that your IT person takes home once a week is a good start, but inadequate in real emergencies. Back up your data as often as possible (how much work not backed up can you recreate in a reasonable time?) to a distant location which is less susceptible to catastrophic events. An online backup to a place 1000 miles away is no farther than across the street.

FACILITIES – Assume your offices, warehouses and storage facilities are completely gone. Where will your employees work? Chances are, their homes are also severely damaged, or without power. By making plans to temporarily move inland, a suitable location can be identified: a hotel, vendor or client’s office. Contact a Realtor in several cities at least 50 miles way, have them identify office/warehouses with vacancies, have agreements in place that trigger short-term occupancy. By making a deal when the sun is shining, you beat everyone else during the scramble.

PRODUCTION: Equipment, tools, raw materials – identify vendors by name, make plans for them to provide you with an emergency supply. If possible, pay for a cache stored at the vendor’s facility or in a storage facility 100+ miles away.

EMPLOYEES – Assume that most of your employees are working on their own homes or with their families. Identify key employees to manage activities using the Contingency Plan, after the disaster. Make plans on communications and make sure everyone has everyone’s phone numbers.

Consider also how you will clean up and rebuild. Companies and residents in the area are also cleaning and rebuilding, the companies that make plans and agreements in advance are the ones that get serviced first, right after the storm.

Now go make the same plans for your own home and family.

See our Web site: SafetyRich