Terrorism: Is your company prepared?

Business and Economic Review, Jan-Mar 2002 by Newman, Lloyd N

Companies today are operating in an environment never before seen in America. Here's how to protect your employees, your neighbors, your building, your customers, and your shareholders from the consequences of a terrorist attack.

The terrorist attacks of September 11, 2001 and the subsequent anthrax mailings finally woke America to the FBI warning issued more than a year ago: "A terrorist incident is likely to occur somewhere in the United States in the next five years. No community is immune."

Further, said the FBI, "It's likely there will be at least one major terrorism incident against the United States each year for the next five years."

Protection of the life and property of employees, neighbors, and shareholders is executive management's number one responsibility. Terrorism and other disaster preparedness is essential for performing that duty. Post-incident, how will you demonstrate in court that you have fulfilled that responsibility?

Since the Oklahoma City bombing, the FBI has urged that all organizations - especially businesses -- prepare to resist and respond to terrorist incidents. This applies to manufacturing facilities, office buildings, shopping malls, banks, hospitals, schools, auditoriums, sports arenas - anywhere Americans congregate.

Despite the World Trade Center attacks, the Oklahoma City bombing, and the FBI's warning, businesses find ready excuses for delaying or denying the need to mitigate hazards and make plans for response and recovery.

* "It won't happen here." (But, if it does...?)

* "We're too small to be a target." (How do you know what's "too small" in a terrorist's mind?)

* "It's not cost-justifiable to prepare." (Don't plan to defend yourself in court with that one. What you are really saying is, "We will externalize mitigation and preparation costs by forcing our families and the families of other victims to pay those costs.")

There's no doubt that your company is now operating in an environment never before seen in America - one of continuing planned violence against our people, our institutions, our businesses. To survive, you, your managers, and your staff are going to have to operate your business in new ways. There will be new costs to absorb or pass on to customers. (In most cases, the additional costs will actually be minimal.)

Before you decide that these new costs will make you uncompetitive, recall the millions of dollars the American automobile industry wasted in fighting mandatory airbags. They "knew" customers would not pay higher prices for cars with airbags. Eventually, airbags became standard. U.S. car sales rose despite the slightly higher cost. Research shows that Americans will not compromise when it comes to safety.

You need to ensure an adequate defense for potential lawsuits that often follow an emergency response. Adequate prevention and mitigation is one means to defend against accusations of negligence and other claims.

Here is important information on protecting your employees, your neighbors, your building, your customers, and your shareholders from the consequences of a terrorist attack. It is based on the Integrated Emergency Management Course on the Consequences of Terrorism held at the Federal Emergency Management Agency's Mt. Weather, Virginia, training site.

Many of these mitigation, preparation, response, and recovery steps will serve you well in other types of hazards, including hurricanes, tornadoes, earthquakes, floods, fires, and technological disasters.

Prevention/Mitigation

Prevention is your first line of defense. Permit no access to your HVAC, air conditioner, plumbing, electrical/gas, or telecommunications systems by anyone unknown to you. Be wary of unscheduled "maintenance" or "repairs." Check credentials carefully each time by calling the supposed issuer of the credentials. Release of Weapons of Mass Destruction (WMD) agents into enclosed spaces protected from the weather is a method terrorists have used successfully.

Get serious about security. Lyle Hendrick, of Investigative Research Group, Inc., in Columbia, South Carolina, says many firms only now realize they must protect themselves from potential sabotage. "They have to get smarter about their security needs," he added. "They can't be looking at cosmetic responses to legitimate security needs."

Check mail carefully. Train your mailroom staff, receptionists, receiving dock workers, or other mail/express receivers to carefully observe incoming mail/express packages (See Box, Page 10). Identify groups of people your organization will need to involve in recovery efforts. These may include:

* Officers, executives, managers, employees

* Vendors

* Competitors (Would mutual-aid pacts be helpful?)

* Advisors/supporters, such as insurance brokers

* Money sources

* Community leaders

* Elected officials

* Emergency services

For each person named, be sure to have business, home, cell, and weekend phone numbers, as well as fax numbers and e-mail and Web site addresses.

Revise your list throughout the year as people change jobs, and check each phone number annually.