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Risk Management, Dec, 2006 by Alfredo Guerra, Kathie Kearney

Portions of the plan that apply to all employees reside on the company's intranet. NCCI's emergency team monitors all approaching storms through the area's emergency notification system and emergency operations center, and posts relevant updates and work-related procedures on the intranet. When a storm is within 36 hours of the corporate offices, updates are recorded on the employee emergency hotline. Additionally, e-mails are sent to all employees with operations updates and procedures.

The Human Element

One critical component that can sometimes be overlooked when formulating a business continuity plan is the human element. The people that will actually carry out the plan are obviously among the most important factors of any emergency operation, yet somehow this element often ranks well below other more nuts-and-bolts initiatives. Of course, the ideal plan will be fully documented and contain cross-divisional procedures, but without people who are able to carry out these procedures, things will not go as intended.

NCCI's risk manager makes sure to meet with senior staff each year to identify key skills needed prior to any known impending event. It is important to identify those people with critical skills and consider all the operating options should those people not be immediately available or accessible following a disaster.

A matrix of job skills critical to operations at different stages from initial recovery to full service is an excellent practice. Departments evaluate the skill sets that would enable employees to move easily from one department to another to fill a void. Within many departments, cross-training exercises are made part of the "Cascading System of Indicators," which is the annual evaluation of each division's achievements. This is an ongoing process that could even become a pivotal factor in business survival during a major pandemic outbreak or other national calamity.

During disasters, employees lose focus, productivity diminishes and stress levels heighten. This is especially true when a season creates mental and physical stress on employees who have to prepare for one storm after another. Regular communications about the status of office conditions, available food service, dress code and work hours help to stabilize the work environment and create a sense of a quick recovery.

Through the company's healthcare provider, mental health counselors are also made available to talk with employees and their family members, free of charge. A variety of issues were addressed from coping skills to stress and fear reduction. For employees struggling to deal with the potential of devastation both for their company and their own family, this type of resource can be invaluable.

Unforeseen Challenges

When Hurricane Wilma struck in 2005, many businesses were able to reopen within a week, but no one counted on the fuel shortages. Employees could not drive to work. Office generators ran out of fuel and schools were closed.

After the 2005 experience of a fuel shortage, the company leased a temporary diesel storage tank to supplement the capacity of the permanent tank during the hurricane season. NCCI can now maintain enough fuel capacity to operate the company's emergency generators for more than a week. Additionally, the emergency team met with neighboring companies about fuel vendors; they negotiated delivery commitments and identified back-up reserves from out of the area.