| The newest James Bond movie "Casino Royale" is | | | | companies you invest in appreciate their |
| in part based on the theory that Osama Ben | | | | employees' efforts. |
| Laden and other terrorist groups profited from | | | | D is for Drill |
| the down turn in the stock market following | | | | You have dry runs of your disaster plan. Just as |
| September 11, 2001 and other disasters. The | | | | you have a routine procedure for a fire drill, the |
| movie suggests that a terrorist organization | | | | companies you invest in should perform disaster |
| heavily invested in puts could cause a wholesale | | | | drills. If they don't, panic will set in and their mind |
| sell of stocks in an entire industry and profit from | | | | will shut down and your portfolio will suffer. When |
| the ensuing options rush. | | | | the mind shuts down, people revert to what is |
| History certainly support the viability of this | | | | familiar--the day-to-day routine they've always |
| approach. The stock market and airline stocks | | | | done--not what they should be doing in a disaster. |
| dropped after 9/11. When a private plane strayed | | | | The companies in your portfolio must dedicate |
| over the nation's capital in 2005, the stock market | | | | themselves to the entire process and drill. |
| fell as America held it's collective breath and the | | | | Y is for You |
| tragic crash of a private plane into an apartment | | | | For businesses, it comes down to you--each |
| building in New York City was followed by another | | | | individual and each employer. Take responsibility |
| drop in the market that only reversed when it | | | | for all your actions and your investments. Don't |
| became clear that the crash was merely an over | | | | be part of the selling panic. Plan ahead and be part |
| publicized accident. | | | | of the recovery solution. |
| While the drop in the stock market after 9/11 | | | | Finally, let's P.L.A.N. |
| was unavoidable, the drops following these | | | | P is for People |
| non-terrorism events was NOT inevitable. All | | | | The first step in making your plan is to take an |
| these events resulted in a business and stock | | | | inventory of who will be participating. If you are |
| market panic that many "experts" have called | | | | making a plan for your family, consider who will |
| both unpredictable and unavoidable. | | | | be with you and how to prepare each person for |
| These "experts" are wrong. To avoid being part | | | | the disaster. If you have small children, you may |
| of that statistic, you must "Be D.I.S.A.S.T.E.R. | | | | need to talk to them about what is happening, |
| R.E.A.D.Y. & P.L.A.N. Each letter in the | | | | and reassure them that everything will be all right. |
| mnemonic stands for a key item in your disaster | | | | Also, what tasks will each person perform? If |
| preparation checklist. | | | | you're facing a hurricane, who will board up the |
| Go through each letter and take the necessary | | | | windows? Who will make sure the dog gets into |
| action. While this is not something you will | | | | the car if you evacuate? Each person should have |
| complete in an hour, you do need to start | | | | a function in ensuring the safety and security of |
| now--long before any disaster. When you can | | | | everyone else. Even children can participate. A |
| check all these items off your list, you will be as | | | | small task might make a child feel more |
| prepared as possible for any disaster that may | | | | purposeful, like a critical part of the plan, rather |
| come your way and your business will survive. | | | | than a helpless bystander. So if your children are |
| Let's start with D.I.S.A.S.T.E.R.: | | | | old enough to take part, put them in charge of |
| D is Detect | | | | the extra batteries or have them fill the water |
| Detect your own vulnerabilities and those of your | | | | bottles. |
| community. You have geographic vulnerabilities | | | | Likewise, if you are making a plan for your |
| and competitive vulnerabilities. You also have | | | | business, consider who will participate and what |
| emotional vulnerabilities. The stock market | | | | role each person will fill. If you plan to close, you |
| dropped after the capital sirens sounded because | | | | need to know who will be involved in the closing |
| those making the trades failed to detect their | | | | decision, and how you will secure the premises. If |
| own fear of terrorist attack. If you identify your | | | | you decide to stay open, your plan is even more |
| fear and prepare to respond calmly and | | | | important because you will be responsible for the |
| effectively, you now have a competitive | | | | safety of your employees. |
| advantage. | | | | Other people in your plan include contacts outside |
| Detect your community's needs too. Consider | | | | the disaster zone. You need someone to serve as |
| how your business can help. If so, you've just | | | | a message board for communication. Then |
| detected a unique advantage you can offer to | | | | everyone involved in your plan can call in and let |
| the community in the event of an emergency. | | | | the centralized person know they are safe and |
| I is In Charge | | | | their location. If you decide to leave, you need |
| Every community has one person in command in | | | | someone out of state whom you can stay with. |
| case of a disaster. That person, the "incident | | | | Finally, consider what outside facilities you are |
| commander," has a set of responsibilities to | | | | going to rely on. If you have unanticipated |
| delegate that filters down through an established | | | | emergencies, who are you going to call? Are they |
| structure. Find out who is in that incident | | | | going to be able to get to you? If your entire plan |
| command position now and ask how you could | | | | is to call 911 and get assistance, you need to |
| help become a part of that structure. If you wait | | | | realize that in a disaster situation they probably |
| until disaster strikes, your offers of help may be | | | | won't be able to assist you for seventy-two |
| too late. Do it now. The use of the Incident | | | | hours. In this case, you will need to reassess your |
| Command model also helps prevent "panic selling" | | | | plan. |
| by filtering all decisions through one person. | | | | L is for Leave |
| S is Safety | | | | Next, consider leaving the disaster zone. When |
| Know where your safety vulnerabilities are. Will | | | | and how will you leave (evacuate)? Where will you |
| the potential terrorist attack directly affect you | | | | go and how will you get there? Will your family or |
| or your place of business? If you were to lose | | | | fellow evacuees meet before you leave or when |
| power or cellular phone service, how will that | | | | you arrive at your destination? The decision to |
| affect your business? Be prepared. If you own | | | | leave makes communication and your contacts |
| stock, you will feel vulnerable. But are you? Ask | | | | outside the disaster zone critically important. How |
| yourself, would a successful attack really affect | | | | will you communicate while you evacuate and |
| the stock price in the long term. | | | | after you arrive at your destination? What are |
| A is Assess | | | | you going to do if you get separated? Operate on |
| Assess your situation--either your current one or | | | | a buddy system; no one should be left alone. |
| the potential one during a disaster. If keeping your | | | | When you and your family or business associates |
| business open is not safe, or if your employees | | | | become mobile, make sure everyone knows the |
| have urgent personal or family needs during a | | | | plan. Then, if your plan fails, you need an |
| crisis, you need to take responsibility for that and | | | | alternative. |
| be realistic. Assess whether it is safe to continue | | | | If you are not leaving, consider where will you |
| to be open and ask yourself if your employees | | | | stay and how will you stay safe. Will you all stay |
| have needs that are outside of the business. If | | | | together or shelter in the place you are when the |
| so, make allowances for those. You don't have to | | | | disaster strikes? Will you send some of your |
| stay open 24/7 or put yourself or your | | | | family to your evacuation destination while others |
| employees at risk. Letting your employees know | | | | stay? All these factors need careful consideration |
| that their personal needs are important will gain | | | | and planning. |
| you their trust and loyalty. Track the effect the | | | | A is for Anticipate / Adapt |
| event has had on your portfolio and the | | | | Unfortunately, in a disaster situation, nothing |
| companies in which you invest. | | | | always goes as planned. So anticipate plan failures |
| S is Support | | | | and plan for the "what ifs." This is a chance to |
| Support works both ways. The easiest way to | | | | brainstorm. Make a list of all the possible failures. |
| get support during an emergency situation is to | | | | What if the phone lines go down? What if your |
| give it as part of the support team. All | | | | basement floods? What if you get caught in |
| emergency response managers are taught to | | | | traffic? No "what if" is too extreme to consider. |
| reach in their community and make | | | | The only possibility that you can't plan for is the |
| pre-arrangements for the resources they need. | | | | one you didn't think of. |
| These are called mutual aid agreements. Approach | | | | Once you've brainstormed possible failures, you |
| the emergency response manager and say, "I can | | | | need to adapt to each one with an alternate plan. |
| provide you the following things. Will that be of | | | | If the phone lines go down, can you use your cell |
| help?" You will most likely get a yes, especially if | | | | phone? If your basement floods, can you seek |
| you do this ahead of time. You will be written into | | | | shelter with a neighbor or in some other nearby |
| the county's plan. Be prepared to deliver | | | | location? If you get caught in traffic, will you have |
| whatever you promise. An advantage to you is | | | | enough gas to evacuate successfully? |
| that when you have a need, you are already | | | | What if something happens that you didn't |
| known to the people with the power. And since | | | | anticipate? If you go through this process enough |
| you've already detected what kind of support | | | | times and really work on your plan, then you will |
| you'll need, you can ask for it in advance. | | | | be able to adapt to the failure. You're mind will be |
| T is Triage | | | | primed and you'll be ready to think of alternatives, |
| Triage means to do the most good for the most | | | | even if the failure isn't anticipated beforehand. |
| people with limited resources. Even if you've been | | | | Anticipate that events will not unfold as planned. |
| the best person and the most helpful to your | | | | Be flexible. Adapt to the unexpected. |
| community, if your needs are minor you will have | | | | Remember: "Sempier Gumby" - "Always Flexible" |
| to wait longer than someone whose needs are | | | | N is for Needs |
| greater. The person with the greatest need will | | | | In any disaster situation, you must be ready to |
| get help first--no matter when they ask. Adopt | | | | go for seventy-two hours without assistance. |
| the same principle with your business resources. If | | | | Those first seventy-two hours are critical |
| you own stock, see how the businesses they | | | | because emergency relief will be overwhelmed |
| represent have been effect by the completed | | | | during that time. Fire departments, police, and |
| attack. Once you have made this analysis, repeat | | | | medical personnel won't have the resources to |
| your standard due diligence for each stock. Then | | | | get to everyone. |
| and only then will you know what to keep, what | | | | After hurricane Katrina, many people died simply |
| to buy and what to sell. Even though it may be a | | | | because they ran out of food and water in those |
| hard decision to make, you are really benefiting | | | | critical three days. However, four days before |
| your portfolio. | | | | Rita hit Texas, the community leaders were on |
| E is Exit Strategy | | | | the television warning people that if they decided |
| If you are called to evacuate, go. Orders to | | | | to stay, they needed to be prepared for |
| evacuate usually come in stages. When they tell | | | | seventy-two hours because no one would be able |
| the group you belong to that it's time to | | | | to help them. |
| evacuate, heed the warning--it's unsafe to stay. | | | | When working on your plan, make sure you |
| Rest assured that businesses that are prepared | | | | account for all your needs for seventy-two hours. |
| and forced to evacuate in most cases will reopen | | | | Be prepared to be self-sufficient during this time. |
| when it's safe to do so. | | | | Each one of your family members must have |
| R is for Recovery | | | | personal identification and photos of all others in |
| Recovery begins with your disaster planning--long | | | | your plan, two quarts (liters) of drinking water, |
| before the event occurs. Deal with your fear, get | | | | seventy-two hours of food, seventy-two hours |
| counseling, do what it takes to recover. | | | | of clothes, two weeks of medications, two |
| And now for R.E.A.D.Y: | | | | weeks of toiletries, a supply of cash (credit/debit |
| R is for Rely | | | | cards can't be verified if phone lines go down), a |
| Now that you've been through the disaster plan, | | | | flashlight, a portable radio, batteries, a signal |
| you need to be ready within your own business. | | | | whistle, white/silver duct tape, a first aid kit, |
| What do you rely on? What do the companies in | | | | prepaid calling card, and a list of emergency phone |
| your portfolio rely on? Are there key employees | | | | numbers. |
| or key procedures that only exist in employees' | | | | These needs should be kept in a rolling backpack |
| heads? Write them down now. You and the | | | | that stays with the owner. Keep this bag, your |
| companies you invest in must keep a copy at | | | | Disaster Pack, readily accessible. And if a disaster |
| business and another off-site at a safe location. | | | | is imminent, keep the Disaster Pack with you at |
| Those processes are important. Are you heavily | | | | all times. |
| invested in a particular business, geographic area | | | | Are You Ready? |
| or business sector? | | | | Once you have taken an inventory of your |
| E is for Educate | | | | family, made arrangements for evacuation, |
| If you become part of your community response, | | | | anticipated and accommodated failures, and |
| you will need to know how to access people and | | | | gathered all your needs for seventy-two hours, |
| how they can access you. How are they going to | | | | you need to review and practice your plan each |
| identify themselves? How do you collect | | | | year. |
| payment? Cash or a trust system? Develop a | | | | Hurricane situations are timely because of what |
| written procedure. Make sure your staff knows | | | | happened on the gulf coast, but regardless of |
| exactly what they should do. They'll take comfort | | | | what disaster situation you face you must have a |
| in knowing what procedures to follow in the event | | | | plan. In a tornado, tsunami, terrorist attack, or |
| of an emergency. Do the companies in your | | | | whatever, you can use these steps to make |
| portfolio have a written plan? Learn what that | | | | your disaster plan and ensure the safety of your |
| plan entails. | | | | family and your business. |
| A is for Appreciate | | | | Take Action |
| Appreciate your employees every day. Not only | | | | Nothing you do can prevent a disaster. With |
| will you experience a more pleasant workplace, | | | | proper planning, however, your healthcare facility |
| but in a time of crisis your employees will pay | | | | can become "D.I.S.A.S.T.E.R. R.E.A.D.Y." and |
| you back with their loyalty. In the face of a | | | | "P.L.A.N." Identify your strengths and weaknesses. |
| disaster, continue to appreciate your | | | | If the worst happens, don't panic. You already |
| employees--particularly the ones who came back. | | | | know the drill and what is expected of you. Be |
| But still appreciate the ones who couldn't come | | | | ready to do your best and activate your plan at |
| back. Some people will have more pressing | | | | the drop of a hat, ready to help those with the |
| personal responsibilities than others. Find out if the | | | | greatest need. |