«OLORADO SBDC Disaster Recovery and Continuity Guide for Colorado Businesses Disaster Recovery and Continuity Guide for Colorado Businesses Welcome to ...»
OLORADO SBDC Disaster Recovery and
for Colorado Businesses
Disaster Recovery and Continuity Guide
for Colorado Businesses
Welcome to the Disaster Recovery and Continuity Guide for Colorado
Businesses, produced by the Colorado Small Business Development
Center Network under the Disaster Relief Program.
We developed this guide while working with Colorado businesses after
the various fires, flooding and mudslides occurred around the state. It is
designed as a working guide that will direct you through the steps as you consider how to proceed post-disaster, as well as how to prepare for a possible threat or natural disaster.
For a business to be able to recover from an emergency or natural disaster, planning is the first step. The
sections that make up business continuity planning are:
» Prepare: Includes risk assessment, mitigation, planning and training (output: emergency action and recovery plans) » Response: A step-by-step execution of your plan » Recovery (or continuity): Continue your business using your recovery plan This guide offers structure and simple steps to help you through your recovery and planning process. We recommend you use this guide in conjunction with your local Colorado SBDC Certified Business Consultant.
Thank you for picking up this guide. We wish you well through this process and in preparing for a successful future.
- Colorado Small Business Development Center Network This guide is funded in part through a Cooperative Agreement with the U.S. Small Business Administration and was created through a collaborative effort between the CSBDC and the Vermont Small Business Development Center Network. ©CSBDC 2013 Contents How to Use This Guide
Prepare: Emergency vs. Disaster
Disaster Assistance: Local to Federal to Local
Federal Disaster Declaration Process
FEMA and SBA
Prepare, Respond, Recover
Prepare: Risky Business
Prepare: Risk and Loss Assessment
Prepare: Mitigating Risks
Prepare: Mitigate | Insurance
Mitigating Risks: Financial Records
Respond: Emergency Response/Action Plan (ERP)
From Response to Recovery
Initial Recovery: Contact Your Local SBDC
Initial Recovery: People
Initial Recovery: Places and Things
Initial Recovery: Financial
Recovery: Reconstructing Your Financial Records
Recovery: Next Actions
Recovery: Communication Plan
Recovery: Strategic Questions
Long-Term Recovery Plan
Recovery: Sources of Financing
Recovery: Reopen | Steps
Worksheet 1 | Prepare: Risk Assessment Table
Worksheet 2 | Prepare: Risk Assessment Matrix
Worksheet 3 | Employee Action List
Worksheet 4 | Key Stakeholders
Worksheet 5 | Aged Accounts Payable
Worksheet 6 | Vendors and Orders
Worksheet 7 | Custom and/or Standing Customer Orders to Cancel
Worksheet 8 | Aged Sales Forecast and Accounts Receivables Chart
Worksheet 9 | Recovery Goals Worksheet
Worksheet 10 | Recovery Plan Worksheet
Worksheet 11 | Cost Estimations for Reopening
Worksheet 12 | Quick 3 Month Cash Flow
Worksheet 13 | Grants and Alternative Funding Sources List
Worksheet 14 | Sources and Use Worksheet
Worksheet 15 | Jobs Needed to Reopen
Worksheet 16 | Local Business Assessment
Worksheet 17 | Equipment Assessment List
Worksheet 18 | Media List for Reopening
Worksheet 19 | Thank You List
How to Use This Guide This guide is designed to help you gather necessary information, make assessments, answer questions and make the best business decisions for you and your company. Each section has a “Notes” section added, where you can write items that were not covered or may be unique to your business. If a section has a star (), that means there are additional worksheets in the back of the guide that will make it easier to gather and organize the information needed.
If you want to create your disaster recovery plan on paper, you can use the worksheets throughout this guide and keep them as your emergency response and recovery plan. The guide is designed to be your workbook; it has checklists and places to record actions that need to be taken. You may want to get an accordion file with a handle (or some kind of folder that can be closed and easily carried) and gather and keep all of your information in one place. You will be referring to this information on a daily basis, and need it to be mobile in the event that your business facility is unusable after a disaster. Even if you can physically get into your office, you will want all of the following information in one easily accessible place.
You can also obtain electronic copies of these forms from the Colorado SBDC website at www.coloradosbdc.org/disaster. After using them to create your plan, make sure to save your document(s) in the cloud, not on a desktop computer in case it is lost or damaged in the event of a disaster.
Your local SBDC will help you maneuver through the assessments and action steps. They will support you by staying in touch with you through the process – either in person, via phone, through email or sometimes on-site visits. As hard as it will feel to complete this workbook, businesses that worked through these steps with the SBDC tell us that it was well worth it and that their overall recovery was more successful.
We are here to help you succeed.
» Take the time to answer the questions carefully and give yourself plenty of time and space to make your decisions.
» After a disaster, the most typical reaction is to get back to normal as quickly as you can. Studies and data show us that the “old” normal is gone and a “new” normal needs to be put into place.
Give yourself time to get acclimated.
» Business owners can feel pressure from the well-meaning people around them who feel that they have the perfect solution for recovery. However, keep in mind that this is your business and your life. You need to make the best possible decisions for yourself and for your family—and that takes time.
Emergency: An emergency is a situation that poses an immediate risk to health, life, property or environment. Emergencies include smaller scale individual situations, such as an employee or client having a heart attack.
Disaster: Any man-made or natural hazard having caused widespread destruction of property and human lives is considered a disaster.
For planning purposes, we can define emergencies and disasters and their impact into a number of
» Natural: drought, earthquakes, extreme heat, floods, hurricanes, landslides and debris flow, severe weather, thunderstorms and lightning, tornadoes, tsunamis, volcano eruptions, wildfires, winter storms, extreme cold » Human-caused: accidents, acts of violence by people, acts of terrorism, war » Technological: blackouts, hazardous material incidents nuclear events, acts of technological terrorism, hacking » Pandemic: widespread illness (such as the H1N1 flu virus)
In disaster situations, local governments (city, municipality, county), businesses and organizations are the first line of response. They use their own resources to protect people and property and to implement recovery measures. Many times, disasters occur which are beyond the capability of local government. In that situation, it will call upon the resources of neighboring jurisdictions to assist in the response and recovery effort.
If the scope and impact of the disaster goes beyond the county’s resources, it will call upon its state.
Often, the Department of Local Affairs (DOLA) will be involved to help. DOLA is considered the "face of state government" and is that initial and primary point of contact where local communities work in partnership with the state.
If the scope and impact of the disaster goes beyond the state’s resources, it may call upon federal assistance. This process is described below.
Ultimately, long-term recovery will come back to local resources. Once the federal agencies have done their job, you will be back with your local government and agencies to work with them on the long road to recovery.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) is a United States federal law designed to bring an orderly and systemic means of federal natural disaster assistance for state and local governments in carrying out their responsibilities to aid citizens. The act gives the Federal Emergency Management Agency (FEMA) the responsibility of coordinating government-wide relief efforts.
The Federal Response Plan implementation includes the contributions of 28 federal agencies and nongovernmental organizations, such as the American Red Cross. It is named after Senator Robert Stafford (years in Senate: 1971 – 1989), who helped pass the law.
The Stafford Act (§401) requires that: “All requests for a declaration by the President that a major disaster exists shall be made by the Governor of the affected State.” The governor’s request is made through the regional FEMA/Emergency Preparedness and Response (EPR) office. State and federal officials conduct a Preliminary Damage Assessment (PDA) to estimate the extent of the disaster and its impact on individuals and public facilities. Normally, the PDA is completed prior to the submission of the governor’s request. However, when an obviously severe or catastrophic event occurs, the governor’s request Sen. Robert T. Stafford may be submitted prior to the PDA. Nonetheless, the governor must still make the request.
Based on the governor’s request, the president may declare that a major disaster or emergency exists, thus activating an array of federal programs to assist in the response and recovery effort. Not all programs, however, are activated for every disaster. The determination of which programs are activated is based on the needs found during damage assessment and any subsequent information that may be
discovered. FEMA/EPR disaster assistance falls into three general categories:
1. Individual Assistance: Aid to individuals and households
2. Public Assistance: Aid to public (and certain private nonprofit) entities for certain emergency services and the repair or replacement of disaster-damaged public facilities
3. Hazard Mitigation Assistance: Funding for measures designed to reduce future losses to public and private property
FEMA and SBA
If a federal disaster has been declared, you – as a person and business – should register with both FEMA and the Small Business Administration (SBA). FEMA wants to know how many people have been impacted and what their insurance situation is. FEMA, however, does not deal with businesses. For any business-related support, you will need to register with the SBA, even if you don’t know if you want a loan. Your SBDC consultant can help you figure out whether applying for a physical damage or economic impact disaster loan makes sense for your business. Even if you don’t know whether you need any Disaster Assistance Center in Manitou Springs, help, you should register with FEMA and SBA. September 2013 (Source: Ingrid Wood) The programs are described in further detail in FEMA’s “Guide to the Disaster Declaration Process and Federal Disaster Assistance” at www.fema.gov.
Disaster Assistance Centers (DAC) and Shelters During and immediately after a disaster, your community will likely open a Disaster Assistance Center (DAC), where local agencies and resources will be in one place to provide help, information, goods and resources. In addition to local government agencies, the American Red Cross, Goodwill, Salvation Army, and similar agencies will be present. If FEMA and/or SBA are there, it is called a Disaster Recovery Center (DRC).
During disasters and evacuations, shelters will be provided to those who are displaced. They are often in schools and churches. You should make yourself aware of where your nearest shelter would be in case of a disaster.
This guide is organized using these three steps, and breaks down each step into practical, workable and valuable worksheets.
This step includes:
Assessing your business situation and identifying minimum requirements for your industry »
Taking mitigation steps to prevent hazards and reduce risks »
Writing a plan on how to deal with emergencies and disasters »
Testing your plans and improving them »
In the “Prepare” section, you will look at all aspects of your business, which are organized into three parts:
people, places and things. All steps will use these same parts. Make it into your mantra: “Our People, Our Places, Our Things.”
2. Respond Once you have assessed your risk and mitigated what you could do easily - the “low hanging fruit” – you should write your plan. In order to make sure your plan works, it works to practice and train, then improve and do it all over again, or “wash, rinse, repeat.” In the “Response” section of this guide, we will provide you with pointers and options on how to write your plan. Your plan can take many forms: it can be a stack of note cards, a poster located in the break room and by your exits, or it can be the worksheets in this guide. Consider your own business culture and what will work best for you and your employees. We encourage you to work with your employees and create this plan together with them.
The Response phase is where you actually get to put your plan into reality, or execute your plan. Keep in mind – your plan will never be 100 percent perfect. However, it is better to have some plan in place than none at all.
3. Recover Ultimately, long-term recovery will come back to local resources. Once the federal agencies have done their job, you will be back with your local government and agencies to work with them on the long road to recovery.