Avagene Moore: Welcome to the EIIP Virtual Forum! Amy Sebring, my partner/associate, and I are pleased to see you in our audience today. Avagene Moore: Today - October 13, 2004 - is International Disaster Reduction Day. It is very appropriate that we are here on this special day to share nformation and learn from each other in a mutual desire to make the world safer for all mankind. Avagene Moore: Today's topic is also very fitting - "Strategies for Private Sector Preparedness - Incentives and Educational Initiatives." Avagene Moore: If you have not read the background materials, including our speaker's bio, please do so after today's session. Avagene Moore: For the benefit of any first-timers, we will begin today's session with a formal presentation followed by an opportunity for your questions. Avagene Moore: We will provide further instructions on the protocol for asking questions or commenting just before we begin the Q&A section. However, it is wise to jot down your questions or comments as we go along. Avagene Moore: Please do not send private messages to our speaker or the moderator, as we will be busy with the presentation. If you need assistance, you may send a private message to Amy Sebring. Avagene Moore: The transcript of today's session will be available late this afternoon or early this evening -- just check back on our home page. Avagene Moore: Now, it is my pleasure to introduce today's guest speaker. ... Avagene Moore: William G. Raisch serves as the Chair of the Working Group on Private Sector Preparedness. Mr. Raisch is a new member of the NFPA 1600 Technical Committee, member of the Private Sector Committee of EMAP, and member of the Homeland Security Standards Panel of the American National Standards Institute (ANSI). Avagene Moore: Mr. Raisch is also the founding Executive Director of the International Center for Enterprise Preparedness (InterCEP). He will begin his remarks today with details about this recently created entity and how it relates to strategies for private sector preparedness. Avagene Moore: Bill, we welcome you to the EIIP Virtual Forum to discuss this important topic with our audience. ... Avagene Moore: Bill is not in his office today but is with us in a hotel business center. Because of some difficulty there, Amy will input his formal remarks. Bill will address your questions at the appropriate time. Avagene Moore: Amy, I now turn the floor to you. Amy Sebring: Hello, all. Thank you, Avagene, for inviting me. It is a pleasure to join you today from the International Center for Enterprise Preparedness (InterCEP) at New York University. Amy Sebring: I am most happy to announce that we have recently established InterCEP as the world s first major academic center dedicated to private sector emergency preparedness. The Center will serve in a support role in forwarding much of the strategies that we will be discussing today. Amy Sebring: Funded as a special initiative of the U.S. Department of Homeland Security, it is the mission of InterCEP to serve as a truly global resource for education and research in this critical arena. If our Center can be of any assistance to our colleagues in the emergency management community, I am available at 212-998-2287. Amy Sebring: I have been asked today to discuss Strategies for Private Sector Preparedness and in particular the voluntary National Preparedness Standard otherwise known as NFPA 1600 the American National Standard on Disaster/Emergency Management and Business Continuity. To do so effectively, it is worthwhile putting you in context. Amy Sebring: As many are aware, businesses and other private sector organizations own 85% of America s infrastructure and employ the vast majority of our country s employees. Yet the private sector is, on the whole, poorly prepared for emergencies of any type. Amy Sebring: The need for preparedness has been validated well beyond the terrorist threat by recent events including the 2003 blackout of the Northeast, tornadoes throughout the Midwest, wildfires in the ... Amy Sebring: Southwest and hurricanes in the Southeast. All of these underscore the importance of an all-hazards emergency management strategy for the private as well as the public sector. Amy Sebring: Furthermore, there is a significant efficiency in organizing the private sector s resources of people and property in advance of any emergency - organized workplace units that can be more efficiently coordinated in an emergency situation than the general public. Amy Sebring: There are several key elements of the challenge of private sector preparedness. These have been identified as a result of research undertaken by The Working Group on Private Sector Preparedness. Amy Sebring: They are a group of stakeholders (primarily private sector corporations) that came together in support of the Federal 9-11 Commission. Amy Sebring: The following findings are the product of a series of roundtable discussions and numerous individual interviews of corporate officers, a coordinated series of meetings. Amy Sebring: Many of the meetings were held in conjunction with the American National Standards Institute (ANSI) and involved over 100 organizational representatives and were vetted with over 2,000 organizational members of ANSI. Amy Sebring: The primary challenges identified were: Amy Sebring: 1. No Compelling Rationale to Prepare / a Lack of Incentives: Unless motivated by a clear bottom-line financial benefit or required by regulatory authorities (for example, the banking and finance industries), most organizations see little rationale to undertake preparedness initiatives. Amy Sebring: American enterprise is efficient and pragmatic. Absent a compelling rationale including incentives (positive or negative) little effort and resources will likely be expended for business preparedness. Amy Sebring: 2. Little Understanding of What Effective Preparedness Is / Frequent Confusion Given Multiple Recommendations: Companies and other private sector organizations are often uncertain as to what emergency preparedness measures should be undertaken. Amy Sebring: Most have little understanding of the basic elements of emergency management. Others companies are confused by the many different strategies of various consultants and other sources regarding emergency preparedness measures. Amy Sebring: 3. Little Coordination within the Private Sector & Between the Public & Private Sectors: Even when preparedness measures are undertaken by business, initiatives are often isolated and confined within either a particular organization or industry. Amy Sebring: Firms very rarely communicate cooperatively across communities or across industries often due to the additional effort necessary as well as concerns about confidentiality. In addition, the private sector is also poorly integrated with the public sector. Amy Sebring: Each side often views the other with suspicion or as inaccessible (with the exception of some rare public-private partnerships and recent efforts by the Department of Homeland Security). Each of these challenges suggests a specific but coordinated response. Allow me to address them in turn. Amy Sebring: Firstly, the issue of No Compelling Rationale to Prepare / A Lack of Incentives Amy Sebring: 1. Incentives: The goal will be to identify existing and where necessary facilitate the development of new incentives for private sector preparedness. Amy Sebring: These incentives will be based upon input from the private sector reflected in ongoing forums, in the recommendations of The Working Group on Private Sector Preparedness to the Federal 9-11 Commission and the initiatives of the Department of Homeland Security. Amy Sebring: Appropriately motivated, American private enterprise has historically demonstrated a most efficient and innovative response to most needs. Amy Sebring: The effective development of a business case for preparedness is critical to both enhancing the private sector s understanding of preparedness strategies and any application of these strategies. Amy Sebring: Absent a well-grounded rationale and incentives for preparedness, the private sector will, on the whole, take little if any action in this regard. Initially, the focus will be on identifying and distilling the existing rational for business preparedness and communicating it widely. Amy Sebring: Simultaneously, we must move to develop or enhance new incentives. The following are selected (and prospective) incentives from the recommendations of the Working Group to the Federal 9-11 Commission & Amy Sebring: that were later reflected in the Commission s recommendations to the President and Congress. These incentive areas will be the focus of the Center s initial efforts on incentive development: Amy Sebring: a. Relatively Lower Insurance Premiums & Deductibles and Facilitated Underwriting for Organizations that Voluntarily Follow the National Preparedness Standard. Amy Sebring: b. Reducing the Potential for Legal Liability through Voluntary Conformity with the National Preparedness Standard as the New Standard of Care for Corporate Preparedness. Amy Sebring: c. Promote Inclusion of the Voluntary National Preparedness Standard in Rating Agency Analysis. Amy Sebring: Other potential incentives may be identified and advanced in the process. Amy Sebring: The second key problem to be addressed is that of Little Understanding of What Effective Preparedness Is / Frequent Confusion Given Multiple Recommendations. One strategy follows: Amy Sebring: 2. Promotion & Communication of the Newly Designated Voluntary National Preparedness Standard: In cooperation with media and educational broadcasting efforts, ... Amy Sebring: the goal will be to communicate to private sector organizations the key elements of emergency management and in particular the newly designated voluntary National Preparedness Standard. Amy Sebring: The voluntary National Preparedness Standard effectively answers the question as to what is appropriate preparedness. The standard is consensus - based reflecting input from both the public and private sectors. Amy Sebring: It is endorsed by both the Department of Homeland Security and the Federal 9-11 Commission. The Center will promote education on private sector preparedness in general and the voluntary National Preparedness Standard in particular. Amy Sebring: Key elements of this strategy will be to develop an integrated communications strategy encompassing various media and forum addressing the following: Amy Sebring: * The need for private sector preparedness including the business case /incentives for private sector preparedness Amy Sebring: * An understanding of the newly designated National Preparedness Standard including its key functional elements, its status as a consensus-based American National Standard, its applicability to any organization large or small and its common use by both the public and private sectors Amy Sebring: * Involvement of opinion leaders including corporations, professional associations, educational institutions and other organizations that can share both real life experience with emergencies and a demonstrated commitment to preparedness Amy Sebring: * Development of a National Recognition Campaign to recognize private sector organizations on a national basis and/or within each critical infrastructure industry that exemplify emergency preparedness ... Amy Sebring: - a National Emergency Preparedness Award will be awarded annually to a private sector organization(s) (e.g., corporation) in cooperation with the Department of Homeland Security, other state homeland security offices and key trade associations. Amy Sebring: The goal of the award will be to parallel the U.S. Department of Commerce s Malcolm Baldrige Quality Award but with a focus on private sector emergency preparedness. Amy Sebring: In addition, a nationwide workshop series on private sector preparedness will visit 20 cities across the U.S. starting next month. Amy Sebring: The final problem identified was that of Little Coordination within the Private Sector & Between the Public & Private Sectors. The strategy which will be pursued by the Center in cooperation with the Working Group and other stakeholders is as follows: Amy Sebring: 3. Integration: The goal will be to promote greater integration of emergency management efforts both among private sector organizations and between private sector and public sector organizations including both governmental and non-governmental organizations. Amy Sebring: Coordination of preparedness efforts between private sector corporations as well as between the public and private sectors can dramatically increase the effectiveness of readiness, response and recovery efforts in both the public and private sector realms. Amy Sebring: Historically, individual corporations as well as various professional and trade organizations have undertaken individual preparedness efforts with varying levels of success. Amy Sebring: Most of these efforts have been focused on specific industries or professions. There has been little cross-pollination of ideas, insights, best practices, etc. Amy Sebring: A key element of this effort will be in facilitating communication regarding emergency preparedness between individual companies, different industries and the public and private sectors. Specific objectives in this regard include: Amy Sebring: * A regular series of public-private roundtables to address key issues of public-private cooperation identified through communication with representatives of the Department of Homeland Security and other government agencies as well as private sector communications. Amy Sebring: * Promoting cross-industry and public-private cooperation in Center communications efforts including conference participation, media interviews and publications. Amy Sebring: * Inviting to both public and private sector participants to the National Workshop Series on Private Sector Preparedness discussed earlier. Amy Sebring: In facilitating communication among various corporations, industries and sectors, the Center will promote the use of the voluntary National Preparedness Standard as a crosswalk between various public and private preparedness efforts. Amy Sebring: The high-level functional checklist nature of the Standard can allow the analysis of differing private sector initiatives between one industry and another irrespective of different terminology and program organization used in each industry. Amy Sebring: This can be most effective in identifying gaps in preparedness and in coordinating efforts among different industries. Similarly, the use of a common standard can be used in facilitating public private sector initiatives. Amy Sebring: As many in our audience are aware it is important to note in this regard that the National Preparedness Standard (ANSI-NFPA 1600) is also the core of the program that certifies public sector emergency preparedness (EMAP the Emergency Management Accreditation Program) supported by FEMA. Amy Sebring: At this time, I would like to turn over the program to our moderator, Avagene, for any questions or comments. Thank you for your attention. Avagene Moore: Thank you very much, Bill, for your remarks. (Thanks to Amy as well.) I am sure our audience has questions for you. ... Avagene Moore: Our protocol for audience questions is to enter a question mark ? to indicate you wish to ask a question or make a comment. ... ricktobin: ? Eelco Dykstra: ? Avagene Moore: Then go ahead and compose your question or comment to have it ready, but do NOT hit your Enter key or click on the Send button until you are recognized by name. Please WAIT your turn. ... VJ Quigley: ? Avagene Moore: But ... Bill Raisch: I welcome any questions. Avagene Moore: be ready when you are called upon. We will not have time to wait. We want to get to as many questions as we can.... tonyalexiou: ? John Laye: ? Avagene Moore: We will take questions in the order the question marks are sent to the screen. One question at a time please. If you have a follow up question, please get back in line with another ? - courtesy is the order of the day. ... Avagene Moore: Rick Tobin, your question, please. ricktobin: I think we should be careful with the use of industry and then private sector. Over 75"% of the jobs in this country are in small business. they won't find the incentives of much value as mentioned...and insurance companies are not going to assist them. have you considered that? Bill Raisch: Good point as we tried very hard to look at the overwhelming small business element... Bill Raisch: The issue of incentives for the smaller business is a difficult one.. John Bennett: ? Lou Leffler: ? Bill Raisch: While the larger firms may see a motivation in lower insurnance premiums this will of course be somewhat diffused onthe small business side... Bill Raisch: Nonetheless, I do think that in cooperation with the insurance industry we can see some benefits... Bill Raisch: Furthermore, the nature of the standard is such that it is very scalable so the effort required by a small business can be minimized. Avagene Moore: Eelco, your turn, sir. Eelco Dykstra: Thanks for the concise presentation. Could you please explain to me how your Center is "International"? Bill Raisch: The goal is to develop a truly international network of both other academic institutions but also and perhaps as importantly corporations which are international in their operations... Dorothy Miller: ? Bill Raisch: We have many multi-nationals based in the US and once their headquarters adopts a particular strategy it tends to be pushed globally. Avagene Moore: Valerie, please. VJ Quigley: How do you see this effort for VOLUNTARY compliance with NFPA 1600 standards in the private sector working with the ACCREDITATION process for the public sector being done through EMAP? Isabel McCurdy: ? Bill Raisch: Key to this will be a variety of options... Bill Raisch: Firstly, self-assessment especially by the small to medium sized firms must be facilitated... Bill Raisch: Secondly, there is discussion in some sectors about a value to independent third party assessment... Bill Raisch: Likely third party assessment is something that larger organizations would be more interested in if it enhances their strategies. Avagene Moore: Tony, your question, please. tonyalexiou: Thank you. With reagrds to the national workshop for private sector preparedness, you mentioned that 20 cities will be visited starting next month by this group, does there exist a list somewhere that details which 20 cities it will be? Bill Raisch: We will be posting it soon and with Avagene's cooperation one of the places will be the EM forum Jonathan Dunfee: ? Avagene Moore: We will do that, Bill. John Laye, please. John Laye: thank you for a well-organized presentation. questions: 1. schedule for workshop tour? 2. require local emergency mgrs liaison w/ their community's essential businesses? 3. criteria for Baldridge II? Bill Raisch: Just to address the cities questions a little more deeply the cities will span all the major sections of the country... Bill Raisch: with respect to requiring local em. mgrs. to attend - I certainly know that they will be invited and we will make a particular effort in the workshops to promote public - private discussion... Bill Raisch: the criteia for the award is in the process of development, we welcome participation in the process and I would be happy to discuss this with you or others offline. Avagene Moore: John Bennett, your turn, sir. John Bennett: Contract wildland fire fighting has become a business in the west. Composed of crossover careers structure f/f, ems, hazmat, etc. we need an avenue to integrate into the system nationwide as responders using authorized, agency or local govt avenues Bill Raisch: good point... Bill Raisch: One of the goals with 1600 is to interface it with the professional competencies (e.g., DRII, IAEM, BCI and ASIS and others) so that we can have a single starting point both for organizational and professional advancement. Avagene Moore: Lou Leffler, please. Lou Leffler: Thank you for this meeting. Are you aware of the work being conducted by the Information Sharing Analysis Centers Council, with 14 represented ISACs, together with the DHS? Bill Raisch: Yes, it is planned that we will be working closely with the ISAC's especially with respect to cross-pollination efforts. Avagene Moore: Dorothy Miller, please. Dorothy Miller: Thank you for your presentation. I have a comment. We have a certificate program in emergency mgmt at the University of Texas at Dallas and one of our tracks is business continuity...we talk about the NFPA 1600 and private/public sector interface. I would extend that we would be an network option for you to consider. Avagene Moore: (If you have a question or comment, please input your ? at any point in the discussion.) Bill Raisch: Happily. The goal in all of this is cooperation - mutual aid if you will. We can get a lot more done cooperatively than individually. Avagene Moore: Isabel, please. Isabel McCurdy: Bill, how long did the working committee take to plan this concept? And what role did you play on this committee? Amy Sebring: ? John Laye: ? Bill Raisch: The Working Group began its efforts in Sept. 2003 and then worked cooperatively with ANSI's Homeland Security Standards Panel beginning in January 2004... Bill Raisch: I serve as chair of the Working Group. Bruce Thompson: ? Avagene Moore: Jonathan, you are up next, please. Jonathan Dunfee: Is there any discussion of requiring some level of preparedness assessment to include participation in local disaster exercises? (As opposed to a consultant reading docs and saying "OK"). Bill Raisch: As you may be aware, 1600 requires exercises on a regular basis... Bill Raisch: the challenge that we are all aware of is allowing for organizational flexibility while promoting competency... Bill Raisch: Exercises especially in conjunction with the public sector are critical... Bill Raisch: The key is the mixure of modes (e.g., table top, functional, full scale, etc.) and the organizational disruption argument that must always be addressed. Avagene Moore: Amy, please. Amy Sebring: Regarding international efforts Bill, will you be working with ANSI/ISO for international standards, possibly in connection with the upcoming international program? Dorothy Kellogg: We are currently evaluating 1600 against the Responsible Care Management System and Security Code for consistency (my cursory review is that the elements of 1600 are covered in the management system and security code). Does NFPA provide a mechanism for mutual recognition of other programs as substantively equivalent? Bill Raisch: Yes in fact we are meeting at the ANSI event in this regard this afternoon. Avagene Moore: ? Avagene Moore: Bill, would you please take Dorothy's question above? Bill Raisch: 1600 was developed as a performance as opposed to prescriptive standard... Bill Raisch: therefore the answer is and should be yes... Amy Sebring: ? Bill Raisch: In reality, it should not matter what you call it or how you do it as long as the end is reached. Avagene Moore: John Laye, please ask your question. John Laye: I second Dorothy Millers's offer -- Sonoma State U (CA) has a business continuity course -- we'll also help Avagene Moore: Thanks for the comment, John. Any comment, Bill? Julie Siler: ? Bill Raisch: I would be happy to begin the consortium effort now. I look forward to talking to each of you later. Avagene Moore: Bruce Thompson, please. Bruce Thompson: This is all excellent information. Is there a way to become a member or participate in some capacity with the Working Group? Bill Raisch: just email me at william.raisch@nyu.edu or visit workinggroup.us Avagene Moore: Bill, what is the relationship between InterCEP and the DHS Private Sector Office? Avagene Moore: (If you have a question or comment, please input your ? at any point in the discussion.) We have time for a couple more questions. Bill Raisch: We work closely with this office. Met with them yesterday as a matter of fact. ... Bill Raisch: At their request, we have begun holding forums between DHS and other governmental groups and private sector organizations. Avagene Moore: Amy, your question, please. Amy Sebring: Do you find that the activism among the 9-11 families is getting attention in the business world? Is not being a "Good Corporate Citizen" an incentive as well? (I guess that ties into the award.) Bill Raisch: Yes, being a good corporate citizen is and should remain important... Bill Raisch: however, I am a firm believer in a chorus of voices can be more effective than one. ... Avagene Moore: Julie Siler, please. If anyone else has a question or comment, please input your ? now. Julie Siler: I'll third Dorothy and John's offer. EDS [private sector] also has our own business continuity course. We'd be happy to chat with you. My email: julie.siler@eds.com. Bill Raisch: so I want to make sure that we mount an effective bottom-line rationale as well. Avagene Moore: Sorry, Bill. Avagene Moore: Any other questions of Bill? Bill Raisch: Julie let's follow up Avagene Moore: Bill, do you have a closing comment? Amy Sebring: ? Avagene Moore: Yes, Amy. Amy Sebring: I was just going to ask Bill if .. Amy Sebring: they are participating in the National Homeland Security Consortium as well .. Amy Sebring: I think that is the name of it. Bill Raisch: not currently... Bill Raisch: In closing, I just would like to reinforce the fact that I see great opportunity in cooperative effort... Bill Raisch: There have been many good and valuable contributions to private sector preparedness and there is much we can learn from each other... Bill Raisch: but the key will be communication and joint win/win relationships which I am confident we can build. The stakes are worth it. Avagene Moore: Thank you, Bill. We greatly appreciate your efforts and time on our behalf today. We wish you great success with the InterCEP and all efforts to enhance private sector preparedness. Avagene Moore: Bill gave us his phone number earlier. His email address is wgr1@nyu.edu . Please contact him for further information. Bill Raisch: Thank you. Avagene Moore: Please stand by ... Avagene Moore: If you are not currently on our mailing list, and would like to get program announcements and notices of transcript availability, please see the Subscribe link on our home page. Avagene Moore: We welcome two new Partners this week -- EAD & Associates, LLC, Emergency Management & Special Needs Consultants, with Elizabeth A. Davis, Director, as the EIIP Point of Contact; Avagene Moore: also, BLU-MED Response Systems - Donald A Diesel, PhD, Vice President of Operations, is our POC. Avagene Moore: If your organization is interested in becoming an EIIP Partner, please see the "Partnership for You" link on our home page. Avagene Moore: Again, the transcript of today's session will be posted later today and you will be able to access it from our home page. An announcement will be sent to our Mail Lists when the transcript is available. Avagene Moore: Thanks to everyone for participating today. We appreciate you, the audience! Avagene Moore: Before you go, please help me show our appreciation to Bill Raisch for a fine job. Avagene Moore: The EIIP Virtual Forum is adjourned!