Disaster Due Diligence August 6, 2010
Is your business ready?
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Workplace violence
HEADLINE: 9 Dead In Manchester, Conn. Workplace Shooting
SUMMARY: After being confronted with evidence of alleged theft from his workplace, a Connecticut beer distributorship employee went on a shooting rampage, killing eight co-workers and then himself in what became the biggest mass murder in state history. Omar Thornton had just emerged from his meeting with Hartford Distributors management where, Police Chief Marc Montminy said, he had been given the option of resigning or being fired and "was being escorted from the building when the shots rang out."
STORY LINK: http://www.courant.com/community/manchester/hc-manchester-working-0804-20100803,0,6991544.story
ANALYSIS: This week’s incident in Connecticut and last month’s in New Mexico are evidence that the target of a workplace assault can be anyone: a supervisor, a union president, a corporate officer, a fellow employee, an estranged girlfriend or a random passer-by.
The motivation for each shooting varies, but there are common themes: employee ridicule and harassment; disciplinary actions taken by employers; domestic disputes in the home that spill over into the workplace; and economic and family stress.
Events like these can happen in every workplace, as all employers, at some point, have troubled or disgruntled employees or ex-employees, customers, or other stakeholders. Most workplace violence incidents don’t come out of the blue. There are typically warning signals along the way prior to someone committing an act of violence. OSHA identifies workplace violence as a known hazard, and it is the leading cause of death in the workplace for women, the second-leading cause for men. Organizations are required to maintain a safe workplace and have a plan, yet 70 percent do not.
According to the Department of Labor and NIOSH historical data, during the 6-18 weeks following an act of workplace violence, employers reported up to a 50 percent loss in productivity and a 20-40 percent turnover rate. Should litigation follow, and it usually does, the average out-of-court settlement for “negligence’’ is approximately $500,000, and the average jury award is around $3 million.
So what measures can employers take to mitigate the risk? First and foremost, build a culture of preparedness in your organization using Firestorm’s Predict. Plan. Perform. ™ process. Start by predicting your potential exposures; implement plans to mitigate them; and finally, train your staff to perform when the times comes.
Other Firestorm recommendations include:
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Begin with the hiring process. Thorough background checks must be conducted and documents and facts must be verified; train employees to identify at-risk co-workers and encourage them to report circumstances that cause concern; and establish an incident response team, as part of an overall business continuity plan.
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In the case of a specific threat to a staff member, including potential domestic violence spillover, communication is the key. If an employee has someone they are worried about, they should report that person to management, security and front-desk personnel. Their name, a photo and type of vehicle they drive should be provided. An updated background check may be in order.
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It is of critical importance, particularly in these stressful economic times, that employees feel supported in their work environment. When an individual is identified as being a potential risk, the individual should be given a risk assessment by a competent qualified professional.
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At times, physical security in the workplace may be necessary. For example, if you are planning a disciplinary response, or a reduction in workforce, you should anticipate issues may arise.
The return on investment for planning for workplace violence is high. It is the only way to protect your intellectual capital -- your people.
If you had to respond now, are you ready?
Health matters
HEADLINE: Mail Carriers Being Trained To Dispense Anti-terror Drugs
SUMMARY: The U.S. Postal Service is preparing to deliver lifesaving drugs to residents of six cities in case of a large-scale bioterrorism attack. So far, Minneapolis-St. Paul is the only metropolitan area to be named in the program, in which postal workers to deliver the drugs needed to counter anthrax or other potentially deadly agents. The White House says using the postal service is a cost-effective and efficient way to create a reliable system for drug distribution in a crisis because postal workers can get drugs to the elderly and others who can't get out easily or wait in long lines.
STORY LINK: http://www.usatoday.com/news/washington/2010-08-02-postal02_ST_N.htm
ANALYSIS: The complexity of rapid, mass distribution of antibiotics and other medicines -- both for bioterrorism and for naturally occurring outbreaks -- has posed a vexing challenge ever since officials began serious consideration of this need. In the 1950s, health departments conducted massive polio and smallpox drives, inoculating tens of thousands of people at a time, but creating lengthy queues and requiring significant dedication of resources. This “point of distribution” (POD) approach offers many advantages, but can also overlook those who, for some reason, cannot come to the distribution point. It can also create a source of transmitting the very communicable disease being countered.
The postal service has been seen as a possible solution to this challenge, a somewhat ironic development given that the 2001 anthrax attacks were conducted via the mail and two of the five fatalities were postal workers. The benefit to be gained is an existing distribution channel with exceptional reach, typically to the individual household. This solution offers several drawbacks as well. Travelers, transients, and the homeless would be outside this distribution channel. Many mailboxes lack effective security; roadside boxes have none at all. This may lead to pilferage and hoarding. Nor would there be an effective record of who received supplies and who did not.
The balance between rapid distribution and protecting the maximum number of people can never be perfect. Irrespective of what technique is employed by your jurisdiction – this remains a local decision – there will be inefficiencies and people missed. In the end, there is an individual aspect to preparedness. Have you considered how you would get medicine if necessary? As an employer, are you prepared for the disruption that may accompany a drug distribution effort? Or is it worthwhile to create your own process in coordination with local health authorities?
During a disaster, to include a serious disease outbreak, everyday factors can become significant points of failure. Recognizing these risks and planning to avoid these pitfalls can be the difference between tragedy and triumph. Are you as ready as you can be, or are you willing to rely entirely on “the system”? The choice is yours.
HEADLINE: Drug-resistant strain of E. coli emerges in U.S.
SUMMARY: A more virulent and drug-resistant strain of E. coli is infecting people in the United States and posing a significant public health threat, researchers reported. "If this strain gains one additional resistance gene, it will become almost untreatable and will be a true superbug, which is a very concerning scenario," Dr. James Johnson of the VA Medical Center in Minneapolis, who led the study.
STORY LINK: http://www.msnbc.msn.com/id/38495130/ns/health-infectious_diseases/
ANALYSIS: This is but another page in the story of nature’s ability to adapt and the need for awareness of an ever-present threat. Indiscriminant use, over use, and improper use of antibiotics contribute to increased resistance to treatment. Naturally occurring evolution offers the opportunity to adapt as well.
Like drug-resistant tuberculosis and Methicillin-resistant Staphylococcus aureus (MRSA), this ST131 strain of E. coli presents a latent threat of which to be aware. It is also a call for practices that are a recurring theme in these pages. Practice personal hygiene, including frequent hand washing. Maintain a regular schedule of cleaning and periodic disinfecting of common surfaces (e.g., telephones, door knobs, and elevator buttons). Wash and properly prepare food, avoiding cross contamination. If ill, take all medications for the full regimen and only as directed.
Mankind will never cease nature’s ability to adapt. We can, however, improve our chances of not being a victim to this process.
Supply chain
HEADLINE: Russia Bans Grain Exports Amid Crippling Drought
SUMMARY: Russia banned exports of grain after millions of acres of wheat withered in severe drought and record heat. The sudden move drove up wheat prices around the world, pushing them to their highest level in two years in the United States. Russia’s grain exports totaled 21.4 million tons last year, about 17 percent of the global grain trade.
STORY LINK: http://www.nytimes.com/2010/08/06/world/europe/06russia.html?_r=1&hp
ANALYSIS: Natural disasters impact businesses. For many, It is hard to imagine that a drought and excessive heat in Russia would have an impact them. Disasters impact global supply chains and ultimately impact availability and price. We are all dependent on others for our daily lives, whether we recognize it or not.
This story demonstrates that dependence on a global food supply is real. Food and water are critical commodities and are at risk. We take food and water for granted, but inevitable shortages will lead to civil unrest and human tragedies.
Think about your business. What are your critical commodities or services? Are there events that cause disruption in your supply chain? What is your plan?
This year we have seen disruptions from volcanoes, earthquakes, floods, fires, heat, terrorism and even oil. Not to expect or plan for a disruption is unacceptable management. Luck is not a strategic plan.
Economic crisis
HEADLINE: New ID theft targets kids' SS numbers
SUMMARY: Hundreds of online businesses are using computers to find dormant Social Security numbers — usually those assigned to children who don't use them — then selling those numbers under another name to help people establish phony credit and run up huge debts. Authorities say the scheme could pose a new threat to the nation's already struggling credit system. "If people are obtaining enough credit by fraud, we're back to another financial collapse," said Linda Marshall, an assistant U.S. attorney in Kansas City. "We tend to talk about it as the next wave."
STORY LINK: http://news.yahoo.com/s/ap/20100802/ap_on_bi_ge/us_credit_fraud_children
ANALYSIS: Bankers complain when they find themselves being “overly” regulated by the U.S. government. But then you read about another instance of identity theft, where the credit reporting system is found to have a hole in it and you realize why a “consumer watchdog’’ becomes a popular solution to these kinds of problems.
There is no end to the creativity of the human mind, to do both good and bad. We now have discovered that “dormant” social security numbers, often those of young children that have yet to join the workforce, can be linked to different names and certain financial transactions in order to create a false identity. When the person with the stolen SSN has a reason to use it, they discover the situation, along with all the problems that ensue.
In this article we learn there are solutions to this problem – expensive solutions. If this is an emerging problem that has yet to become rampant, there is hope for an industry solution. But if it has gotten out of control, and this article seems to indicate that it might, there could be a very ugly reaction on the part of victims. Already feeling helpless with the current economic impact on their credit ratings, adding this kind of event to a family’s situation is devastating. Individuals could pay hundreds of dollars for credit monitoring services for years before they even enter the workforce or try to secure credit, which will not be viewed by most people as a prudent use of their money.
For businesses, the lesson is clear: Know Your Customer. If you have significant business on the Internet, employ services to mitigate the potential risks of dealing with a fraudster. Go to your financial institution and inquire about services and people they may have to help you. All financial institutions have a fraud/risk/compliance function where people will be dedicated to these problems. Find out what they are doing and be sure you understand your risks and liabilities. Depending on the transaction types, there are often limits to an individual’s liability, but that is often not the case for a business.
Preparedness groups
Join Firestorm’s LinkedIn groups and help build a Culture of Preparedness for your family and organization:
DISASTER READY PEOPLE: http://www.linkedin.com/groups?gid=1914314&trk=myg_ugrp_ovr
WORKPLACE VIOLENCE: http://www.linkedin.com/groups?gid=1898572&trk=myg_ugrp_ovr
COMMUNICABLE ILLNESS: http://www.linkedin.com/groups?gid=1899278&trk=myg_ugrp_ovr
SWINE FLU: http://www.linkedin.com/groups?gid=1921222&trk=myg_ugrp_ovr
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