Crisis Critical Decision Support
Firestorm advises clients on developing specific measures needed to protect business, revenue, clients and employees, before, during and after a time of crisis, transforming crisis into value.
Firestorm business critical solutions enable clients to out-manage their competition in the face of significant obstacles. Firestorm’s expertise and certification turn your organization’s business continuity planning into a key strategic asset.
Firestorm develops, tests and certifies crisis plans to manage disaster and crisis environments prior to and during their occurrence.
Firestorm’s Disaster Due Diligence process positions clients to improve their performance amid even the most adverse conditions.
Disaster = no cash flow
9/11, Hurricanes Sandy and Katrina, the shootings at Virginia Tech – These are not the worst disasters that an organization will ever see. The worst disaster is the one that threatens the viability of their organization directly.
The 9/11 Commission stated that “Preparedness is not a luxury. It is a cost of doing business.”
Disaster Due Diligence™ is the analysis of a corporation’s ability to perform when faced with a crisis or disaster. All corporations face internal and external vulnerabilities. Disaster Due Diligence™ is the first step of a comprehensive Enterprise Risk Management Program. Disaster Due Diligence™ must be performed annually.
The value of a company is a direct function of its ability to sustain revenue generation and profitability. This conclusion may seem obvious. However, most corporations lack compliance programs to assure shareholders, employees, and clients that the corporation can continue to perform in the face of known identifiable vulnerabilities.
Everything is foreseeable. Anyone can be found accountable.
If directors and officers neglect to prevent or mitigate foreseeable disasters or prepare for those that are not preventable, the business-judgment rule will not shield them. They are exposed to liability if they fail to act in good faith and exercise due care.
A plan alone does not guarantee that an organization has everything in place. Crisis and consequence management are part and parcel of responsible corporate governance. It is a liability issue, and one that may not seem foreseeable, much less fair. The Port Authority of New York and the landlord of the World Trade Center were found to be twice as liable as the terrorists responsible for the bombing in 1993. The court held that the Port Authority should have foreseen the possibility.
Continuity planning is a strategic governance issue.
Proper crisis and disaster planning requires that an organization Predict the vulnerability, Plan the response, and Perform when the event occurs. The Predict phase will classify the critical vulnerabilities, identify key emergency personnel, ascertain critical decisions, analyze gaps, identify infrastructure and supply chain needs, and define communications requirements. The Plan phase will develop the strategy, construct the plan, and involve the appropriate personnel to assure their buy-in and commitment. The Perform phase will establish protocols for implementation, community involvement, communications, test exercises, audits, reviews, updates, and compliance. A well designed and executed plan can transform a crisis. Often, plans are not updated to reflect ongoing changes within organizations, thus creating unforeseen vulnerabilities.
Disaster Due Diligence™ and sound governance demand that organizations develop, maintain, and test comprehensive business continuity plans since:
- Organizations are susceptible to a variety of disasters and crises, both natural and man-made;
- Disasters and crises are predictable;
- Organizations with business continuity plans are better prepared to survive a disaster if one occurs.
- Disaster Due Diligence™ is necessary. If Disaster Due Diligence™ is not performed:
- Investments can be impaired;
- Strategic investors can be brought into the issues more directly than they want;
- Compliance requirements may not be addressed;
- Investments would be based on luck, not strategic plans.