EMERGENCY OPERATIONS- A NECESSARY EVIL

( Does your financial organization have a “Disaster Recovery Plan?)

By Charles C. Robey

A disaster is any event which leaves the financial instruction, in a non-productive state and most disasters will likely occur with very little warning. With this in mind, the financial industry, more than any other business entity, has the most critical need for a rapid continuation of essential services.

The financial industry refers to this critical time as  T-Time or , or two days is the maximum  time a financial institution may effectively survive without non-productive  data processing. After the T-Time expires. the effects of loss of business and public confidence can greatly reduced the financial instructions trust.

There are two  main disaster types, in which all  disasters are grouped.

NATUREL- Floods, Tornadoes, Earthquakes, Winter Storms and Hurricanes and

MAN MADE- Fires, Riots, Strikes, Sabotage, War, and Bomb Threats. 

One cannot assume, in today’s uncertain  atmosphere, that operation contingency plans are not necessary, regardless of the probability. Nor, can one predict that the most common disastrous event would occur during a time when the facility(s) are empty or   a minimum staff is at hand. Also, don’t be so naive to assume  the probability of a disaster event, disrupting more than one banking locations simultaneously, is not possible. So, your financial instruction must prepare for the worse and hope for the best.

In the interest of time and space, it is not expedient  to draft a comprehensive Disaster Plan, at this time. So we will give a synopsis or outline of a model plan.

Your Disaster Recovery Plan should start with a statement of Purpose. Followed by an Objective and Mission Statement. Included in the above policies, should be a statement, listing the Disaster Declaration Authority. This Disaster Declaration Authority list should also include emergency telephone numbers, for all participants.

Example

One Executive Officer and one Senior Officer or three of any combination of Senior Officers are authorized to declare a disaster for __________.   

The Disaster Recovery plan  should include an, easy to read,  “Event Notification Flow Chart”. giving certain responsibilities in a number of scenarios such assessing injury, assessing site damage, assessing  equipment damage, and assessing relocation plans. This flow chart should be ready available to all site managers and should include emergency telephone numbers, for all site management personnel.

The Event Notification Flow Chart should also include a listing of Notification Guidelines. to include; Do not give messages regarding a disaster to anyone except identifiable team members and only the Public Relations Officers officer should talk to the press.

A  Command Center, listing, a primary and alternate physical location, should be established in advance, with the primary location being the organization’s main operation center.  The facility  should also consider the location, and transportation availability.

A  Vendor Emergency Telephone List, is very important in the disaster reconstruction and  should list the  available data processing  hardware, communications, security and facility contractors vendors.

In order to assure the Disaster Recovery Plan is up-to-date, a consistent plan review should be conducted monthly. This is due in part to normal changes that occur, within the organization structure, such as, senior management changes,  and facility changes

 It is recommended that monthly Disaster Recovery Plan Refresher  Sessions be held, with all manage personnel, along with  periodic “dry run” drills, to ensure the plans effectiveness.

Remember, most disasters will occur with little or no warning and may not necessarily start with a large impressive event. And your  primary disaster concern is the safety and well being of your personnel and customers. Then secondary to the employee and customer safety, is maintaining  the records and the minimum disruption of services.

Good Luck!