Resilience In Action: Lessons Learned From Hurricane Sandy, Paige Poore, IBM Client Community Meeting, 23.5.13

© 2013 IBM Corporation
Resilience in Action
- Lessons Learned from Hurricane Sandy
Paige Poore
Director, IBM Business Continuity Management

© 2013 IBM Corporation2
Resilience in action = constantly evolving

Lessons Learned from
Superstorm Sandy
= Knowledge
Identify Areas of Focus
= Enhance
Elevate the Discussion
C - suite Engagement
= Effectiveness
Learn
Elevate Identify
Resilience in action =
constantly evolving

LEARN
Learn from experience
– Lessons Learned

LESSONS
LEARNED
Hurricane Sandy
IBM
Observations
Additional Lessons Learned –
non IBM examples

Superstorm Sandy
= Knowledge
Learn
Identify
Based on the lessons
learned and your
unique business
situation - Identify
where you want to
focus,

In addition to the lessons learned from Hurricane Sandy,
Consider new risks on your horizon.
Where do you want/need to enhance?
An evolving story…..
Lessons Learned - New Strategic Risks
Expansion into Growth Markets
Consolidation
Acquisitions, Mergers
Additional Considerations –
Changing Employee Demographics
Work from Home Strategies / Testing
Planning: Business Impact vs. Events
Which ones are applicable to your unique situation?

Superstorm Sandy
= Knowledge
= Enhance
Learn
Elevate Identify
Elevate the
discussion. Drive C-
Suite engagement to
be effective

Elevate the discussion to drive C-Suite Engagement
Use language the business understands
Take an Enterprise View
Lower the barriers of adoption

Superstorm Sandy
= Knowledge
= Enhance
Elevate the Discussion
C - suite Engagement
= Effectiveness
Learn
Elevate Identify
Resilience in action =
constantly evolving

We are all facing the same challenges
THANK YOU
for the opportunity to share insights and learn from each other!!
Hurricane Sandy & Lessons Learned – Parting Thoughts

Reference Detail – Lessons Learned from Hurricane Sandy

LESSONS
LEARNED
Hurricane Sandy

Superstorm Sandy Facts
• Damage estimates over $70 billion in the US
•Property damage, loss of business, an increase in living expenses, loan delinquencies and more.
•Insurance claims estimated to be between $10 and $20 billion (lots of exclusions for flood
damage)
•Over 72,000 New Jersey homes or businesses damaged or destroyed.
• Over 125 deaths in the US
• 2 days of downtime for the NYSE:1st time in 30 years due to a weather-related event
• Immediate economic impact of Sandy:
•Output of US factories, mines & utilities fell 0.4% in Oct/12
•Overall retail sales fell 0.3% in Oct/12
•Nov/12 report jobless claims surged 78,000 to 439,000
• (FCC) At one point, 25% of cell towers in Superstorm Sandy’s path were affected.
• Wireless carriers AT&T, T-Mobile, Verizon and Sprint were all impacted.
• Over 18,000 flights cancelled
• Over 8.5 millions homes and business without power (some over 2 weeks)

With Hurricane Sandy growing and the unpredictable path… the
threat for power outages was a large area of the United States and
Canada.

Oct 22 – “Tropical Storm” Sandy, 40 mph winds
Oct 24/25 – Becomes Category 1 Hurricane, 110 mph winds
Oct 28th - Warning of potential ‘super-storm’
Sandy’s Status Date
• W Oct 22 Oct 22: Tropical Depression 19 officially became
“Tropical Storm Sandy”, 40 mph winds
Oct 24 – 25: Becomes a Category 1 Hurricane,
crosses Caribbean,& Jamacia, 80 mph winds. 20” +
rain in Hispaniola, Over 50 people die in Haiti.
Oct 26 : Hurricane strikes Cuba, 110 mph winds, slight
turn, crosses Bahamas
Oct 27 : Turns NE, weakens but re-intensifies
Oct 28: Warning that Sandy could turn into a
“powerful super-storm”
• Sandy continued moving NE along coast, Max. winds
of 80 mph.
• Additional contributors: High-pressure cold front
north of Sandy started forcing Sandy Northwest
towards US coast.With full moon, storm surge
expected to be 12 feet.
• Sandy expanded to 1,000 miles
Oct 23
Oct 24
Oct 25
Oct 26
Oct 27
Oct 28
Oct 29
Oct 30
Oct 31
Nov 1
Nov 2
Nov 3
Nov 4
Nov 5
Nov 6
Nov 7
Nov 8
Nov 9
Moving off into Atlantic? No

Oct 29 - Sandy hits New Jersey
Oct 30 - moves inland, impacting NY and NE region
Sandy’s Status Date
Oct 22
Oct 29: Sandy makes a sharp turn NE towards
New Jersey.
• Numerous weather systems collide
• Up to 36 inches of snow in parts of Virginia, West
Virginia and North Carolina.
• Around 8:00 pm, Sandy hits New Jersey.
• Storm downgraded to a “post-tropical nor’easter”.
• Full Moon caused storm surges of 14 feet.
• Regional power and Telco (voice & data) outages.
Oct 30: Sandy moving inland, weakening
• Storm was still impacting New York and Northeast
region because of the “back-side” of the storm.
• Over 8.5 millions homes and business without
power (some over 2 weeks)
Oct 23
Oct 24
Oct 25
Oct 26
Oct 27
Oct 28
Oct 29
Oct 30
Oct 31
Nov 1
Nov 2
Nov 3
Nov 4
Nov 5
Nov 6
Nov 7
Nov 9

LESSONS
LEARNED
IBM
Observations

LESSONS
LEARNED
Additional Lessons Learned –
non IBM examples

PEOPLE – does your business continuity plan adequately address your people?
Questions to ask ….
• Are your employees and their families safe?
• Will people be available? Where do employees go to work?
• Who are decision makers during a crisis and where are they?
Actions to Consider…
Primary focus of BCP should be your employees
Have alternate locations for employees to work
Consider having alternate teams available
Clear definition of roles prior, during and after disaster

COMMUNICATIONS – how does your business continuity plan address disruption to
voice and/or data communications?
• How / When / Who / What… to communicate to your employees, customers, suppliers, media and public
at large?
• How do employees communicate with your company?
• What methods of communications do you use (landline, cell, internet, social media, etc.)?
• Telecommunications redundancy?
Actions to consider…
Create an communications plan for internal & external, especially who should and should not speak
for the company.
Create centralized number, email address, web site or social media guidelines for use during crisis
events
Consider alternate communication tools: satellite phones, cell phones outside of affected region,
common email address, wireless cards for laptops, text messaging

POWER – how does your business continuity plan address loss of
power?
Evaluate for…
Risky location such as in basements or below sea level;
Lack of maintenance or inconsistent maintenance
Inadequate fuel supply (and inability to get it during disaster conditions);
Inadequate power from generators because generator capacity does not mirror the growth in equipment
Consider location of redundant power supplies
Ensure redundant power supplies are tested
Ensure adequate fuel supply - Have multiple contracts with different supplies
Ensure redundancy capacity at the correct levels to support critical infrastructure, Include in
change management process
Have contracts for acquisition of generators

SUPPLY CHAIN – does your business continuity plan address what
you will do if your supply chain(s) can not deliver their products or
services to you?
Example ….
Company were not aware of which suppliers they were dependent on and when a supplier had a
disaster, the company lost the products/services they expected from the supplier, creating another
disaster.
Which supply chains put you at risk and are they single source (i.e. Telco’s)?
Identify your critical suppliers
Understand the impact
Identify a risk mitigation strategy for critical suppliers

BCP – is your Business Continuity Plan accessible and up-to-date?
BCP’s outdated or not available at time of crisis
Employees not aware of BCP and their roles and responsibilities during a crisis.
BCP’s were not tested.
No or limited availability of data and hardware
Keep BCP current & Integrate plan with IT and business change management
Test plan annually or more often - “table top exercises”
Create crisis teams to manage crisis events
Reinforce/Communicate importance of BCP (from the top) and that everybody is
responsible and plays a critical role.

Resilience In Action: Lessons Learned From Hurricane Sandy, Paige Poore, IBM Client Community Meeting, 23.5.13

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