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Finance’s Role in Continuity of Operations (COOP) and Emergency Response. March 12 , 2014. Introductions. Name Title University What is your role in COOP and emergency response? How do you feel about it?. Presentation Overview. Disaster Priorities Exercise Financial Vulnerability - PowerPoint PPT Presentation
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MITIGATION I PREPAREDNESS I RESPONSE I RECOVERY I STRATEGIC ADVICE
Finance’s Role in Continuity of Operations (COOP) and Emergency Response
March 12, 2014
• Name• Title• University • What is your role in
COOP and emergency response? How do you feel about it?
Introductions
Presentation Overview
• Disaster Priorities Exercise• Financial Vulnerability• Overview of COOP / BC• Finance in COOP/BC• Overview of Emergency
Operations / Response• Finance in Emergency
Response• Training and Exercises• Tying it all together
• Please consider the following scenario and the 10 planning issues.
• Do not attempt to develop solutions.
• Come to a consensus on ranking numerically the issues in order of their importance.
• Use the Problem Matrix Table.
• Select a spokesperson to report out.
Disaster Priorities Exercise
• Scenarioo March 12th, 8:30am: a 6.4 earthquakes hits the region where
your campus is located. o The University has experienced extensive damage:− Finance building− Building where IT servers are housed− Administration building− Ingress and egress routes blocked− Power outages
o Surrounding community has been affectedo The Governor has asked for a disaster declaration by the U.S.
President.
Disaster Priorities Exercise
PRIORITY Number ISSUE
A PAYROLL WEEK
1 BPROCUREMENT OF RESOURCES FOR EMERGENCY RESPONSE
C STUDENT LOANS AND FINANCIAL AID PAYMENTS
Etc. D MAINTAINING INFORMATION FOR FINANCIAL REPORTING
ESEND A REPRESENTATIVE TO THE EMERGENCY OPERATIONS CENTER (EOC)
F ACTIVATE EMERGENCY PURCHASING CARDS
2 G UNNACCOUNTED FOR FINANCE STAFF MEMBERS
H ISSUE PAYMENTS TO VENDORS AND CREDITORS
3 I ALTERNATE WORK LOCATION
J FEMA REIMBURSEMENT AND INSURANCE
• Learning Points1. There is no right or wrong answer. You are the senior officials make policy
decisions.2. Would more information would be helpful? What type of information?
From what source would you be seeking this information? Will this source be available to you in the event of an emergency?
3. Could any of these priorities or decisions be made in advance? Have they been? If not, could they be adopted as policy in your plans?
4. Are the right people sitting at the table (i.e., people who have the authority to set priorities and implement decisions)?
5. Communications are critical. How will information be coordinated? Do you have a crisis communications strategy?
Disaster Priorities Exercise
• Universities and colleges are vulnerable to (expensive) emergencies and disasters…
Financial Vulnerability
Virginia Tech shootings, 2007
University of Alabama Huntsville workplace violence, 2010
Florida International University stabbing, 2010
UC Davis Pepper Spray Incident, 2011
Penn State scandal, 2011
New Orleans Universities in Hurricane Katrina, 2005
University of Northern Illinois shooting, 2008
CSU Northridge earthquake, 1994
University of Alabama Tornado, 2011
Boston Marathon Bombings, 2012
Pace University 9/11 terrorist attacks, 2001
Vulnerability• Earthquakes• Tsunami• Wildfires• Floods• Drought• Criminal Acts• Hazardous Materials
Incidents• Utility Failures• Loss of Infrastructure
Emergency Response
Recovery
Continuity of Operations/ BC
Mitigation and Preparedness
I’m a PC. I’m a MAC.I’m Continuity. I’m Emergency Response.
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COOP/BC vs. Emergency Operations
• Emergency operations and response is what needs to be done because of an emergency or disaster.
• Continuity of operations / business continuity is what needs to be done despite an emergency or disaster.
COOP/BC vs. Emergency Operations
Return to normal operations
Initial life
safety actions
EmergencyOccurs
Emergency response continues, then ramps down; COOP actions
increase
Peak of COOP actions
COOP actions continue as needed, with an attempt to ramp down and return to
normal operations
COOPEmergency Response
[Time]
COOP/BC Elements
• COOP/BC Management Team• Essential Functions• Succession of Leadership• Notification/Communications• Critical Resources• Vital Records• Interdepartmental Relationships• Alternate Facility Requirements/Relocation
Essential Functions
• Essential functions are the critical activities performed by organizations, especially after a disruption of normal activities.
• Although all functions within operations are important, some functions can be delayed for 30 days without significantly affecting the business operations of the University.
Essential ≠ Important
Essential Functions (cont)
• Essential Functions include all functions:o Explicitly assigned by law or grant/contract ruleso Integral to the Division and Department’s missiono That provide vital support to another department or CSU campus
• Essential functions are those that enable an organization to:o Provide vital serviceso Exercise governance authorityo Maintain the safety of the entity’s community (e.g., staff, faculty, vendors,
students, and visitors)o Sustain the industrial and economic base
• Identifying Essential Functionso Departments will determine recovery time priorities for functions that must
be continued in all circumstanceso Basis for determining resource requirements
COOP/Business Continuity Guidance
1. Continuity Guidance Circular 1 (CGC 1) Non-Federal Entities, January 21, 2009
2. FEMA Continuity Guidance Circular 2 (CGC 2), July 22, 2010
3. Cal EMA Continuity Guidance and Plan Template, December 2009
4. CSU Executive Order 1014 – California State University Business Continuity Program
Creating a COOP Plan
ANALYSIS(Understand the Business)
DESIGN(Agree on Continuity Strategies)
IMPLEMENT(Document Steps to Follow)
VALIDATE(Rehearse, test, exercise, review)
EMBED(Awareness)
• ID Functions•Recovery
times•What is
needed to continue functions•Risk
mitigation
•Define strategies•Develop
Incident Management•Get approval
of strategies
•Develop action-oriented COOP Plan•Develop
support plans: Disaster Recovery, Relocation, Communication
• Train• Test• Exercise• Review
and revise plan documents
•Let everyone know what to do in disruption
Creating a COOP Plan
• COOP Planning Processo Introductory meetingso Meetings with senior
managemento Meetings with departmentso Document reviewo Plan developmento Plan revisionso Distribution of DRAFT Plano Electronic solutions (Kuali)
Creating a COOP Plan
• Plan for:o Utility outageo IT outageo Building Losso Staff shortage
Creating a COOP Plan
• Base Plano Quick Guideso Vulnerabilities, Planning
Assumptions, Authoritieso Essential Elements of COOP
Viabilityo COOP Program Management o Implementation
• Department Annexes• Workaround Procedures• Essential Functions Details• Succession of Leadership
Finance in COOP/BC
• Dual role:o Part of the overall
COOP organizational structure
o A department with essential functions
Finance in COOP/BC
• Essential part of the planning team• Critical essential business
functions:o Procurement of goods and
serviceso Accounts payableo Accounts receivableo Financial reportingo Payrollo Accountingo Financial Aid/Student Loanso Auxiliaries
• Are we actually ready to work from home?
• Which campus is our sister campus and is that campus ready to assist us?
• Who do I need to call? How will I notify the Finance department staff members?
• What are our lines of succession in an emergency?
• What the heck is my password?• How do I continue to keep
information secure?• Timing is everything.• We need executive buy-in.• Exercises are good.
Lessons Learned from the CO
4 Parts to COOP Implementation
COOP Implementation
1. Ascertain: Are we in a COOP situation?
2. How do we manage the event?
3. What must be continued?4. What strategies are
needed to continue our business?
COOP Implementation
Departments
COOP Coordination Leader
External Partners
Policy Group
Coordination Unit
Facilities and Logs Unit
Finance / Documen-tation Unit
This lends itself to enabling an over-arching COOP mission and strategy for the college, which would be described in the COOP Base Plan and provide guidance for the departmental plans.
COOP Executive Team
COOP Coordination Team
Departments
Policy-level decisions
Coordination Decisions
Tactical Decisions
COOP Implementation
• Life safety, protection of property and the environment, maintaining reputation• Emergency response structureo Policy Groupo Emergency Operations Centero First Responderso External Partners
• Emergency Notification and Crisis Communications• Plans, training, exercises
Emergency Operations / Response Elements
Emergency Management Guidance
1. Higher Education Opportunity Act of 2008 (Clery Act Amendments)
2. The Guide For Developing High-Quality Emergency Operations Plans for Institutions of Higher Education
3. Comprehensive Preparedness Guide (CPG) 1014. National Incident Management System (NIMS)5. Homeland Security Exercise and Evaluation
Program (HSEEP)6. National Preparedness Goal, National Response
Framework, National Recovery Framework
Emergency Response Implementation
Policy Group
Emergency Operations Group
Emergency Responders
Policy-level decisions
Coordination decisions
Tactical decisions
Command Staff“Deciders”
OPERATIONS SECTION“Doers”
PLANNING SECTION
“Thinkers”
LOGISTICSSECTION “Getters”
FINANCE/ ADMINSECTION“Payers”
Another way to look at it
Policy Group“Guiders””
Finance/Admin Section: The Payers
• Main Responsibilitieso Monitors costs related to the
incident. o Provides accounting,
procurement, time recording, and cost analyses.
o Maintains documentation for reimbursement and insurance.
Finance/Admin Section: The Payers
Finance / Admin
Section Chief
Procurement
UnitCompensation/
Claims UnitCost UnitTime Unit
Emergency Operations Center (EOC)
“Where uncomfortable officials meet in unfamiliar surroundings to play unaccustomed roles, making unpopular decisions based on inadequate information, and in much too little time.”
-Art Botterell
Emergency Operations Center (EOC)
• EOC Functionso Information collection and
evaluationo Coordinationo Priority settingo Resource coordinationo Communications facilitation
FEMA Public Assistance
• Proper documentation is a must (track everything!)• Coordination with Cal OES is
essential• Pre-train if possible• Go through the appropriate steps
to acquire resources• Go through the appropriate steps
for reimbursement
• Training and Exerciseso Develop a
multi-year training and exercise plan
Training and Exercises
• Trainingo Train all emergency
personnel (decision makers, operational staff, responders)
o Train people on how to use the plan, the guidance, and the system
o Standardized courses from the FEMA Independent Study program
Training and Exercises
• Exerciseso Homeland Security Exercise and
Evaluation Program (HSEEP)o Discussion Based− Seminar; Workshop; Tabletop
o Operations Based− Drill; Functional; Full-Scale
Training and Exercises
Tying it all together… Emergency Response
Recovery
Continuity of Operations/ BC
Mitigation and Preparedness
Command Staff“Deciders”
OPERATIONS SECTION“Doers”
PLANNING SECTION
“Thinkers”
LOGISTICSSECTION “Getters”
FINANCE/ ADMIN
SECTION“Payers”
Policy Group“Guiders”
Departments
COOP Coordination Leader
Policy Group
Coordination Unit
Facilities and Logs
Unit
Finance / Documen-
tation Unit
Information Flow
President
Policy Group
BOT
Emergency Operations Center
Incident Command Post
First Responders
Departments
Emergency OperationsCOOP / BC
COOP Coordination Team
Emergency Response
Recovery
Continuity of Operations/ BC
Mitigation
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• What is something you learned about Finance’s role in continuity of operations planning?o COOP “to do list”
• What is something you learned about Finance’s role in emergency operations and response?o Emergency operations “to do list”
• What else are you taking back to your university from this presentation?
Takeaways
