BUSINESS/INDUSTRY DISASTER LOSS REDUCTION MEETING

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BUSINESS/INDUSTRY DISASTER LOSS REDUCTION MEETING

• Oliver Davidson
• March 24, 2000
• Tulane University

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BUSINESS LESSONS LEARNED

• GENERAL OBSERVATIONS
•  
• NO SECTOR PRIVATE, PUBLIC OR NGO WAS PREPARED
•  
• OVERWHELMED BY MAGNITUDE AS WELL AS UNFINISHED
  PLANNING
•  
• CRITICAL SERVICES FAILED - IMPACTED BUSINESS
  (OTHERS)
• - TELEPHONE IN MANAGUA
•   - KEY BRIDGES FOR EXPORT AND RAW MATERIALS
  DESTROYED

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POSITIVE IMPACTS

• CELL PHONES, BELL SOUTH WORKED SOME DONATED
  SUPPORT
•  
• THE MANAGUA AIRPORT CONTROL HANDLED A HUGH
  INCREASE IN AIR TRAFFIC NO NEAR MISSES

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CORPORATE LESSONS

• MANY FOUND INTERNAL PROCEDURES AND PREPAREDNESS
  PLANS WERE INADEQUATE
• PLANNED AND EXERCISED FOR INDUSTRIAL ACCIDENTS,
  NOT DISASTERS
• COMPANIES WITH DAILY THREATS WERE GENERALLY
  BETTER PREPARED (OIL, AIRLINES, SHIPPING, ETC.)

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CORPORATE LESSONS (CONTD)

•  SOME PLANS WORKED - 4 HELOS FROM GUATEMALA
•  EMPLOYEES LOCAL AND EXTERNAL RALLIED TO HELP
•  INSURANCE WAS NOT ADEQUATE TO COVER MAGNITUDE OF
  LOSSES

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CORPORATE LESSONS(CONTD)

• COMPANIES OFTEN SUPPORT GOVERNMENT ACTIVITIES
  WITH TRANSPORT, FUEL, ETC.
• INACCURATE VIEW OF GOVERNMENT CAPABILITIES AND
  DISASTER PLANS
• SHALLOW UNDERSTANDING OF DISASTER NEEDS, OR HOW
  TO ASSIST VICTIMS
• FEW HAD LINKS TO INTERNATIONAL DISASTER
  ORGANIZATIONS

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CORPORATE LESSONS(CONTD)

• SERVICES OFFERED TO GOVERNMENT AND OTHERS, NOT
  ALWAYS WELL UTILIZED
•  NEED FOR ACCOUNTABILITY STRESSED
• STATEMENTS ABOUT DONATED RELIEF SUPPLIES, ALMOST
  ALL NEGATIVE
• -NOT APPROPRIATE (OLD CLOTHING)
• -FEW INVOICES
• -INABILITY TO PRIORITIZE HANDLING -LACK OF
  CONSIGNEE

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CORPORATE LESSONS(CONTD)

• RESULTED IN LOSS, DUPLICATION, WASTED FUNDS,
  FRUSTRATION
•  
• SHIPPING CONTAINERS TIED UP WITH RELIEF SUPPLIES
  AT COMPANY EXPENSE
•  
• INABILITY OR RELUCTANCE TO DONATE MORE
  RESOURCES (BUILDING MATERIALS)

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CORPORATE LESSONS(CONTD)

• CONCERN FOR WELFARE OF EMPLOYEES WAS VERY
  OBVIOUS
• FIRST AID, CPR AND DISASTER EDUCATION
• NICARAGUAN SUGAR INDUSTRY HAS 25,000 EMPLOYEES
• BANANA WORKER ALSO CLOSELY TIED TO COMPANIES

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CORPORATE LESSONS(CONTD)

• COMPANIES ALLOW LIMITED EMPLOYEE/COMMUNITY
  ACTIVITIES
•  
• HIGH LEVEL OF UNEMPLOYMENT AND UNDEREMPLOYMENT
  WILL LIMIT PARTICIPANTS IN ANY EMPLOYEE FOCUSED
  DISASTER PROTECTION EFFORT

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BUSINESS DISASTER PLANNING SEMINAR

• REQUESTED BY THE AMCHAM MEMBERS IN NICARAGUA
• HOW TO MAKE A DISASTER PLAN
• ROLE FOR EMPLOYEES
• COORDINATION WITH GOVERNMENT

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AMCHAM

• AMCHAM CENTRAL AMERICAN DISASTER TASK FORCE
• HELP PREPARE THE AMCHAM AND MEMBERS
•  COORDINATION WITH GOVERNMENT
•  LINKS TO EXTERNAL SUPPORT LATIN AMERICAN
  CHAMBERS
• PAN AMERICAN DEVELOPMENT FOUNDATION

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ELEMENTS

• BUILDING LOCAL CAPACITY AND COORDINATION
•  DESIGNED AND CONDUCTED BY REGIONAL DISASTER
  SPECIALISTS
•  CORPORATE RISK MANAGERS
•  GOVERNMENT DISASTER OFFICIALS
•  INTERNATIONAL TECHNICAL EXPERTS

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PLAN (CONTD)

• BUSINESS/INDUSTRY DISASTER COMMITTEES (COUNTRY
  LEVEL)
• LONG TERM INTEREST?

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CONCLUSION

• 1. Venezuela-Growing awareness among American
  Chambers of Commerce in L.A. of the need to do
  more in preparing for disasters. (Ecuador,Ven.,
  Mitch etc.) Pan American Development Foundation
  is working with ACLA to improve disaster
  preparedness and response capability.
  Comprehensive survey of all companies would be a
  good place to start. American Chambers of
  Commerce would be a good place to start an
  ongoing series of seminars on disaster
  preparedness at the plant or company level. Also
  a need to develop Chamber specific disaster
  preparedness plans.

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Conclusion

• Try to help ACLA units in planning, developing
  improved disaster response mechanisms. Training
  would be important in this process. Seminars,
  simulations and models could help to provide a
  more strategic and coherent focus to respond to
  disasters.

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PAHO

• PAHO fully supporting foundations etc. and
  involvement with the private sector. We need to
  open the public sector to the private sector.
  PAHO has in country human resources to offer (40
  people in the region).
• We are looking for returns ( donations) from
  the private sector. SUMA , the PAHO management
  information system on donated supplies could use
  private sector expertise in logistics and supply.

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Cultural Shift to Prevention

• Prevention is the key business recognizes the
  cost of disasters in the US. We need to work with
  business to think about prevention. This is a
  major responsibility where the American companies
  can take the lead. What does FEMA have.
• Project IMPACT Prevention is possible at all
  levels.

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A different Viewpoint

• In the end it is the sectors that borrow/build to
  reconstruct --- all of us are the guts of our
  sectors that need to take the responsibility for
  societal vulnerability. Look at what is driving
  the economy. If you want business to do something
  make a compelling economic case. Look at
  companies where corporate culture includes
  prevention.

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Sector Sector

• Governments have to be sensitized to work with
  the private sector.
• Assist FEMA to work with the LA Development
  Association Foundation
• Connections and technology to build and retrofit
  buildings engineer the stuff in early on.
• IDB loan required involvement with FEMA for
  prevention.

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Lessons from IMPACT

• Shared vision by public and private sector.
• Leadership (passionate)
• Trust between public and private sector.
• Resources

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Where are the Value Added Pieces

• US weather service initiative is important.
• Mexico --- companies taking responsibility for
  their own employees.
• A model might exist in the Phillipines. And Los
  Angeles.
• What to do about data loss. Two member states
  lost entire land ownership.

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Other Issues

• NGOs are important and have a whole set of
  issues that need to be considered as well.
• Another important issue a major issue on the
  part of latin ambassadors after a disaster
  people want to donate things, the official
  government representatives get inundated with
  goods which clog the whole system. This is seen
  as their number one problem in times of
  disasters.