The recent flooding in Uttarakhand, India reminded me of last November 2012, when I was in Boston during hurricane Sandy, which ravaged the US East Coast. There’s a lot of similarity I can draw between New York and Mumbai - both have a large number of key data centers in close proximity to business centers, both are quite vulnerable to floods, and both have a history of terrorist attacks.
Regardless of continent and country, the number of natural disasters is increasing. As stated by the United Nations Office for Disaster Risk Reduction (UNISDR) Head for Asia Pacific, extreme weather events are likely to become both more frequent and severe in the future. Asia Pacific (AP) in particular is the world's most disaster prone area. Apart from Uttarakhand there have been a number of natural disasters in the last decade, including the Tsunami and Earthquakes in Japan, Floods in Thailand, and the Mumbai Floods in 2005. Floods are the most common natural disaster, followed by extreme storms and earthquakes. In the case of hurricane Sandy, dozens of data centers in the New York City metropolitan area were impacted.
Stephanie Balaouras and I published a report last week on the current state of crisis communications, and one thing is clear: most companies are not ready to invoke their crisis communications plan.
We analyzed data from our recent 2012 Forrester/Disaster Recovery Journal (DRJ) joint online study, which surveyed 115 business continuity decision-makers about their organizations’ crisis communications strategies. The results were disconcerting. Despite roughly half of organizations having invoked their business continuity plan in the past five years, only 15% said their crisis communication efforts were very effective.
Recent events such as Hurricane Sandy and the Sandy Hook school shooting illustrate the damaging, and often tragic, impact crises can have on organizations and the broader community. In fact, Hurricane Sandy was the second costliest in US history. Yet, most organizations are not prepared to manage an effective response to such a crisis. We found that crisis communication programs routinely underperform because:
Take a second to think back to the year 2009. The US was in the thick of the financial crisis; companies were slashing budgets, and the unemployment rate was in double-digits. And do you remember a little thing called the “swine flu”? The World Health Organization (WHO) deemed the H1N1 strain of the swine flu influenza a global pandemic in June 2009. These were just some of the events top of mind for much of the nation and the broader global community three years ago.
2009 was also the year that the annual Forrester And Disaster Recovery Journal (DRJ) Survey focused on the role of risk management in business technology (BT) resiliency and crisis communications programs. Needless to say, the survey was fairly timely. Forrester found risk management was becoming a more common practice for business continuity teams, but that there was still more room for further collaboration with their risk management counterparts.
Fast forward three years, and the 2012 Forrester/DRJ survey is again focusing on the role of risk management in BT resiliency and crisis communications (you can take the 2012 survey by clicking here). A lot has changed since 2009 with a number of new events, technologies, and organizational challenges currently plaguing business continuity and risk management professionals.