Private Sector Voluntary Certification (PS-Prep) Small Business Considerations Debra T. Ballen October 21, 2009

IBHS Mission: “… to reduce the social and economic effects of natural disasters and other property losses by conducting research and advocating improved construction, maintenance and preparation practices.”

Importance of Small Business The Case for Planning Open for Business® Topical Overview Importance of Small Business The Case for Planning Open for Business® Crosswalk of OFB and PS Prep Implementation Challenges Next Steps

Small Business in America 99% of employer firms 50% of private employees 60-80% of new jobs growth 45% of private payroll Key link in the supply chain Critical community role

Presidential Proclamation, September 4, 2009 The Ongoing Challenge An estimated 15-40% of small businesses forced to close following a disaster never reopen. “Preparedness is an essential element of a resilient and secure Nation.” Presidential Proclamation, September 4, 2009

SMB Disaster Preparedness Survey1 Small and mid-sized businesses (SMBs) are the lifeblood of the global economy. Comprising more than 99 percent of all businesses, SMBs employ more than half the world’s workers. Most of the world’s patents and more than half of the world’s GDP come from small and mid-sized business. A 2009 Disaster Preparedness survey1 of SMBs by Symantec reports a large discrepancy between how SMBs perceive their disaster readiness and their actual level of preparedness. There are large, tangible costs to this lack of preparedness. SMBs can – and often do – lose business as a direct result of being unprepared for disasters. 1 SMB Disaster Preparedness Survey – Global. September 24, 2009. Symantec Corporation.

Long-term Perspective Where to start? Planning Impediments Time Money Expertise Long-term Perspective Where to start?

IBHS Preparedness Program

Comments from “The Field” “A great tool for implementing a disaster recovery program for any company.” “Got us through the five business days that our office was closed.” “Planning for the worst ultimately helps a business to operate at its best.” “Open for Business® is the foundation of our disaster planning initiative.”

Open for Business® Alignment with PS-Prep Developed in conjunction with certified business continuity practitioners and subject matter experts Based on body of knowledge underlying professional practices of Disaster Recovery Institute International (DRII) Business Continuity Institute (BCI)

Alignment with PS-Prep Open for Business® Alignment with PS-Prep www.DisasterSafety.org/business_protection Crosswalk to target criteria for PS-Prep and ANSI standards NFPA 1600 (2010 Draft Standard) ASIS SPC.1: 2009

Alignment with PS-Prep Open for Business® Alignment with PS-Prep This slide illustrates the Crosswalk. Again, what IBHS strives to do is to help the close to 97% of businesses in the U.S. that have 100 or fewer employees to be more disaster resilient, to help them take on as much responsibility as possible for their own preparedness and resilience. Resilience is about building the capacity to absorb shocks, to bounce back and above all, to adapt to existing and evolving threats. It is measured by the ability of an organization to get back to an acceptable level of operation within an acceptable time frame. IBHS, conservatively, estimates that at least 25% of businesses that shut down because of a disaster never re-open. According to a Microsoft-sponsored survey, two years after 9/11, 90% of the companies that took more than 5 days to restart their business, were closed. 12

Applying PS-Prep to SMB - Challenges Time, money, expertise, perspective Concern about government regulation Not all small businesses are alike Focus is top down, not bottom up Certification requirements Updates / improvements always needed

Applying PS-Prep to SMB - Opportunities IBHS Expand reach of OFB and like-minded programs, while PS-Prep moves forward DHS Develop outreach to small business DHS Develop alternatives to 3rd party certification SMB Adopt and adapt the program. Staying power = staying in business

Questions? Thank you!

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