Plan for Rain on Your Parade

Tropical Storm Isaac (which is not yet at hurricane strength at the time of this writing) has threatened to rain on the Republican parade at the National Convention in Tampa, Florida. The Convention organizers have already announced a shortened schedule, and a general interruption of the proceedings.
 While the Convention most likely won't be cancelled, for businesses that attend, host, sponsor, or organize conventions, expositions and large events, it's a good lesson. When your company commits valuable resources in time, effort and money into an event, ensure it also has an appropriate disaster and continuity plan. Many events around the US are interrupted or cancelled every year by natural or man-made disasters.

First, I would like to make a quick note on their relationship between event disaster plans, and comprehensive disaster plans for your business: they are not the same. The plan you have already codified for your business covers your employees, facilities and processes. Any large event should be considered a separate process from your company, and should be planned in juxtaposition to your current disaster program, whether you are an event attendee, or the event host/sponsor/organizer.

 

Event Attendee

 

Your business needs to consider its continuity in light of being an event attendee, as your loss can be significant. I knew a company that attended an annual conference in the midwest of the United States as an exhibitor. They brought large amounts of marketing materials, half their workforce, their largest truck, and samples of the product to be sold. As happens periodically, one year, a thunderstorm touched off a tornado that destroyed the truck, along with everything inside.

This became a serious problem. The company sold specialized metal beveling machines, which were purchased from one vendor overseas. That vendor was backlogged with orders, so it was over a month before the company could fulfill their existing orders, which meant those customers went to their competitors.

Furthermore, with half the workforce displaced, the company had a very difficult time rebounding. Insurance money did not cover overtime costs for their employees, and the loss of revenue stream was significant for a company like this in a niche market.

Event Sponsor/Host/Organizer

 

If you are the sponsor of the event, or host a recurring large gathering, your event preparedness should be a permanent addendum to your current plan. This is particularly true if your company is a non-profit or a trade association, because confidence in your ability to host the event is the critical factor in the draw for companies to attend. Questions your company should be asking include:

• What happens if your event has half the number of participants because of a disaster?
• What if they ask for refunds?
• What if they withdraw from the vendor exposition contract because of a storm, flood, earthquake or some other interruption?

 

And it isn’t just these natural risks that can affect your event. If your organization is tainted by a scandal, or some act of corruption, you can expect that your lead sponsors will pull out of your event.

Your disaster plan needs to have a contingency for your event so that it doesn’t sink your entire organization. Insurance may cover certain perils, but it will not cover loss of reputation, or the damage of future loss of revenue, or loss of potential clients.

 

Event Disaster Plan Considerations


Your event disaster plan needs to consider a number of elements. However, that plan should not be constructed in isolation. Your company’s overall disaster plan should be tied in closely to your event plan, discussing:

• Alternate Sites
• Crisis Communication
• Insurance (especially any covered and uncovered perils)
• Information Technology Contingencies
• Site Vendor Coordination

Your company should adopt a rule: if one is disaster plan is activated, the other should be activated.  This is because they will affect one another as you shift resources, personnel and money to one or the other as you reverse the disaster.

There is one other consideration for any event disaster plan. If your event takes place outside the jurisdiction of where your company is physically located, that means you will need to establish new relationships with the local government, first responders, etc.

These are not tertiary or unimportant relationships!

If there is a disaster at your event, and you have not consult the authorities, you are asking for trouble. Jurisdictions do not take kindly to event planners that ignore them because they will take the heat from the media and the public for any problems that arise. I remember when I was an EMT for an event at a large convention center some years ago. There were just two of us, with one ambulance, and a second backup crew. As the event progressed, we became overwhelmed and couldn’t handle the flow of participants coming out of the facility needing assistance.

The reason? Many of those at the event had checked out of cancer wards and hospices to receive some type of religious healing. When that did not work, we EMTs were stuck trying to get these people back home. The City was very unhappy that the organizers had not informed us of the demographic attending, which drew away resources from other 911 calls and emergency medical responsibilities.

Conclusion

Your company may have a terrific disaster plan, but if it is not also including those events you attend, sponsor, host, or organize, you are inviting a greater potential for business interruption. Make sure your business continuity company is planning accordingly. This is the only way to Reverse Disaster.

Patrick Hardy, CEM, ALEM, LL.M.