T IDALBAS INGROUP.COM 5 Murphy: Great points. So, we have 1) BCP; 2) tracking hours; 3) equipment usage; 4) documentation, including pictures; and 5) training. Anything else that you would add for good measure? Gibbs: I believe it’s important to first recognize that many organizations have traditionally used insurance as a primary method to transfer risk. While this is still regarded as a powerful and necessary tool, it might not be enough as CAT (catastrophic) events such as those caused by earthquakes, hurricanes, floods, fires, etc., become more frequent and more severe. What I mean by this is that, should a total loss occur, there simply might not be enough coverage in place. If we look at Hurricane Sandy, where I built my consulting career, or hurricanes Harvey or Maria which saw catastrophic losses, we are quick to realize that many entities in these parts of the country, while they may have had high limits of insurance, those limits just weren’t enough. Total losses were decided, and limits were exceeded, not just marginally — but by catastrophic amounts. Murphy: That’s an excellent point. So, back to your preparedness points, let’s elaborate a bit, starting with BCP. Gibbs: Certainly. I would say that all companies should have a business continuity plan in place, from mom-andpop shops to global powerhouses, and all those in-between. With that understood, this type of planning is driven by the company type. Murphy: As risk manager for a port authority, what are some of your ideas on what should be included in the business continuity plan? Gibbs: There is a saying amongst ports, “If you’ve seen one port, you’ve seen one port.” I believe this observation holds a lot of value because what might be essential for one port authority might not be for another. However, I do believe some triedand-true rules of thumb can apply almost across the board. Let’s take a landlord-operated port for example. For a landlord port to continue to have cash flow, the facilities and piers would need to be rented. So, how do we provide planning for this aside from traditional risk management, insurance? One solution would be to have spare equipment, pumps, generators, etc., purchased and stored should a bad flood or power outage occur, to quickly rid the facility of water to the greatest extent possible. This would reduce damages and keep the tenant operating. Another Business Continuity Planning (BCP) ensures that the organization’s operations are maintained during a disruptive event.
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