NATURAL DISASTERS, RISK MANAGEMENT &BUSINESS CONTINUITY PLANNINGThe Brazilian Experience

Eng. José Eduardo Prestes Alves, M.Sc.

BRASIL MAJOR NATURAL CAUSES DISASTERS

Landslides, Floods, Inundations and Droughts

The landmark of the Brazilian Natural disasters timeline was the Rio de Janeiro landslide of 2011

( 916 casualties and 345 people missing )

Local ordinary people still sees Brazil as a

“natural disasters free” country;

They relate Natural disasters only to big issues: They relate Natural disasters only to big issues:

Huracanes, Earthquakers, Tsunamis, active

Volcanos and Tornedos

Droughts, landslides and floods are

considered to be part of urban life, acceptable

and well known “familiar risks“.

THE BRAZILIAN EXPERIENCE: The Civil Defense Role

•Natural Disasters : Focus on emergency short term priorities

People safety and security

Medical Care / Clothing / Fooding / Shelter

Protect and repair strategic publicinfrastructure assets (state owned)

Roads / Energy / Transportation / public buildings / Telecommunication / Water supply / sewage,etc.

CIVIL DEFENSE

Companies located in theaffected areas are “by their own”

WHAT ABOUT THE WHAT ABOUT THE BRAZILIAN COMPANIESBRAZILIAN COMPANIES

AFFECTED BY NATURAL DISASTERSAFFECTED BY NATURAL DISASTERS??

Going from a Reactive Emergency Response Culture to a• Going from a Reactive Emergency Response Culture to a

Proactive Risk Management behaviour

•• Using BCP as a Business Risk Reducing tool

THE RISK MANAGEMENT IN BRAZILIAN COMPANIES

Risk Analysis/Risk Map

What is important ?: “ Go back to Business, faster and safely” ( Back to Business ≠ Back to operations )

Emergency ResponseEmergency Response

Disaster recovery

( Back to operation )

Business Continuity

Reducing Risk by practicing good Risk Management and Business Continuity Planning

World CupRisk Management

Planning

Risk Reduction:Risk Reduction:Petrochemical Sector

BCP

Risk Reduction:Energy sector

BCP

FIFA World CUP & Brazil: Reducing Risks through Risk Management good practices ( case 1 )

US$ 1.170 billion budget to

Manage Safety Risks during

the World Cup. 30 days, 12 cities

and 600.000 tourists

Investments in intelligence,

27 MICCS ( Mobile IntegratedControl and command Systems) in

the 12 hosts cities and one ICC ( International Cooperation Center )

in Brasiia, the capital City

Investments in intelligence, technology, equipments and

training to get synergy among all policies and country armed

forces

Security forces of 177.000 men: 100.000 public forces, 20.000 private security and 57.000 army, navy and air

force soldiers

12 ICCS( Integrated Control andCommand Systems) in the 12

hosts cities

Companies are Reducing Risk by practicing good Risk Management and Business Continuity Planning ( case 2 )

A thunderstorm ( ND ) struck a power station in a key trasmission line in

the northern part ofBrazil

41 companies located in thebiggest Petrochemicalbiggest PetrochemicalComplex of the south

Hemisphere suffered a Blackout

2 weeks to go fully back to operations. Heavy business

damages. Local Class associationis promoting RM / BCP

initiatives to reduce risks andbusiness losses

NATURAL DISASTERS, RISK MANAGEMENT & BUSINESS CONTINUITY PLANNING

The Brazilian Experience

Local companies, indirectly affected by the ND, also have

financial losses due to important Business interruptions;

They are not yet part of the Brazilian authorities equation

(ND recovery = People + infrastructure care);

Brazilian companies: focus on Emergency Response and

Conclusions & Recommendations

production recovery, not on the business as a whole. Mentality

is changing;

Business is interrupted for companies located in the disaster

area, even if they are not physically affected;

Business Continuity Planning, as part of the

companies economical and social faster recovery

objectives ( after a ND ), is mandatory and shall be

promoted by government and international Institutions.