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Disaster Recovery: After the Hurricane
Editor's Note: This article, written in the aftermath of Hurricane Isabel in 2003, provides valuable insight for those dealing with natural disasters today.
There is nothing better to test disaster recovery than a good disaster. Hurricane Isabel provided the test for financial institutions up and down the East Coast. The Nation's Capital - where sit the headquarters offices for all the regulatory agencies - was heavily damaged by the storm. With most of our recent disaster recovery attention focused on acts of terrorism, the hurricane was a good test for our systems. What happened?
First, the storm brought a great deal of flooding. Areas were evacuated. When government officials evacuate an area, you are supposed to close up and leave. What happens when your area is evacuated? Who decides whether to leave or stay? Is someone designated to stay and monitor the facility? Where is your backup function?
In today's banking world, the physical facility is not the only presence to consider. For example, if power goes out, what happens to your website? Is anyone maintaining your website and if you offer Internet banking, will that work during the storm and its aftermath?
In the Nation's Capital, there were areas under water - quite a few feet of water. Financial institutions in those areas had to take steps to protect files and equipment. While doing so, they also had to protect customer privacy and ensure information security. Piling stuff on table tops might not be enough - especially in six feet of dirty water.
Next, the storm brought the worst power outages the area has seen in decades. In parts of Virginia, Maryland, and D.C., more than two thirds of the electric companies' customers were without power. That included a lot of banks. Can you open without power? If so, how and what services do you provide?
In preparing for the storm and cleaning up afterwards, customers needed access to supplies. Wind and water damage create different hazards and different needs. This hurricane had both. Customers needed access to supplies such as sandbags, nails, and plywood. This takes cash. Will your ATMs be working - and do they continue to work if standing in water?
In any disaster, communication is critical. How can customers find out about services during storm hazards? Who makes sure that the customer information system is working?
You also have communication needs within the organization. Employees need to know what to do. How will you communicate within the organization - and how will you communicate with employees trapped in their homes?
Finally, there is the question of insurance - yours. What does your institution's insurance cover in the event of a natural disaster? Does it cover damage to the building and to equipment? Have you done a flood hazard determination on all of your branch locations?
Copyright © 2003 Compliance Action. Originally appeared in Compliance Action, Vol. 8, No. 10, 10/03
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