Pandemic influenza risk poses unique threat to businesses and must be taken seriously: FSSCC

A serious outbreak of illness such as a ‘flu pandemic could cause problems for business and the financial services industry that are quite distinct from the business continuity issues posed by disruptions associated with natural disasters, according to a paper issued by the Financial Services Sector Coordinating Council for Critical Infrastructure Protection and Homeland Security (FSSCC).

In the paper, which discusses issues that financial institutions may need to face in the event of a widespread pandemic flu outbreak, the FSSCC said that a number of financial institutions are concerned that their current planning for business continuity may not address the unusual circumstances that could arise during an outbreak of ‘flu or other highly infectious disease.

For example, according to the council's paper, a serious ‘flu outbreak could erupt in waves over weeks or even months, with some waves appearing to be mild, only to be followed by others that are much more severe.

"Even after a particular wave appears to subside, follow-up waves could develop after safeguards are relaxed," the paper said, suggesting that the timeframe for coping with an epidemic could be much longer than the US has experienced in dealing with natural disasters.

As a result organizations may have to deal with significant absenteeism for weeks at a time from illness, family demands or fear of contagion. Personnel absences may become extensive enough to require firms to alter contingency plans for maintaining critical operations.

Compounding the problem, the paper notes, is that if a ‘flu outbreak reaches pandemic proportions, it's likely to affect multiple regions of the country and the globe at the same time. Consequently, the paper says, "the backup facilities that many financial organizations have established - even remote sites hundreds of miles distant from primary facilities - may be just as affected by the outbreak as the primary locations they are intended to back up."

Another consideration that financial service organizations need to plan for is that the same absenteeism issues are likely to spread to power systems, transportation, telecommunications, waterworks - even police, fire and emergency medical services. These types of problems would present additional complications for contingency planning that firms need to address.

The FSSCC cautioned that financial service organizations ought to reexamine their current business continuity plans with an eye to surviving a long-running outbreak of a highly infectious disease. Among the plans the FSSCC recommends that organizations review include:

* Identifying which operations could be suspended and which are critical, keeping in mind that activities such as payroll and administrative functions, which are often suspended during short-term disasters or emergencies, may need to be kept functioning in order to sustain the organization.

* Splitting and segregating critical staff into separate offices or locations, and planning for possible governmental actions (such as school closings or travel restrictions) that would cause larger numbers of staff to stay home.

* Expanded telecommuting, although that raises issues such as costs, advance preparations and even the sustained quality of online services during a long-term outbreak.

* More use of teleconferencing and videoconferencing to avoid travel and the need for face-to-face meetings.

* Limits on long-distance travel and the possible need for special local travel arrangements for critical staff commuting to and from workplaces.

* Stepped up security because police and other security services may be compromised by illness and absenteeism.

* More timely information-gathering systems to keep track of employee absenteeism or work-at-home situations.

* Emergency plans that can be phased in to deal with various degrees of an influenza outbreak, both locally and on a broader basis.

* Communication strategies to prepare statements in advance and to reach employees and inform external parties such as regulators, customers, suppliers, trading parties and the public.

* Coordination with local emergency management organizations in order to track such potential governmental actions as shutdowns of public transportation, or the imposition of "snow days" to limit public exposure to the virus.

* Employee health and safety issues, including reliable information sources for the latest medical developments, medical or other health care expertise, and vaccination programs.

* Testing and monitoring programs to scan for possible employee contagion or infection, or to isolate employees who become suddenly ill.

* Legal review of business continuity and employee safety arrangements to ensure compliance with personnel and privacy laws and regulations.

* Budget and administrative questions, such as the stockpiling of supplies or advancing administrative leave to large numbers of employees.

•Date: 26th Jan 2006• Region: US • Type: Article •Topic: BC general
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