National Response Plan: Private-Public Coordination Opening Remarks by Suzanne Clark

October 9, 2003

Good morning ladies and gentlemen, and welcome to the United States Chamber of Commerce. I am Suzanne Clark, Chief Operating Officer of the Chamber and President of the Center for Corporate Citizenship, and I'm very pleased to open our discussion on disaster preparedness.

First, I'd like to thank our co-presenters: the Points of Light Foundation, ASIS International, and the National Citizen Corps Council.

I'd also like to thank our platinum sponsor, Nextel, and our gold sponsor, EYP, for their generous support.

To some people, disaster preparedness might seem like an odd topic of discussion at a U.S. Chamber of Commerce event. Preparing for and reacting to disasters has traditionally been the responsibility of government and community organizations.

But, under the Chamber's leadership, that's changing. Businesses are becoming more involved in disaster planning and assistance because it makes economic sense to do so.

Whether it's hurricanes or mudslides, earthquakes or fires and floods, industrial accidents or terrorist attacks, natural and man-made disasters have devastating effects on businesses.

And our research shows that the short-term impacts aren't even the most devastating. According to research done by our Center for Corporate Citizenship, FEMA, and other sources, up to 40% of companies in a disaster impact area eventually go out of business.
Clearly, the business community's goal should be to properly prepare for disasters before they happen in order to prevent or contain disaster-related costs.

This requires skillful risk management.

How much risk do we accept? How much do we invest in security, and what is the appropriate level of insurance? There are no easy answers.

But one way to minimize our risk is to coordinate, plan, and talk to one another. Disaster preparedness requires two components: a company's individual disaster plan, and a good plan by the entire community.

Let me give you an example of what happens when you don't have both.

A company in southern Virginia decided to develop an emergency strategy. It disaster-proofed its assembly line and inventory, developed evacuation plans for all of its personnel, set up an emergency communications system, bought generators and supplies – all in an attempt to make itself as self-sufficient as possible.

However, when Hurricane Isabel hit, the company was forced to shut down for a week for various reasons.

A tree fell on the road leading to the plant. Employees had to stay home because the schools were closed and their homes were without power.

The company's suppliers hadn't taken similar precautions and were unable to ship the company the materials it needed.

Thankfully, the company didn't go out of business, but despite its best efforts, it still took a significant hit.

The lesson to be learned from this story is clear: businesses can't manage disasters by themselves. They must become part of the community emergency planning process, working with each other and emergency planners.

Today's conference is another step toward ensuring more systematic and structured business involvement in the national emergency response planning process.

I'm proud to say that since 2000, the Chamber has actively supported corporate efforts to provide disaster assistance and to contain the costs of disasters.

We've worked with FEMA, state and local emergency managers, and private disaster relief organizations to help businesses and communities prepare and cope with disasters through education and best-in-practice tools and techniques.

And, through the Chamber's new Homeland Security department, we provide a vehicle for companies to contribute to the strategic development of the National Response Plan and related disaster management policy.

I'm very glad that we've all come together for this very important dialogue on disaster preparedness. This is a relatively new area for the Chamber and the business community in general. But through events like these and through the commitment of people like you, we can minimize the damage of the next hurricane, flood, fire, or terrorist attack.

Now, I'd like to turn over the moderator duties to Steve Jordan, executive director of the CCC and a member of the National Citizen Corps Council, which promotes disaster preparation education and awareness. Steve…