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Impact Analysis
An impact analysis is used primarily when “change” occurs. For crisis management teams (CMT), this means performing an impact analysis—both perceived and hypothetical—to determine the impact of a crisis or disaster. A crisis/disaster is the biggest change that any individual, community, or corporation can experience. How and when is an impact analysis performed, and what aspects need to be considered by the CMT?
The first impact analysis performed by a CMT is usually at the outset or discovery of a crisis. Immediately upon being formally notified of the situation, the team must uncover and determine what the impacts are—both positive and negative, real and hypothetical—on the following:
- Departments/divisions
- Business processes and operations
- Technology systems (information technology [IT] infrastructure)
- Facilities
- Finances/financial institutions/fines
- Vendors/partners/suppliers
- Employees
- Regulatory/legal requirements
- Long-term ramifications
- Service level agreements (SLA) (contracts)
- The general public (for public relations)
Often during a crisis, the impacts of a decision are determined regarding how to immediately resolve, mitigate, or respond to a specific situation,
Case Study: Impact Analysis during the August 2003 Northeast Blackout
The great northeast American blackout of August 2003 is known around the world, among corporations and communities alike. It is known as a defining moment in business continuity, disaster planning, and emergency response processes.
Some were able to weather the power outage, and many others were unable to respond effectively.
One such corporation—a leading human resource service provider in Canada—experienced the blackout just like many other corporations, yet when performing an impact analysis with its crisis management team (CMT), it was able to manage the situation and continue operations without missing a single submission deadline.
Immediate Activation of Crisis Management Plan
When the blackout occurred at approximately 4:10 P.M. on August 14, the company immediately activated its incident management/crisis management protocols, which brought together representatives from all major lines of business and senior executives using cellular phones and personal message devices that were not impacted by the power outage.
They immediately set to work performing an impact analysis of what they knew about the situation and which activities, based on the known assessment, could be implemented. The team focused on which facilities were impacted, whether operations within those facilities were operational, and which workload activities could be transferred to locations in other parts of the country that were unaffected by the blackout.
Not only did they assess the impact on the nonoperational business units but also the impact on those other facilities taking on the additional workload, as these areas would need to extend business hours and ensure only critical functions were the focus.
This analysis was performed for all areas impacted by the blackout and for those that had the potential of receiving diverted phone calls, e-mails, and other core business functions that would be above their normal level of operational activity. This was performed in conjunction with technology team employees located at the other sites, as they would need to initiate many of the redirection activities because those located at the impacted sites no longer had the ability to do so.
Once the impacts were determined and the appropriate response implemented, an assessment was performed as to the impacts upon external sources. This means that they needed to discover if there was any impact to their clients and partners because the corporation was not available, as many partners had specific timelines—and deadlines—for electronic files to be submitted. In many instances, a missed deadline resulted in a financial penalty, as the corporation's unavailability impacted millions of Canadians, most notably throughout the financial systems of the country.
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- Agencies, United Nations
- Bureau for Crisis Prevention and Recovery, UN (UNDP/BCPR)
- Environment Programme, UN (UNEP)
- Food and Agriculture Organization of the United Nations (FAO)
- International Children's Fund, UN (UNICEF)
- International Strategy for Disaster Reduction, UN (UNISDR)
- Interregional Crime and Justice Research Institute, UN (UNICRI)
- Office for the Coordination of Humanitarian Affairs (OCHA), UN
- World Health Organization (WHO), UN
- Agencies, U.S.
- Centers for Disease Control and Prevention (CDC)
- Department of Homeland Security (DHS)
- Emergency Management Agencies, City and County
- Federal Bureau of Investigation (FBI)
- Federal Emergency Management Agency (FEMA)
- National Oceanic and Atmospheric Administration (NOAA)
- State Emergency Management Agencies
- U.S. Geological Survey (USGS)
- Categories of Crises: Engineering and Technological
- Air Traffic Control
- Air Travel
- Biological Engineering Risk
- Bridges
- Buildings
- Chemical Risk
- Cyber Crime
- Cyber Security
- Cyber Warfare
- Dams, Levees, and Seawalls
- Electronics Waste
- Environmental Contamination
- Hazardous Materials
- Hazardous Waste Disposal
- Improvised Explosive Devices
- Manufacturing Risks
- Marine Shipping
- Marine Travel
- Mining
- Nanotechnology
- Nuclear Risks
- Ozone Layer Depletion
- Petrochemical Risk
- Sewage Spill
- Smog
- Spaceflight
- Transportation Systems, Vulnerability
- Y2K Bug
- Categories of Crises: Financial and Business
- Categories of Crises: Natural Disasters
- Categories of Crises: Politics, International Relations, and Civil Violence
- Arms Control
- Biological Weapons
- Border Disputes
- Cabinet Office, UK
- Chemical Weapons
- Civil War
- Ethnic Cleansing
- Failed States
- Foreign Policy Crises
- Hijackings
- Hostage Taking and Negotiation
- Human Trafficking
- Interstate War
- Land Mines
- Missiles
- Nuclear and Radiological Weapons
- Nuclear Proliferation
- Peacekeeping
- Protest
- Religious Violence
- Revolution
- Riots
- Suicide Bombings
- Terrorism
- Transportation Security
- War Crimes
- Weapons Trafficking
- Categories of Crises: Population and Demographics
- Disaster Information Databases
- Nongovernmental Organizations
- Risk Management Standards
- Theory, Issues, and Techniques: Civil
- Agency Notification and Mobilization
- Civil Protection
- Civilian Protection, Post-Conflict
- Contingency Planning
- Continuity of Government
- Crisis Information Management Systems
- Debris Management
- Decision Making
- Decision Support Tools
- Disaster Assessment
- Disaster Declaration
- Disaster Risk Reduction
- Documentation
- Emergency Alert Systems
- Emergency Management System
- Emergency Manager
- Emergency Support Functions
- Financial Risk Management in Higher Education
- Hazard Mitigation
- Incident Action Plans
- National Incident Management System (NIMS)
- National Preparedness Goal
- National Response Framework
- Operational Plans
- Operational Readiness
- Perimeter Control
- Policy Setting
- Political and Organizational Leadership
- Preparedness
- Prevention
- Protection
- Search and Rescue
- Situational Analysis
- Stafford Act
- Sustainability
- Threat Detection
- Theory, Issues, and Techniques: Corporate
- Alternate Site, Corporate
- Auditing
- Backup Facility
- Backup Media
- Backup Strategy
- Business Continuity Management
- Business Continuity Planning
- Business Continuity Planning Life Cycle
- Business Impact Analysis
- Business Resumption Planning
- Classification of Systems
- Cluster
- Cold Site
- Continual Improvement
- Critical Applications
- Critical Business Functions
- Criticality Assessment
- Data Mirroring
- Data Recovery
- Dedicated Site
- Disaster Declaration Officer
- Disaster Recovery
- Disaster Recovery Life Cycle
- Disaster Recovery Plan Test Cycle
- Downtime
- Electronic Vaulting
- Failover
- Fink's Crisis Life Cycle
- Impact Analysis
- Incident Management
- Incident Response
- Insurance
- Journaling
- Losses, Quantitative Versus Qualitative
- Maximum Acceptable Outage
- Minimum Business Continuity Objective
- Mirroring
- Mitroff's Five Stages of Crisis Management
- Mobile Recovery Site
- Reciprocal Agreement
- Reciprocal Site
- Recovery Time Objective
- Reinsurance
- Reputational Risk
- Response Team
- Strengths, Weaknesses, Opportunities, and Threat (SWOT) Analysis
- Supply Chain
- Vital Records
- Warm Site
- Theory, Issues, and Techniques: General
- All-Hazards
- Cascading Crisis
- Catastrophe, Definition of
- Climate Change Adaptation
- Collaboration
- Command and Control
- Contingent Coordination
- Coordination
- Coping Capacity and Response Capability
- Credibility
- Crisis Communications
- Crisis Management, Emerging Trends in
- Crisis Simulations
- Crisis, Definition of
- Critical Infrastructure
- Damage Assessment
- Damage Containment
- Debriefing
- Decision Making Under Stress
- Disaster Drills
- Disaster, Definition of
- Disruption of Organizations
- Early Warning Systems
- Electronic Media
- Emergency Management, Principles of
- Emergency Medical Care
- Emergency Operations Center
- Emergency Public Information
- Emergency Responders
- Emergency, Definition of
- Evacuation
- Exercises
- Fusion Center
- Hazard Vulnerability Analysis
- Hazard, Definition of
- Historical Analogies, Use of
- Impact, Definition of
- Improvising
- Incidents Versus Crises
- Interdependence
- Interoperability
- Legal Liability
- Logistics
- Mass Care
- Mass Fatality Management
- Mass Media
- Mental Models
- Methods, Qualitative
- Methods, Quantitative
- Multiple Disaster Problem
- News Media
- Nongovernmental Organizations
- Nonlinearity
- Panic, Nature and Conditions of
- Pre-Crisis Training and Planning
- Pre-Impact Planning Process
- Public Awareness and Education
- Public Image
- Public Relations
- Recovery
- Residual Risk
- Resiliency
- Resource Management
- Response
- Risk Analysis
- Risk Assessment
- Risk Treatment
- Routine Emergencies Versus True Crises
- Safety Policies
- Scapegoating
- Scenario Planning
- Shelter-in-Place
- Simulations
- Social Media
- Spokesperson, Designating and Utilizing
- Stakeholders
- Strategic Plans
- Training
- Trauma
- Trigger Events
- Uncertainty
- Volunteer Coordination
- Vulnerability
- Warning
- Whistle Blowers
- Worker Error
- Theory, Issues, and Techniques: Public Health
- Cholera
- Drug Resistance
- Ebola Virus
- Emergency Medicine
- Epidemics
- Health and Medical Response Scenarios
- HIV/AIDS Epidemic
- Hospital Emergency Room
- Infectious Disease
- Infestations, Parasite
- Influenza
- Living Modified Organisms
- Malaria
- Measles
- Mental Illness
- Noncommunicable Diseases
- Pandemics
- Post-Traumatic Stress Disorder
- Public Health Surveillance
- Public Safety Canada
- Quarantine
- Severe Acute Respiratory Syndrome (SARS)
- Smallpox
- Social Distancing
- Surge Capacity, Hospitals
- Triage
- Tuberculosis
- Vaccinations
- Theory, Issues, and Techniques: Social Sciences
- Blame, Politics of
- Bounded Rationality
- Bureaucracy
- Chaos Theory
- Cognitive Novelty, Engaging in
- Cosmology Episode
- Coupling
- Decision Making, Theories of
- Decision Stream
- Groupthink
- High Reliability Organization Theory
- Information Asymmetry
- Information Vacuums
- Normal Accident Theory
- Normalization of Deviance
- Organizational Failure
- Paradigm Blindness
- Practical Drift
- Risk Society
- Structural Secrecy
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