Bad Weather Report: Flood

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2 In light of the recent devastation caused by floods in the North, FM Global has compiled a special report to help more businesses be better prepared for the future. Climate change has contributed to more frequent and widespread flooding in the UK over the last few years. But although more floods may be imminent, this does not necessarily mean that the damage they can cause is inevitable. This exclusive report includes articles that explore the impact floods have had on businesses in the past, how flood defence can save costs and credibility, advice on how to plan for future floods, plus an emergency checklist and response plan. Contents: Page 3. Severe weather: advice for businesses 4. Floods: raise the barriers 5. Turning the tide 6. Understanding the Hazard: Flood 8. Emergency Checklist: Flood 9. Flood Emergency Response Plan 2

3 Severe weather: Advice for businesses Stressing the importance of protecting property from extreme weather events, Thomas Roche, FM Global s Northern Europe operations vice-president, detailed the following steps that can be implemented by businesses to prevent loss from extreme flood and wind Flood Wind The major impact of storms, and the most costly, is the damage that results when the building s envelope is torn open and lets wind and rain into the facility. During a windstorm, damage to the building structural frame seldom occurs. Yet, a very small breach in the building envelope can destroy a large area of the interior. For this reason, keeping the building envelope sealed is one of the most effective ways of windstorm damage at a facility. The most important component of a roofing system is the metal-edge flashing, which secures the roof cover to the edge of the building. If high wind loosens a roof s perimeter flashing, further damage is inevitable to the roof s covering and insulation, even if properly secured. Inadequately designed and installed flashing will likely lead to additional damage from water leakage. 90% of the yearly wind losses experienced by FM Global clients are related to flashing. Strong wind doesn t have to mean a hurricane or a typhoon. Even wind gusts well below hurricane intensity can cause damage to inadequately secured flashing. The good news, however, is that flashing can be properly secured for the cost of a few galvanised screws. Snow and Ice Whether you re hit by a single storm with heavy, wet snow and high winds or a series of smaller storms, the result is the same: deep accumulation of snow on your roof that can lead to overloading or collapse. Add heavy rain to the scenario and the potential for significant loss becomes that much greater. Blocked drains, an inadequate number of drains, or poorly located drains may prevent the run-off of melting snow, which accumulates and freezes to a more dense layer of ice, further compounding problems. In regions where freeze is infrequent, inadequate insulation and heat may prove insufficient to prevent freeze, resulting in broken water piping and water damage, or impaired fire protection sprinkler systems and sprinkler leakage. When this happens, the facility becomes vulnerable to fire. It s important to have an alert weather watch and a ready response, such as activation of on-site portable heaters. Among the freeze hazard factors, process equipment is typically not enclosed, dryers for instrument air systems may be undersized, and even steam systems may freeze if the return piping is not insulated. In these regions, it is vital to identify equipment and piping that should be drained, and to train operators and maintenance staff how to prevent process upsets when draining. Research has shown that, if you are unprepared, a flood could cost your business an average of 2.1m in property damage. Therefore it is key for businesses to fully understand the exposure of their site to prevent flood loss. It is critical to be aware of how much warning time you may have, how deep the floodwater is likely to get, what the impact of fast moving floodwater may be and how long it will take to recede. Furthermore, waves of little more than 3 feet in height can cause structural damage and demolish lightweight buildings. For a facility located in a known flood zone, it is not a case of if it will flood, but when. Flood damage and disruption is caused by many factors, for instance, floodwater can contain various contaminants including mud, sand, chemicals and even raw sewage which also adds to the damage potential. Facilities that exist within flood zones should focus on two main strategies: keeping the floodwater out of important buildings where practical, and limiting what gets damaged when water does enter a structure. To reduce the impact of flood on your business, there are simple, practical steps you can take immediately, such as moving critical items out of basements and away from low lying areas. You can further reduce your risk by making permanent physical changes to your facility, where practical, to keep floodwater out of key areas, or permanently elevating important items above predicted flood levels. Finally, if the residual flood risk warrants it, develop a flood emergency response plan. This article first appeared in CIR Magazine in January

4 Floods: raise the barriers Businesses should not view flood defence as a cost, but investment T he beginning of 2014 has seen severe flooding up and down the UK, with more than 5,000 homes and businesses affected. While most reports focus on the effects of such extreme weather on homeowners in Britain, it is crucial to consider the impacts on businesses too. Flood can be one of the most damaging and expensive natural catastrophes. A company can expend a lot of effort cleaning, repairing and replacing damaged items in an attempt to hold onto orders and customers. This effort comes at a cost and impacts on the business can also damage credibility. Therefore, those businesses that have not been impacted by the recent flooding must not become complacent. The Environment Agency has predicted that flooding may continue in the South East of England and its Sustainable Development Unit recently warned that major floods that have only happened before, say, every 100 years on average, may now start to happen every 10 or 20 years. Terms like one in a hundred years often give people the feeling of these being rare events. Putting them in perspective, this flood has a 1% chance of occurring in any given year. If you suggest that the same event now has a one in 20 year return period then this means a 5% chance of occurring in any given year. Over a 30 year period this event has a 78% chance of happening. If you now consider that approximately one in 10 existing industrial facilities are located in a designated flood zone, where 80% of flood losses historically occur, you can see why resilience to flooding will become more important. Research shows that, if you are unprepared,a flood could cost your business an average of 2.1m in property damage. However, while the potential threat that flood poses to businesses is manifest, it does not necessarily mean the damage it can cause is inevitable. What are the options? Moving to a spot not prone to flooding is one answer, but often a location cannot be changed, and so protection is the next thought. We often stop at this point, believing that huge earth works and walls are needed at a huge cost. Having a plan to deal with flood is important and thinking about protecting selected areas of a business is a good approach. Pre-planning can lead to a steep reduction in the loss cost of a flood. A FM Global study, examining the effects of flood damage on businesses over a 10-year period, discovered that companies with no response plan or an ineffective one suffered an average gross loss of 2.1m. Companies that did have an effective response plan in place suffered an average gross loss of 600,000, a 71% reduction. Managing flood risk should not be viewed as an expense, but rather, as an investment in your company s future. Preparation is the key to taming the waters and keeping your business high and dry. Remember, you can t always control flood water, but you can control what is in its path. Your shareholders expect nothing less. What can be done to safeguard a business? Have a plan with clear triggers so that action is taken ahead of a flooding incident. There are three principle actions which can protect items from flood damage; move them up out of the water level, protect them from the flood by barriers or waterproof them. Consider temporary and permanent actions. What can be done quickly when a flood is imminent and what requires a longer term plan? Waterproofing is not always practical but choosing appropriate building finishes can make them less susceptible to flood water. Below grade areas in a flood plain are particularly susceptible so avoid storing valuable equipment and material below or at ground level. Do not locate data storage systems or critical power and control equipment where they will be vulnerable to flood. Thomas Roche, FM Global This article first appeared in Global Risk Issue 8 in February

5 Turning the tide Whatever the causes of recent flooding events, it is clear more needs to be done to reduce the damage it causes Our relationship with water has always been a balance. We rely on water for our survival, but it can also be one of humankind s most dangerous, destructive and unpredictable natural enemies. Water lets us live, breathe and work, but when it turns on us, the catastrophic damage it can do is not only costly to life but also costs businesses and governments billions each year in prevention and cleanup. Central and Eastern Europe, as well as large parts of Asia,have suffered significant flood events in recent years, with notably destructive periods in 2002, 2005, 2006 and Recent flooding in the regions, coupled with unseasonably dry or wet weather in other parts of the world, has caused some scientists to point the finger squarely at climate change with a degree of human interference mixed in. Berlin-based Potsdam Institute for Climate Impact Research professor Stefan Rahmstorf told the press recently that he believes the European flooding was the result of the rain dumping low-pressure system being locked into place by a disturbance in global wind patterns. We think it is linked to the current drought conditions in Russia as well, he added. In normal weather patterns, air can move evenly between the poles and the tropics in waves. In recent years, however, the Arctic has been warming, causing the summer sea ice phenomenon to fall to its lowest point on record. This causes temperature differences to fall and the wave movement diminishes. This in turn leads to pressure systems staying locked in place causing wretched weather patterns, according to Rahmstorf s resonance theory. Rahmstorf believes more of these resonance periods have been occurring since But others in the scientific community dismiss Rahmstorf s theory. They say that single extreme weather events or even a few in a row are not related to the overall climate change theory, which is classed broadly as a long-term change. To confirm the exact role played by climate change in flooding trends in past decades, it would be necessary to have more reliable, longterm series data for rivers with a natural flow regime, the European Environment Agency (EAA) said in response to the speculation in June. One area experts agree on is that regardless of whether increased flooding patterns are a result of climate change or not, the mitigation of flood risk remains the same. Government intervention in terms of reducing building in low-lying areas and flood plains, as well as physical flood defences in the forms of dams and levees, has helped alleviate much of the risk. But there is still significantly more work to do for both individuals and businesses, say risk managers. ArcelorMittal general manager of asset risk management Adrian Clements says that when it comes to flood mitigation, the buck stops with government. Local authorities should either not give planning permission in flood zones, or explain clearly the risks. If you take the risk, then you take it. No compensation. Authorities will then be clearly responsible for maintaining dykes if they guarantee flood risk is low. If you look at the newsreels, you see many new houses have been built in flood zones. It comes down to this: if you buy a house with a nice view, you pay the price. That being higher land cost initially and flood damage later. Willis Global Analytics chief hydrologist Tim Fewtrell says investment in flood defences in Europe has been widespread across the region over the last 10 years, largely driven by those areas affected in the 2002 flood, altering natural flood plain retention areas. Major cities and even smaller towns along the main tributaries of the Danube and Elbe rivers have invested in so-called demountable flood defences temporary structures that can be deployed in the event of a flood. Fewtrell says lessons have clearly been learnt about dealing with the flooding. The differences between 2002 and the present day are marked; emergency services and residents are prepared and swift to react, new defence structures have protected large sections of rivers but to the possible detriment of communities downstream and all eyes will now shift to the Elbe and Saale rivers in Germany as the flood wave heads to the North Sea. Local authorities should either not give planning permission in flood zones, or explain clearly the risks. If you take the risk, then you take it Adrian Clements ArcelorMittal For risk managers, it is vital that risk scenarios are kept up-to-date, supply chains are thoroughly researched and understood and insurance is bought where possible. Avoiding building or occupying structures within a 500-year flood zone is ideal say experts, but if this isn t possible, employing structural engineers to design protection features such as dams, channels and diversions around sites could make a big difference. Using non-porous materials such as glass, ceramics and cement during construction can cut reduce damage and expedite cleanup. Once water begins to rise, strong flood defences are all we have. This article first appeared in StrategicRisk in July

6 Flood Understanding the Hazard For a facility located in a known flood zone, it is not a case of if it will flood, but when. Flood damage and disruption is increased by many factors, including contaminated water and the duration of the flood. FM Global can help you evaluate the risk to your facility from this hazard. The Hazard The majority of flood is predictable and inevitable, but flood loss also is preventable. Why, then, is flood the most costly natural hazard in the world? It is estimated that financial loss caused by flood in any given year is between US$2 billion and US$3 billion worldwide. And, during years that see extreme events, such as when Hurricane Katrina hit New Orleans, La., USA, in 2005, that figure can exceed US$20 billion. Predictable Flood maps are available in many countries covering major urban communities. These maps focus primarily on highlighting geographic areas often referred to as high-hazard flood zones, meaning those places at greatest risk of flood from rivers and seas. These zones identify areas that have been flooded in the past, or are predicted to flood in the future. History shows approximately 80 percent of all flood loss occurs within these zones. Inevitable Facilities located within high-hazard flood zones will experience a major flood. In fact, they are five to seven times more likely to experience a flood causing US$100,000 or more in damage than to suffer a fire or explosion of a similar magnitude. With approximately one in 10 existing industrial facilities located within a flood zone, the need to understand the flood hazard and take action is critical. Preventable When planning a new facility, the simple solution to the flood hazard is to build outside known flood zones, including levee-protected areas, and design the site to ensure all storm-water drainage systems are adequate. But, what about existing facilities? The answer is to focus on two main strategies: keeping the water out of important buildings where practical, and limiting what gets damaged when flood water does enter a structure. As with all hazards, it is important to make as many permanent, physical changes as you can to reduce the damage a flood can cause. Then, consider actions that can be taken during an emergency, if the worst should occur. Science of the Hazard The key to preventing flood loss at your facility is to fully understand the exposure to your site. It is critical to be aware of how much warning time you may have, how deep the flood water is likely to get, what the possible impact of fastmoving water might be, and how long it might take the flood water to recede. In addition, bear in mind flood water contains various contaminants, including mud, sand, chemicals (such as gasoline and oil) and even raw sewage, all of which add to the damage potential. Also, waves of little more than 3 ft. (1 m) in height can cause structural damage, and can demolish lightweight buildings. Your FM Global engineer can help you understand your potential flood scenario using available flood, rainfall and topological data, in addition to local knowledge. Looking solely at flood maps sometimes leads people to think locations outside flood zones are immune to flooding. This is simply not true. The main reason is urbanization, where changes in the landscape have altered the flood path since the map was created. In addition, a site s design and layout itself can create a localized flood hazard if the storm-water management system is overtaxed. Once you have a clear picture of what to expect including an estimate of the damage and disruption a flood will cause your business you can take action to reduce your risk. Practical Permanent Solutions and Emergency Response Plan Are Key To reduce the impact of flood on your business, there are simple, practical steps you can take immediately, such as moving critical items out of basements and away from low-lying areas. Then, you can further reduce your risk by making permanent physical changes to your facility, where practical, to keep flood water out of key areas, or permanently elevating important items above predicted flood levels. Finally, if the residual flood risk warrants it, develop a Flood Emergency Response Plan (FERP). What Are the Chances? The following table lists the probably of a flood occurring at least once in a highhazard flood zone during a given period of time. For example, if your building is in a high-hazard flood zone, there is a 26% chance it will experience the 50-year flood level, and a 14% chance it will experience the 100-year flood level, at least once within a 15- year period. Buildings located in flood zones may have floor elevations below the 100-year flood level, and significant flooding will occur at much shallower flood levels. Probability of a Flood Occurring at Least Once in a High-Hazard Flood Zone PERIOD OF TIME 50-year flood 100-year flood 10 years 18% 10% 15 years 26% 14% 20 years 33% 18% 25 years 39% 22% 30 years 45% 26% 6

7 In 2011, the flooding of important commercial and industrial areas all over the world clearly demonstrated that severe floods are not onetime occurrences. Brisbane, Australia, suffered major flooding in 2011, but flooding had been even deeper four times over the past 170 years (in 1841, 1887, 1893, and 1974). Thailand suffered major flooding in 2011 as well, with levels similar to those experienced in The Susquehanna River in New York, USA, has flooded commercial and industrial areas six times since 1993, with floods in both 2006 and 2011 equaling or exceeding the 100-year event. Loss Example A spice manufacturing facility experienced two almost identical flood losses one year apart. The second time around, storage of finished products had been relocated to a height above the previous flood levels. Also, employees took their laptop computers home and were able to conduct vital business transactions from there. These steps resulted in the second flood loss being less than 50 percent of the first, a savings of US$1 million. This maintenance office, located in a below-grade area, was completely submerged. Valuable maintenance records, service agreements and other articles were lost. But What About......the fact my facility is located in a flood zone, but has never flooded? If located in a high-hazard flood zone, there is a 45-percent chance your facility will experience a significant flood at least once within a 30-year period. The likelihood of less severe but more frequent flooding is far greater. Remember, it is always a question of when (and how often) rather than if a flood will occur. our disaster plan that is designed to work for all hazards? The unique aspect of preparing for a flood is that you can ensure you have the maximum advanced warning possible. You can predict the event and establish action steps to prepare your facility. the fact we have a good FERP. Why do we need to make physical changes to our site as well? A FERP can be very effective, but relies on human action. By taking a few practical, physical steps to reduce the flood impact, you are not solely dependent on the plan. After all, you would not install an automatic fire sprinkler system with a manual fire pump and then rely on your emergency response team to be your first line of defense. the fact our facility is protected by a levee? That means there is no flood risk, right? Flood-control works, such as levees and dikes, do reduce the likelihood of a flood. However, they are complex systems and the level of protection afforded by them at any given time is a function of the design and maintenance of the system. If your site is protected by a levee or dike, your entire flood risk management program is in the hands of the levee management authority. Don t Let This Happen To You This location had a Flood Emergency Response Plan (FERP) and barriers to keep floodwater from flowing through doorways and other wall openings. Unfortunately, the FERP didn t include sealing interior storm water sewer drains, which allowed water into this warehouse. Water depth reached approximately 2 ft. (0.6 m) above the floor. What you can do at your facility Now: Ensure you have a clear understanding of the potential flood scenario. This should include your potential warning time, the duration of flooding likely to occur and the depth of flooding anticipated in or around each building or area. Your FM Global engineer can help. Develop a Flood Emergency Response Plan (FERP). Identify and permanently relocate portable high-value items, such as valuable records and plans from basements and low-lying areas. Soon: Where practical (typically, when the potential depth is >1 ft. [0.3 m], redirect water from buildings using permanent landscaping, curbs and speed ramps. If buildings are floodresistant (masonry or concrete), place permanent concrete curbs, steps or ramps to keep flood water out of key buildings and critical substations. If it is impractical to modify buildings or landscape to keep flood water from entering buildings, focus on reducing the impact to key areas, valuable items and critical equipment: High-value items, such as stock, supplies and important records or plans, should be permanently relocated to buildings that are not exposed to flood. If relocation is not possible, permanently elevate portable items above the anticipated flood level, and reorganize inventory so high-value items are stored at higher levels. Reduce the potential damage to key electrical, computer and telecommunication equipment by either permanently raising equipment or by providing permanent walls and curbs around critical substations or equipment rooms to keep water out. Use FM Approved flood abatement products. 7

8 Emergency Checklist: Flood A Flood Emergency Response Plan (FERP), a much more detailed document than a checklist, helps reduce the potential for a flood-related loss at your facility. Once you have a FERP in place, review the plan annually, and have one or more drills. What are the advantages of having a FERP in place before a flood occurs at your facility? A FERP helps you: Gain a thorough understanding of how a potential flood event could affect your facility; Make your emergency response team (ERT) and/or other personnel aware of their roles during such an event; and Ensure you have adequate resources on hand. We do realize, however, that not everyone has the time or the resources to develop a plan immediately. So, until you have a FERP in place, here are some steps to take before and after a flood hits your facility. When Flood Is Imminent When flood is threatening your facility, ERT members and employees should take the following actions (where appropriate): Monitor flood conditions and keep the ERT leader updated. This should be done by a specifically designated person. (Call the U.S. Army Corps of Engineers [or other reliable source] or the local equivalent in your area for the most recent and accurate prediction of water levels/crests.) Relocate the following items to a safe area: Stock, particularly high-value items or those critical to continued operation Equipment, such as portable electronic equipment, computers, testing and qualitycontrol devices, dies and patterns, etc. Vehicles that will be needed after the flood, such as plant trucks, forklifts, tractor-trailers, etc. Critical drawings, records, files, computer tapes Reduce the chance of a fire during flooding by: Shutting off electricity and gas to prevent short-circuiting of electrical equipment and lessen the fire hazard of ruptured gas lines. (If the facility s fire pump is electricity-driven, have a diesel-driven pump available as backup.) Installing barriers around sprinkler risers, yard valves and hydrants to protect them from floating debris. Shut down and drain flammable liquid piping systems. Make every effort to keep fire protection systems operational during a flood. Use the FM Global Red Tag Permit System to monitor any impairment to water supplies or fire protection systems. Fill sandbags and place around possible entry points and vital protection equipment, such as the fire-pump house. Install FM Approved flood doors, planks and shields. Secure or anchor any outside storage or equipment that cannot be moved to another location. Cover large stationary machines with waterdisplacing, rust-preventive compound. (If you have machinery in an area that floods repeatedly, consider permanently relocating equipment to higher ground.) If you expect machinery might be exposed to condensation dripping from the ceiling, cover equipment with large plastic sheets. Fill empty storage tanks including above ground and buried tanks to prevent them from floating. Give sump pumps a final check to make sure they are operational. Close hand-operated valves on drain piping to prevent backflow through floor drains or plumbing fixtures. Check roof, floor or yard drains to see if they are clear, and then continuously monitor them to make sure they remain clear. Consider increasing security and facility surveillance. Place contractors and equipment repair companies (already identified in your FERP) on alert. Make sure a salvage crew is on alert and prepared to take actions outlined in your FERP. Contact FM Global to review precautions taken. After the Flood Has Hit As soon as possible after the flood, the ERT and other personnel should begin salvage procedures, beginning with the immediate drying of equipment and dehumidifying areas of critical importance. Also: Keep fire protection systems in service. This is vital because cleanup can result in the build-up of large piles of combustible material. Return any impaired fire protection systems, including alarm notification systems, to service promptly. Test any system potentially affected by the flood. Conduct all cutting and welding repairs using FM Global s Hot Work Permit System to prevent fire. Assess the actual impact, determine needs and initiate planned cleanup, repair and businessresumption services. Check flooded buildings for structural stability before starting cleanup inside. Check for spilled flammable liquid, contaminants, etc., and eliminate them before other work begins. Remove standing water from the facility. Clean and dry equipment, giving attention to the most vital or susceptible pieces first (these should have been identified in your FERP). Check, clean and test all electrical distribution equipment and system components exposed to flood water or humidity. Dehumidify damp areas and dry wet insulation and building material. Remove flood debris from the facility and separate wet material. Develop a Flood Emergency Response Plan now if you don t have one in place. 8

9 Flood Emergency Response Plan A well-organized Flood Emergency Response Plan does make a difference FM Global loss history has shown that facilities with well-organized FERPs have nearly 70-percent less damage, and resume operations sooner than those locations without a FERP, or an inadequate one, in place. The key to success? Spending an adequate amount of time developing a FERP prior to the flood. Consider taking the following steps: Make sure you understand the potential flood events to which your site is exposed. It is critical to know how much time you will have to put your plan in place. Important aspects include warning time, how fast the water will rise, and how long it will last. This is where your FM Global engineer can help you. Ensure you have a reliable method of flood warning. Do not underestimate the impact you can have on reducing the potential damage and disruption to your business if flooding occurs. There are countless examples of employees taking impromptu steps that have reduced potential damage and disruption during a flood emergency. Formal advanced plans, such as a flood emergency response plan (FERP), have the advantage that those involved are aware of the most important steps to take, and have adequate resources on hand. What is unique to planning for flood is that, by understanding the event to which you are exposed, you can factor in warning times that do not exist in many other emergencies. This is the key to an effective FERP. Before developing a plan, take a hard look at equipment and/or processes in your basement or other low-lying areas. Relocating this key equipment and/or processes to higher levels has a major-and permanent-impact on your potential loss should flooding occur, and does not rely on human intervention in the event of a flood. By taking the time to understand the potential flood event that could affect your facility, you can make good use of what warning time is available, however limited. Protecting Your Property There are steps you can take to protect your property from the ravages of flood, but, remember emergency actions to protect your property from flooding are very different from the actions needed in case of fire. Flood emergency actions need time to be put into place. By taking the time to understand the potential flood event that could affect your facility, you can make good use of what warning time is available, however limited. And, if the potential flood event affects a wide area, make sure you consider the impact to resources you might otherwise use, such as contractors and emergency agencies. Flood predictions for large rivers can give a few weeks warning. With tropical storms, hurricane tracking gives an indication a few days ahead, but, typically, provides 12 to 24 hours specific notice. With small streams, there may be very little warning time the best resource may be the local weather forecast. Establish the potential impact to your business (e.g., what operations will be affected, what level of damage will be involved, etc.). Your local FM Global engineer can provide assistance. Identify any potential changes you could make to your facility to permanently reduce the impact of flood, such as: Using permanent FM Approved barriers to keep water out Raising key equipment above expected flood levels 9

10 Average Gross Losses from Flood ( ) During a recent 10-year period, FM Global recorded 118 losses where flood emergency response was a factor. An effective flood emergency response in 72 cases yielded an average gross loss of US$1.2 million, whereas 46 cases with an ineffective or no response plan yielded an average gross loss of US$4.2 million. Flood Emergency Response Plan To Be Effective a Well-Planned Flood Emergency Response Plan One person who has the ultimate authority to activate the FERP and redirect production resources and, ultimately, shut down operations, if necessary; Procedures to safely shut down equipment and isolate electrical equipment; Procedures to raise and/or relocate key equipment and material; Plans to prevent water from entering key areas and/or entire buildings; Plans to take care of employees and their families, if the flood fight is prolonged; Reliance on those employees whose homes are unlikely to be affected by the same flood; Inclusion of post-flood repair and business-recovery plans; Regular training procedures; and Revisions as changes occur (e.g., personnel and business activities). Establish effective emergency actions, including: Using FM Approved temporary barriers and sandbags Moving high-value stocks and supplies Moving portable highvalue equipment Make sure you know how long the plan will take to put into effect. It s essential to balance available warning time and resources to your expectations. Try to organize actions into individual steps, so each one has some benefit and you don t need 100-percent compliance for your FERP to be effective. If your FERP revolves solely around keeping water out, you may only have one chance to take precautions. It s unlikely you can close flood doors or build sandbag barriers once the water starts coming in. Be alert to the resources available day and night, and make sure all time periods are adequately covered. Have adequate resources available to clean up, to start drying out wet areas, and to return operations back to normal once floodwaters recede. Formalize your FERP in writing, dry-run the entire plan and conduct regular training exercises. Where possible, develop contingency plans, taking advantage of make-up capacity at sister operations, subcontract capabilities or other possible alternatives. 10

11 Growing Up or Out? You can protect your property from flood if you are building a new facility or adding on to an existing one. Here are some guidelines: If you are building a new facility: Don t build near a flood zone; If you are near a flood zone, ask a hydrologist to review available information and conduct a study to determine the exposure. (FM Global engineers can help interpret the study and review your site design for flood exposure); Avoid storing valuable equipment and/or materials below grade; Avoid locations that rely upon access/ transportation routes that are in a flood zone; and Avoid relying upon utilities that are in a flood zone. If you are adding on to an existing facility: Build above the predicted flood level; Avoid below-grade spaces; Flood-proof exterior walls and doors; Use FM Approved flood doors or flood planks to keep water out; Elevate key equipment, including electrical controls and process equipment; Limit in-process and finished storage; and, most importantly, Update your FERP. 11

12 Warning time may be limited, but a good FERP will help prevent your organization from experiencing unnecessary property damage and business interruption. Photo: courtesy of FEMA Remember, it s important to develop a FERP for your specific facility. Don t adopt a plan that s been prepared for another facility within your organization or for a neighboring facility your plan must reflect local conditions and be governed by the contents, equipment and construction of your facility. The Ultimate Authority As you prioritize actions, be sure to evaluate the business impact of each step. Actions that do not affect normal business activities are easy to implement with the right resources. Once your plan starts to affect your business, establish the most appropriate level of authority necessary to shut down your facility. Do not underestimate the challenge this presents the success of the entire plan is to work ahead of the flood, so you are reliant on flood-warning information. Taking action can lead to disruption. After all, there always is the chance that predictions are wrong and the flood may not occur. By truly understanding the potential flood event, as well as the nature of the warning and timing, you will be able to determine a point of no return, after which your plan will not have time to work. This may be the most critical part of the plan, so it s essential that management is aware of the implications, supports the plan, and agrees as to who has the authority to put the plan into place regardless of the immediate business implications. Only One Piece of the Puzzle While a well-developed FERP can be effective, you can have a great impact by taking some physical steps to protect key parts of your business. Where possible, relocate key processes and/or material from basements and low-lying areas to other parts of your facility at elevations higher than the expected flood. If this is not practical, consider protecting individual areas and/or equipment by: Blocking or waterproofing window openings; Installing flood doors that can easily be put into place; Creating permanent or portable barriers around critical equipment; Securing rack structures; and/or Relocating your most valuable and critical materials to upper rack tiers. 12