Memories & Reflections

By

Florence Rogers 

“We Will Never Forget” 

Florence was the Chief Executive Officer of Federal Employees Credit Union when terrorist Timothy McVeigh bombed the Alfred P. Murrah Federal Building in Oklahoma City April 19, 1995. Eighteen of her staff died in the explosion.  – Rich Woldt 

Introduction by Rich Woldt:  Florence Rogers was always a leader in the credit union movement, always a staunch advocate of the “People Helping People” philosophy, and always willing to rescue members in need or in harms way. So, on the day she calls “that fateful day” few were surprise when she took command and inspired a world shaken by the first terrorist attack on US soil. To say she inspired others that day is an understatement. Within hours of being rescued herself from the ledge of the bombed  building, Florence was on the frontlines assessing damages and planning her credit union’s recovery. I remember, we found her on the sidewalk doing what she could to console survivors.  

During a recent visit with Florence, we talked about all the water that’s gone under the bridge since April 19, 1995, and how memories of those lost have sadly been replaced with recent memories of 2005 tragedies including the tsunami, hurricanes, and terrorist attacks. We talked about her “Road to Recovery” and the path she followed as she moved on. At some point, we discussed the need to document her progress and share her recovery path with the victims of 2005.   

Specifically, Florence decided to sit at her typewriter (talk about moving on) and record her memories and reflections starting that fateful day, the first 45 days, the period up until she retired and than bring us up to date on her progress. We agreed that tragedy was frozen in history but the memories of what happened that day will never be forgotten. Florence was to keep it “free flowing” so we might learn both from her experience and the recovery path she followed up until today.  

She said she’d do that if I’d edit it before adding it to our library, so I lied and said I would. In fact, I’ve kept the editing to a minimum. To edit anything that comes from the heart runs the risk of losing its meaning. For those registered to access our “Deep Throat” files, her original draft will be there for future historians. If you have not visited the Oklahoma City National Memorial, please go to: http://www.oklahomacitynationalmemorial.org/  

As you read her paper, note her first focus is on physiological needs during the first 48 hours, than belongingness needs during the first 45 days, and eventually her progress toward redefining her future and charting new paths to self esteem and self actualization. Note also, how 11 years later, her core values and true grit has resurfaced, meaning it was always there and no doubt supported her every step of the way. 

Memories and Reflections: By Florence Rogers April 19, 2006  

Much water has gone under the bridge since you’ve heard from me. I hope this finds everyone well and hard at work serving your members. I’m well, enjoying my retirement and keeping busy. Rich asked me to share my thoughts and memories of the bombing in the hope they might help those recovering from the hurricanes and tsunami of 2005. 

April 19, 1995 – April 19, 2005 

It’s been 11 years since so many lives were changed in Oklahoma by what than was the worst terrorist attack ever committed on U.S. soil. Not a day has gone by without me thinking of that “fateful day” when the offices of our Federal Employees Credit Union were totally destroyed. In a split second 18 of my staff who collectively worked 128 years for me were killed without any warning or time to say good bye. I’m sure like at your credit union, we too were like family.  

Eleven years has helped me deal with the pain. I now find myself remembering some of the pleasant and fun memories as opposed to the memories of those terrible few weeks that followed the bombing. At the time the weeks seamed endless. Each day we had to deal with learning of confirmed deaths as victims were dug from the rubble of the Alfred P. Murrah Building and identified.

I remember the days, weeks and months following the bombing as being long, chaotic and very busy. Being forced to hire staff to replace those lost was a tremendous challenge we thought would never end. We moved daily, then weekly, and then finally life seamed to level off to monthly board meetings. Every meeting was a challenge. We hopped that terrible time in our credit union’s history would eventually go away, but not so.  It never went away and I now realize it never will.

Looking back on the first 48 hours – 45 days -  27 Months:  

Looking back I remember the importance of having a disaster recovery plan in place and the many volunteers from the credit union community reaching out to help. With our plan, their help, and the temporary location loaned to us by Tinker Federal Credit Union we opened for business and were serving our members in 48 hours and 18 minutes. I look back at that with pride in our credit union and all those who came to our rescue. We spent the first 45 days at our temporary home while another location was renovated and made ready for our use.

Twenty seven months after what I’ll always call “the fateful day” and while I was in my 26^th year serving as CEO, I retired. While I retired a bit earlier than I had planned during a career I really enjoyed, I have no regrets. The credit union was doing well, most of the survivors including the injured had returned to work, a new crew had been successfully hired and our Regulator, the Oklahoma State Banking Department had just completed their audits and given us a clean bill of health. They had kept a watchful eye on us so it was encouraging to hear their compliments and comments on our ability to "rise from the ashes."

I now look back and can see what went well and what we did to position our credit union to move forward. As I retired, we had a beautiful new office building nearing completion and a lovely memorial garden was planned for our new site to honor those lost and those who survived. The bombing was a senseless act of terrorism that traumatized not only the credit unions in Oklahoma but credit unions around the world. Knowing this I can now appreciate why I feel so close to credit union members I’ve never had a chance to meet or thank for their generosity. Our memorial garden was made possible by the generous donations we received from credit unions across the US, Canada and Australia and I’m sure from the support and prayers of credit union members around the world.  

I know many long time credit union members with whom I had bonded over the years just couldn't believe I was retiring before we moved into our beautiful new location. But, as I explained to them then and feel even more strongly today, “Moving into a new location was not that high on my list of priorities. A disaster such as we experienced places a whole new light on what's really important in life!” 

Since I Retired: 

Since my retirement the name of the Credit Union has changed and only five of my original 33 staff members are still there. Many felt the need to leave due to the constant reminders of their co-workers that were no longer there but were loved and referred to often by the members who always had a "favorite."  One of the survivors, seriously injured, who came back, is now one of the vice-presidents and I couldn't be prouder.....after all, she was hired on my watch

Soon after our disaster, I was asked to tell our story to credit unions, Leagues, and credit union associations across the U.S.   My travels even took me to Australia, Canada and Kenya, Africa.  These trips were so special to me and the friendships I made while there are lifetime treasures and wonderful memories.

The Oklahoma City National Memorial and Museum: http://www.oklahomacitynationalmemorial.org/ 

Soon after our disaster, I became involved in the Memorial process for the Oklahoma City National Memorial and Museum. I served as a board member for the Foundation for 9 years as well as serving on many of the committees.  The families and survivors were always included in every decision with the planning and construction process. The organizations who heard my story over the years all sent generous honorariums in my name after my presentations, so I feel very good about the small part I played in the construction of this beautiful place here in Oklahoma City.   The Memorial consists of three components: the outdoor memorial containing 168 chairs (one for each one lost) and a lovely reflecting pool, the museum that tells the complete story and the Terrorism Institute that provides education and information worldwide.

I am still involved with the Memorial some 10 years later and serving on a new committee just barely organized.  This project, "A Network of Hope-A Resource to Help" hopes to catalog examples of practices and programs that can be used to help communities develop a sense of resilience as they recover from disasters or terrorist attacks.

I initially thought that retirement might bring boredom since I had always been an active, busy person while raising my two sons and having a 35 year career in the management of credit unions.   I was wrong......there has yet to be a boring day as I approach 9 years into my retirement

Besides serving on the board of directors and committees at the Memorial Foundation, I still serve as treasurer of my neighborhood association as well as Secretary/Treasurer of a Christian Women’s Group.  My neighborhood and community did so much for me during the dark days, that I decided it was time to give back.  I now volunteer at a nearby voting precinct and joined a small group of ladies at my church who make birthday, sympathy, and get well cards for the members.  My marketing skills from the early days of my credit union career have helped me with this project.  I also read a lot, but it certainly isn't government regulations and I seldom know what the prime or T-Bill rate is these days. 

Your about to find out why I asked Florence to bring us up to date – Rich Woldt 

Skip tracing and collection techniques from the early days of my career were instrumental in some recent activity that resulted in shutting down a drug house (among many other illegal activities) that had popped up right in my normally quiet little cul-de-sac.  This house is right in my view 24/7.  It took nearly two years, working with my next door neighbor and taking turns keeping tag numbers and descriptions to succeed in removing this eyesore from our neighborhood.  The dispatch officers at the 911 call center and all of the police officers who work in our precinct got to know us by first name.  As a result of our enthusiasm and preserve, we were invited to attend the Citizens Police Academy: a 12 week course that began last fall.  The presentations each week were packed full of exciting adventures and gave us renewed enthusiasm as we watch COPS and CSI.

So you see, there really is life after credit union retirement.  There are days that I still find myself thinking of the 1995 events here in Oklahoma City and reminders everywhere of that day and those lost. When I feel a little depression coming on, I put the leash on my little dog and we go for a nature walk in the wooded area that has a running stream close to my backyard.  We watch the birds and wildlife, enjoy the sunrises and sunsets, breathe the fresh air and count the blessings for another day.

Retirement also gives me the time to do things for my family that I felt where neglected over the years while I worked.  I cook special meals for a grandson who helps me with my yard.  I take warm cookies and special dishes to my son and his wife who live close by, and help by daughter-in-law who still works with her ironing and mending.

I will be visiting my other son in Florida a few times a year since he recently moved to Jacksonville.  They have a lovely swimming pool, so I plan to purchase a new bathing suit before I visit again as my old one has holes in the knees.

The 11th Anniversary of the Oklahoma City Bombing will be observed on a somewhat low-key program.  Many of the families and survivors return each year to place a wreath on their loved ones chair and renew the bonds they all shared during those terrible days following this disaster.  I know for sure that the promise made and kept will be evident: "We will never forget!" 

I close sending my best wishes and God’s blessings to who I’ll always consider my credit union family. Thank you for all you’ve done for me and victims of that fateful day.  

Florence Rogers

CEO The Federal Employees Credit Union - Retired

Written by: RMLC Faculty Member David McGuinn

SAFE DEPOSIT SPECIALISTS

For Immediate Release: Contact David P. McGuinn, (713) 937-9929 or sdspec@aol.com 

Faulty Marketing Threatens Safe Deposit Integrity

 If your financial institution provides safe deposit box services, BEWARE of faulty marketing practices that might create confusion, erode consumer confidence, and even evoke accusations of false advertising. Click Here for more...!

Written by: RMLC Faculty Member David McGuinn

SAFE DEPOSIT SPECIALISTS
Mail:
P0 Box 40026
Houston, TX 77240-0026
Phone:
713. 937.9929
Fax:
713.937.7751
e-mail: sdspec@aol.com

There is a shiny new “no fault” self-service box concept, which is currently being marketed to financial institutions across America, and it is spreading like wild fire in a Kansas wheat field. 

If your institution is now offering, or is contemplating offering, this “revolutionary” service to your safe deposit box clientele, be advised that there could be costly financial consequences down the road. 

Zealous equipment vendors are successfully convincing senior management that the rental of self-service boxes is appropriate and that the financial institution is totally protected from any liability provided a “no fault” clause in the rental contract is signed by all renters exonerating the institution from any and all liability due to loss of box contents. The self-service box renters are now being asked to exchange security for convenience. 

Terms such as “unique”, “latest state of the art”, “convenient”, “zero liability” and “less costly” will be mentioned as many financial officers are seduced into embracing this self-service scheme. 

Supreme Court Ruling

One unfortunate institution found itself defending its box rental system before the Illinois Supreme Court. All the glowing modifiers that had convinced them to offer a “no fault” box rental contract were now being replaced with terms such as “grossly negligent”, “breach of responsibility” and “failure to exercise ordinary care”. The court ruled that the exculpatory clause in the rental contract was not enforceable, and it was subsequently overturned. The negative court ruling cost the institution millions. The names in following lawsuit have been changed to protect the identities of all parties involved.

Mutual Insurance Company vs. XYZ Bank (Illinois Supreme Court)

Background: XYZ Bank’s negligence caused more than $1 million of diamonds to be stolen from safe deposit boxes rented by three jewelry dealers. This bank offered its safe deposit box renters two contract options: a standard contract that contained a clause exculpating XYZ Bank from any liability for loss of or damage to contents, and a more expensive option under which the bank would charge more in exchange for its assumption of more liability risk. The jewelry dealers had elected the less expensive, standard contract. When XYZ Bank was sued to recover the financial loss caused by its negligence, the bank relied on the exculpatory clause in the standard agreement.

Issue:  Did the exculpatory clause in the standard agreement excuse XYZ Bank from any liability when its negligence allowed unauthorized access to the safe deposit boxes and the theft of the boxes’ contents?

Result:  The Illinois Supreme Court ruled that XYZ Bank could not accept a rental fee in exchange for its promise to exercise ordinary care with respect to the rented boxes, and then exculpate itself from liability for its own negligence. The Court noted that the exculpatory clause, if allowed to stand, would logically allow XYZ Bank to hand the keys over to anyone off the street who would be free to rummage through people’s safe deposit boxes without any penalty to the bank. Therefore, the Court concluded that XYZ Bank did owe a duty of care to the renters of the boxes and was liable for the losses, and that the exculpatory clause in the standard agreement was not enforceable. The Court distinguished a Florida case in which a safe deposit box rental agreement limiting the Florida bank’s liability to “instances of gross negligence, fraud or bad faith” was upheld. That distinction may preserve the ability of an Illinois bank to include some measure of liability limitation in safe deposit box rental agreements.

Other Time Bombs Ticking

Many distressing self-service horror stories are beginning to surface. These tales of woe reinforce the strong recommendations of many nationwide safe deposit experts (myself included) warning financial institutions that implementing this self-service concept is neither the safe nor the prudent way to offer a proper box rental service to consumers.

24 -7 Access Available

One Colorado financial institution developed a very unique way to offer their self-service boxes. They now provide their renters with 24-hour, 7 days a week box access. They were able to offer this convenient service because their self-service boxes were not installed inside a vault. If you think this is impossible or illegal, think again. There are no federal or state laws that require a vault to be used. 

To implement this unique service, the bank removed the glass windows from the front wall of their facility thereby creating a second and separate entrance. This entrance opened into a multistory atrium. Some architectural modifications converted this atrium area into a self-service box repository. Within this vault-less, unsecured space, the self-service boxes were installed. Now, without the need for tedious vault access procedures, box renters could stroll into the “atrium lobby” any time, day or night, seven days a week with only their single box key as security. 

Unfortunately, locksmith tools are now available on-line, and with these tools safe deposit boxes can be opened in a matter of seconds without a key. It would seem that now thieves can also enjoy the convenience of this 24-7 self-service concept. If these exiting box renters knew this, I do not think any of them would entrust their most valued possessions to a system this vulnerable.  

Biometrics at Work

Many financial institutions are now using a biometric vault-entry system to allow access to only authorized renters. This system worked well for a Texas institution, but many renters became confused when they attempted to exit through the vault’s day gate. Consequently, a motion-sensitive relay switch was installed in the ceiling. The day gate automatically opened whenever a renter passed under it.  

This seemed to eliminate the problem until a savvy senior citizen stuck his walking cane through the day gate. This activated the relay switch, the gate opened, and our renter easily entered the vault, no biometrics needed. How many con men, armed perhaps with one of Ebay’s locksmith tools, could also do the same thing?  

Insurance Policies Cancelled

A very large nationwide insurance company has recently notified their agents and financial clients that liability insurance coverage will not be provided if self-service boxes are offered without a secure vault for protection. Financial institutions should never implement this concept without obtaining adequate liability coverage. The tragic outcome of even one disappearance claim could be very significant. 

These institutions must now make some very difficult decisions. Do they continue offering this dangerous service and hope for the best? If they choose not to provide it, the cost of retrofitting all of the one-key, self-service locks back to the preferred dual-key lock system will be formidable. Finally, renters accustomed to the ease and convenience of these self-service boxes must now be convinced that a dual-lock safe deposit box, housed inside a secured vault, is in their best interest.

In Conclusion

These stories are just a few of many nightmare situations that have occurred when management is not properly informed, correct access procedures are not followed, and your safe deposit contracts are not structured properly. If you would like further information about self-service boxes, call (713) 937-9929 or visit our web site at www.sdspec.com. On this web site there are other informative “self-service” news articles and a manual with additional information about this dangerous concept.  

About the Author: David P. McGuinn, President of Safe Deposit Specialists, is a former banker and is often referred to nationwide as the safe deposit GURU. In all 50 states he has trained over 200,000 safe deposit personnel since 1969 and has served as President of the American Institute of Banking and the American, Texas and Houston Safe Deposit Associations. He has created numerous safe deposit manuals, training videos, compliance brochures and other products including a comprehensive manual titled “The Pros and Cons of Offering Self-Service Boxes”. During the past 35 years, McGuinn’s safe deposit products have been recognized as the national standard for the financial industry.

The Risk Management Learning Center

“Pyramid Road to Recovery”

By Rich Woldt CPP, CFE

Note to reader: I’ve taken much of Maslow’s biography from a paper written by Dr. C. George Boeree published at web site: http://www.ship.edu/~cgboeree/maslow.html I recommend this site for your studies on Personality Profiles. The blue highlights in this paper are my editorial comments offered to clarify the relationship between Maslow's hierarchy of needs and our road to recovery pyramid.

The foundation of our “Pyramid Road to Recovery” is based on the work of psychologist Abraham Maslow (1908 – 1970) who, while I can’t claim him as a close friend, I can claim him as a fellow graduate from the University of Wisconsin. My real respect for Abraham Maslow comes from his life experiences and his focus on friends and family. It is this same focus on our communities and country that unit us after a disaster like Katrina or crisis like 9-11.     

Abraham Harold Maslow was born April 1, 1908 in Brooklyn, New York.  He was the first of seven children born to his parents, who themselves were uneducated Jewish immigrants from Russia.  His parents, hoping for the best for their children in the new world, pushed him hard for academic success.  Not surprisingly, he became very lonely as a boy, and found his refuge in books.

To satisfy his parents, he first studied law at the City College of New York (CCNY).  After three semesters, he transferred to Cornell, and then back to CCNY.  He married Bertha Goodman, his first cousin, against his parent’s wishes.  Abe and Bertha went on to have two daughters.

He and Bertha moved to Wisconsin so that he could attend the University of Wisconsin.  Here, he became interested in psychology, and his school work began to improve dramatically. He spent time in Madison working with Harry Harlow, who is famous for his experiments with baby rhesus monkeys and attachment behavior.

He received his BA in 1930, his MA in 1931, and his PhD in 1934, all in psychology, all from the University of Wisconsin.  A year after graduation, he returned to New York to work with E. L. Thorndike at Columbia, where he became interested in research on human sexuality. This might be another reason why I like Maslow. His efforts to understand gender differences during a crisis, while they’re not emphasized in our work, have influenced our trauma management protocols. 

He began teaching full time at Brooklyn College.  During this period of his life, he came into contact with the many European intellectuals that were immigrating to the US, and Brooklyn in particular, at that time -- people like Adler, Fromm, Horney, as well as several Gestalt and Freudian psychologists. Again, my respect for Maslow has much to do with his European ties and his global view of human nature.

Maslow served as the chair of the psychology department at Brandeis from 1951 to 1969.  While there he met Kurt Goldstein, who had originated the idea of self-actualization in his famous book, The Organism (1934).  It was also here that he began his crusade for a humanistic psychology -- something ultimately much more important to him than his own theorizing. It is his focus on “humanistic psychology” that leads me to believe our “Pyramid Road to Recovery” will work in all cultures, communities, and countries regardless of political ideology or social disparages.

He spent his final years in semi-retirement in California, until, on June 8 1970, he died of a heart attack after years of ill health.

Theory

One of the many interesting things Maslow noticed while he worked with monkeys early in his career was some needs take precedence over others.  For example, if you are hungry and thirsty, you will tend to try to take care of the thirst first.  After all, you can do without food for weeks, but you can only do without water for a couple of days!  Thirst is a “stronger” need than hunger.  Likewise, if you are very thirsty, but someone has put a choke hold on you and you can’t breathe, which is more important? The need to breathe is more important, of course.  On the other hand, sex is less powerful than any of these. We all know, you won’t die if you don’t get it! Knowing all this helps us prioritize our response protocols during a disaster.

Maslow took this idea and created his now famous hierarchy of needs. Beyond the details of air, water, food, and sex, he laid out five broader layers:  the physiological needs, the needs for safety and security, the needs for love and belonging, the needs for esteem, and the need to actualize the self, in that order. In our Risk Management Learning Center model, we break these into three levels. First are the physiological, safety and security needs focused on by first responders, insurance companies, financial institutions, and the business community. Second, we focus on “sociological” needs or the need to belong such as to a business association, veteran’s organization, church, or social club. And finally we address the need for self esteem and self actualization through schools, colleges, universities, and continuing educations.

1.  The physiological needs.  These include the needs we have for oxygen, water, protein, salt, sugar, calcium, and other minerals and vitamins.  They also include the need to maintain a pH balance (getting too acidic or base will kill you) and temperature (98.6 or near to it).  Also, there’s the needs to be active, to rest, to sleep, to get rid of wastes (CO2,  sweat, urine, and feces), to avoid pain, and to have sex.  Quite a collection! Watch how these needs and their order of importance are handled by the Chief of Operations in our Incident Command System.   

Maslow believed, and research supports him, that these are in fact individual needs, and that a lack of, say, vitamin C, will lead to a very specific hunger for things which have in the past provided that vitamin C -- e.g. orange juice.  I guess the cravings that some pregnant women have, and the way in which babies eat the most foul tasting baby food, support the idea anecdotally.

2.  The safety and security needs.  When the physiological needs are largely taken care of, this second layer of needs comes into play.  You will become increasingly interested in finding safe circumstances, stability, and protection.  You might develop a need for structure, for order, some limits. This is why   “command and control” is so important during any crisis situation. It is why community leaders need to respond and assess damages in as visible a manor as possible. Watch how this level of needs will influence all four Chiefs (Operations, Planning, Logistics, and Finance). This is why insurance companies activate not only their claims personnel but their Account Relationship personnel at the Emergency Operations Center (EOC).

Looking at it negatively, you become concerned, not with needs like hunger and thirst, but with your fears and anxieties.  In the ordinary American adult, this set of needs manifest themselves in the form of our urges to have a home in a safe neighborhood, a little job security and a nest egg, a good retirement plan and a bit of insurance, and so on. Note the progression from safe neighborhood to a job to liquidity and long term savings, and insurance. Watch how this progression influences the response protocols at each level of the Risk Management Learning Center Pyramid Road to Recovery (P-R to R).

3.  The love and belonging needs.  When physiological needs and safety needs are, by and large, taken care of, a third layer starts to show up.  You begin to feel the need for friends, companions, children, and affectionate relationships in general, even a sense of community.  Looked at negatively, you become increasing susceptible to loneliness and social anxieties. Remember this because it will drive the route we take victim on from the hot site, through recovery, and back to normal. Katrina, by its sheer size, increased the distance victims had to travel before they felt safe and secure. This, however, increased the distance they will now have to travel to get back home.

In our day-to-day life, we exhibit these needs in our desires to marry, have a family, be a part of a community, a member of a church, a brother in the fraternity, a part of a gang or a bowling club.  It is also a part of what we look for in a career. Note the progression from immediate relationships to long term goals that lead to self esteem and self actualization. These also will influence many of the recommended victim assistance strategies in our P-R to R.

4.  The esteem needs.  Next, we begin to look for a little self-esteem.  Maslow noted two versions of esteem needs, a lower one and a higher one.  The lower one is the need for the respect of others, the need for status, fame, glory, recognition, attention, reputation, appreciation, dignity, even dominance. This is why it’s so important to have an established chain of command prior to a crisis. Otherwise, there are those who’ll take command even when they don’t really know what to do. For example, during Katrina, people were hiring buses to evacuate victims when doing so put the victims in more danger than had they been left to shelter in place. I refer to the bus used to evacuate victims on oxygen.  The higher form involves the need for self-respect, including such feelings as confidence, competence, achievement, mastery, independence, and freedom.  Note that this is the “higher” form because, unlike the respect of others, once you have self-respect, it’s a lot harder to lose! Watch for our Incident Command System focus for schools, colleges, universities, and continuing education programs.

The negative version of these needs is low self-esteem and inferiority complexes.  Maslow felt that Adler was really onto something when he proposed that these were at the roots of many, if not most, of our psychological problems.  In modern countries, most of us have what we need in regard to our physiological and safety needs.  We, more often than not, have quite a bit of love and belonging, too.  It’s a little respect that often seems so very hard to get! Much of the looting between the time victims evacuate and hurricanes hit land is driven by organized gangs who have a perception that it’s OK to steel from the rich or the “haves” in the neighborhood. Read some of the published incident reports from Katrina and Wilma.

All of the preceding four levels he calls deficit needs, or D-needs.  If you don’t have enough of something -- i.e. you have a deficit -- you feel the need.  But if you get all you need, you feel nothing at all!  In other words, they cease to be motivating.  As the old blues song goes, “you don’t miss your water till your well runs dry!” Now that you know where the “Pyramid - Road to Recovery” came from. Consider what you witnessed before, during and after Katrina. Refer to the response protocols we posted for first responders, victims, and evacuees. And than consider the focus you will place on your “Incident Command System.”  Will it be on the level #1 “Physiological,” level #2 “Belongingness,” or level #3 “Self Esteem and Self Actualization,” needs of the victim?

Risk Management Lessons Learned During Hurricane Season 2005

By: Rich Woldt – CEO of the Risk Management Learning Center 

The hurricanes of 2005 brought out the best and worst in all of us. Our best was highlighted by an international response to Katrina, tapping the support and resources of virtually every good citizen from every community around the world. The worst was highlighted by a media that focused on the looting, the shooting, the failed rescue efforts and the few who spent most of their time criticizing government agencies for failing to live up to their expectations. Most of the finger pointing was driven by frustration and fear while some was exaggerate by those creating sound-bites for the next election.

Fact is, the hurricanes of ’05 taught us much of what we already knew. They taught us that bad things happen to good people when they don’t heed the warnings of emanate danger. They taught us that failing to plan is planning to fail, and no matter how much we plan, we need a system of command and control to lead us out of harms way.  

So let’s wind the clock back to any point before any one of the ’05 hurricanes and assess what we knew at the time. We knew hurricanes destroy just about everything in their path and the damage caused will be directly related to the intensity (category) reached when they hits land. We also knew we had a well tested and reasonably accurate system in place to track hurricanes from birth to death and warn almost everyone in harms way. We knew that for the most part everyone in harms way had learned for generations how to protect their property, prepare themselves, and either seek shelter (house-in-place) or evacuate. Finally, we knew that hurricanes traumatize everyone in their path and everyone who cares; period. After all, we knew trauma is not driven by political ideology, religion, or social class. It’s driven by the guilt we feel when we know we should have done or be doing something to help. It’s driven by the “fear” we feel when we realize it could be happening to us or someone we love. And trauma is driven by the profound “sense of not being in control” of our present or future.

We’ve learned through experience that all property and casualty risks increase before, during, and after a hurricane. For example, much like businesses that wrote “contingency plans” for recovery, looters wrote action plans to implement between the time evacuees left New Orleans and when Katrina hit shore. Before Katrina, New Orleans law enforcement knew gangs living in the high crime rate areas of the city were going to loot the French Quarter and shoot at anyone trying to stop them. Looting, burglaries, robberies, extortion, kidnapping, fraud, scams, and even murders and gang reprisals all escalate when social barriers and municipal safeguards collapse. Therefore, insurance and bonding companies need to plan for escalating real and bogus claims, increased insurance fraud, increased scams, and defaults on premium payments.

Note to Readers: The 2005 hurricanes provided our RMLC faculty with a number of R&D opportunities. I encourage you to read the Katrina’ white papers, incident reports, and ICS postings we issued to first responders, victims, and evacuees. When possible in ’06, RMLC workshops and presentations will include lessons learned before, during, and after Katrina. We’re developing three “Virtual” Incident Command System’ templates for Property/Casualty carriers, financial institutions, and community leaders using our “Community Outreach Programs.” All are adopted from the Incident Commands used by emergency governments throughout the gulf coast. Refer to our home-page postings and the tutorials under “Pages under Constructions” for more information.

Contingency Planning – Conclusions and Recommendations:

Risk Management (RM) assessments during Katrina underscored the importance of well written and tested contingency plans. For the most part plans required by financial institution regulators, those written for the private business community and those recommended for schools, elderly and child care facilities, and hospitals worked well. It appears the plans written for insurance companies and financial institutions scored the highest followed by those written for schools and public utilities. Most other plans failed because they were outdated or written to the “Disaster Recovery” standards of the ’70s the “Business Continuity” standards of the ‘80s and ‘90s, or the “Business Resumption” standards acceptable prior to 9-11. Contingency plans written and updated to post 9-11 protocols worked best until they too were overwhelmed by incident “scope creep,” and the escalating breakdown in communications followed by a failure to command and control the response from the private sector.

RMLC Solutions:

Our contingency planning workshops in 2006 will focus on conducting accurate damage assessments, determining the scope of the incident, and launching an appropriate incident response.

2006 Incident Command Systems – Command & Control

Professional first responders, specifically fire fighters have used the “Incident Command System (ICS)” for decades to provide incident command and control appropriate to the scope of each incident. So, on 9-11 when terrorist attacked the World Trade Center, fire fighters responded following their traditional “unified” command protocols only to learn that staging areas were located too close to the collapsing towers and EMTs entering the towers would never come out alive. They also learned that terrorist often stage an attack as a decoy to lure responding assets to a staging area and than attack the staging area. Consequently, post 9-11 Incident Command (IC) response protocols focused not only on launching a speedy and appropriate response, but equally important, on protecting and defending all response personnel and recovery resources.

Our assessment of the response protocols used by law enforcement, fire fighters, Emergency Government and Homeland Security personnel, for the most part, indicated most professional first responders followed the book as it was written after 9-11. For example, Incident Commanders placed a high priority on the safety and security of responding personnel and management of recovery assets. Unfortunately, their focus on safety and security slowed their response and gave the impression they were failing to meet the needs of the victims awaiting rescue. This than helped motivate and fuel a response from the private sector that in turn provided the media with endless sound bites and political extremists the fodder they needed to blame the other party for allowing Katrina to land on New Orleans.

RMLC Solutions:

Insurance companies call it “indemnification,” business leaders call it “business resumption,” community leaders call it “survival” and we all call it “getting back to normal.” The ultimate goal is to get victims back to a like and similar position they were in prior to Katrina.  RMLC workshops in 2006 will adopt the Incident Command System (ICS) to every walk of life, using the National Incident Management System (NIMS) as our performance standard.

Three ICS templates are being developed. One to focus on a victim’s “physiological” needs such as food, shelter, security, and the need to make a living and provide for their family. This template will work well for any insurance company, bank, credit union, or employer. Our goal is to re-establish any lost economic base within the affected community. The second ICS template will respond to a victim’s “sociological” needs or the need to belong. This template will work best for any business association, veteran’s organization, club, society, or group fostering a community response to the incident. The third ICS template will respond to a victim’s “self esteem” or “self actualization” needs. This template will work best for school administrators, church leaders, or anyone promoting a career or hobby that might redefine the victims self worth. Together the three ICS templates will carry a victim through the recovery process. Our strategy is to first rebuild their economic base, than restore their identity by reconnecting them to a place where they belong, and finally we restore their self esteem and dignity by offering them hope and a sense of being back to normal with a bright and promising future.  

After Katrina hit and levees failed, it became painfully obvious that those responding from the private sector where either not aware of or chose to ignore the “command and control” structure used by professional first responders. In 2006 we’ll offer RM presentations supported by our three ICS templates.   

New Risks Identified during Katrina – Risk Concentration and Economic Disparages

Katrina identified new risks associated with large scale events and natural disasters. For example, we learned that as the population ages there will be more who’ll depend on assistance during evacuations, we learned of gangs who pre-planned looting and gang reprisals against law enforcement, we learned the impact social welfare programs have had on survival instincts, and how the economic disparages between two neighborhoods can cause economic ciaos when the social order breaks down.

Katrina took us all to the woodshed for a hard-learned lesson in Risk Management. We could have predicted much of what occurred in New Orleans based on the RM research we did in Europe and South Korea (Refer to my white papers on managing risks triggered by economic disparages between cultures and communities.) For example, the economic disparages between East and West Germany was 5 to 1 when the wall fell, it’s 13 to 1 between North and South Korea. We all witnessed what happened to the economy of Western Europe when the wall suddenly fell and neighboring countries where faced with a mass migration of one economic culture into another. While neighborhoods in New Orleans are not separated by walls or wire, there appears to be significant economic disparages between the have and the have-nots living within blocks of the French Quarter. Economic disparages tend to equate to crime rates so in the future municipal leaders should be able to anticipate such crimes as lootings and shootings triggered by any breakdown in the social order.

RMLC Solutions:

RM workshops in 06 will reinforce RM fundamentals to include how to more effectively identify and more accurately measure risks created by the concentration of criminal activity in an adjoining neighborhood. We’ll cover the impact of barriers suddenly disappearing between economic cultures. We’ll re-write the steps evacuees should take to protect property they must leave behind and teach them how to create controllable crime scenes so looters can be identified and brought to justice. We’ll also teach victims how to better document their losses, support their claims and work with insurance companies to reach a fair and honest settlement. We’ll design and develop appropriate response protocols for the general public that compliment rather than duplicate the efforts of professional first responders. And, finally, we’ll create a secure and safe path for victims to follow from disaster through recovery, back to normal, and on to a bright and promising future.

For more background on our Virtual - Incident Command Systems, study the V-ICS templates posted at RMLearningCenter.com.     

                                     Rich Woldt – CEO of the Risk Management Learning Center

Bergee Business Continuity Planning, LLC 833 N High Point Road Madison WI 53717 608-444-4396:

A pandemic and some critical information for businesses to consider: 

·      The vast majority of business income continuation insurance or business interruption insurance may not be honored in a pandemic situation. A pandemic may not be a covered peril.

You must talk to your insurance vendor and discuss this issue immediately! 

·      Using the internet and homes for alternate working locations will not work. Current line capacities will not allow for this option

Your internet and telephone provider should be able to help you with this. But you must point out that several hundred companies with thousands of employees will be attempting to do this at the same time. Or should I say millions of employees throughout the country. 

·      Federal and state authorities continue to say that they will not and do not have the ability to help businesses and individuals during a pandemic. YOU ARE ON YOUR OWN!

They are planning and you must plan too. Hundreds of federal, state and local agencies are taking major steps towards responding to this issue. And so are hospitals, clinics and other health care providers. The private sector must keep pace with these public services now! 

·      Care of sick employees may also become an ethical responsibility of the already suffering businesses

Think about it. Are you just going to let people go, without benefits and let them survive on their own? 

·      Don’t be fooled by the idea that you will have 3 or 4 weeks to make your business ready once the pandemic starts.

In all likelihood it will take three to four weeks before the authorities know of the pandemic status. Your business may have only days or hours to prepare. With all the technical details, HR issues and decisions, it will take you weeks to properly put together a responsible and intelligent business response plan.  

·      Only 14% of all businesses in the United States have pandemic business interruption plans in place as of May 1, 2006. We need to put a much higher priority on this issue.

Fourteen percent just does not do it to survive this event. Many billions of dollars will be lost in business income and wages. Many scientists are saying this is inevitable. We seem to bury ourselves in denial and hope someone will bail us out. Think about the response to Katrina and then expand that scenario several hundred times. And you are on your own too.    

Bergee Business Continuity Planning, LLC 833 N High Point Road Madison WI 53717 608-444-4396:

Can Wisconsin Businesses Survive With 40% Fewer Employees? 

The movie last week on TV, Fatal Contact, should spark discussion on planning. Much of the movie had real facts. Much of material was indeed beyond the level of believability and should be ignored. However, all the authorities are telling us that we could experience employee losses up to 40% during a pandemic. Losses will be due to illness, fear and care for family members. We have to keep in mind that 40% is an AVERAGE. In some locations businesses could experience up to 80% or 90% losses.  

But let’s focus on the 40%.   

A pandemic will affect all of us. Let’s assume a scenario of a pandemic flu in full swing. It’s winter time and your employee’s family member or members spouse have has been taken to a temporary site for health care. Notice that I did not say hospital – the hospitals will be filled and forty percent of their staff will also be missing.  The emergency care location may be a university dorm or a school in your neighborhood. Most families will be required to take care of themselves because of precautionary distancing and possible quarantine. Your family is ill but somewhat functional in that they can take care of themselves. 

Your employees’ friends and family and employer all know that they are sick. Some of them may bring over a nice hot dish and slide it under the door. You’re running low on fuel oil and you call the oil dealership you use and they say that they are real “sorry, but 40% of their employees are sick and they are over three weeks behind on normal keep fill deliveries”. You call another dealership and they are not getting supplies from the oil companies because the fuel oil production rate is down 40%. 

You are running low on food and think that you need to run to the store for supplies. A snow storm has dumped eleven inches of snow on the road and the roads are not plowed because 40% of the road crews are sick with the flu. Somehow you manage to get to the local grocery store and find that 40% of the store is empty of critical supplies. Rationing is the order of the day. You go over to the ATM to get cash. Your employer did not deposit the payroll because 40% of the office is sick and it took out the entire payroll department. Your employer did not have a plan ready. 

Digging in your purse or wallet you find a credit card and assume that at least you can charge the food on plastic. The credit card companies’ computer system, however, it is not working because the telephone lines are down due to the snow storm. Communication systems are not operating because repair crews cannot fix the lines. Most of the companies’ computer systems are not running because 40% of the operators have the flu. 

Now let’s add to this list of 40%; ambulance service, garbage pickup, water distribution and repair, sewer management and repair, farm production and 40% of the cows cannot be milked. The Red Cross response is reduced because 40% of the volunteers are sick. Public services for elder care and dependent living are down 40%. Responses to disasters are diminished. And what about 40% of tax collection, insurance claim payments, manufacturing of parts and supplies, airlines, driver’s licenses and plates, law enforcement and response, fire response, child care, schools and universities. We could see a reduction in TV production with 40% of the staff sick. The troops in war zones are down 40% and producers of vaccines are slowed down too.

This scenario is endless and it impacts not just a single city, region or nation; it will impact, 40% of the world.  

We must prepare now! 

Hello Rich; Following is my Incident Report on our response to Katrina so far....

First & foremost; Initial /First responders are and WILL be ALL FEMA trained and qualified "URBAN SEARCH & RESCUE TASK FORCE PERSONNEL" (U.S.A.R. TF-1) 

ALL supplies were inventoried and split into equipment caches and palletized, shrink wrapped, labeled with contents & destination.

ALL personnel are/were to be immunized-inoculated for "AREA SPECIFIC" health concerns. 

Military/Nat'l guard put on notice for mobilization point and departure times. 

All convoy vehicles/trailers driven by US&R personnel with Additional resources/equipment in trailers.

Checkpoints will be established along with radio communications and back-up or alternate communications & networks.

Drop - off locations are pre-determined for resources and equipment unless otherwise. (alternate locations are also given for emergency or weather related problems)

A "B.O.O." or Base Of Operations will be established and set up along with communications antenna's /links along with satellite up-link phones or com-units.

Initial instructions and responsibilities will be established and distributed along with having several briefings/meetings to bring present and responding teams up to par with the on-going situations and changes. 

LOVE YA UNCLE RICH;

TONY CONTI

PRES. TACT-SOURCE SECURITY CONSULTING, LLC.

DARRELL SCOTT TESTIMONY - Columbine High School shooting, prayer in schools, and the NRA...

DARRELL SCOTT TESTIMONY -- Introduction by Commander VFW Post 8337 2-1-06

On Thursday, Darrell Scott, the father of Rachel Scott, a victim of the Columbine High School shootings in Littleton, Colorado, was invited to address the House Judiciary Committee's subcommittee What he said to our national leaders during this special session of Congress was painfully truthful. They were not prepared for what he was to say, nor was it received well. It needs to be heard by every parent, every teacher, every politician, every sociologist, every psychologist, and every so-called expert! These courageous words spoken by Darrell Scott are powerful, penetrating, and deeply personal. There is no doubt that God sent this man as a voice crying in the wilderness. The following is a portion of the transcript:

"Since the dawn of creation there has been both good & evil in the hearts of men and women. We all contain the seeds of kindness or the seeds of violence. The death of my wonderful daughter, Rachel Joy Scott, and the deaths of that heroic teacher, and the other eleven children who died must ! not be i n vain. Their blood cries out for answers.

"The first recorded act of violence was when Cain slew his brother Abel out in the field. The villain was not the club he used.. Neither was it the NCA, the National Club Association. The true killer was Cain, and the reason for the murder could only be found in Cain's heart.
"In the days that followed the Columbine tragedy, I was amazed at how quickly fingers began to be pointed at groups such as the NRA. I am not a member of the NRA. I am not a hunter. I do not even own a gun. I am not here to represent or defend the NRA - because I don't believe that they are responsible for my daughter's death. Therefore I do not believe that they need to be defended. If I believed they had anything to do with Rachel's murder I would be their strongest opponent.
I am here today to declare that Columbine was not just a tragedy-it was a spiritual event that should be forcing us to look at where the real blame lies! Much of the blame lies here in this room. Much of the blame lies behind the pointing fingers of the accusers themselves. " I wrote a poem just four nights ago that expresses my feelings best. This was written way before I knew I would be speaking here today:

Your laws ignore our deepest needs,
Your words are empty air.
You've stripped away our heritage,
You've outlawed simple prayer.
Now gunshots fill our classrooms,
And precious children die.
You seek for answers everywhere,
And ask the question "Why?"
You regulate restrictive laws,
Through legislative creed.
And yet you fail to understand,
That God is what we need!

"Men and women are three-part beings. We all consist of body, soul, and spirit. When we refuse to acknowledge a third part of our make-up, we create a void that allows evil, prejudice, and hatred to rush in and reek havoc. Spiritual presences were present within our educational systems for most of our nation's history. Many of our major colleges began as theological seminaries. This is a historical fact. What has happened to us as a nation? We have refused to honor God, and in so doing, we open the doors to hatred and violence. And when something as terrible as Columbine's tragedy occurs -- politicians immediately look for a scapegoat such as the NRA. They immediately seek to pass more restrictive laws that contribute to erode away our personal and private liberties. We do not need more restrictive laws. "Eric and Dylan would not have been stopped by metal detectors. No amount of gun laws can stop someone who spends months planning this type of massacre. The real villain lies within our own hearts.
"As my son Craig lay under that table in the school library and saw his two friends murdered before his very eyes-He did not hesitate to pray in school. I defy any law or politician to deny him that right! I challenge every young person in America , and around the world, to realize that on April 20, 1999 , at Columbine High School prayer was brought back to our schools. Do not let the many prayers offered by those students be in vain. Dare to move into the new millennium with a sacred disregard for legislation that violates your God-given right to communicate with Him. To those of you who would point your finger at the NRA - I give to you a sincere challenge. Dare to examine your own heart before casting the first stone!
My daughter's death will not be in! vain! T he young people of this country will not allow that to happen!"

Do what the media did not - - let the nation hear this man's speech.