The global economic downturn has forced many organizations to reduce operating costs.  The irony is that this cost reduction has reduced security and emergency management capabilities which are required more than ever because of threats from this downturn. Here's how I see the link between the economic downturn and new and growing threats:

• Cutbacks in personnel reduces repair and maintenance activity, -- and that in turn increases the probability of service failures, delays and disruptions in North America's infrastructure.  It gets worse with each new round of cost cutting -- and telecommunication services, the power grid, other utilities and public emergency programs are all under the cost cutting knife.

• Every new round of layoffs and terminations only compounds the threat of aggression and retribution - people become afraid and angry.  It's impossible to predict people's reaction to this stress and it leaves organizations vulnerable to violence. 

• Operational risk management can fall victim to the risk itself.  We can hope that critical operational processes will be maintained despite reductions in the workforce, but we know that it's only wishful thinking.  Inevitably, risk prevention and threat mitigation initiatives will be compromised. 

• Standard operating procedures may simply fail.  As key operational capabilities are weakened, so are the standard operating procedures designed to protect employees, assets and critical business functions.  Our ability to respond to and manage a crisis is compromised.

• Shoot first, ask questions later.  We're cutting costs without understanding why these programs were created in the first place.  We're compromising the safety of employees, our brand image, and the overall security of the business because we know we need to take action - but we no longer know what the action should be.

• We're not an island. Your organization may recognize the importance of security and emergency management, but you're only going to be as effective as the organizations around you. As your neighbors capabilities weaken, the importance of your own ability to manage a crisis increases.

• Putting our guard down creates opportunity.  While we're busy focusing on reducing costs, we're creating new risks and vulnerabilities which in turn create opportunities for criminal activity that we may not be able to prevent or even detect.

• International and home-grown terrorist threats are here to stay.  Terrorism creates fear, and worse case, -- death and destruction.  But for terrorism to succeed, it needs vulnerable targets.  As we weaken our emergency management capabilities we are making it easier for terrorists to succeed.

• What about our suppliers? As our suppliers cut costs, they increase risks to our employees, our services and our customers.  And if our operational and Enterprise Risk Management capabilities are weakened, we may not be able to detect these growing threats.

• Two things for sure.  When employees are worried about losing their jobs, productivity goes down and the rumor mill goes into high gear.  A simple statement can trigger rumors which impact employees, customers, suppliers, the media, and others (residents, students, members of associations).  Managing these rumors and speculation is only as effective as your organization's emergency management and mass communication capabilities.
  
  We can't prevent these new and growing threats, but we can mitigate their impact with our actions.  These actions are doable through a cost effective emergency management capability -- a Crisis Management Program.  

The need for Crisis Management is growing exponentially - you can't do without it in this environment.  Every organization can manage these risks, and in many cases actually reduce costs.  While we may not be able to create a complete ROI, we should be able to come close.

What are the critical factors? What are organizations experiencing in today's environment?  What are you seeing?  How do we look at Crisis Management differently in this economic downturn and - and what are the success stories in overcoming the challenges? How can the use of automated emergency management tools make the difference?

These are the things I'll be digging into, along with guest bloggers from the emergency and crisis management industry.  I hope you'll join me in this blog and I look forward to your perspective on the situation.  We live in interesting times...

Dennis Hamilton