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Record Snowpack Brings Mixed Blessings to California

This year’s Sierra Nevada snowpack, one of the largest on record, has brought relief to California, which is still reeling from a five-year drought followed by record flooding. The snowpack is twice its average size, with some areas as deep as 80 feet, according to NASA. But with some rivers and dams still at higher than average levels, the fear is that warm temperatures or heavy rainfall will cause the snows to melt faster and bring more flooding.

Colorado and other mountain states, which also experienced heavy snowfall this winter are also concerned with runoff issues. Canada has faced severe runoff problems, after a heat wave earlier this spring resulted in major flooding in Quebec and British Columbia, the Wall Street Journal reported.

“The real wild card is if we get hit with a big rain event,” Frank Gehrke, chief snow surveyor for the California Department of Water Resources, told the Wall Street Journal as he monitored a rushing stream in late May. “That could throw the whole system into tilt.”

The Los Angeles Times reported last month that the rapid snowmelt has kept public agencies busy managing water levels across the state’s network of reservoirs. Water district managers must conduct daily conference calls to coordinate releases of water in order to monitor the amounts released into California’s rivers, creeks, bypasses and canals. This coordination is critical, as reservoir releases impact water levels downstream for days. Since one reservoir’s release may meet with another, managers must determine how much water the rivers and levees can support before overflowing.

A number of dams levees and weirs in the state are at least 60 years old, and in some areas more than 100 years old, according to a state Legislative Analyst’s Office report. It noted that flood-management responsibilities in California are spread across more than 1,300 agencies managing an infrastructure of more than 20,000 miles of levees and channels and more than 1,500 dams and reservoirs.

One reservoir in Los Angeles, the Silver Lake Reservoir, is benefiting from the snowpack and ample water supply. No longer used to store drinking water, the reservoir was drained in 2015. It sat empty and was seen as an eyesore, until recently when it was able to be refilled ahead of schedule.

According to the L.A. Times, the Silver Lake Neighborhood Council expressed its pleasure that the reservoir was refilled. The council’s co-chair, Anne-Marie Johnson, a second-generation Silver Lake resident, said she is “more than excited” that the landmark will no longer be an eyesore. “I am grateful to Mother Nature for providing us an abundance of snow. I don’t take that for granted,” she said.

Large Venues Reviewing Security Measures

Venues that attract crowds, such as large sports events and concerts are reviewing their security measures, both inside and out, to prevent an attack such as the suicide bombing after an Ariana Grande concert in Manchester, England, that killed at least 22 people.

Most venues have strict rules about bags, backpacks and coolers. Some check items thoroughly before allowing them inside an arena and others do not permit them at all. Venues also employ security detail to check those attending events as well as plainclothes detail to monitor the crowd. In the Unites States, the Department of Homeland Security warned that the U.S. public may experience increased security at public events.

Hong Kong’s AsiaWorld Expo, where Ariana Grande is scheduled to hold a concert in September, said it plans to improve security at all concerts and events. Besides baggage inspection, there will also be metal detectors and search dogs, it said in a statement.

According to the South China Morning Post, the Hong Kong venue said it will begin using metal detectors to screen for potential threats, in addition to its usual backpack and baggage inspections. It also said it would consider using search dogs for any suspicious items or requiring visitors to wear security straps to track them while in the venue.

One mega event, the annual Indianapolis 500 over Memorial Day weekend, took to heart the task of keeping attendees safe.

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Adding to security planning measures for more than 300,000 attendees was the safety of Vice President Mike Pence, who was expected to attend—and arrived on Sunday morning.

Indy 500 crowd, May 26, 2017. Photo by Dana Garrett

Reuters reported that the Indy 500 has a Homeland Security SEAR 2 (Special Event Assessment Rating) designation, which means federal assets can be brought in to enhance security efforts during the event.

The Indy 500 is regarded as the world’s largest single day sporting event. Only venues on par with the Super Bowl and the Democratic and Republican conventions are given higher security ratings.

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 Local, state and federal agencies contributed to security efforts at the Indy 500, including sniffer dogs, license plate recognition equipment and multiple security checkpoints to enforce restrictions.

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There are those who believe, however, that even with enhanced measures, terrorist acts cannot be completely anticipated or stopped.

“Whatever is done—and in this case it’s British intelligence which is considered among the best in the world—it won’t prevent such incidents happening,” Jean-Charles Brisard, president of the Centre for the Analysis of Terrorism told Reuters. “You can bring back the perimeter, add security gates and as many controls as you want, but that will not change the fact that a determined individual will carry out his act if he is not caught before.”

Make Your Hurricane Preparations Now

With the Atlantic hurricane season’s official start on June 1, the time to check your buildings and existing contingency plans—or start a new one—is now, during hurricane preparedness week.

For 2017, Colorado State University’s hurricane research team predicts slightly below-average activity of hurricanes making landfall, with a forecast of 11 named storms, four hurricanes, and two major hurricanes.

The 2016 season is seen as a wakeup call, as 15 named storms and seven hurricanes formed in the Atlantic Basin—the largest number since 2012. Among the hurricanes was Matthew, a Category 4, which devastated Haiti, leaving 546 dead and hundreds of thousands in need of assistance. After being downgraded to a Category 2, Matthew pummeled southeast coastal regions of the U.S., with 43 deaths reported and widespread flooding in several states.

Here are 10 preparedness steps offered by FEMA:

The Insurance Institute for Business & Home Safety (IBHS) warns that small businesses are especially vulnerable. Of businesses closed because of a disaster, at least one in four never reopens.

IBHS offers these steps for preparing a business for hurricane season:

  1. Have your building(s) inspected and complete any maintenance needed to ensure your building can stand up to severe weather.
  2. Designate an employee to monitor weather reports and alert your team to the potential of severe weather.
  3. Review your business continuity plan and update as needed, including employee contact information. If you do not have a business continuity plan, consider IBHS’ free, easy-to-use business continuity plan toolkit for small businesses.
  4. Remind employees of key elements of the plan, including post-event communication procedures and work/payroll procedures. Make sure all employees have a paper copy of the plan. Review emergency shutdown and start-up procedures, such as electrical systems, with appropriate personnel, including alternates.
  5. If backup power such as a diesel generator is to be used, test your system and establish proper contracts with fuel suppliers for emergency fuel deliveries.
  6. Re-inspect and replenish emergency supplies inventory, since emergency supplies are often used during the offseason for non-emergency situations.
  7. Test all life safety equipment.
  8. Conduct training/simulation exercises for both your business continuity and emergency preparedness/response plans.

Interstate Restoration has a day-by-day list of steps for business storm preparation, based on NOAA recommendations. They include research, planning and documenting, gathering emergency supplies, checking insurance coverage and supply chain and finalizing your plan.

Disruptive Technologies Present Opportunities for Risk Managers, Study Finds

PHILADELPHIA–Disruptive technologies are used more and more by businesses, but those organizations appear to be unprepared. What’s more, companies seem to lack understanding of the technologies and many are not conducting risk assessments, according to the 14th annual Excellence in Risk Management report, released at the RIMS conference here.

The study found an apparent lack of awareness among risk professionals of their company’s use of existing and emerging technologies, including the Internet of Things (IoT), telematics, sensors, smart buildings, and robotics and their associated risks. When presented with 13 common disruptive technologies, 24% of respondents said their organizations are not currently using or planning to use any of them. This is surprising, as other studies have found that more than 90% of companies are either using or evaluating IoT technology or wearable technologies and that companies in the United States invested $230 billion on IoT in 2016.

Another finding was that despite the impact disruptive technology can have on an organization’s business strategy, model, and risk profile, 60% of respondents said they do not conduct risk assessments around disruptive technologies.

“Today’s disruptive technologies will soon be — and in many cases already are — the norm for doing business,” said Brian Elowe, Marsh’s U.S. client executive leader and co-author of the report said in a statement. “Such lack of understanding and attention being paid to the risks is alarming. Organizations cannot fully realize the rewards of using today’s innovative technology if the risks are not fully understood and managed.” According to the study:

Organizations generally, and risk management professionals in particular, need to adopt a more proactive approach to educate themselves about disruptive technologies — what is already in use, what is on the horizon, and what are the risks and rewards. Forward-leaning executives are able to properly identify, assess, and diagnose disruptive technology risks and their impact on business models and strategies.

This lack of clarity presents opportunity for risk professionals. In fact, previous Excellence reports have indicated that C-suite executives and boards of directors want to know what risks loom ahead for their organizations and increasingly rely on risk professionals to provide that insight.

“As organizations adapt to innovative technologies, risk professionals have the opportunity to lead the way in developing risk management capabilities and bringing insights to bear on business strategy decisions,” said Carol Fox, vice president of strategic initiatives for RIMS and co-author of the report. “As a first step, risk professionals are advised to proactively educate themselves about disruptive technologies, including what is already in use at their organizations, what technologies may be on the horizon, and the respective risks and rewards of using such technology.”

One thing companies can do to manage risks associated with disruptive technologies is facilitate discussions through cross-functional committees—yet fewer companies, only 48%, said they have one, a drop from 52% last year and 62% five years ago.

Whether discussed in weekly, monthly, or quarterly organization-wide committee meetings, emerging risks — including disruptive technologies — need to be examined regularly to anticipate and manage the acceleration of business model changes. When risk is siloed, too often the tendency can be toward an insurance-focused approach to risk transfer rather than an enterprise approach that may lead to pursuing untapped opportunities.

The Excellence survey, Ready or Not, Disruption is Here, is based on more than 700 responses to an online survey and a series of focus groups with leading risk executives in January and February 2017.

Findings from the survey were released today at the RIMS 2017 Annual Conference & Exhibition. Copies of the survey are available on www.marsh.com<http://www.marsh.com> and www.rims.org<http://www.rims.org>.