In the aftermath of Hurricane Sandy

We discuss crisis management in chapter 13.  This week has seen the United States experience the biggest storm ever to hit the highly populated north east coast, with wind damage, power outages, fires and flooding affecting major cities in New Jersey and New York state.

From an operations management perspective, the key issues are to have in place a disaster recovery plan so that the organisation and its business activities can continue to function.  One advantage of this type of event, is that it managers have two or three days in which to prepare for the hurricane, and therefore potentially mitigate some of its effects.   And if they have a recovery plan in place, then they should be able to ensure business continuity.

One the highest profile operations affected was the New York Stock Exchange (NYSE), which prior to the storm had planned to carry on trading whatever its impact.  This is because the NYSE had developed apparently sophisticated responses to crises and disasters, as a consequence of 9/11.  In fact, the exchange had to close for two days.   This article reports on why this was.  It turns out that whilst the technology was available for use, weather conditions meant that traders were unable to get to the trading floor.

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