In a post-9/11 world, effective security is more important than ever. Certain industries are more prone to security threats. The chemical industry is a prime example. Facility owners and operators must not only be concerned about possible terrorist attacks, but also need to address the potential theft and tampering of chemicals that could be used for terrorist activities.
Despite the chemical industry's self-regulation efforts in recent years, the federal government may mandate improved security measures. For example, the legislation that created the Department of Homeland Security (DHS) stated that it must, "in concert with the EPA, work with Congress to enact legislation that would require certain chemical facilities … to undertake vulnerability assessments and take reasonable steps to reduce the vulnerabilities identified."
In May, the Chemical Facilities Security Act of 2003 was introduced. Similar legislation also has been introduced in the House of Representatives.
The bills would require:
- Chemical companies to conduct vulnerability assessments and prepare security plans
- DHS to perform routine oversight of facilities to ensure compliance Failure to comply could result in temporary shutdown of facilities and civil penalties of $50,000 per day for each day a plant is in violation of the law and administrative penalties up to $250,000.
In this corporate and regulatory climate, business executives should ask:
- Has my company conducted a comprehensive vulnerability assessment of all manufacturing facilities?
- Will any compliance response to this new act require a capital expenditure?
- If so, is my organization capable of identifying the risks associated with a major expenditure and the options to mitigate those risks?
- Can my operations, staff and business adapt to changing conditions?
- How will I even know about these changes?
- Can I quantify the financial impact of a sudden operational disruption?
"While the chemical industry has taken laudable, voluntary steps to protect their plants, a mandatory federal role is needed to enhance and strengthen chemical security."
Press release from the office of U.S. Senator James Inhofe (R-OK), May 2, 2003
- How do my safety and risk mitigation procedures compare to best practices?
- Are adequate security plans in place? If not, what steps must I take?
- Is the security plan synchronized with our business continuity and emergency response plans? In the event of an incident, will management be able to effectively maintain operations and communicate with employees, customers, suppliers, the local community and regulators?
Corporations' ability to answer these questions can have a profound impact on whether they can successfully respond to an event and achieve the desired goals.
The following answers can help businesses address security concerns and, if necessary, respond to incidents:
Property Risk Consulting — Through proven assessment and evaluation processes that focus on a business-centric approach, provide property protection solutions covering a wide range of risk issues, including security, fires, natural hazards and explosions.
Construction Risk Consulting — Provide a thorough understanding of capital project risk management, construction industry techniques and design criteria issues.
Emergency Response Planning — Evaluate, organize and train on-site teams to effectively respond to emergencies.
Supply Chain Risk Management — Business considerations often take a back seat in an emergency. However, advance planning is key to help minimize, transfer or help eliminate supply chain risk.
Strategic Risk Communications — Provide timely and appropriate information to reassure employees, shareholders, clients, analysts, the media, vendors and the public that you are effectively managing related crises.
Business Continuity Management — Identify critical risks, quantify impacts and implement integrated mitigation, recovery and restoration strategies.
Risk Technologies — Review an organization's enterprise-wide safety management operations, processes and existing automation platforms. Identify information system needs, define business and system requirements and develop a business case for system investment in technology.
Chemical facilities are prime targets for terrorist activities. As such, improving their security will be a top domestic priority of the federal government, and it is only a matter of time before new regulations are in place. Clearly, now is the time to act.
Chemical facilities are prime targets for terrorist activities. As such, improving their security will be a top domestic priority of the federal government, and it is only a matter of time before new regulations are in place. Clearly, now is the time to act.
If you have any questions or would like additional information, please contact us.
