February 2001

Disaster Planning

Lessons from the World Trade Center Bombing

By Jay Dismukes

On Feb. 26, 1993, at about 12:30 p.m., Kenneth Bailey was working in his New Jersey office when he received a phone call from an administrative assistant who told him something had just happened at the World Trade Center. Thirty minutes later, Bailey had a disaster plan and team in place for the Twin Towers-based law firm of Schanley & Fisher, P.C., for whom he then worked as director of finance administration.

Because of his careful planning and consultation with a disaster planning company, Bailey safely navigated the Schanley & Fisher law firm through a day that will live in infamy. Not only were employees of the law firm able to walk away from the World Trade Center bombing, but Schanley & Fisher was up and running the following Monday morning. Trained to always be prepared, Bailey previously had made sure the law firm had adequate insurance policies, alternate phone and mail systems, and backups of computer tapes in the event of such a disaster.

Recently, Bailey spoke about the bombing and the importance of disaster planning in a seemingly unlikely setting—a Jan. 4 meeting of the New York State Society of CPAs Chief Financial Officers Committee. Though he would make a great spokesman for the American Civil Defense Association, Bailey’s speech was anything but basking in the glory of his actions. Instead, he was sharing knowledge with other chief financial officers whose profound understanding of company assets and insurance policies typically requires their involvement in the disaster planning process. Additionally, Bailey’s speech realized his belief that NYSSCPA committee meetings can be a unique venue where people of similar backgrounds and responsibilities can exchange thoughts and ideas.

Bailey’s conviction is borne out of a 30-plus-year affiliation with the NYSSCPA, during which he has served as chairman of three separate committees, including currently the CFO committee.

“It is important that people put their ideas on the table,” Bailey said, regarding the value of committee service. “The information might not be used today, but it could be useful three years from now.”

Perhaps there is no better case in point than discussing disaster preparation. Bailey said too many people neglect this type of planning, believing they never will fall victim to a catastrophe.

During his speech, Bailey encouraged committee members to take as many precautions as possible, providing them with a list of 10 key questions which, when addressed properly, could help minimize damages brought on by a disaster.

As the meeting unfolded, other committee members spoke about their experiences in handling disasters. In particular, one member recounted the time he was called away from a party to attend to a company plant’s collapsed roof, while another member spoke about a company disaster of a different sort—the sudden death of an employee who was integral to the company’s financial well-being.

The disaster planning speech was well received, but finding topics of discussion that are relevant and interesting to members presents a huge challenge to all committees. Nevertheless, as Bailey points out, the payoff well exceeds the effort.

“All of us worked very hard to get our CPA,” said Bailey, who now serves as director of administration for the law firm of Bressler, Amery & Ross. “You work for it so you want to maintain it. You don’t want to lose the skills and ability you worked so hard to get.”

That is why Bailey tries to staff each meeting with guest speakers who cover exciting, timely, and pertinent topics which only recently have included Internet security and 401(k) profit sharing statements. Future meetings will include a speech on application service providers. Bailey also likes to open each meeting by asking attendees if they have professional questions, concerns, or interests that they would like to discuss with the group.

Bailey said CFO Committee meetings always try to chip away at the three big challenges currently facing all practitioners: profits (expense-and revenue-side), retaining and attracting qualified employees, and staying abreast of technology.

Through structuring the meetings in this fashion, Bailey believes members keep their fingers on the pulse of the accounting profession and are privy to issues and areas that do not immediately affect their individual practices.

“To educate people, we are accomplishing our objective,” said Bailey, who is very pleased with the direction of the CFO Committee.