Running head: COMMERCIAL FACILITIES INFRASTRUCTURE 1
COMMERCIAL FACILITIES INFRASTRUCTURE
LaToya L. Chavies
November 25, 2018
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Commercial Facilities Infrastructure
On July 15, 1996, former United States President, Bill Clinton signed Executive Order 13010 who introduced the Critical Infrastructure Protection (Clinton, William, 1996, July 15). The 16 critical infrastructure sectors in this order are identified “by the Department of Homeland Security (2014). The sectors include a list of:
Chemical, Commercial Facilities, Communications, Critical Manufacturing, Dams, Defense Industrial Base, Emergency Services, Energy, Financial Services, Food and Agricultural, Government Facilities, Healthcare and Public Health, Information technology, Nuclear Reactors, Materials, and Waste, Sector-Specific Agencies, Transportation Systems, and the Water and Wastewater System (Department of Homeland Security, 2014, May).
Each of these sectors is extremely essential to the United States of America. The reason why it is very important for our country to protect all 16 sectors is to prevent any disruption of service, destruction, and contamination. The federal government has identified the risks, threats, and consequences of our infrastructure and is doing everything within its power to prevent a catastrophic event.
There are important reasons why this executive order was implemented to protect the national economic security and public health. Our infrastructure is the backbone of how we operate, live, and survive. Our nation depends on important necessities such as
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“telecommunications, electrical power systems, gas, oil storage and transportation, banking institutions, water supply systems, emergency services (including police, medical, fire, and
rescue), and continuity of government” (Eckert, Sue, Page 3). As a country, we must continue to evaluate our position and status of national security across the board. Our entire critical
infrastructure is vulnerable to an attack, which could affect billions of people and cause an enormous economic loss.
The Department of Homeland Security defined critical infrastructure as systems, assets, facilities, and services that are important to national public health and safety, security, and national economic security (Moteff, John, 2015, June 10). The most common subsections associated with the Commercial Facilities Infrastructure are; Entertainment and media, gaming, lodging, outdoor events, public assembly, real estate, retail, and sports leagues. Commercial Facilities are open to the public and some of them may have a 24 hour and 7 days a week operation According to the 2015 Sector- Specific Plan the majority of all of these facilities are privately owned but are regulated by the State and local level through building codes and regulations (Department Homeland Security, 2015, Page 4). In 2017, National Institute of Building Sciences Committee noted that “building types, have acceptable levels of risk and decisions that need to be made based on a recommended threats assessment, vulnerability assessment, and risk, analysis” (National Institute of Building Sciences, 2017, September 15). The above statement is suggesting how commercial facilities should take the appropriate countermeasures to protect people, assets, and mission. The commercial facilities are held to a professional standard. The commercial facilities infrastructure are connected with private and
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public partnerships who are responsible for joint activities that could greatly reduce the sector risk and build resilience.
Privately owned companies are small or medium sized and can be owned by an individual, family members, a small group of people, or investors. Companies stay privately owned for many different reasons. Family owned businesses, sole proprietorships are too small to bother with an initial public offering. They tend to full-fill their own financing needs from
personal savings accounts, other family members, and retail banking institutions. They can be
publicly traded but operating under private hands. If a privately-owned business wants to turn into a publicly owned company, it will experience more problems and placed under some form of scrutiny. I learned some important information in my previous basic accounting course which I found to be very helpful. Public companies are required to issue shareholder reports that comply with the General Accepted Accounting Principles (G.A.A.P.).
According to the Institute for Business and Home Safety (US Small Business Administration, 2018), an estimated 25 percent of businesses do not re-open after a major disaster or natural hazard. Organized planning is a major key to keep a successful business running when an emergency strikes. Taking the right steps to prevent, and prepare for an emergency and know where to get assistance and aid if an emergency occurs. “Risk management is a continuing process to identify, analyze, evaluate, and treat loss exposures and monitor risk control and financial resources to mitigate the adverse effects of loss” (Marquette University.Edu). “Risk management is the art and science of planning, assessing, and handling
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future events to avoid unfavorable impacts on project cost, schedule, or performance to the extent possible” (National Science Foundation, 2012, February 10).
It is relatively expensive when commercial facilities get hit with mild or moderate a risks. A loss may occur in four different stages. The financial loss shows the probability of a business over a certain period of time. The revenue and expenses are the most important sections. Profits may arise from the money you get from sales, the cost of the stock and all expenses incurred (State Government Victoria, 2018, July 30). As reported by the Based Committee on Banking Supervision (2002), operational risk can be defined as “the risk of monetary losses resulting from inadequate or failed internal processes, people and systems or from external events” (Lopez, Jose, 2002, January 25).
The aim in securing the premises doesn’t come with an inexpensive price tag. Perimeter risk requires a demand for having the physical manpower available to access threats to the facility. Commercial facilities consider a number of different ways to mitigate the risk by relying on their own internal and external risk assessments. In essence, strategic risk requires the development of alternatives or contingency plans. The strategic risk focuses on risks stemming from fires, accidents, natural hazards, injuries, death, and so forth. Commercial Facilities owners should know what type if risk and threats are out there so they can properly evaluate the ones relating to their business.
An example of how owners attempt to protect the public that attends their functions can be seen in the closure of the Las Vegas Luxor hotel-casino. In 2016, a housekeeping staff who entered an unoccupied room at the hotel found a liquid substance. Emergency responders
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evacuated the guests from several floors for approximately four hours while they investigated the incident. The Fire Department HazMat Team responded to the hotel to determine if the liquid found was a hazardous material. Emergency Responders determined the liquid found was not
dangerous and allowed the hotel guests to return to their rooms (Towner, Myriah, 2016, February 11). The business had to make a decision to minimize negative attention, panic, injury, and
property damages by evacuating the guest on certain floors. There were certain areas of the hotel
still operating as usual.
All commercial facilities will face certain levels of risk that are associated with different threats. The threats, may be the results of natural events, disasters, and terrorist attacks. Large commercial facilities who prepare for evacuations provides a safer environment for their employees who work there and for their guests who wish to stay overnight. Regardless of the threat, private or public sector business owners have a responsibility to minimize and manage the risks from the threats. The daily operations of commercial facilities consist of energy to supply
light and electricity, communications can contribute to the growth of the facility, and the supply of good working water.
The public and private sector of transportation helps employees and customers travel to and from the facilities. The establishment will take preventative measures prior to an event, to employ private security or law enforcement for public safety. We all have observed emergency medical personnel standing or sitting stationery if someone should become ill or suffer from
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health issues. Emergency Services workers are available and visible in case of a hazard or fire incident that may occur.
Local, State, and Federal government entities as well as the private sector is relating to
2018, May 2). Public facilities such as casinos and hotels are mandated to have evacuation plans
for their employees. The Occupational Safety and Health Administration (OSHA) mandates that employers are responsible for providing a safe and healthy workplace for their employees and
guests. The hotel facility is to design and construct required exit routes, provide a written
emergency action plan (EAP), have a hazardous prevention plan, provide portable fire extinguishers and fire detection services, (United States Department of Labor, 2018).
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Clinton, William. (1996, July, 15). United States Office of the Federal Register. Homeland Security Digital Library. Naval Postgraduate School. Executive Order 13010. Retrieved on November 24, 2018 from website https://www.hsdl.org/?abstract;did=1613Department of Homeland Security. (2014, May). Sector Risk Snapshots. Retrieved on November 25, 2018 from website https://www.hsdl.org/?view;did=754033Eckert, Sue. (N.D.) Protecting Critical infrastructure: The Role of the Private Sector. Page 3. Retrieved on November 24, 2018 from website https://www.ridgway.pitt.edu/Portals/1/pdfs/Publications/Eckert.pdfMoteff, John. (2015, June 10). Congressional Research Service. Critical Infrastructures: Background, Policy and Implementation. (Page 2). Retrieved on November 22, 2018 from website https://fas.org/sgp/crs/homesec/RL30153.pdfDepartment of Homeland Security. (2015). Commercial Facilities Sector-Specific Plan (SSP), Washington D.C.: Government Planning Office. Page 4. Retrieved on November 25, 2018 from website https://www.,dhs.gov/sites/default/files/publications/nipp-ssp-commercial-facilities-2015-508.pdtNational Institute of Building Sciences. (2017, September 15). Whole Building Design Guide. Security for building Occupants and Assets. Retrieved on November 25, 2018 from website https://www.wbdg.org/design-objectives/secure-safe/security-building-occupants-assetsTowner, Myriah. (2016, February 11). Daily Mail. Luxor hotel in Las Vegas is partially evacuated over “suspicious’ liquid in unoccupied room. Article No. 3441714. Retrieved on November 25, 2018 from website https://www.dailymail.co.uk/news/article-3441714/Las-Vegas-strip-hotel-evacuated-three-floors-suspicious-liquid-unoccupied-room.htmlU.S. Small Business Administration. (2018). Prepare for Emergencies. Washington D.C. Retrieved on November 25, 2018 from website https://www.sba.gov/business-guide/manage-your-business/prepare-emergencies Marquette University. (2018). Marquette University Risk Management Unit. What is Risk Management? Retrieved on November 24, 2018 from website https://www.marquette.edu/riskunit/riskmanagement/whatis.shtmlDepartment of Homeland Security, (2018, May 2). FEMA. National Preparedness Goal. Mission Areas. Retrieved on November 25, 2018 from website https://www.fema.gov/mission-areasCOMMERCIAL FACILITIES INFRASTRUCTURE 9
United States Department of Labor. (2018). Occupational Safety and Health Administration. Evacuation Plans and procedures e Tool. Emergency Standards. Retrieved on November 25, 2018 from website https://www.osha.gov/SLTC/etools/evacuation/evaluate.htmlNational Science Foundation. (2012, February 10). Risk Management Guide for Large Facilities. Page 3. Retrieved on November 25, 2018 from website https://www.nsf.gov/pubs/2012/nsf12048/nsf12048.pdfState Government of Victoria. (2018, July 30), Business Victoria. How to calculate profit and loss. Retrieved on November 25, 2018 from website http://www.business.vic.gov.au/money-profit-and-accounting/financial-processes-and-procedures/profit-and-loss-statement-template-and-examplesLopez, Jose. (2002, January 25). Federal Reserve Bank of San Francisco. Economic Research Publications. What is Operational Risk? Retrieved on November 24, 2018 from website