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Recent Events
New U.S. Law Passes with Voluntary Certification Program for Corporate Preparedness
August 10, 2007 2:44 PM
"This new voluntary certification program is potentially one of the most significant developments in corporate preparedness and resilience for a generation," says Bill Raisch, Director of InterCEP. "This is the opportunity to clearly link key market-based, bottom-line incentives with corporate resilience and preparedness activity. We have the opportunity to build in from the beginning a bottom- line orientation to the certification process that can facilitate real rewards for corporate preparedness."
The new voluntary certification program will be administered outside of government by an independent third party organization and focus on all-hazards preparedness as reflected in one or more existing standards. The program was called for in Title IX of "The Implementing the 9/11 Commission Recommendations Act of 2007" (Public Law 110-53) which addresses a diversity of other national security issues as well. It was signed into law by the President on August 3, 2007.
The insurance industry, legal liability community, rating agencies, corporate governance community and supply chain management arena are increasingly interested in corporate preparedness and resilience. Yet while there is a willingness to acknowledge business preparedness and reward it where appropriate in their areas, these stakeholders are on the whole hesitant or unwilling to take on the assessment process themselves. A voluntary certification program provides an opportunity to develop an effective and efficient methodology to both confirm preparedness on an operational basis and also facilitate bottom-line benefits and incentives.
If done strategically with input from key stakeholders, voluntary certification of corporate preparedness programs can dramatically advance the business case for preparedness by linking "what" is done by the business with some of the "why" it should be done. Facilitating specific benefits can promote wider corporate investment in this key area by supporting a more defined return on investment. "This potential linkage is the key reason why we at InterCEP first proposed voluntary certification to Congress earlier this year and organized corporations and others to support the measure," said Raisch. "InterCEP intends to work to assure that a bottom-line benefits orientation is integrated into the certification program as it is developed and implemented on an ongoing basis."