Texas Bank Tornado

In: Business and Management

Submitted By goody
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CASE STUDIES

THE FOLLOWING TWO CASE STUDIES ARE FOUND AT THE END OF THE RISK MANAGEMENT CHAPTER. I HAVE REPRODUCED THE TWO CASES FOR THE INSTRUCTOR AND HAVE PROVIDED RUNNING COMMENTARY FOR A SUGGESTED ANSWER WITHIN THE TEXT OF THE CASE. CLEARLY, THIS IS NOT AN ANSWER IN EXPOSITORY FORM THAT YOU WOULD EXPECT FROM A STUDENT BUT IT PROVIDES THE POINTS THAT SHOULD BE TOUCHED ON IN ANY INTELLIGENT AND FAIRLY COMPLETE ANSWER.

Texas Bank Tornado

In March 2000, at 5:30 p.m., a tornado hit several major buildings in downtown Fort Worth, Texas. Among the buildings damaged by the windstorm was a tall glass tower that a large bank had leased mostly for administrative offices for its 600 employees, but that also had public banking facilities on the lower floors. Because the tornado hit just after the end of the workday, there was no loss of life, but property damage to the building and its contents was extensive. Since the bank did not own the building, the bank had to arrange for access to the property after the loss through the building’s owners. Moreover, the city of Fort Worth’s building inspectors declared the building to be imminently dangerous. After it was labeled imminently dangerous, the bank’s officers and employees had no access to the building for over a week. During this week wind and rain caused further damage to the furniture, equipment and valuable papers.

The bank’s risk manager had made prior arrangements with a disaster recovery facility in a remote location that allowed the bank to use the emergency facility’s computers, phones, and fax machines after a disaster. This facility provided workspace for about one-third of the bank’s critical personnel. The bank’s risk manager also made arrangements for a shuttle bus service between the loss location and office space available in nearby Dallas, Texas. Employees were not able to…...

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