Managing risk in the eye of the storm
The arrival of Hurricane Sandy in late 2012 represented an opportunity for the Westfield Group’s risk management team to once again test itself, in the face of potential devastation of up to nine centres that lay in the storm’s projected path.
Throughout the crisis two teams worked closely together: the Group’s experienced North East operations and facilities team and the Westfield risk management team, putting into action a range of procedures specifically prepared for natural disaster scenarios. The Group’s global risk management team had gained experience around the world with similar scenarios including floods in Queensland, Australia and Florida in the United States; brush fires in San Diego in the United States and earthquakes in New Zealand.
As the Westfield teams anticipated the impending storm, a number of preparations were undertaken. These included the use of pre-landfall messaging to reemphasise procedures, the pre-storm checklist and repeated communications’ testing. A range of detailed scenarios were considered that covered as many options as possible, maximising the Group’s ability to respond to any situation.
The Group also worked with external loss prevention experts FM Global Insurance Company to help track the storm and also to conduct centre inspections ahead of the storm’s arrival in order to identity any high-risk areas. Following the inspections the two organisations discussed protection and prevention techniques likes sandbagging; mitigation of water entry to the centre; and also undertook rooftop debris removal and rented pumps to reduce the pressure on the storm water system. Flooding was also a major risk, and inspections at some of the Westfield malls in Sandy’s path created an opportunity to address existing recommendations that had already been identified.
Westfield also focused on other areas like skylights and windows in anticipation that wind and blowing debris was potentially a high risk area – particularly if materials were to blow into carparks or other customer areas.
Of the nine centres that were deemed at-risk ahead of Hurricane Sandy, when the storm actually hit only one centre lost power and all others remained fully operational with minimal damage. In one location – Connecticut – two malls were the only local facilities to maintain power. Once the minimal damage was assessed the Group’s focus quickly switched to opening for business, providing retailers with the chance to return to trade, and the local communities with a gathering point to recharge and restock.
Overall, the Group’s preparedness and recovery efforts allowed the affected centres to return to business as usual in a very short space of time, with minimal impact on retailers and shoppers. By closely collaborating with partners Global FM, Westfield was also able to benefit from their expertise which contributed to the overall success. For Westfield the entire exercise translated into minimal loss and associated claims, while continuing to play an important community role.
A safe haven for communities
In late 2012, as the east coast of the United States faced the threat of Hurricane Sandy, a number of Westfield centres in Connecticut, Long Island and New Jersey played a critical role as community hubs in their local areas. The Westfield centres managed to avoid significant damage thanks to good luck and good planning (see case study Managing Risk in the eye of the storm) and were subsequently able to assume a different role within their communities: that of a genuine hub in the face of disaster.
Many local areas in near Westfield centres in the US north east experienced electricity outages, as well as water and basic supply shortages during and after Hurricane Sandy. As the risk assessment process was completed at Westfield centres in the affected areas, revealing limited damage, the focus for Westfield quickly switched to opening for business and providing the local communities with a place to gather, shop, and seek refuge. Centre teams mobilised quickly to function as staging areas as well as distribution points for basic needs like power recharging for cell phones and other devices; water; blankets; childcare needs and perishables. Support was provided in partnership with organisations including the American Red Cross, United Way and local food banks.
Westfield malls also quickly focused on the needs of families and kids in the communities, providing a range of activities for children including tables and chairs areas with coloring books and arts and crafts materials for diversion. As it was Halloween when the storm hit, many of the malls set up themed activities with trick-or-treating and dance parties. Westfield’s malls were community centres in the truest sense of the word, attracting crowds who were drawn by the warmth, the opportunity to enjoy some hot food and drink, and the chance for reprieve in the face of tragedy.