Over the past six years, the United States has experienced severe acts of terrorism and natural disasters costing tens of billions of dollars and thousands of lives, and we still face the specter of pandemic flu. All present a huge challenge to risk managers and emphasize the need for solid disaster-emergency programs.

Many risk managers believe the focus of emergency management and business continuity is response and recovery. The addition of "prevention" as a core element of the U.S. Department of Homeland Security's new disaster-emergency standards emphasizes the need to prevent or reduce injuries to people, damage to property, interruption of operations and contamination of the environment.

Recent legislative action highlights the significance of the National Fire Protection Association 1600 standard, which has been used extensively in the public sector for many years. The Homeland Security department, in fact, has been directed to use NFPA 1600 to promote private sector preparedness.