Professional Documents
Culture Documents
Building Resilience The History and Future of Us Crisis Management
Building Resilience The History and Future of Us Crisis Management
Building resilience:
The history and future of
US crisis management
The crisis management community has made great progress on
building resilience in the past two decades, but much work remains to
prepare for a future of more frequent and damaging disasters.
August 2022
Two decades have passed since the tragic events of next two decades may bring more frequent and
9/11 and the subsequent implementation of the worse disasters affecting more people. We then
Homeland Security Act of 2002. This landmark explore five questions that the community can
legislation spurred the largest reorganization of consider to ensure the security, resilience, and
the US federal government since the National prosperity of communities in the future.
Security Act of 1947, uniting the Federal Emergency
Management Agency (FEMA) with 21 other
organizations under the newly created Department Over the past 20 years, the US
of Homeland Security (DHS).1 disaster management community
has made significant strides
Since 9/11, the crisis management community has In the two decades since the passage of the
made great strides in addressing the negative Homeland Security Act, the US crisis management
impacts of disasters on American lives and community has made progress in helping people
livelihoods. Congressional appropriations for before, during, and after disasters (see sidebar, “The
disaster response and recovery have increased to stages of disaster management”). It is important to
historic levels, with FEMA allocating $45 billion acknowledge the many advancements of the past
between 2017 and 2020 to disaster relief and several years, including improved disaster
financial aid.2 New approaches to recovery and management structures and higher levels of funding.
mitigation have emerged, including the development
of the National Response Framework and the DHS has developed and implemented national
Building Resilient Infrastructure and Communities response structures that have improved and
(BRIC) grant program. Federal and state, local, tribal, streamlined how local, regional, and national disaster
and territorial (SLTT) agencies are more integrated responders serve communities. For instance, it
and coordinate more effectively. Indeed, the past launched the National Incident Management System
two decades have seen significant progress. Yet (NIMS) in 2004 as a preparedness and response
new challenges are emerging, and the crisis management model designed to standardize and
management community will need to work hard to unify response operations.3 Similarly, FEMA was
overcome them over the next 20 years. instrumental in the creation of the National Response
Framework (NRF), which articulated a set of
In this article, we acknowledge the significant overarching emergency principles to assist in
progress made by the crisis management coordinating multiagency and multijurisdictional
community since the signing of the Homeland responses to disasters.
Security Act and review the data suggesting that the
1
Public Law 107–206, US Congress, November 25, 2002; The Federal Emergency Management Agency, FEMA, November 2010.
2
Andrew Hurst, “Which states depend the most on FEMA’s aid?,” ValuePenguin, updated June 18, 2021.
3
National incident management system, US Department of Homeland Security, December 2008.
4
“ OpenFEMA dataset: Public assistance funded project details – v1,” FEMA, updated July 17, 2022; Colin Foard, “How states can manage the
challenges of paying for natural disasters,” Pew Charitable Trusts, September 16, 2020.
5
“Which states depend,” updated June 18, 2021.
6
Federal Emergency Management Agency budget overview, Department of Homeland Security, 2021.
7
Colin Foard, “Federal disaster assistance goes beyond FEMA,” Pew Charitable Trusts, September 29, 2017.
8
“Billion-dollar weather and climate disasters” are defined as disasters due to weather or climate with overall inflation-adjusted damages
or costs reaching or exceeding $1 billion. For more, see “Billion-dollar weather and climate disasters,” National Centers for Environmental
Information, accessed July 7, 2022; see also Adam B. Smith, “2020 U.S. billion-dollar weather and climate disasters in historical context,”
National Oceanic and Atmospheric Administration (NOAA), January 8, 2021.
9
“Climate change indicators: Tropical cyclone activity,” US Environmental Protection Agency, updated April 2021.
10
“Wildfire statistics,” Congressional Research Service, updated June 1, 2022.
11
Lily Katz and Sebastian Sandoval-Olascoaga, “More people are moving in than out of areas facing high risk from climate change,” Redfin News,
updated September 8, 2021.
12
“Flood Factor,” Risk Factor, accessed July 18, 2022.
13
G
reater impact: How disasters affect people of low socioeconomic status, Substance Abuse and Mental Health Services Administration
(SAMHSA) and Disaster Technical Assistance Center (DTAC), July 2017.
14
James McBride and Anshu Siripurapu, “The state of U.S. infrastructure,” Council on Foreign Relations, updated November 8, 2021.
15
The global competitiveness report 2019, Country Profile: United States (p. 582), World Economic Forum, 2019.
16
2021 report card for America’s infrastructure, American Society of Civil Engineers, December 2020.
17
Disaster Resilience: A National Imperative, illustrated edition, Washington, DC: National Academies Press, 2012.
18
Hurricane Sandy FEMA after-action report, Federal Emergency Management Agency (FEMA), July 1, 2013.
19
Disaster recovery: Recent disasters highlight progress and challenges, US Government Accountability Office, October 22, 2019.
20
aken as a percentage of private nonresidential fixed assets out of total fixed assets for 2020. For more, see “National income and product
T
accounts,” US Department of Commerce Bureau of Economic Analysis, updated August 19, 2021.
21
“Employment, hours, and earnings from the Current Employment Statistics Survey,” US Bureau of Labor Statistics, as reported by FRED
Economic Data, accessed July 8, 2022.
22
Anita Chandra, Shaela Moen, and Clarissa Sellers, What role does the private sector have in supporting disaster recovery, and what challenges
does it face in doing so?, RAND Corporation, 2016.
23
“CDP disaster recovery fund,” Center for Disaster Philanthropy, accessed July 8, 2022.
24
“Giving after disasters,” Harvard Business Review, January 2019, Volume 97, Number 1.
25
National Flood Insurance Program: The current rating structure and risk rating 2.0, Congressional Research Service, updated April 4, 2022.
26
“Brace and bolt grants,” California Earthquake Authority, accessed July 8, 2022.
Over the next two decades, the disaster Question 4: What is the right level and mix of
management community could encourage the investments for crisis management?
public to assist with crisis management by reviewing Determining the right investment mix for crisis
the effectiveness of existing programs. One current management is essential—and difficult. In addition
program is FEMA’s Community Emergency to understanding the right level and mix of
Response Team (CERT) program, which educates investments needed to support response and
volunteers about disaster preparedness. CERT recovery, it is particularly important for the crisis
volunteers are often called upon to assist first management community to understand what is
responders during emergencies. The crisis needed to improve resilience (that is, for mitigation,
management community could review CERT’s prevention, and preparedness).
effectiveness in order to identify best practices that
could be scaled throughout CERT (and in other similar According to a 2019 report from the National Institute
programs) to engage as much of the public as of Building Sciences, every dollar invested by the
possible during preparedness and response. Another federal government in mitigation saves society $6 in
important program, FEMA’s Youth Preparedness recovery costs.27 Despite this, resilience necessarily
Council (YPC), created in 2012, could improve the competes with immediate spending needs such as
pipeline to critical disaster management occupations. education and healthcare, as well as with urgent
response and recovery activities. Accordingly,
The crisis management community also could educate resilience investments are often difficult to prioritize,
the public about mitigation and preparedness and especially since policy makers often see them as
provide incentives for investing in such efforts for their expensive, short-term costs.
properties and places of work. One existing model is
the Florida Office of Insurance Regulation, which The Stafford Act (1988), which forms the key
requires all residential-property insurers in the state to legislative framework for American disaster
offer wind mitigation credits, thereby encouraging management through its system of presidential
individuals to invest in building features that reduce disaster declarations, also limits resilience
damage due to wind. Policy makers and insurers could investments.28 While the act references mitigation
develop similar programs to address different hazards, measures as they relate to reducing losses from
and SLTT agencies could partner with corporations disasters, it primarily focuses on reimbursements for
and nonprofits to provide more information about how response activities.
homeowners and small businesses can improve their
mitigation and preparedness efforts—in addition to To determine the appropriate mix of investment
why it matters. across mitigation, prevention, preparedness,
27
Natural hazard mitigation saves: 2019 report, National Institute of Building Sciences, December 2019.
28
Title 42, Chapter 68: Disaster Relief, Section 5121, US Code, accessed July 8, 2022.
29
National mitigation investment strategy, US Department of Homeland Security Mitigation Framework Leadership Group, August 2019.
30
Peter J. Hall et al., Resilience return on investment (RROI): Agenda setting scoping studies summary report, Resilience Shift, June 30, 2017.
31
C aroline Ratcliffe et al., Insult to injury: Natural disasters and residents’ financial health, Urban Institute Opportunity and Ownership Initiative,
April 2019.
32
“Natural disasters widen racial wealth gap,” ScienceDaily, August 20, 2018.
33
“FEMA defines equity in its mission of making programs more accessible,” Federal Emergency Management Agency (FEMA), September 9,
2021.
34
“DHS announces changes to individual assistance policies to advance equity for disaster survivors,” US Department of Homeland Security,
September 2, 2021.
Tony D’Emidio and Jon Spaner are partners in McKinsey’s Washington, DC, office, where Zoe Fox is a consultant;
Ophelia Usher is an associate partner in the Stamford office.
The authors wish to thank Florinda Bartoli and Charles Drummond for their contributions to this article.
35
ebecca Hersher and Ryan Kellman, “Why FEMA aid is unavailable to many who need it the most,” NPR, June 29, 2021.
R
36
Insult to injury, April 2019.