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Mass Notification Systems: Corporate Financial Implications

Mass Notification System When it comes to Mass Notification Systems ("MNS"), the adage "It’s not just a good idea; it’s the law" is gaining poignant relevancy for risk management and top executive personnel. Wise selection, installation and operation of a MNS, may not be just a good idea or even just complying with the law. The MNS can be an excellent shield against events like loss of reputation, loss of sales, loss of money to fines and lawsuits, loss of a career, loss of the company and loss of personal freedom resultant from incarceration.

Loss is the operative word. Consider monetary loss brought about by non-compliance fines. Depending on the infraction severity and profit margin, they may seem anemic. If nothing else, however, they are persistent; and, they do not help to enhance a firm’s image. Post-incident fines cost more. A major Texas based oil refinery operation saw this first-hand following the 2005 explosion that killed 15 workers. As if the resultant $21 million OSHA fine, the settlement of 4,000 individual claims and $1 billion in safety upgrades were not painful enough, just last month a federal judge approved an additional $50 million fine against the company. Although mass notification may not have been failing, it is unclear if it met the most recent regulatory requirements. None the less, this event is a recent example of the consequences of unsafe operating procedures – exactly what a well planned and implemented MNS is instrumental in eliminating. Some companies do not recover from industrial accidents. The 1984 Union Carbide gas release in Bhopal, India, killed about 3,800 people and permanently injured many thousands more. The Indian high court approved a $470 million compensation package. Union Carbide never recovered from the incident and has since lost its corporate identity. Regardless of the cause of the release, one thing remains clear: the lack of an adequate MNS and solid rules governing its use prevented warning the hapless victims of the gas cloud’s approach.

IndustronicIndustronic manufactures digital voice, data and video systems for public address, alarm and safety communications.

Also lacking a MNS system was a major food processing plant in North Carolina. In a horrendous 1991 fire, 25 people perished. Blocked exit routes, insufficient emergency training and inadequate emergency mass notification means contributed to disaster and landed the owner in prison for four years. The plant never reopened.
Good MNSs present a low-cost in comparison to fines and effective way to transmit timely, tailored, emergency instructions to employees and other personnel within a building or area. These systems can communicate prerecorded or live instructions. The better, versatile MNSs allow two-way communication. They are configured to recognize that every emergency, even those of the same type, is different; and, therefore, the proper responses to the emergencies are different. A MNS reduces the risk of loss – a financial risk management can certainly do without.

For more information on how to properly source and implement a MNS, please feel free to contact your local Industronic Representative or our Corporate Headquarters @ 1-866-986-PAGA (7242).

Industronic is one of the worlds leading manufacturers of Industrial Emergency Warning and Mass Notification Systems. All systems comply with the latest regulatory codes. More information on Industronic's systems can be found on the web at www.industronic.com or contacting us via phone.
Industronic Inc.
1011 US Highway 22 West, Suite 301
Bridgewater NJ 08807
T - 908-393-5960
F - 908-393-5961

For additional information or to to discuss your project call, fax or e-mail us.

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