MULTI-HAZARD PREVENTION AND PREPAREDNESS BUSINESS CONTINUITY MANAGEMENT FOR SMALL AND MEDIUM-SIZED ENTERPRISES Donato Kiniger-Passigli
Why SMEs and Multi-Hazard BCM? KEY ROLE IN THE VALUE CHAIN VIS-À-VIS COMMUNITY AND THE ENVIRONMENT SMALL COMPANIES SUPPLY CHAIN PARTNERS OF LARGER COMPANIES HIGHER VULNERABILITY SMES ARE UNPREPARED TO COPE WITH RISKS AND DISASTERS. BIGGEST CONTRIBUTOR TO EMPLOYMENT. THEY PROVIDE ON AVERAGE 66% OF TOTAL EMPLOYMENT. 177 MILLION SMES IN THE G20 COUNTRIES. IN THE EMERGING G20 ECONOMIES (71%) OF EMPLOYMENT. GENERATE 68% OF ALL NEW JOBS AND HAVE THE HIGHEST EMPLOYMENT GROWTH RATES. MOST JOB CREATION IS IN SMALLER FIRMS (< 100 WORKERS) AND IN YOUNG FIRMS (< 5 YEARS).
The CHALLENGE is: To integrate SMEs into global supply chains by improving their preparedness /competitiveness Preparedness and better managerial skills for promotion SMEs
QUESTIONS from SMEs most exposed to cyclical disasters such as: earthquakes,floods, landslides, storms, volcanic eruptions or other sudden shocks. WHAT TO DO IF A DISASTER STRIKES? WHAT ARE THE CONTINGENCY MEASURES TO BE TAKEN PRIOR TO A SUDDEN EMERGENCY? HOW TO MINIMIZE THE IMPACT OF RECURRENT CATACLYSMS? HOW TO STAY IN BUSINESS AND PROTECT WORKFORCE AND ASSETS?
BCM versus Hazards and Shocks PREPARE FOR THE UNEXPECTED….WHEN CONFRONTED WITH HAZARDS AND RISKS Risk Management : Avoidance- Reduction - Sharing/Transfer-Retention BCM = Balance among: Reduction - Sharing/Transfer-Retention Resilience is equal to the capacity to absorb shocks through emergency preparedness The enabling environment for SMEs should be improved with adequate preparedness and contingency planning
BCM versus Hazards and Shocks Preventive Preparedness Response BCM measures arrangements Options Prior to occurrence of a disaster When the disaster occurs
KEY STEPS FOR BUSINESS CONTINUITY MANAGEMENT A management process to counteract negative impacts on organizational activities BCM does so by strengthening resilience through risk preventive and mitigation measures, such as preparedness arrangements. BETTER WORKING BENEFITS FORRISK REDUCTION/ PREPAREDNESS CONDITIONS IMPROVED SUPPLY CHAIN and PREVENTION MEASURES and PRODUCTIVITY COMMUNITY IMPROVED MANAGEMENT
Path to Business and Community ResilienceIdentification of essential operationsand critical resources Identification of specific risks and reduction of their possible impacts Identification of specific risks and reduction of their possible impact Preparedness/Planning and Response Actions /Recovery Policy-making Awareness Awareness/Communications HIGHER PREPAREDNESS HIGHER CAPABILITY TO RESPOND HIGHER ABILITY TO RECOVER
Step 1: Determine your business priority Step 2: Identify critical assets and inputs for your priority Step 3: Identify the time-critical operations; Step 4: Map-out internal and external risk areas impacting the necessary inputs Step 5: Prepare a set of possible threat scenarios Step 6: Design and validate the business continuity plan (BCP) Step 7: Design and roll-out communication procedures Step 8: Design and deliver training on BCM Step 9: Activate and close the BCP Step 10: Gather lessons learnt and adjust the BCP
What does it take? INTEGRATIVE PERSPECTIVE FLEXIBLE PLANNING ( NOT ONE SINGLE PLAN SUITS ALL) PARTICIPATORY AND INTEGRATIVE APPROACH (NATIONAL/LOCAL LEVEL) NETWORKING AND PARTNERING INCENTIVES FOR RESILIENCE THROUGH DISASTER RISK MANAGEMENT TRAINING AND FINANCE TO TURN RISKS INTO OPPORTUNITIES MANAGERIAL SUPPORT TO TRANSFER AND REDUCE RISKS EFFICIENT USE OF RESOURCES EVALUATION OF POSSIBLE DISASTER IMPACT AND OF PREPAREDNESS INTERVENTIONS INFORMATION AND ANALYSIS THAT CAN IMPROVE DECISIONS