1. MULTI-HAZARD PREVENTION AND PREPAREDNESS
BUSINESS CONTINUITY MANAGEMENT FOR SMALL
AND MEDIUM-SIZED ENTERPRISES
Donato Kiniger-Passigli

2. 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).

3. The CHALLENGE is:
To integrate SMEs into global supply chains by improving their
preparedness /competitiveness
Preparedness and better managerial skills
for promotion SMEs

4. 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?

5. 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

6. BCM versus Hazards and Shocks
Preventive Preparedness Response
BCM measures arrangements Options
Prior to occurrence of a disaster When the disaster occurs

7. 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 FOR
RISK REDUCTION/ PREPAREDNESS CONDITIONS IMPROVED
SUPPLY CHAIN and
PREVENTION MEASURES and PRODUCTIVITY
COMMUNITY
IMPROVED
MANAGEMENT

8. Path to Business and Community Resilience
Identification of essential operations
and 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

9.  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

10. 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