BUSINESS CONTINUITY MANAGEMENT WHAT IS IT? 04/29/10
The history of business continuity 04/29/10 Disaster Recovery Planning Business Continuity Planning Business Continuity Management Alternative Planning / Plan B Fallback Plans , Contingency Plans IT or Technical Contingency Plans Organization wide Contingency Plans Holistic Contingency Plans
What is Business Continuity Management? 04/29/10 Monitor & Response Recover & Resume Rectify & Restore Migrate & Normalize A holistic management process that identifies potential impacts that threaten an organisation and provides a framework for building resilience with the capability for an effective response that safeguards the interests of its key stakeholders, reputation, brand and value creating activities Source: Business Continuity Institute (UK) Disaster Management Phases ( Execution ) Prevention Response Continuity of Service (Recovery& Resumption Restoration Normalization Risk Management Emergency Response, Crisis Management, Public Relations Business Resumption Plans, Disaster Recovery Plan Damage Restoration, Includes installation & commissioning Migration, Restart of all business functions, Stand Down Pre - Incident Incident Post - Incident PHASES ACTIONS
a structure that will design, develop, implement and maintain infrastructures, resources, processes, policies and strategies to respond, recover, resume, restore and normalize the mission critical operations of an organization in an effective manner.
Business Continuity Management Why do you need it? 04/29/10
Malaysian Code of Corporate Governance – it is a requirement by Securities Commission that all listed companies in Malaysia to comply with the Malaysian Code of Corporate Governance
Part of the Principle Responsibilities of the BOD are:-
Identify principal risk and ensure the implementation of appropriate systems to manage these risks.
Reviewing the adequacy and the integrity of the company’s internal control systems and management information systems, including systems for compliance with applicable laws, regulations, rules, directives and guidelines.
Succession Planning of Senior Management
Post-9/11 Surge in Regulations and Standards 04/29/10 Consumer Credit Protection Act OMB Circular A-130 FEMA Guidance Document Paperwork Reduction Act FFIEC BCP Handbook Computer Security Act 12 CFR Part 18 Presidential Decision Directive 67 FDA Guidance on Computerized Systems used in Clinical Trials ANSI/NFPA Standard 1600 Turnbull Report (UK) ANAO Best Practice Guide (Australia) SEC Rule 17 a-4 Source: Marsh (c) 2004 Sarbanes-Oxley Act of 2002 HIPAA, Final Security Rule FFIEC BCP Handbook Fair Credit Reporting Act NASD Rule 3510 NERC Security Guidelines FERC Security Standards NAIC Standard on BCP NIST Contingency Planning Guide FRB-OCC-SEC Guidelines for Strengthening the Resilience of US Financial System NYSE Rule 446 California SB 1386 Australia Standards BCM Handbook GAO Potential Terrorist Attacks Guideline Federal and Legislative BC Requirements for IRS Basel Capital Accord MAS Proposed BCP Guidelines (Singapore) NFA Compliance Rule 2-38 FSA Handbook (UK) BCI Standard, PAS 56 (UK) Civil Contingencies Bill (UK) Post 9-11 Pre 9-11 20 1991 - 2001 2002 - 2004 Source : [email_address]
Finance company software leading to malfunctioning of ATMs
Flooding of electricity substation
National Power Grid failure
Fire at bank branch on the 1st day of business at branch's new premises. Substantial damage at upper floor, ground floor also damaged. Was able to resume business on the same day at the previous premise located nearby.
Power outage for 3 days at Bank’s Headoffice. IT systems ran on gen set, power was gradually restored by floors. Impact: no A/C, significant loss of productivity.
The automatic teller machine network of a large local bank was disrupted for 13 hours nationwide.
Lightning destroyed the main power circuit board of a factory cause a 8 hour shut down of its plant and losses in excess of RM5 million.
Data Center of a manufacturing company was flooded damaging their key servers
Business Continuity Management How is it different from Disaster Recovery Planning 04/29/10
BCP - Composition 04/29/10 Emergency Management Crisis Management Contingency Plans Disaster Recovery Plans Business Resumption Plans Business Continuity Plans
BUSINESS CONTINUITY PLANNING (BCP): Process of developing advance arrangements and procedures that enable an organization to respond to an event in such a manner that critical business functions continue with planned levels of interruption or essential change.
SIMILAR TERMS: Contingency Planning, Disaster Recovery Planning.
DISASTER RECOVERY PLANNING (DRP): The technological aspect of business continuity planning.
The advance planning and preparations that are necessary to minimize loss and ensure continuity of the critical business functions of an organization in the event of disaster.
SIMILAR TERMS: Contingency Planning; Business Resumption Planning; Corporate Contingency Planning; Business Interruption Planning; Disaster Preparedness.
DRP vs BCP 04/29/10 TIME UTILIZATION CRISIS DISASTER RESTORE DISASTER 60% 100% 0% 75%
DRP vs BCP 04/29/10 Major Plan Components BCP = Business Continuity Planning BRP = Business Resumption Planning DRP = Disaster Recovery Planning
Business Continuity Management Who should be involved 04/29/10
Organisation Structure 04/29/10 Crisis Management Director Incident Response Director Business Continuity Director Damage Restoration Director Public Relations & Communication Director Safety & Welfare Director Crisis Management Committee
Brief Roles & Responsibilities 04/29/10 Crisis Management Director Authority who has the veto power. Crisis Management Committee A group of senior management personnel who will manage the situation from start to finish and provide the necessary management support to the working teams Incident Response Director Person who is responsible to manage the situation at ground zero, to stabilize the situation and work with local authorities. Reports back to the CMC on a regular basis Business Continuity Director Person who is responsible to recover and resume critical business operations at the alternate facilities Damage Restoration Director Person who is responsible to prepare a permanent working environment for business to return to normal Public Relations & Communication Director Person who is responsible for all communication to stakeholders and public during a time of emergency, crisis or disaster Safety and Welfare Director Person who is responsible to ensure the safety and welfare of the staff until operations is back to normal.
BCM Team Structure 04/29/10 BCM Director Technical Recovery Team Support Recovery Team Customer Centric Recovery Team BCM Coordinator Back Office Recovery Team
Brief Roles & Responsibilities 04/29/10 Business Continuity Director Person who is responsible to recover and resume critical business operations at the alternate facilities Technical Recovery Team This is one or more teams responsible for preparing and maintaining the technology used at the recovery site Support Recovery Team This is one or more teams responsible for supporting the recovery process such as administration, logistics, finance, etc Customer Centric Recovery Team This is one or more teams responsible for recovering and resuming critical functions which are directly dealing with customer. i.e. front counters, call center, etc Back Office Recovery Team This is one or more teams responsible for recovering and resuming functions that support the critical functions. i.e. application processing, etc
In this module, the respective players in the organisation’s business continuity plan will be given the appropriate education on the principles of business continuity planning as well as training in the use of the recovery plans developed in the previous module.