3 STAGES OF A 6 STAGE PROCESS. WE ARE CONCENTRATING ON THE FIRST THREE. MOVES FROM A BUSINESS IMPACT ANALYSIS THROUGH TO IDENTIFIYING THE APPROPRIATE STRATEGIES THROUGH TO DEVELOPMENT OF BUSINESS CONTINUITY AND CRISIS MANAGEMENT PLANS TO PROTECT THE BUSINESS FROM DISRUPTION.
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1. Paul Johnson, Manager Business Risk Consulting Group Water UK Asset Management Forum Workshop London, 12 th May 2004
2. <ul><li>Water Industry Incident Experience </li></ul><ul><li>Business Continuity Management Framework </li></ul><ul><li>The Business Impact Analysis process </li></ul>Agenda
3. <ul><li>Water Industry Incident Experience </li></ul>
7. BIA in context – business continuity * understanding your business continuity strategies developing the response establishing the continuity culture exercising and plan maintenance BCM programme management *The Business Continuity Institute 2002 1 5 4 3 2 6
8. BIA in context – business continuity * 1 5 4 3 2 6 understanding your business continuity strategies developing the response establishing the continuity culture exercising and plan maintenance BCM programme management *The Business Continuity Institute 2002
9. business continuity management* framework Business Impact Analysis *The Business Continuity Institute 2002 Stage 1. Understanding Your Business Organisation Strategy Operational and Business Objectives Business Outputs & Deliverables (Service & Products) Critical Business Factors (Critical Activities) Stage 2. Business Continuity Strategies Organisation (Corporate) BCM Strategy Resource Recovery BCM Strategy Process Level BCM Strategy Stage 3. Develop and Implement a BCM response Business Continuity Plan(s) Crisis Management Plan Resource Recovery & Solutions Plans
10. The value chain Firm Infrastructure - Finance Human Resources Information Technology Procurement Inbound Logistics Outbound Logistics Operations Marketing & Sales Service Profit
11. <ul><li>The Business Impact Analysis process </li></ul>
12. Business impact analysis – process What are the key hazards? What is the quality of risk mitigation within the business? What are the credible loss scenarios? Engineering Risk Analysis How much profit do these products and services generate? Where are the costs associated with their delivery to customers? Financial Analysis Business Impact Analysis What are the key facilities and processes that drive revenues and costs, what could go wrong within these and what would be the cost to the business if it did go wrong? How can these exposures be mitigated in order to ensure business continuity and protect shareholder value? Risk Mitigation Opportunities How do products and services flow through the internal and external supply chain? How could these flows be interrupted? Business Model Analysis
13. <ul><li>Corporate Governance </li></ul><ul><li>Improves your understanding of key property-damage related exposures and how they can be mitigated </li></ul><ul><li>Capital Investment Optimisation </li></ul><ul><li>Provides you with a tool to optimise risk-focused capital investment decisions – where best to spend your money </li></ul><ul><li>Shareholder Value Protection </li></ul><ul><li>Protects shareholder value through identifying opportunities for you to reduce operating cash flow volatility </li></ul><ul><li>Risk reduction => cash flow stability => shareholder value </li></ul>What does this mean to you?