A laypersons guide to business continuity management richard (2)Presentation Transcript
An introduction to: Business Continuity Management
BCM is the strategic and tactical capability of the organisation to plan for, and respond to, incidents and business disruptions in order to continue business operations at an acceptable, pre-defined level.
What is Business Continuity Management ? (BCM)
BCM substantially improves the chances of business survival following a major disruption to critical operations by identifying mission critical activities (and prioritising their recovery) prior to an unforeseen event.
It identifies the tolerance to interruption of business processes that must be recovered and predetermines therefore the required recovery time frames (known as RTO – Recovery Time Objectives).
In summary, the BCM process generates practical recovery strategies and continuity plans which, once tested, renders the organisation resilient to disastrous events by ensuring that the organisation can continue to supply critical products and services during adverse operating conditions.
The Importance of BCM
In the absence of a tested and viable BCM programme, a major operational disruption could threaten the survival of your business.
A major unforeseen interruption could render you incapable of continuing mission critical functions which support your key business objectives.
Insurance policies do not keep your business running. They may pay for damage caused but they do not answer your phones, communicate with your clients and satisfy your stakeholders.
Mission critical and essential services
These are example activities which are critical to the sustainability of a typical business:
Communication with staff, suppliers and clients
Meeting service level agreements
Meeting deadlines such as payrol and customer orders
Complying with statutory responsibilities
Meeting banking covenants
The value of BCM
On experiencing a major disaster or catastrophic event, a well-tested BCM plan can:
Prevent a loss of market share
Enhance your reputation
Impress your clients
Improve staff retention
Improve your insurance ratings
Keep your business alive
What a BCM plan should provide
A well-considered plan that can be tested
Alternative office accommodation
Redirected telephone numbers
A calm environment from which you can effect a controlled recovery
A solid crisis management and communications plan
Standby, configured computer infrastructure
Restored data from previously taken back-ups
The key benefits to BCM
80% of companies that do not have a viable business continuity plan and suffer a disaster, go out of business within just 18 months of that disaster.
What is a Disruptive Event? Some of these are perhaps obvious but, have you considered what would happen if there was a gas leak in the street and the police prevented access to your building? What if your communications lines were cut off for a week – how would you cope?
The most likely causes of interruption
2010 statistics (Global Continuity)
Natural disaster (regionally dependent)
The potential physical consequences of a catastrophic event
No office accommodation
No ability to communicate
Lost records, no data
No computer access
No manufacturing ability
The benefits of BusinessAssist
BusinessAssist provides your Company with:
A nearby Emergency Recovery Office (ERO) with a fully fitted office infrastructure .
Your existing incoming telephone lines switched to the ERO.
A recovery strategy
A business continuity plan
The ability to test the functionality of your plan
An invocation procedure
Technical support in a crisis
The key elements to a BCM plan (1)
Business Impact Analysis
What are your mission critical activities?
What would happen if you lost them (the impact of loss)?
How long could you afford to be without them?
What are impacts of loss:
Are their times (cycles) when mission critical activities are more or less important i.e. end of the month, financial reporting periods etc.?
The key elements to a BCM plan (2)
What risks exist that could affect the mission critical services?
What is the likelihood of those risks happening?
Environmental risks e.g. flood plains, neighbourhood activity e.g. Chemical plants, gas storage etc.
Seasonal risks e.g. weather
Proximity terrorist targets
What are Mission Critical activities?
It changes from business to business and even the time of the year and commercial cycle of the business.
It is usually linked to:
Revenue flows (debtors / creditors)
or: Legal or regulatory obligations
and: Reputation / brand / public image
Essentially it is any activity that is the core to the success of the business.
Impact and Risk Assessment
The key elements to a BCM plan (3)
Risk assessments are produced by combining the assessed likelihood and impact scores of a hazard or threat by plotting them on a risk matrix.
High likelihood and high impact risks are your essential priority.
Low impact and low risk may be ignored (if your assessment process allows it).
Imagine a risk and plot it on the chart that follows.
Impact vs Likelihood
The costs associated with producing a BCM plan
Plans cost time to create.
They cost time to keep maintained and current (they must be reviewed regularly).
You may have to invest in data backup systems albeit BusinessAssist cares for your critical documents (for free).
There will be a cost of ownership – somebody in your company must be responsible for the plan.
It does require a budget however, if BCM is considered as an element of any key project at inception, then it will be cheaper to implement.
BusinessAssist (detail and recap)
Guarantees the next working day availability of an Emergency Recovery Office (ERO), near you.
The switching of your main incoming telephone lines to your ERO in time for your arrival.
This training module and an online assessment of your BCM knowledge.
An automated continuity planning tool.
The storage (and online retrieval) of your key documents and your key contacts.
Crisis management support in a disaster (just call your hotline number).
Evidence to a compliance officer, insurer or bank that you have a viable BCM plan.
To invoke your BusinessAssist Contract call - 0800 334 5738
The BCM process (recap)
Identify your mission critical activities and conduct a Business Impact Analysis (BIA).
Determine the exposure to risk and interruption.
Mitigate risks (where possible).
Decide what activities must be recovered.
Determine the Recovery Time Objectives (RTO).
Complete the BusinessAssist continuity plan template.
The subtle importance of BCM
Statistics prove you will have an interruption of some sort.
Evidence shows that in a major disaster, your share price can increase if the market thinks you were well prepared.
You have no control of your neighbours and their activities. Their actions could interrupt your business.
It is sound business practice and will help you stay ahead of your competitors.
It gives your staff confidence that you care.
It is good governance and will impress your stakeholders.
In some industries legislation demands it.
It can make you more able to take advantage of your competitors if they are also in crisis.
A key element to a sound BCM strategy.
It ‘defines’ your reputation during a crisis.
Ensures the effective and efficient recovery, in a controlled environment, of your business.
Ensures good press relations.
Is the calming effect on your crisis.
Is the controlled recovery of all that has been lost.
Is evidence to your stakeholders that you are in control.
Crisis Management in action
Early in the crisis:
Identify affected stakeholder groups.
Engage relevant groups (inc. Staff):
Quickly, be proactive
Acknowledge the situation
Communicate regularly (even if there is little to say)
Reassure that a tested recovery plan is in place
Maintain confidence (back to normal within 24 hours)
Tell the truth
Never attempt to bluff your stakeholders
Always be available
Role of the Crisis Manager
Diagnose the impending trouble or danger signals.
Choose appropriate turnaround strategy.
Build an environment of trust and calm.
Divert the organisations mind set from shock and fear to action and remedy.
Identify obvious and obscure vulnerability of the organisation.
Make wise and rapid decisions.
BCM plan viability
The plan will fail if it is written and then left ignored.
Regularly update the plan and ensure key contact details of staff, customers etc. are current.
Regularly check that the data (files) you have backed up can be restored.
Regularly update the answers you gave when you first activated your BusinessAssist service.
‘ Exercise’ the plans regularly.
Make sure BCM is a Board agenda item.
Frequently asked questions
Is supply chain management a component of BCM? A: Yes. If you lost a key supplier and have no contingency plan, you could be compromised. Have you asked your supplier if they have a BCM plan? Have you seen it?
Is BCM Enterprise Risk Management? A: No. It is more aligned to operational and reputational risk.
Is there legislation that insists my company must have a BCM plan? A: it depends which industry you are in. Financial services companies must have a viable plan as must solicitor practices. Check with your industry forums.
Is my bank a stakeholder in my business? A: Yes if you borrow from them or depend on them in any way. Stakeholders are entities that have an influence on (or are influenced by) your company.
Disaster Recovery and BCM
Disaster recovery is an element of BCM and focuses on post disaster activity. BCM prevents as well as cures.
Business needs to focus on the recovery of critical business processes.
Businesses invariably have a critical dependency on IT. Recovery of IT infrastructure accordingly remains crucial to the recovery of operations and is the origin of most externally available disaster recovery services.
BusinessAssist includes an emergency recovery office (this is disaster recovery).
That concludes the training on Business Continuity Management. Thank you. Now complete the online Continuity Management Test which will then automatically produce a Business Continuity Plan for you.