Merit Event - Preventing Business Disaster

Slide 1: Business Continuity Management Peter Case-Upton School of Business Information p.caseupton@livjm.ac.uk 01/28/08 Merit BCM 1

Slide 2: Business Continuity Management The Plan Background to BCM The BCM Process Risk Analysis 01/28/08 Merit BCM 2

Slide 3: Business Continuity Management Business continuity - what is it? x x Planning for potential disasters which could effect the normal operation of the business x Why Bother? – Minimising the cost impact – Reducing regulatory/statutory effects – Preserving image/credibility – Demonstrate leadership 01/28/08 Merit BCM 3

Slide 4: The Origins BCM came from an IT systems x background x Typical exponents of BCM were:- – IBM, DEC, HP, ICL, etc – Banks, commercial, industrial, etc Found to rely on business processes x x Companies have learned the hard way via their own disasters 01/28/08 Merit BCM 4

Slide 5: Types of Risk and Threat x Denial of access x Chemical spillages x Fire, bombs, terrorist attacks x Sickness/epidemic x Natural disasters x Threats from the skies (Accident/Intentional) 01/28/08 Merit BCM 5

Slide 6: Examples World Trade Centre Sept 11 & 1992 x x Manchester Bomb x Docklands x Etc 01/28/08 Merit BCM 6

Slide 7: The Manchester Bomb 1000 kg Lorry bomb 200 people injured 01/28/08 Merit BCM 7

Slide 8: Some Facts - Business Disasters 80% of UK businesses have no plan x – The ‘It won’t happen to me syndrome!’ 68% of businesses who experience a x disaster and don’t have a plan - go out of business within 2 years x One in five organisations will suffer a major IT disaster in five years 01/28/08 Merit BCM 8

Slide 9: Risk Management 01/28/08 Disaster Recovery Facilities Management Supply Chain Management Quality Management Merit BCM Heath and Safety Knowledge Management IT & Security Emergency Management A Wide Ranging Subject Area Business Continuity Management Crisis Management and PR 9

Slide 10: Business Continuity Life Cycle Understand the Business 1 Exercise, Programme Maintenance and Develop Business Management 5 2 Audit Continuity Strategies 6 BCM Build and Embed Develop and 4 3 a BCM Culture Implement a BCM Response 01/28/08 Merit BCM 10

Slide 11: The Major Events in BCM Risk Analysis Review Salvage and Provision Business Impact Analysis Disaster Management Test the plan Fallback Provision Recovery Management 01/28/08 Merit BCM 11

Slide 12: Implementation Involvement - must have corporate x commitment at board level x Use a structured approach x Set up a steering group x Arrange working groups x Provide awareness training for groups x Include budget for BCM x Add contingency item to budget (5%?) 01/28/08 Merit BCM 12

Slide 13: Typical Company Structure C h ie f E x e c u tiv e Q u a lity /B C P M anager F in a n c e O p e r a tio n s M a rk e tin g T e c h n ic a l D ir e c to r D ir e c to r D ire c to r D ir e c to r D e p a rtm e n ta l D e p a rtm e n ta l D e p a rtm e n ta l D e p a rtm e n ta l S ta ff S ta ff S ta ff S ta ff 01/28/08 Merit BCM 13

Slide 14: Typical Company Structure C h ie f Steering E x e c u tiv e Group Q u a lity /B C P M anager F in a n c e O p e r a tio n s M a rk e tin g T e c h n ic a l D ir e c to r D ir e c to r D ire c to r D ir e c to r D e p a rtm e n ta l D e p a rtm e n ta l D e p a rtm e n ta l D e p a rtm e n ta l S ta ff S ta ff S ta ff S ta ff 01/28/08 Merit BCM 14

Slide 15: Typical Company Structure C h ie f Working E x e c u tiv e Group 2 Q u a lity /B C P M anager F in a n c e O p e r a tio n s M a rk e tin g T e c h n ic a l D ir e c to r D ir e c to r D ire c to r D ir e c to r D e p a rtm e n ta l D e p a rtm e n ta l D e p a rtm e n ta l D e p a rtm e n ta l S ta ff S ta ff S ta ff S ta ff 01/28/08 Merit BCM 15

Slide 16: Risk Assessment Risk Identification x – What is the risk? Risk Assessment x – What level of risk exists? Risk Management x – What are the priorities of all risks? Risk Reduction x – How can the risks be reduced? 01/28/08 Merit BCM 16

Slide 17: Risk The Zaphod Beeblebrox Approach “Zaphod put on the glasses. They were a double pair of Joo Janta 200 Superchromatic Peril-Sensitive Sunglasses, which had been specifically designed to help people develop a relaxed attitude to danger. At the first hint of trouble they turn totally black and thus prevent you from seeing anything that might harm you” From Adams ‘The Restaurant at the end of the universe’ 01/28/08 Merit BCM 17

Slide 18: How Can Risk be Measured Using probability (range of 0.0 to 1.0) x x Once in every x years, e.g. 1 in 20 year storm x Odds (2/1, 10/1) x Occurrence (event per ‘000 people) x Percentage (10%, 50%) x High/ Medium/Low Risk Rating 01/28/08 Merit BCM 18

Slide 19: High, Medium and Low Risk Items Likelihood 01/28/08 Merit BCM 19 Consequence

Slide 20: Risk Control Techniques x RiskAvoidance - To eliminate uncertainty x Transfer - Move ownership x Reduction - Down grade risk level x Absorption - Accept responsibility 01/28/08 Merit BCM 20

Slide 21: Business Impact Overview A departmental specific document which x defines:- – The Risk Analysis – Organisational structures/numbers – IT requirements – Business Procedures – Rationale for criticality – Effect of disasters How could levels of service be maintained x 01/28/08 Merit BCM 21

Slide 22: The Disaster Phase - Day One Assess the type and extent of disaster x x Invoke multi-level disaster management teams and initiate plans x Communicate with - staff, media, other sites x Mobilise contingency resource x Inform salvage/insurance people x Don't change the method of working 01/28/08 Merit BCM 22

Slide 23: The Fallback Phase - Day 1+ Try and use the plans x x Move to alternative locations x Prioritise high criticality processes first x Communicate with others x Use replacement IT systems + data backups x Alternative communications provision x Prepare for recovery 01/28/08 Merit BCM 23

Slide 24: Recovery Management Getting back to normal operation x x Phased return to the provision of full service x Consider environmental aspects x re-establish communications links x Communicate with others x Counselling x Test the plan - learn from experience 01/28/08 Merit BCM 24

Slide 25: Business Continuity Management Summary Background to BCM The BCM Process Risk Analysis 01/28/08 Merit BCM 25