Business Continuity Planning• What is it?• Why do it?• How do you do it?• Who does it?
Strategic Approach to Business Continuity Phase Risk and Business Impact Analysis Business Continuity Plan Development Phase 1 • Review Existing Documents • Master Business Continuity Plan: 2 • Validate / Prioritize Mission Critical Business • Crisis Management, Command Center Functions • Disaster Recovery, Hot Site • Perform Risk Assessment • Business Resumption • Conduct Business Impact Analysis • High Availability • Analyze Alternative Solutions • Plan Monitoring Strategy • Present Findings and RecommendationsPhase Phase 3 4 Testing of Business Continuity Plans Cost of Downtime • Create Enterprise Testing Strategy • Productivity • Prepare for Plan Tests • Damaged Reputation • Test Scenarios • Test Cases • Execute Plan Tests • Revise Plans (as required)
Risk Impact Analysis Formulating Continuity StrategiesWithout a plan, a natural or man made disasters are;•Loss of work to competitors•Failures within the supply chain•Loss of reputation•HR Issues•Health and Safety Liabilities•Increased Insurance PremiumsWorst Case: Failure of Business
Business Impact Analysis Understanding the Balance between Costs, Likelihood of a Disruption and Business Impact Disruption • Likelihood Occurs • Magnitude • Financial Impact Recovery Cost Resume Ops • Recovery Performance • Time to Recover Normal Protection Investment Event • Scope of Recovery Ops • Crisis Management• Identify Critical • Prevention / Preparation Functions Strategy Based on ROI• Risk Assessment • Plan and Response Business Impact• Business Impact Development Analysis • Scope of Protection • Lost Revenue • Ongoing Incremental • Customer / Partner Confidence Expense • Regulatory / Legal Issues
Business Continuity Plan Development PROCESS OngoingChange Management Education Testing Review Process Testing Group Plans Risk Implementand Procedures Reduction Standby Facilities Project Create Planning Organization Recovery Strategy Risk Analysis Business Impact Analysis Policy Organization Resources Scope Business Continuity Planning Initiation
Updating & Testing Plans• Your Continuity plan MUST BE EMBEDDED in how each business unit operates every day• Business Function Managers MUST BE RESPONSIBLE for ensuring that strong change management controls are in place!• Change Control ensures that NOTHING GETS INTO PRODUCTION without Continuity Team sign-off!• Constant TESTING IS IMPERATIVE!• QUARTERLY AUDITS & executive reporting are essential!• Training off staff is imperative 7
What Is Your Cost of Downtime? Productivity Revenue • Number of • Direct loss employees impacted • Compensatory X hours out X payments burdened hourly rate • Lost future revenue • Billing losses • Investment lossesDamaged Reputation Financial Performance• Customers • Revenue recognition• Suppliers • Cash flow• Financial markets • Lost discounts (A/P)• Banks • Payment guarantees• Business partners Know your downtime • Credit rating costs per-hour, -day, -two • Stock price days ... Other Expenses Temporary employees, equipment rental, overtime costs, extra shipping costs, travel expenses
Conclusion• Development and implementation of BCP maintenance processes are critical to ensure that the BCP is in a state-of-readiness• Management will only realise the value of their investment in business continuity when a real disaster situation strikes the organisation