Business Continuity is going mainstream - are you?

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Speaker:  Ron Kamps, Manager of Business Continuity, Office Security and Risk Management for
the Agency Markets Division of Liberty Mutual
Presentation will walk audience through the recent changes in Business Continuity from an insider and
outsider perspective. Presentation will show how mainstream Business Continuity has become through
the use of media, reporting, jobs and advertising. Audience will score their own program and learn from
speaker and audience members of what has changed, why and what is working with other company
programs.

Published in: Business, Economy & Finance
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Business Continuity is going mainstream - are you?

  1. 1. Business Continuity Business Continuity  y is going  is going  Mainstream  M i t ‐ are you? are you? are you you? Partners in Emergency Preparedness Ron Kamps, CBCP 2011
  2. 2. Objectives Obj ti• Examples of Business Continuity in the Mainstream• Impact of going Mainstream• Themes for Success• Review your Program – Exercise / Handout• Identify Opportunities d tif O t iti• Find a Nugget PEP 2011 2
  3. 3. Common Themes C Th• Interwoven into the presentation…. p o Roles and Responsibilities o Ownership o Success o Reports & Metrics o Innovation o Partnerships o Value o Adapting o Maturity o Process Reasonableness o Tools o Customers PEP 2011 3
  4. 4. Background B k d• Ron o AT&T Wireless • IT / Business • CBCP 2002 o Alaska Airlines • IT o Safeco Insurance • Business Continuity & Safety o Liberty Mutual (Division: Agency Corporation) • Business Continuity, Security & Risk Management• Liberty Mutual o Founded in1912 • Headquarters in Boston o Global Footprint (1993) o Fortune 100 • Fifth largest property and casualty insurer in the US • Annual revenue – 33 B • 45,000 employees in more than 900 offices throughout the world PEP 2011 4
  5. 5. Miscellaneous Mi ll• Terms o Organization = where you work – private or public o Stakeholders = your manager or organization’s management o Business Continuity = ____________PEP 2011 5
  6. 6. Business Continuity Vendor  Safety S f t Management Programs Disaster        Business Continuity Business Continuity Recovery     Emergency  Response Culture Approach o Resiliency Audit / Sustainability Standards Regulations Risk Crisis  Crisis Management Management6
  7. 7. Miscellaneous Mi ll• Terms o Organization = where you work – private or public o Stakeholders = your manager or organization’s management o Business Continuity = ____________• Observations o One Person o Not Scientific or Quantifiable• Intermediate Level o Solid understanding of Business Continuity• Interaction o Looking for Your Input PEP 2011 7
  8. 8. Inspiration I i ti• What inspired y p you to choose Business Continuity? y• Or, what is your current inspiration?• Turn to someone and tell them what inspires you to work in Business Continuity.• Examples ___________ PEP 2011 8
  9. 9. Adapting ‐ Adapting  Ad ti ‐ example lSeattle Times: March 13, 2011, Howard Shultz, Starbucks• Q: how do you reconcile the need to hold onto Starbuck’s roots while also growing and even doing things that aren’t coffee, like you’ve talked about lately? lately?”• A: There’s been a seismic change in consumer behavior, and it demands innovation and it demands relevancy. The challenge and the art is for us without question to embrace the core values and the core experience while innovating on the edges, and we’ll do that and do it well. well• Question – has your approach to Business Continuity changed? PEP 2011 9
  10. 10. Mainstream M i t• What does this mean?• Levels You / • Examples… Passion Employees /  Expectation Organization  / CulturePEP 2011 10
  11. 11. Daily Visual D il Vi l• Nightly Newscasts g y o Anchor Desks• Volume of Sources o Local / National / International o Internet / iReporters• Saturday, April 23 - King5 News evening news – Disaster Training with Pierce County Emergency Management for Schools and Hospitals.• All Month o Tornados and Flooding• Is the Frequency of Disasters Up? PEP 2011 11
  12. 12. 2010 Headlines 2010 H dliA Brief Overview of 2010 Natural Hazards Headlines• Haiti - earthquake• Peru - Machu Picchu was hammered by torrential rains. 2,000 tourists became stranded.• Iceland volcanic eruptions of April and May 2010 – impacted worldwide flights for weeks weeks.• China flooding and landslides and 1,300 people have been reported missing.• Pakistan thousands impacted by deadly floods PEP 2011 12
  13. 13. Local Headline L l H dliSeattle Times, Sunday February 13, 2011Hwy. 99 tunnel would be prepared for potential disasters• The tunnel is subject to state seismic requirements to withstand a "2,500-year" quake.• The tunnel team dismisses any risk of tsunami.• A worst-case event would be triggered by a rift in the Puget Sound seafloor generating a wave that covers part of Sodo in water between knee and head height height.• However, the only known tsunami from the Seattle Fault occurred about the year 930 and generated a 10-foot wave. To breach the current seawall, which is 9 feet above the average high tide, it would , g g , require a record tsunami at high tide. Such an event might occur once in 23,000 to 60,000 years, according to consulting firm Parsons Brinckerhoff. PEP 2011 13
  14. 14. Gota (Go G t (G ogle Data) t )Term Search Term Search (millions) 15• Business Continuity• Disaster Recovery 10• BC Management 5• Business Resiliency 0 DR BC Resiliency BCM• Emergency P E Preparedness d Term Search (millions)• Incident Management 25 20• Business Sustainability 15• Continuity of Business 10• Emergency Operations 5 0• Crisis Management PEP 2011 14
  15. 15. Gota G t Job Search (millions)Job Search 5• Business Continuity 4• Disaster Recovery 3• Business Continuity Mgmnt 2 1 0 DR BC BCM PEP 2011 15
  16. 16. Job Postings J b P ti• Took a sample from various j p job sites 2 months ago g and 2 weeks ago.• What did you notice? o Volume of j b V l f jobs o Variety of titles o Variety of levels o Variety of areas - DR, BC, BCM, EM o Interns o Combination of disciplines • BC/DR, Security, Safety, Risk PEP 2011 16
  17. 17. Worldwide Standards W ld id St d d• North America o National Fire Protection Association NFPA 1600: Standard on Disaster/Emergency Management and Business Continuity Programs• ISO o Published by the International Organization for Standardization (ISO) ISO/PAS 22399:2007 Guideline for incident preparedness and operational continuity management• United Kingdom it d i d o Produced by the British Standards Institution (BSI), BS 25999 is a Business Continuity Management (BCM) standard in two parts.• ANSI/ASIS SPC o Organizational Resilience: The ANSI/ASIS SPC.1-2009 Organizational Resilience: Security, Preparedness, and Continuity Management Systems Requirements Systems—Requirements with Guidance for Use American National Standard is under consideration for inclusion in the DHS PS-Prep,PEP 2011 17
  18. 18. Laws & Regulations L &R l ti• UK Data Protection Act 1998• Health Insurance Portability &Accountability Act (HIPAA) 1996• Gramm-Leach-Bliley Act of 1999 (GLBA), also known as the Financial Services Modernization Act of 1999• Sarbanes-Oxley Act of 2002 (SOX) Section 404 of the act requires publicly traded companies to assess the effectiveness of their internal controls for financial reporting in annual reports p g p they submit at the end of each fiscal year• Payment Card Industry Data Security Standard (PCI DSS) establishes comprehensive requirements for enhancing p q g payment account data security.• Private Sector Preparedness Act of 2007 / Title IX Public Law. Require suppliers to be certified under the voluntary q pp y preparedness certification process being established PEP 2011 18
  19. 19. Volunteers V l tFirst Response Team of America• Tad Agoglia - 34-year-old and his four-man team constantly rush to disaster sites, where they open roads and provide other urgent services for emergency personnel "I looked at personnel. I the devastation …"I realized that there was a need, and that I had the ability to meet that need. How could I turn my back?“• Agoglia started First Response in 2007. Over the next 18 months, the team responded to 1 disaster a month. Team uses four customized trucks, high speed cranes, hovercraft, trucks high-speed cranes hovercraft generators, and water pumps to clear roads, remove debris, and provide emerg power.You!• Text Donations + PEP 2011 19
  20. 20. Movies M i• What are the most famous disaster movies? o Titanic o Towering Inferno o Independence Day o Earthquake o Poseidon Adventure• What do these all have in common? o _______________ o Why?PEP 2011 20
  21. 21. Mega Di$a$t $ M Di terThe mega disasters, which were selected by Zurich based on overallbusiness impact and ranked chronologically, are: 1. 9/11 - 2001 2. SARS - 2003 3. U.S./Canada power outage - 2003 4. Indian Ocean earthquake and tsunami - 2004 5. Hurricanes Katrina, Rita and Wilma - 2005 6. Financial crisis - 2008 7. China earthquake - 2008 8. H1N1 pandemic - 2009 9. Iceland volcano - 2010 10. Floods in Europe and Pakistan - 2010• What do these all have in common? PEP 2011 21
  22. 22. Advertisements Ad ti t• Print o Crisis Management • Children’s Tylenol, Motrin, Over The Counter meds o Preparedness • What companies are/have been doing• TV Commercials o Risk Management • Zurich Panama Canal o Crisis Management • BP & Toyota• Company Web Sites o Large and Small Organizations • Some are ‘regulated/required’ to post - others are not o Your Competitors? PEP 2011 22
  23. 23. Association A i tiAbout Tide Loads of Hope How it works:• Over 34,000 loads of laundry • 1Disaster Strikes cleaned for families affected by disasters, and counting…. • 2Help Is Sent – Fleet of Mobile Laundromats. M bil L d t • 3Laundry Provided • Multiple days at the disaster site washing, drying and folding clothes. l th • In times of disaster people turn to the most basic of human needs—and one PEP 2011 of those is clean clothes. 23
  24. 24. TV ! TV !Outsiders begin to define our space. g p• February, 2011 - former Gilmore Girl has been cast in the new Shonda Rhimes pilot, DAMAGE CONTROL, an ensemble b bl based on th career of legendary d the fl d crisis management consultant Judy Smith.• Rhimes’ new project will follow the life and work of a Rhimes professional fixer, and her dysfunctional staff. PEP 2011 24
  25. 25. Continued Learning C ti dL i• Trainings g o On line o Classroom• Conferences o Regional o National o International• Certifications o FEMA o DRI International o CRP• Education o Undergrad o Graduate – Masters of Science in Business Continuity, Norwich University PEP 2011 25
  26. 26. Vendor V d $If there are vendors around there is money to be yfound!• Accepted• Need• Gota o Business Continuity Vendors o Vs. o Business Continuity Jobs o ____________ PEP 2011 26
  27. 27. Awards A d• The Business Continuity Awards - recognize y g excellence within the field of business continuity and operational risk management.• M May, London; B L d Began i 1999 in• I am not based in the UK. May I still submit an entry? Yes. The Awards are internationally recognized.• Categories (19) o Most Effective Recovery of the Year o Most Innovative Solution of the Year o Business Continuity Team of the Year o Lifetime Achievement o Industry Personality of the Year y y PEP 2011 27
  28. 28. Employee Expectations E l E t ti• If we agree that Business Continuity has gone g y g mainstream….how has that changed the way we do our jobs and what expectations do employees now have?1. _______________2. _______________3. _______________4. _______________5. _______________PEP 2011 28
  29. 29. Employee Expectations E l E t ti• If we agree that Business Continuity has gone g y g mainstream….how has that changed the way we do our jobs and what expectations do employees now have?1. Awareness2. Understanding3. Knowledge4. Acceptance5. ExpectationsPEP 2011 29
  30. 30. Program Challenges P Ch ll How can I meet the (new) employee expectations or go Mainstream? I can’t even get support in some of these areas - from last year’s PEP - year s Partnerships • Sponsorship • Reduced Staff • Added Responsibilities • Competing Priorities • Lack of Funds • Program SupportPEP 2011 30
  31. 31. Program Worksheet P W k h t• DRI International – Professional Practices o 10 Subject Areas• Questions – two questions & two perspectives o Answer 1 and Answer 2 o You and Stakeholders NOTE: You may not have oversight/participation in all Areas• Purpose o Areas where your Organization is strong and has opportunities o Areas of variance o Identify and p y partner with key S y Stakeholders• Take a few minutes to compete PEP 2011 31
  32. 32. Program Worksheet P W k h t• Areas of Variance o Examples ___________ o Should there be a significant difference?• Business Continuity Chain – 10 links o Recognize that Organizations are different o Culture and Industry plays a part o Should all of these be on your/Organization radar? o Do they all need to advance? o Does one approach work in all Areas?• You / Organization need to g o Understand o Agree o Plan PEP 2011 32
  33. 33. Worksheet Results W k h tR lt• Hypothesis – I’d like to test yp• Working for Organizations that created a new Business Continuity position?• Working for same Organization more than 6 years?• Worksheet Variance? __________• Time in Position• Common occurrence is the Business Continuity Professionals Dance – move from one company to another. My opinion, it impacts the Organizations’s program maturity and customers. mat rit c stomers PEP 2011 33
  34. 34. Success – t Success – story S• Safeco Insurance o New leadership brought a Crisis Management model from a previous Organization; it was very different from the current model. They told me what they wanted and expected. o Success or not? ________• Liberty Mutual + 2 years o New Organization brought in their own Crisis Management model; it was very different from Safeco. They told me what they wanted and expected Safeco expected. o Success or not? __________• How could two so different models both be successful? S f l? Success and Business C ti it are a lot dB i Continuity l t alike – everyone has their own definition. In this case, the definition (and therefore the success criteria) ( ) were determined by my Stakeholders. PEP 2011 34
  35. 35. Wrap Up ‐ thoughts Wrap Up ‐ th W U ht Mainstream Themes • News • Ownership • Gota • Measure • Jobs • Transparency • Standards • Time in Position • Volunteers l t • Partnership - S t hi Success • Ads • Maturity • TV • Success • Vendors • Customer • Awards • ReasonablePEP 2011 35
  36. 36. I Irony of What We Do f Wh t W D• We have seen examples of disasters that may have p y been preventable or impact reduced with better preparation and planning.• Th irony is those leaders, who may have not h The i i th l d h h t have supported strong Business Continuity Management, are now dealing with the harsh reality of not being prepared when disaster strikes and the harsher reality of additional Mainstream expectations. PEP 2011 36
  37. 37. The New C The New Crisis Management ?? h Crisis Management Consultants help to put a positive spin and direction on the lives of important figures (and also to avoid bad publicity). Tony Hayward, “I want my life back” Hayward I backNow, as W d returns to golf toN Woods lfrestore his career, the focus shifts to akey crisis-management objective:changing the subject PEP 2011 37
  38. 38. Mainstream Ideas M i t Id State Farm – Mayhem like me!PEP 2011 38
  39. 39. Conclusion C l i Amazon.com: Business Continuity Planning made Simple (Vol.1&2 Set) $200.00PEP 2011 39

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