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Benefits from BCM implementation (english)


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Short presentation stating the most important benefits from Business Continuity Management implementation. The benefits are presented per area of activity. May be of use for Business Continuity Managers or Risk Officers to sell the BCM projects to the company management.

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Benefits from BCM implementation (english)

  1. 1. Benefits from the Business Continuity Management implementation Igor Ziniewicz Renata Davidson Warsaw, 14.09.2011
  2. 2. Benefits for the Management Board <ul><li>Fulfillment of the legal requirements – particularly important for the companies from the “critical infrastructure” sectors (Poland - Act on Crisis Management, and in EU - Directive on the identification and designation of European critical infrastructures and the assessment of the need to improve their protection). </li></ul><ul><li>Information necessary for decision on the acceptable level of risk exposure in company operations. </li></ul><ul><li>Financial information for estimation of security measures’ ROI (and its justification). </li></ul>
  3. 3. Benefits for the Business Units <ul><li>Defining current and target acceptable level of risk in the delivery of products and services area (what losses would company incur, if it wasn’t able to fulfill its contractual obligations). </li></ul><ul><li>Identification of weaknesses and bottlenecks in critical business processes -> Information necessary for development of the business interruption risk management strategy . </li></ul><ul><li>Understanding limitations of supportive units (IT, Administration, Technology, etc.) and appropriate adjustment of the conditions offered to the customers in contracts. </li></ul>
  4. 4. Benefits for the corporate insurance programe <ul><li>Adjustment of the company insurance plan in accordance with the real needs, by insuring the losses, which are inevitable or which chance of occurrence can’t be reduced to the acceptable level with other measures (i.e. through risk mitigation actions) </li></ul><ul><li>Trustworthy (based on BIA results) estimation of potential incidents impact, taking into consideration the impact of business interruptions. </li></ul><ul><li>Business Continuity Plan as a loss mitigation factor (arguments for insurance rate reduction). </li></ul>
  5. 5. Benefits for the supportive units (IT, Administration, Technology) <ul><li>Possibility to define precise requirements regarding assets availability - as opposite of general responsibility for providing access to all the assets “non-stop”, “without interruptions”, which are very broad and unrealistic requirements. </li></ul><ul><li>Possibility to plan adequate (good enough) backup and alternative solutions – based on the well informed decisions. </li></ul><ul><li>Understanding of business needs and appropriate adjustment of internal monitoring, maintenance (i.e. service) and incident management procedures. Also: adjustment of the SLA conditions to the specific and well defined business requirements. </li></ul>
  6. 6. Benefits for Production <ul><li>Containment of incidents’ impact. </li></ul><ul><li>Fast and effective recovery after interruption – reducing amount of time needed for decision making. </li></ul><ul><li>Possibility to estimate in advance the cost of additional labor or services necessary to reduce backlog production. </li></ul>
  7. 7. Benefits for logistics and distribution <ul><li>Ensuring uninterrupted delivery and distribution despite incidents occurrence. </li></ul><ul><li>Developing common strategies for dealing with crisis situations (i.e. by changing points of delivery) – with the participation of key suppliers and customers </li></ul><ul><li>Increased trust among suppliers and customers. </li></ul>
  8. 8. Benefits for Outsourcing Management <ul><li>Adjustment of requirements according to the real needs of the company – precisely defined SLA conditions for particular services. </li></ul><ul><li>Outsourcing strategy verification, i.e. by demanding from key suppliers the appropriate level of security measures or by dispersing orders among couple of service providers. </li></ul><ul><li>Identification and estimation of outsourced operations’ risk -> better understanding of outsourcing costs -> i.e. what is the impact of security measures on outsourcing cost and on company risk exposure (many companies making decision on outsourcing pays attention to the price only, without noticing the positive differences in their risk exposure) </li></ul>
  9. 9. Additionally: <ul><li>It’s good to remember, that in effect, only some of the incidents require Business Continuity Plan invocation. One of the benefits of the BCM implementation is, that risk controls installed as a result of BCM project, significantly increase every-day resilience of the organization, which in turn makes possible for the company to operate “as usual” despite incident occurrence. </li></ul>