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Linked In Presentation Bcm Nov 08


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Business Continuity Management with JLT

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Linked In Presentation Bcm Nov 08

  1. 1. Business Continuity Management Tim Cracknell MSc FCII FIRM MBCI Partner Global Risk Solutions London
  2. 2. Business Continuity Management (BCM) Definition ‘Ongoing management and governance process supported by senior management and resourced to ensure that the necessary steps are taken to identify the impact of potential losses, maintain viable recovery strategies and plans, and ensure continuity of products/services through exercising, training, maintenance and assurance.’ (Source: British Standard BS25999) © Jardine Lloyd Thompson Limited
  3. 3. BCM Drivers • Supply chain complexity (continuity of supply, inventory levels) • Reputation and brand protection • Corporate governance/regulatory requirements (Turnbull Code, Basel Accord, PAS 56, Sarbanes-Oxley, Civil Contingencies Act) • History (isomorphic experience/active learning) • Insurer pressure • Risk financing (self insurance levels) © Jardine Lloyd Thompson Limited
  4. 4. BCM Benefits • Identification and understanding of critical business processes, impact of disruption and priorities for recovery • Increased levels of resilience and recovery capability • Competitive advantage over less resilient competitors • Higher levels of protection for interests of stakeholders • Positive message and image to media and stakeholders in crisis conditions • Improved risk profile in minds of insurers • Demonstrable corporate governance of risk © Jardine Lloyd Thompson Limited
  5. 5. BCM Business Case (The Impact of Catastrophes on Shareholder Value – Rory Knight and Deborah Pretty, Templeton College Oxford, 1996 – © Jardine Lloyd Thompson Limited
  6. 6. BCM Business Case – ‘Robustness’ (4 sources of competitive advantage in the supply chain) Cost efficiency The level of resources needed to create a given level of value Value added / The level of value from a given level of resources Effectiveness Leverage The improvement in performance achieved through the management of linkages between separate resources and activities Robustness The ability of an organisation to withstand shocks *Johnson & Scholes – Sources of competitive advantage in the value chain (and DNV-Airmic research on ERM (June 2008) © Jardine Lloyd Thompson Limited
  7. 7. BCM Vision • ‘A plan that can be easily used by senior executives under rapidly changing and time pressured conditions.’ • ‘A management system, which embodies and maintains a fit-for- purpose response and recovery capability, commensurate with business objectives and stakeholder needs.’ © Jardine Lloyd Thompson Limited
  8. 8. BCM – the 3 phases Impact Time © Jardine Lloyd Thompson Limited
  9. 9. Documentation Business Continuity Plan – [Company] 1.9 - Organisation - Business Continuity Management - (Master) v0.1.vsd Controlled Copy BCM Organisation Corporate Strategic [] BCM Programme Sponsor Tel: [] [] [] [] IT Strategy Finance Brand Tel: [] Tel: [] Tel: [] Name Name [] [] [] Tactical BCM Champion BCM Champion BCM Programme Manager / [] Tel: Tel: [] [] Tel: [] Communications HR COO Corporate Director Corporate Tel: [] Tel: [] Tel: [] Name Name [] [] BCM Champion BCM Champion [] Tel: Tel: Crisis Management Team [] Leader PA Support Tel: [] Tel: [] BCM Programme Management (Deputy) Business Recovery Team [] [] Leaders (Functional Heads) Group PAs [] Tel: Tel: [] [] [] Head of Health & IT Systems Estates [] [] Safety Tel: [] Tel: [] Personnel (Group) [] [] Tel: [] Tel: Tel: Legal (Group) Tel: Operational [] [] [] [] [] Accounting (Group) [] [] Tel: Tel: Telecoms Security Facilities Management IT (Group) Tel: Tel: [] Tel: [] Tel: [] [] Payroll (Group) Tel: Emergency / Crisis Management Team Business Recovery Organisation (c) JLT Limited & [Company] 1 of 2 06 May 2008 This document contains sensitive information and should be treated in a private and confidential manner © Jardine Lloyd Thompson Limited
  10. 10. Documentation Business Continuity Plan - [Company] Controlled Copy No.1 Emergency Response Plan Logo # Hours Fire Tackle fire using fire Team Raise equipment alarm if safe to do so Team Team Business Continuity Plan - [Company] Controlled Copy No.1 Team Crisis Management Plan Logo # Days Team Occupy Activate Team Command Command Centre Centre Notes: (c) JLT Risk Solutions Limited & [Client} 1 of 3 24 August 2005 Team This document contains sensitive information and should be treated in a private and confidential manner Team Business Continuity Plan - [Company] Controlled Copy No.1 Team Business Recovery Plan Logo # Weeks Team Assess Establish Team impact of immediate damage priorities Notes: Team (c) JLT Risk Solutions Limited & [Client} 2 of 3 24 August 2005 This document contains sensitive information and should be treated in a private and confidential manner Team Team Team Notes: (c) JLT Risk Solutions Limited & [Client} 3 of 3 24 August 2005 This document contains sensitive information and should be treated in a private and confidential manner © Jardine Lloyd Thompson Limited
  11. 11. Documentation 06 May 2008 0606 May 2008 May 2008 [Company] [Company] [Business Function] [Business Unit] [Address] Business Continuity Management Business Recovery Plan - Policy Document version control Document version control Document title: 1.8 - Business Recovery Plan - (Master) v0.1.doc Document title: Business Continuity Management - Policy (Template) v0.2.doc Version date: 06 May 2008 (Note: Copies of this Plan, other than those issued by the BCM Programme Manager / Business Recovery Team Leader for the Business Function concerned, are considered to be uncontrolled, and it is the responsibility of the user, Version date: 06 May 2008 under such circumstances, to ensure that the document is up to date and complete.) Owner: Owner: [] Author: Author: Chris Rigby Smith (JLTL) 06 May 2008 © Jardine Lloyd Thompson Limited
  12. 12. A ‘PACED’* Response Proportionate Proportionate to the level of risk faced by the organisation Aligned Aligned with other activities in the organisation Comprehensive Comprehensive embracing all parts of the organisation Embedded Embedded within core processes Dynamic Dynamic and responsive to emerging and changing risk *HSE – successful implementation of health and safety © Jardine Lloyd Thompson Limited
  13. 13. Methodology (Source: Based upon BSI /Business Continuity Institute model 2003) © Jardine Lloyd Thompson Limited
  14. 14. Project Team • BCM Sponsor • BCM Manager • Business Recovery Leaders • Crisis Management Team • Other Stakeholders – Senior Management Team – Group Risk Manager – Internal Audit – Customers © Jardine Lloyd Thompson Limited
  15. 15. Timetable (critical path) • Project Kick-off June 08 • Analysis and strategy development July-September 08 • Plan writing and iteration October-November 08 • Embedding and exercising December 08 • Business as usual From January 09 Phase Task # Task Descriptor Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 26 02-Jun 09-Jun 16-Jun 23-Jun 30-Jun 07-Jul 24-Nov © Jardine Lloyd Thompson Limited
  16. 16. Costs • Opportunity cost of management time expended • Consulting costs • Possibly some risk mitigation or implementation costs in supporting recovery strategies © Jardine Lloyd Thompson Limited
  17. 17. Programme Prerequisites • Strong sponsor / programme manager – disciplined project management • Realistic ‘project’ objectives – start small and build a platform • Realistic ‘project’ timeframes • Differentiate between ‘the plans’ and a BC ‘capability’ • Spread the development load to recognise business pressures • Avoid heavily engineered plans / processes • Avoid software / database driven planning • Take time to identify the right people for key roles • Build on what already exists © Jardine Lloyd Thompson Limited
  18. 18. Programme Prerequisites • Focus on priorities within the supply chain • Create a shared language and vision • Avoid overly detailed Business Impact Analysis • Be prepared to ‘invest’ to support recovery strategies / risk control measures • Keep plans flexible – especially Crisis Management © Jardine Lloyd Thompson Limited
  19. 19. A ‘LILAC’* Response Leadership Leadership that is strong Involvement Involvement of all stakeholders Learning Learning from invocations and near misses, together with ongoing training Accountability Accountability for actions but stopping short of blame culture Communication Communication and openness *HSE – successful implementation of health and safety © Jardine Lloyd Thompson Limited
  20. 20. It happens! Buncefield Oil Depot Fire – December 2005 London Bombings – July 7th 2006 Katrina – September 2005 Floods across Europe – August 2002 Primark Warehouse Fire – November 2005 SARS – November 2002 © Jardine Lloyd Thompson Limited
  21. 21. Contact – Tim Cracknell •Dir Tel: +44 (0)207 558 3941 •Mob Tel: + 44 (0)7920 586343 •E-mail: – Chris Rigby Smith •Dir Tel: +44 (0)207 528 4840 •Mob Tel: + 44 (0)7917 627916 •E-mail: © Jardine Lloyd Thompson Limited