A business continuity challenge - Joseph Thomas


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A business continuity challenge - Joseph Thomas

  1. 1. A business continuity challenge © DNV Business Assurance Pte Ltd . All rights reserved. Ensuring Supply Chain Resilience and Sustainability in Turbulent Times 14 Jan 2011 “ It does not matter who caused the disruption, what the reason for disruption was, what industry an organization belongs to, or when the disruption happened – supply chain disruptions devastate corporate performance.” Singhal and Hendricks: The Effect of Supply Chain Disruptions (2005)
  2. 2. A business continuity challenge ©DNV Business Assurance Pte Ltd. All rights reserved. Ensuring Supply Chain Resilience and Sustainability in Turbulent Times 14 Jan 2011 “… building organizational resilience with the capability for an effective response that safeguards the interests of its key stakeholders, reputation, brand and value-creating activities” BS25999: 2007 <ul><li>Consider wider range of risks </li></ul><ul><li>Consider risks at various levels </li></ul><ul><li>Embed Sustainability and Business Continuity into Supply Chain Management </li></ul>Build a successful and resilient organization which contributes to a more sustainable common future
  3. 3. DET NORSKE VERITAS Joseph Thomas DNV Business Assurance, SEA Country Market Manager Knowledge Network coordinator (Global) : +65 9663 1749 Fax Tel HP : +65 6887 6071 : +65 6887 6096 E-Mail : joseph.thomas@dnv.com 27 Changi South Street 1, www.dnv.com Det Norske Veritas Pte Ltd Singapore 486071 DET NORSKE VERITAS
  4. 4. Content <ul><li>Why Business Continuity ? </li></ul><ul><li>What is Business Continuity Management System ? </li></ul><ul><li>Outcome, Benefits and Business Drivers for BCM </li></ul><ul><li>Stages in Establishing a BCMS </li></ul><ul><li>DNV </li></ul>
  5. 5. <ul><li>Why Business Continuity ? </li></ul><ul><li>What is Business Continuity Management System ? </li></ul><ul><li>Outcome, Benefits and Business Drivers for BCM </li></ul><ul><li>Stages in Establishing a BCMS </li></ul><ul><li>DNV </li></ul>
  6. 6. The new risk reality
  7. 7. Zero-tolerance for failure
  8. 8. Environmental concerns
  9. 9. Climate change
  10. 10. Increased IT vulnerability
  11. 11. Global value chains
  12. 12. Transparency and corporate responsibility
  13. 13. Business must go on !
  14. 14. Is your organization ready to respond?
  15. 15. <ul><li>Why Business Continuity ? </li></ul><ul><li>What is Business Continuity Management System ? </li></ul><ul><li>Outcome, Benefits and Business Drivers for BCM </li></ul><ul><li>Stages in Establishing a BCMS </li></ul><ul><li>DNV </li></ul>
  16. 16. Business Continuity Management Business Continuity Management involves managing the recovery or continuation of business activities in the event of BUSINESS DISRUPTIONS <ul><li>The Management process: </li></ul><ul><li>Identify Potential threats and Impacts </li></ul><ul><li>A framework for building organizational resilience and effective response </li></ul><ul><li>To safeguard reputation, brand and value-creating activities </li></ul>
  17. 17. BCM Programme Management Determine BCM Strategy Understanding the Organization Developing & Implementing BCM Response Exercising, maintaining & reviewing Embedding BCM in the Organizations Culture Interested Parties Business Continuity requirements & expectations Interested Parties Managed Business Continuity Business Continuity Management Life Cycle
  18. 18. BIA, BCS and BCP relationships Objectives, Priorities & Timeframes Business Impact Analysis Business Continuity Strategy Business Continuity Plan What we need to HAVE and by when What we need to Do and by when Rules Constrains & Instructions
  19. 19. Timelines INCIDENT Overall Recovery Objective; Back to normal as quickly as possible TIME LINES RECOVERY/RESUMPTION BACK TO NORMAL INCIDENT RESPONSE BUSINESS CONTINUITY Within Minutes to Hours; Staff & Visitors accounted for causalities dealt with damage containment / limitation damage assessment invocation of BCP Within weeks to months; damage repair / replacement relocation to permanent place of work recovery of costs from insurers Within Minutes to Months: Contact staff, Customers, Suppliers, etc. Recovery of Critical Business Process Rebuild lost work in progress
  20. 20. Content <ul><li>Why Business Continuity ? </li></ul><ul><li>What is Business Continuity Management System ? </li></ul><ul><li>Outcome, Benefits and Business Drivers for BCM </li></ul><ul><li>Stages in Establishing a BCMS </li></ul><ul><li>DNV </li></ul>
  21. 21. Outcome of an effective BCM Programme <ul><li>Key products & services are identified & Protected </li></ul><ul><li>Incident management capability for effective response </li></ul><ul><li>Improved understanding of self (organization) its relation to others ( other industries, regulators, stake holders, local authorities…..) </li></ul><ul><li>Trained staff to respond to incidents </li></ul><ul><li>Secured supply chain </li></ul><ul><li>Protection of reputation </li></ul><ul><li>Compliance to legal & regulatory obligations </li></ul>
  22. 22. Outcome of an effective BCM Programme <ul><li>The after-effects of interruptions to normal work flows can result in severe backlogs that can build up whilst management attention is engaged in dealing with an abnormal situation. The resultant unexpected phenomenon, the ‘Backlog Trap’ will be addressed by a business continuity management programme. </li></ul><ul><li>Successful business continuity management programme should create fast and effective communications systems that can be used for every day incident management. </li></ul>
  23. 23. Benefits of an effective BCM Program <ul><li>Proactively identify the impacts of an operational disruption </li></ul><ul><li>Effective response to disruption in place to minimize the impact </li></ul><ul><li>Ability to manage uninsurable risks </li></ul><ul><li>Encourages cross team working </li></ul><ul><li>Demonstrate credible response through process of exercising </li></ul><ul><li>Enhance reputation </li></ul><ul><li>Competitive advantage; ability to deliver </li></ul>
  24. 24. Benefits of an effective BCM Program <ul><li>Organizational survival and effective recovery </li></ul><ul><li>Increased stakeholder confidence </li></ul><ul><li>Competitive advantage </li></ul><ul><li>Operational and supply chain resilience </li></ul><ul><li>Demonstration of good corporate governance </li></ul>
  25. 25. Top 10 Business drivers <ul><li>Legislation </li></ul><ul><li>Regulators (Stakeholders, FSA) </li></ul><ul><li>Competitive edge </li></ul><ul><li>Insurance </li></ul><ul><li>Peer Group Pressure </li></ul><ul><li>Customer or supplier requirement </li></ul><ul><li>Visibility of good practice </li></ul><ul><li>Customer confidence </li></ul><ul><li>Supplier confidence </li></ul><ul><li>Staff confidence </li></ul>How would it feel to be able to respond quickly to new threats, exposed vulnerabilities or regulatory changes?
  26. 26. Content <ul><li>Why Business Continuity ? </li></ul><ul><li>What is Business Continuity Management System ? </li></ul><ul><li>Outcome, Benefits and Business Drivers for BCM </li></ul><ul><li>Stages in Establishing a BCMS </li></ul><ul><li>DNV </li></ul>
  27. 27. Stages of BCMS as per 25999 BCM Response Understand the Organization BCM Strategy Exercise & Review Plan the BCMS Monitoring, Maintaining and Improving the BCMS 1 2 3 4 5 6
  28. 28. <ul><li>Determining the scope of the BCM is a vital first step? </li></ul><ul><li>Factors that influence scope are: </li></ul><ul><ul><li>The size and complexity of the organisation </li></ul></ul><ul><ul><li>The needs of customers/clients, regulators, auditors, insurers and investors </li></ul></ul><ul><ul><li>The type of activity undertaken </li></ul></ul><ul><ul><li>The environment and location of operation </li></ul></ul><ul><ul><li>Organisation’s objectives </li></ul></ul>Scope
  29. 29. <ul><li>Keep them simple </li></ul><ul><li>Ensure that you can use them during a disruption </li></ul><ul><li>Identify what resources are needed </li></ul><ul><li>Make plans owned by operational units </li></ul><ul><li>Exercised, audited and reviewed </li></ul><ul><li>Version and distribution controlled </li></ul><ul><li>Accessible </li></ul>Golden Rules for BCPs
  30. 30. RISK Management Business Continuity Management Core Processes Training Maintenance Establishing a BC Management System BCMS Scoping BCM Strategy Response Planning Impact Risk Analysis & Testing RM Risks I R Structure IM Plan, BC Plan <ul><li>BCM Policy </li></ul><ul><li>Key Product & Services </li></ul>BC Priorities BC to Achieve RTO, RPO <ul><li>Critical activities </li></ul><ul><li>MTPD, RTO </li></ul><ul><li>Risk Management </li></ul>
  31. 31. Content <ul><li>Why Business Continuity ? </li></ul><ul><li>What is Business Continuity Management System ? </li></ul><ul><li>Outcome, Benefits and Business Drivers for BCM </li></ul><ul><li>Stages in Establishing a BCMS </li></ul><ul><li>DNV </li></ul>
  32. 32. It’s how you manage your most critical risks ELIMINATING RISK IS NOT AN OPTION
  33. 33. Turn risks into rewards BUSINESS CHALLENGE <ul><li>Manage risks </li></ul><ul><li>Get relevant decision support </li></ul><ul><li>Build trust and confidence towards stakeholders </li></ul><ul><li>Achieve and maintain safe and sustainable performance </li></ul>BUSINESS RESPONSE
  34. 34. DNV’s core competence identify assess manage risk
  35. 35. Our main services
  36. 36. What we do
  37. 37. Improve safety <ul><li>As a class society, we assist in making shipping safer by managing risk in all phases of a ship’s life </li></ul><ul><li>We establish and apply technical standards , known as DNV Class Rules, for the design, construction and operational maintenance of ships and marine structures </li></ul><ul><li>We provide a range of technical, business risk, environmental and competency-related services for the maritime industry </li></ul>
  38. 38. Enhance performance <ul><li>We manage risk across the entire energy value chain – from well to shore </li></ul><ul><li>We enable energy companies to enhance safety, environmental and business performance </li></ul><ul><li>Customers turn to us for our cross-disciplinary competence within risk management and methodologies, and our technical and operational expertise </li></ul>
  39. 39. Build trust and confidence <ul><li>We help customers build trust and confidence toward stakeholders and assure sustainable business performance </li></ul><ul><li>As an independent party we provide certification, training, assessment & risk management services </li></ul><ul><li>Risk Based Certification TM is our methodology to increase value in each audit </li></ul>
  40. 40. Navigate corporate responsibility <ul><li>Non-financial reporting – creates trust and drives triple bottom line performance </li></ul><ul><li>Corporate governance, accountability and business ethics – analysis and assessment to protect intangible assets </li></ul><ul><li>From supply chain to value chain – management of complexity and dilemmas </li></ul><ul><li>Crisis management – independent fact finding and action plan to assure stakeholders </li></ul>
  41. 41. Combat climate change <ul><li>Emission trading – we validate and verify emission reduction projects </li></ul><ul><li>Cleaner energy – we assess and verify clean energy projects – notably within wind energy </li></ul><ul><li>Carbon capture/storage – we provide guidelines, assess risks and qualify new technology </li></ul><ul><li>Energy efficiency – we provide energy management services addressing both technical and organisational issues </li></ul>
  42. 42. Build and share knowledge <ul><li>We invest 6% of our revenue in research and development </li></ul><ul><li>We take a lead role in joint industry research and development projects </li></ul><ul><li>Through our standards, rules, recommended practices and software solutions we share knowledge with the industry </li></ul>
  43. 43. Positions
  44. 44. A trusted player in shipping 15.5% 15.5% of the world fleet is to DNV Class (in Gross Tonnes per 08/2009) 21.9% DNV classed 21.9% of all new-building of ships in 2008 (in Gross Tonnes) 130 Authorised by 130 national maritime authorities
  45. 45. Expert role in the oil and gas industry 30% 30% of the world LNG terminal projects are supported by DNV 40% 40% of the world’s Floating Production, Storage and Offloading vessels (FPSOs) are to DNV class 65% 65% of the world’s offshore pipelines are designed and installed to DNV’s pipeline standard
  46. 46. A global business assurer 2,200 2,200 healthcare-related organisations have had their quality management system certified by DNV 70,000 More than 70,000 management system certificates under more than 80 accreditations Top 3 DNV is among the world’s top three certification companies 5,000 More than 5,000 food companies certified by DNV
  47. 47. Impacting climate change issues 15% Launched a global rating system for emission from ships and programmes to reduce emissions by 15% 75% 75% of the world’s offshore wind projects are certified and verified by DNV 48% 48% of all Clean Development Mechanism (CDM) projects are validated by DNV 1st Released the world’s first standard for qualification of carbon capture technology
  48. 48. More on DNV
  49. 49. Highly skilled people across the world 9,000 employees, of which 76% have university degree 300 offices 100 countries
  50. 50. Integrity at the core <ul><li>Independent foundation established in 1864 </li></ul><ul><li>Self-owned with no shareholders </li></ul><ul><li>Stakeholders are represented in our governing bodies and committees </li></ul><ul><li>We use profits to continuously develop our people and our research and innovation </li></ul>
  51. 51. Preparation for Certification` <ul><li>DNV Certification Process Consists of 3 stages: - </li></ul><ul><ul><li>Documentation Review ( Adequacy ) of quality manual, quality system procedures and relevant regulatory agreement </li></ul></ul><ul><ul><li>Initial Visit ( Implementation ) to verify implementation and readiness for audit </li></ul></ul><ul><ul><li>Initial Audit ( Adherence ) to verify QMS capability of delivering process improvement and regulatory /customer compliance. </li></ul></ul>
  52. 52. INITIAL CERTIFICATION Adequacy Document Review <ul><li>- Management Manual </li></ul><ul><li>- System procedures </li></ul><ul><li>- Record of Relevant Legislation </li></ul><ul><li>- Any Licenses, Consents, Authorizations </li></ul>CERTIFICATION PROCESS
  53. 53. INITIAL CERTIFICATION <ul><li>Overall Implementation </li></ul><ul><li>Can reliance be placed on internal audits? </li></ul><ul><li>Are there procedures to address all clauses of the standard? </li></ul>CERTIFICATION PROCESS Adequacy Document Review Implementation Initial Visit
  54. 54. INITIAL CERTIFICATION Implementatio n Initial Visit Adherence Initial Audit <ul><li>Are procedures being followed ? </li></ul><ul><li>Is Management System capable of delivering performance improvement & regulatory compliance ? </li></ul>CERTIFICATION PROCESS Adequacy Document Review
  55. 55. Why you should trust us Worldwide 1,900+ auditors / 350 <ul><li>We have a global network of local resources. More than 1,900 auditors in more than 100 countries, about 60% direct employees. </li></ul><ul><li>We are present where you are, and where your suppliers are </li></ul><ul><li>(in blue total number of auditors, in red number of BS25999/ISMS auditors ) </li></ul>Americas: 300/ 50 Europe: 1150/ 250 Asia/Pacific: 450/ 50
  56. 56. <ul><li>English </li></ul><ul><li>French </li></ul><ul><li>German </li></ul><ul><li>Italian </li></ul><ul><li>Spanish </li></ul><ul><li>Portuguese </li></ul><ul><li>Swedish </li></ul><ul><li>Norwegian </li></ul><ul><li>Danish </li></ul><ul><li>Russian </li></ul><ul><li>Croatian </li></ul><ul><li>Hungarian </li></ul><ul><li>Dutch </li></ul><ul><li>Finnish </li></ul><ul><li>Latvian/Lithuanian/Estonian </li></ul><ul><li>Arabic </li></ul><ul><li>Hindi </li></ul><ul><li>Chinese </li></ul><ul><li>Korean </li></ul><ul><li>Japanese </li></ul><ul><li>Vietnamese </li></ul><ul><li>Persian </li></ul><ul><li>Polish </li></ul><ul><li>Greek </li></ul><ul><li>Turkish </li></ul><ul><li>Czech </li></ul>DNV Auditing Language Capabilities
  57. 57. Why you should trust us <ul><li>BS25999/ISMS Competence (minimum) </li></ul><ul><ul><li>Educational Background: University Degree in related disciplines </li></ul></ul><ul><ul><li>Working Experience: >=5 years working experience and technical knowledge of the products and processes </li></ul></ul><ul><ul><li>Technical Skills/Competencies: Technical training / specific competences as per regulatory requirements, etc. </li></ul></ul><ul><ul><li>Auditing Competence: At least 20 audits carried out under the supervision of a qualified auditor; preferably registered auditors </li></ul></ul>
  58. 58. Our people – a vital resource <ul><li>People are the core of DNV </li></ul><ul><li>98 nationalities </li></ul><ul><li>8000 employees </li></ul>
  59. 59. Why you should trust us? DNV‘s Vision and Values <ul><li>We </li></ul><ul><li>build trust and confidence </li></ul><ul><li>care for our customers and each other </li></ul><ul><li>never compromise on quality and integrity </li></ul><ul><li>are committed to teamwork and innovation </li></ul>
  60. 60. Safeguarding life, property and the environment www.dnv.com.sg