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Kuwait BCM Conference measuring organizational resilience

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Measuring the value of business continuity programs. You can't manage what you can't measure. How to show value from your business continuity (BCM) program.

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Kuwait BCM Conference measuring organizational resilience

  1. 1. Managing To Measure&Measuring To ManageChristopher Green FBCI
  2. 2. Today’s Session- Why Measure?What to measure? BIA Plan Development Testing BC Program
  3. 3. Why Measure?
  4. 4. Why Measure?
  5. 5. Why Measure?
  6. 6. Why Measure?
  7. 7. Future Events?
  8. 8. What to Measure?•Plans ?•BIA ?•Callout ?•Exercises?•Crisis Capability ?•Whole Program ?•Reputation ?
  9. 9. BCM Lifecycle
  10. 10. 12345678109PROBABILITYSEVERITYRisk Heatmap
  11. 11. 050100150200250300Day 1 Day 3 Week 1Loss of IncomeExtra ExpensesOpportunity CostsThe Financial Cost
  12. 12. The Operational Cost
  13. 13. Critical Operations?
  14. 14. LEVEL OF HARMA B C D ENATURE OF HARMRELEVANTMEASUREExtremelyserious harmVeryseriousharmSeriousharmMinor harmNosignificantharmFinancial Loss(loss of sales,unforeseen costs,legal liabilities, fraud)Total financialimpact:Over £10m£1m to£9.9m£100k to£1m£10k to£99kUnder £10kDegradedperformance(failure to achievetargets, loss ofproductivity)Key targetsunder-achieved by:Over 10% 6% to 10% 1% to 5%Less than1%No ImpactNumber ofstaff hourswastedOver 10,000Staff hours.1001 to10,000 Staffhours501 to 1000Staff hours100 to 500staff hours0 to 100staff hoursWhat’s The HARM – 1?
  15. 15. LEVEL OF HARMA B C D ENATURE OF HARMRELEVANTMEASUREExtremelyserious harmVeryseriousharmSeriousharmMinor harmNosignificantharmPerformance Loss(Customers)Customersnot Served:More than 20% 12-20%10-12%5-10% <5%Reputation LossBad Publicityin:National andinternationalmediaNationalmedia,inside pagesLocal media,frontLocalmedia,restrictedNocoverageWhat’s The HARM – 2?
  16. 16. What’s The HARM – 3?LEVEL OF HARMLOCATION Total HARMA(*20)B(*5)C(*3)D(*2)E(*1)Location 5 113 4 4 2 2 3Location 7 100 5 0 0 0 0Location 1 100 3 5 4 0 3Location 3 94 3 5 2 0 3Location 6 85 1 4 9 5 8
  17. 17. Measuring Plan Development
  18. 18. We can count… Number of Plans ? Number of Changes ? Regular Sign-off ? Content of Plan ?Measuring Plan DevelopmentBut it’s easy to count the wrong data….
  19. 19. Plan HealthCheck
  20. 20. Measuring Exercises
  21. 21. 0510152025303540455020052006200720082009201020112012PowerHardwareTerrorismCommunicationsFloodingData CorruptionWhat to Test?
  22. 22. Orientation BriefingEventOffsite - Multiple BUFull SimulationDesktop - Timed / IT Technical TestPlan Audit / DiscussionOffsite Exercise - Single BUDesktop / Walkthrough / IT Technical TestMeasuring ExercisesComplexityCostTime&ResourcesAssurance
  23. 23. System/Service RAGAdvantage Elite GREENALEAXIS GREENAssistance GREENAuda Enterprise Archive Server REDAudatex (Home) GREENAudatex (Motor) GREENBentley Motor Claims AMBERBIS Printing AMBERBlue Bay AMBERBody Management System AMBERBusiness Intelligence AMBERCEDAR-O GREENCedar Financials (Rupert) REDChordiant (Host) GREENChordiant (Off Host) GREENCicsfax GREENCOGNOS Powerplay REDComplaints MI GREENDelphi REDDirect Connect MIS REDDirect Connect Voice Recording GREENDirect Marketing Information System (Closed) REDDirect Connect – SAP-RG GREENDVLA GREENE Commerce Daily MI GREENE Financials (Closed) GREENeCRM GREENeCRM Payment Gateway GREENEquifax GREENFax_web/Connect (Access to IS2000) GREENFIDOSCAN REDFinsure GREENGentran GREENGoldmine GREENHibernate REDHALCO (Barrell) GREENHALCO (Guize) GREENIS2000 GREENITP Rating and Pricing REDLandscape GREENLotus Notes GREENSystem/Service RAGMAM REDMicrostrategy GREENNational Hunter Claims GREENNetConnect GREENNetConnect SAS GREENNET_Database REDNUCLEAR MEDICINE REDOracle Financials GREENOracle FM GREENPersonnel Lines GREENProbe REDPSF GREENPULSE GREENRAS (Closed) GREENRAS BASE STRATA REDRedman Reporter REDRedman Scheduler GREENRobotic manuals GREENSAS BAA-G GREENSAS MIA-L GREENSAS MIA-M GREENSolcase (Barrell) REDSolcase (Guize) REDSpecial Risks Application REDStolen Vehicle Recovery System (TRACKER) GREENTeamsite AMBERToucan Lite GREENTARDIS (Tracker) AMBERUIS (Clement) AMBERUIS (Devolved) AMBERUK MI Data Warehouse GREENUK MI Seahorse GREENUK Overseas Data Feeds GREENULTRA GREENVectus GREENVehicle Asset Management (TRACKER) GREENVoice Recording (Family) GREENWeb Channels (Household) GREENWeb Channels (Life) GREENWeb Channels (Motor) GREENWeb Channels (UK Special Partnerships) GREENIT DR Status
  24. 24. For Every Recovery Test Every Business Every Year.......... We measured up to 13 componentsCould also apply it to crisis exercises, callouttests etc.Measuring Exercise Components
  25. 25. Measuring an Exercise - 1Q1: How many STAFF will take part in theexercise compared with full recoveryrequirements?10 9 8 7 6 5 4 3 2 1Criticality(1 to 10)
  26. 26. Q2: How much HARDWARE is in scopecompared with full recovery requirements?10 9 8 7 6 5 4 3 2 1Not partof planCriticality(1 to 10)Measuring an Exercise - 2
  27. 27. Q3: How many APPLICATIONS are beingtested compared with full recoveryrequirements?10 9 8 7 6 5 4 3 2 1Not partof planCriticality(1 to 10)Measuring an Exercise - 3
  28. 28. Scale and Score
  29. 29. Division Target Actual KRI RAGDiv A 68 76.58 58 GreenDiv B 68 74.45 58 GreenDiv C 68 78.91 58 GreenDiv D 68 69.26 58 GreenDiv E 68 50.71 58 RedDiv F 68 56.18 58 RedDiv G 68 63.43 58 AmberDiv H 68 61.30 58 AmberDiv J 68 76.99 58 GreenDiv K 68 50.41 58 RedAverage 68 67.88 58 AmberKey Risk Indicators – 1
  30. 30. 20304050607080Div A Div B Div C Div D Div E Div F Div G Div H Div J Div KScoreDivisionBCM Testing KRI - ScoreTargetActualKRIKey Risk Indicators – 2
  31. 31. Division Target Actual KRI RAGDiv A 68.0 69.21 58 GreenDiv B 72.2 74.45 64 GreenDiv C 72.2 78.91 64 GreenDiv D 75.8 77.26 66 GreenDiv E 56.5 42.12 50 RedDiv F 56.0 48.20 50 RedDiv G 56.0 53.56 50 AmberDiv H 80.0 75.60 72 AmberDiv J 85.5 85.88 75 GreenDiv K 85.5 74.33 75 RedAverage 73.0 72.41 62.4 AmberKey Risk Indicators – 3
  32. 32. Key Risk Indicators – 42030405060708090100Div A Div B Div C Div D Div E Div F Div G Div H Div J Div KScoreDivisionBCM Testing KRI - ScoreTargetActualKRI
  33. 33. Programme Measurement
  34. 34. Programme Measurement
  35. 35. Variable Targets
  36. 36. Detailed Statements
  37. 37. MainsGeneratorUPS CommsUPS DeskRun TimeCoolingWater MainsGeneratorUPS CommsUPS DeskRun TimeCoolingWaterMainsGeneratorUPS CommsUPS DeskRun TimeCoolingWaterMainsGeneratorUPS CommsUPS DeskRun TimeCoolingWaterMainsGeneratorUPS CommsUPS DeskRun TimeCoolingWaterMainsGeneratorUPS CommsUPS DeskRun TimeCoolingWaterLocation Risk Wheels
  38. 38. 1. Quality ScoresBelow are the agreed quality scores for the contract which reflect the level of compliance with Policy andthe overall effectiveness of the controls in place.QUALITY SCORE FOR EACH REVIEW SECTIONTotalQualityRatingSupplier PerformanceRelationshipManagementBCMPerformanceFinancialReviewValueImprovementContractManagementChangeManagementRiskManagementExitArrangementsBusinessContinuityMgt.2012 Review Score 2 3 2 3 3 3 2 3 21 Green2011 Review Score 2 3 0 0 2 2 0 2 11 RedSupplier Reviews
  39. 39. Supplier Reviews
  40. 40. 01020304050607080901000 5 10 15 20 25 30ContractValueReview ScoreContract Value vs Review ScoreContract Value (£m)In the main, highervalue contracts have abetter score = bettermanaged.However, somelarge valuecontracts havepoor scoresSupplier Reviews
  41. 41. Trend Analysis0102030405060708090100Div A Div B Div C Div D Div E Div F2009201020112012
  42. 42. Summary Why Measure? What to Measure? BIA Testing BC Programme
  43. 43. Is BCM an Expense......?Common views by seniormanagement? “BC costs us money” “It’s a necessary evil” “It doesn’t increase the bottomline”
  44. 44. .....or an Investment?Benefits Easier bid / tenderqualification Differentiates ourproposition – offersquality and reliable service Reduces risk in supply orvalue chain network ISO 22301?
  45. 45. Measurement Adds Value Measurement provides level playing field Applicable to public, private and voluntarysectors: size doesn’t matter Measurement provides roadmap Can be used to enhance current BCM Incentive for senior management to take it moreseriously Helps target investment
  46. 46. Thanks

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