Growth & Development in BCM
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A view from the Business Continuity Institute Presenter: Mr. Steve Mellish FBCI Business Continuity Institute Middle East BCM Summit, October 9th 2012 1. Introduction 2. About the BCI 3. BCM Works! 4. ISO 22301- driving BCM global 5. Gaining mind share in the board room 6. BCM futures
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Growth & Development in BCM
- 1. © BCI 2009 Copyright © 2012 Business Continuity Institute Continuity and Resilience (CORE) ISO 22301 BCM Consulting Firm Presentations by our partners and extended team of industry experts Our Contact Details: INDIA UAE Continuity and Resilience Level 15,Eros Corporate Tower Nehru Place ,New Delhi-110019 Tel: +91 11 41055534/ +91 11 41613033 Fax: ++91 11 41055535 Email: neha@continuityandresilience.com Continuity and Resilience P. O. Box 127557 Abu Dhabi, United Arab Emirates Mobile:+971 50 8460530 Tel: +971 2 8152831 Fax: +971 2 8152888 Email: info@continuityandresilience.com
- 2. © BCI 2009 www.thebci.org Steve Mellish FBCI Business Continuity Institute Middle East BCM Summit, October 9th 2012 Growth & Development in BCM A view from the Business Continuity Institute
- 3. © BCI 2009 Welcome from the BCI Vice Chairman • Introduction • About the BCI • BCM Works! • ISO 22301- driving BCM global • Gaining mindshare in the board room • BCM futures
- 4. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute • Founded in 1994, member-owned, not-for- profit organization • 8,000 members in more than 100 countries. HQ in UK, chapters and forums established globally • Entrance by examination only; professional grades earned through experience. • Body of knowledge: Good Practice Guidelines • BCI Partnership “think tank” for BCM awareness and promotion • Flagship events: Business Continuity Awareness Week, BCM Executive Forum and BCM World Conference & Exhibition Business Continuity Institute Mission: To raise awareness of the art and science of business continuity management
- 5. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute BCM works!
- 6. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute Business Continuity in the news
- 7. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute
- 8. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute ISO 22301
- 9. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute Region Response Level Proportion Europe 301 49% North America 117 19% Asia 64 10% Australasia 57 9% Africa 35 6% Middle East 22 4% Central & Latin America 17 3% Total respondents 613 100% What difference will the ISO make? BCI survey - 613 Responses from 60 Countries
- 10. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute Today “in-house BCM” dominates 68% of respondents take a DIY approach to BCM Base: 575
- 11. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute ISO brand is seen as a positive for BCM Base: 556. Strongly agree and agree combined totals A common language to work internationally with customers, suppliers and internally (85%) BCM has come of age: a mature, globally recognised discipline (73%) Customers understand and value the ISO brand (69%) 4. It helps drive business improvement and performance (67%) 5. Stakeholders or interested parties understand the ISO brand (63%) 6. Our management understand and value the ISO brand (62%)
- 12. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute There’s enthusiasm to align to the ISO Base: 546 Certify Comply Align “We will not do this”“Don’t know”“Yes, we will” Certification levels are forecast to treble over three years
- 13. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute Gaining mindshare in the board room
- 14. © BCI 2009 Copyright © 2012 Business Continuity Institute Getting on the board’s radar... How many of these risks are “traditional BCM”? Source: PwC CEO Survey (2010)
- 15. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute Gaining mindshare at board level Is the Board in very interested in BCM? BCI Survey July 2011, 650 responses What makes the difference? • Understand the key risks facing the organisation and how BC practice can help • Ensure BC is not seen as a “category of risk” rather a management and control method • Use exercises with executives to focus on longer term and strategic consequences of disruption • Work closely with Enterprise Risk Management (ERM) colleagues 29% 15% 7% 37% 5% 7% The board is very interested in BCM The board is very interested in risk management butnot BCM specifically The board is very interested in crisis management butnot BCM specifically The board is more interested in the organization beingresilient rather than the specific methods and techniques employed to achieve this The board is not interested in talking BCM Ihave no experience in this area in my current role 54% 6% 5% 31% 0% 4% The board is The board is BCM specific The board is BCM specific The board is resilientrath employed to The board is Ihave no exp Yes:29% Yes: 54%
- 16. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute The future of BCM
- 17. © BCI 2009 Copyright © 2012 Business Continuity Institute Business Continuity Capability of the organization to continue delivery of products or services at acceptable levels following disruptive incident – ISO 22301:2012
- 18. © BCI 2009 Copyright © 2012 Business Continuity Institute Traditional BCM ITPeople as a resource Sites & Facilities
- 19. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute BCM Benefits: Recovery, Continuity & Resistance? If you have BCM arrangements in place for your supply chain, how strongly would you agree with the following statements?
- 20. © BCI 2009 Copyright © 2012 Business Continuity Institute A new future for BCM? BCM as strategic management tool / process for the business offering: • Protection of value and reputation in a crisis; • Competitive advantage through greater resilience; and • Better risk oversight and transparent corporate governance.
- 21. © BCI 2009 Copyright © 2012 Business Continuity Institute Achieving resilience… Business Continuity Environment Management Health & Safety Fraud Protection Crisis Management Information Technology Information Security Physical Security Emergency Planning Supply Chain Management Financial control Quality Management ????
- 22. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute The evolution of Business Continuity • Operational • Specialist Practitioner • Availability Risk Treatment • Strategic • Embedded • All Risk Classes One path looks familiar, the second less so…let the debate commence!
- 23. © BCI 2009© BCI 2009 Copyright © 2012 Business Continuity Institute Do not free the camel of the burden of his hump; you may be freeing him from being a camel! GK Chesterton
- 24. © BCI 2009 www.thebci.org Steve Mellish FBCI Business Continuity Institute Middle East BCM Summit, October 9th 2012 Questions? www.continuityandresilience.com info@continuityandresilience.com
- 25. © BCI 2009 Copyright © 2012 Business Continuity Institute Continuity and Resilience (CORE) ISO 22301 BCM Consulting Firm Presentations by our partners and extended team of industry experts Our Contact Details: INDIA UAE Continuity and Resilience Level 15,Eros Corporate Tower Nehru Place ,New Delhi-110019 Tel: +91 11 41055534/ +91 11 41613033 Fax: ++91 11 41055535 Email: neha@continuityandresilience.com Continuity and Resilience P. O. Box 127557 Abu Dhabi, United Arab Emirates Mobile:+971 50 8460530 Tel: +971 2 8152831 Fax: +971 2 8152888 Email: info@continuityandresilience.com
Editor's Notes
- It’s a silly title – but a lot of disciplines struggle to prove that they make a difference, whereas BCM gets tested or exercised for real more often than many people think and it does what it says on the tin.
- If you want to use these examples – I think it worth noting that the Manila floods were important because they affected a major off-shore location, likewise India. So this emphasises the important of supply chain continuity and how it can hurt reputation back home. The middle one is about a financial crisis, not necessarily a typical area that BC practitioners get involved in. But Deloitte, for example, are involved in financial contingency planning. The actual article picks up on the fact that the UK FSA was running market wide exercises on pandemic flu, terrorism, cyber attack etc but had neglected to include one on a financial meltdown.
- The hour glass is used to represent one of the key USPs of BCM in its focus on “time” (RTO/MTPoD) as opposed to probability in prioritising risk handling. The findings are from BCI and Third Party research (Chartered Management Institute and Chartered Insurance Institute).
- Ahead of the publication of the ISO, the BCI wanted to understand the current landscape and attitudes towards standards, as well as intentions towards the ISO. This slide provides an overview of the response levels to the ISO survey. 22 from the Middle East, so too low to say too much with confidence. Middle East respondents (22) were enthusiastic about the ISO. All respondents were going to either align, comply or certify within three years. No other region in the world displayed this level of support. Hopefully more from ME region will respond in future surveys e.g. this year’s Horizon Scan survey, which launches at the end of November.
- The survey asked whether respondents currently certify, comply or have developed an in-house BCM approach, which may or may not align to BCM standards. 575 respondents answered this question, so a reliable level in the context of the BCI membership. Results show that 57% have an in-house approach that aligns to a standard. Hence the Do-It-Yourself image. It’s worth noting that there are some 20 BCM standards in use around the world today. BS25999-2 is the most popular among our survey respondents.
- Respondents felt that the primary benefit of an ISO would be to provide a common language to work internationally with customers, suppliers and internally. Other responses are listed in order of significance. Middle East respondents (22) were enthusiastic about the ISO. All respondents were going to either align, comply or certify within three years. No other region in the world displayed this level of support.
- Certification levels are forecast to treble according to this survey. However, alignment to standards and in-house approaches to BCM will still be the dominant approach. A copy of the survey report (part 1) is available from research@thebci.org
- Chart from PwC shows that traditional BCM applications are not among the top risks that matter to executives.
- You might want to add “build” to this slide. The results are taken from a BCI survey conducted in 2011 and sponsored by Deloitte. With 650 responses, this represents the highest level of response to a BCI survey and indicates that the subject is dear to the hearts of many practitioners. Across the whole survey sample 29% stated that the board was very interested in BCM. However, a certain sub-segment of the overall survey sample were able to achieve a level of 54%. So we looked at what they were doing differently, which included the points listed at the bottom of the slide. This begs the question whether we need a new discipline such as “Crisis Management” or “Resilience” to engage the board, or we just need to understand the board and their interests better.
- We want to move away from using the definition of BCM to explain business continuity, because it sets “resilience” as the goal. It works better for us if we position “Business Continuity” as the goal of BCM. This gives us the scope to widen the scope of capabilities under Business Continuity. There are issues with BCM which has led to the popularity of “resilience”: BCM is seen as compliance driven in some sectors. There has been much discussion about the need for “BC capability” as something different and new, but BC, as we can see from the definition, has always been about capability. We have just forgotten this in some quarters. BCM is seen as about “recovery” cf. Martin Caddick article in last edition of Continuity. BCM is seen to exclude “prevention” BCM is seen as operational. The latter has also seen the rise in popularity in Crisis Management as a strategic discipline linked but separate from BCM BCM is seen as a risk treatment, positioning the discipline a long way down the pecking order of disciplines from strategy (i.e. below risk management and ERM). Our experience to date is that rebranding BCM resilience has not elevated the discipline; it stays at the operational layer. All it does is allow some disciplines to be brought together e.g. security and BCM, or Emergency Planning and BCM. Research shows that executives see resilience in much broader terms than can be delivered by unifying BCM, security, crisis, risk etc.
- This chart is taken from the Supply Chain Resilience Survey 2012 – which WILL BE published on November 7th. Although 532 respondents took part in the survey, only 237 stated that they had BCM in place for supply chain disruption (the survey went beyond the BCI membership database to CIPS, CILT, AIRMIC and more). What’s interesting, other than the affirmation of the benefits of BCM, is that there is clearly less agreement that BCM is about “resisting the impact of disruption” and the bias towards BCM as about “recovery”. Some folk see this as a reason for incorporating BCM within the broader discipline of resilience, so that resistance/prevention is embraced within the concept.
- Highlighted text by James Royds FBCI, former BCI chairman.
- Lyndon slide (origin unknown) – I think he replaced the original centre with BCM. Originally it stated “resilience.”
- This slide is not meant to be prescriptive. It sets out some areas for discussion. The conference agenda covers some of these points. In terms of the slide itself – one debate can be about whether BC stays as a predominantly operational-level service to an organisation or whether it can be better related to business strategy. Another source of debate is whether BC becomes part of good business and is used as an integral part of doing business just like project management or communication skills – or will it remain as a distinctive discipline. Finally, is BC about certain categories of risk such as business processes and key resources, here termed “availability risks” (subset of operational risks) OR can the principles and skills involved in BC be applied across all risk classes e.g. financial, strategic, operational and compliance?
- i.e. we must not forget what makes business continuity unique in looking at its future development…