Holistic Resilience

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Holistic Resilience
IBM Global Technology Services
Anilkumar Khadke
Offering Leader -BCRS, India and South Asia
19 May 2014

© 2014 IBM Corporation3
Agenda
 Changing business realities
 Evolving the business continuity approach
 Business Continuity Key components
 Lifecycles of business Resilience
 Incident Management
 Tools to explore
 RAR Initiative

Reputation risk is driving executive focus
Source: The economics of IT risk and reputation What business continuity and IT security really mean to your organization
Findings from the 2013 Ponemon Institute study sponsored by IBM
Leaders increasingly aware of
economic and reputational impact of disruptions

Reputational risk and IT: perception vs. reality
There seems to be a mismatch between how well
companies rate their reputation and how well they are
protecting it.
80%
rate
reputation as
excellent or
very good
17% rate their company’s overall ability
to manage IT risk as very strong
There is room for improvement
in almost every organization
Source: Q1: How would you rate your company’s current reputation within its industry?
Q5: How would you rate your company’s overall ability to manage IT risk?

New business realities are changing how we
approach business continuity
Expanding into
new markets
Mergers and
acquisitions
Social media
and workplace
Demographics
Elevated
risk awareness
Budget
challenges
Consolidating &
integrating
operations

A holistic view of business is needed for more
rigorous BC risk evaluation
 Look beyond organizational and location
boundaries
 Identify critical end-to-end
interdependencies
 Prioritize for investment tradeoff
decisions
HOLISTICHOLISTIC
Traditional 2- Dimension View Addition of a Z axis Holistic Enterprise View
Y-axis=Organization
X- axis=Location
+ =
Z - axis =
process
Traditional
2-Dimensional view
Addition of Horizontal
z- Axis Holistic Enterprise
View

Business Continuity encompasses traditional disaster
recovery and other disciplines and is a key
component of Enterprise Risk Management
Enterprise Risk Management
Market
readiness
Business Continuity
Operational
availability
Disaster
recovery
Regulatory
complianc
e
Security
and
privacy
Facilities
Expertise
and
resources

A smarter, simpler approach to business continuity
Simple/
Smarter
Simple/
Smarter
Previously conflicting needs
 Business strategy – Drive cost efficiencies via consolidation
 Business continuity – Improve continuity response times
 Standardization - Centralized operations while reducing concentration risk
 Result – Centralized operations while reducing continuity risk
Benefits
 Reduced complexity
 Gained daily operational cost efficiency
 Increased agility
Challenge – consolidation created concentration risk

Lifecycle methodology to help achieve sustainable
improvements in business resilience.
 IT risk
management
 Regulatory
compliance
 Corporate
governance
 Reputation
Business
imperatives:
Inputs:
Business
objectives,
goals,
priorities,
policies and
current
capabilities
Outputs:
Reduced risk,
improved
governance
and facilitated
compliance
management
Operational risk
management
M
anage
Plan
Im
plem
ent
Assess
Deploy
Validate
Control
Monitor
Evaluate
Analyze
Define
Design
10

Analyze resiliency & manage risk across six layers of
business
Risk mitigation strategies
Business
driven
Data
driven
Event
driven
Facilities
Business
M
anage
Plan
Im
plem
ent
Assess
Deploy
Validate
Control
Monitor
Evaluate
Analyze
Define
Design
M
anage
Plan
Im
plem
ent
Assess
Deploy
Validate
Control
Monitor
Evaluate
Analyze
Define
Design
Resilienc
e Lifecycle
11
 Security Recovery Continuity Availability
ResilienceFramework
 Facilities
 Technology
 Applications and data
 Processes
 Organization
 Strategy and vision
SecurityRecoveryContinuity Availability
Facilities
Technology
Applications and data
Processes
Organization
Strategy and vision

Incident Management and Business Continuity
Planning
Facilities
12
The Coordination of Incident communication and management practices can be executed through
a simple way like single interface to reduce confusion and panic during Incident.
Incident
Management
Tool

The IBM Business Continuity Index provides …..
 An independent, objective measure of business continuity maturity
 A dialogue focused on business continuity
 A foundation for long-term improvement and best practice
 Originally conceived by UK BCRS Consultants, aligning to BS25999
What you see
Tools To explore….Business Continuity Index

Survey says….

Companies are using social media tools to do
business; now they need to use them to protect their
reputations.
Social media used to communicate with customers
Company website 87%
Social media/networking
tools
50%
Text messaging (SMS) 46%
Company-branded mobile
application
44%
But only
27%
provide for
employee social
media use during
crisis
19%
have
incorporated social
media into their
disaster recovery
plans
Companies are missing the
opportunity to leverage
social media to protect and
recover their reputations
Source: Q21: Which of the following channels does your organization use to communicate with customers
Q17: Which of the following procedures, processes and controls do you have in place?
ibm.com/services/riskstudyTools To explore….

Sizing business continuity and IT security events:
how long? how much? how likely?
Lasts
19.7 minutes
Lasts about
2 hours
Lasts about
7.5
hours
Costs
$52,646
per minute
Costs
$38,069
per minute
Costs
$30,995
per minute
Minor event Moderate event Substantial event
chance of
happening*
69%
chance of
happening*
37%
chance of
happening*
23%
*over the next 24 months
16

What will your organization spend over the next 24
months as a result of business continuity or IT
security events?
Minor event Moderate event Substantial event
The average projected for
the next 24 months
$1 million $4.3 million $14.3 million
$19.6
million
+ +
=
17

Which IT risks cause the most financial damage?
$19.6M
Third-party failure to
continuity or IT security
17%, $3.4M
Natural or manmade disaster
6%, $1.2M
Human error
31%, $6.0M
IT system failure
18%, $3.5M
Cyber security or data
breach/data theft
14%, $2.7M
Data loss from backup
or restore failure
14%, $2.8M
18

How well are you doing?
Find out with the
IBM Reputational Risk Index
Learn more about the reputational risk and IT connection, and
how IBM free tools can help you protect the reputation and
value of your company
Read the study
findings report
ibm.com/services/riskstudy
Scan the code or go to www.ibmriskindex.com
Read the IBM point
of view
ibm.com/services/riskstudy
Your
score
129
out of
200
Engage with an
IBMer to discuss
your reputational
risk exposures
Visit the websites:
www.continuityandresilience.com
19

CoE team-to discuss Business continuity with you. –RAR
 Leads BCRS service delivery,
customer satisfaction and P&L.
 Over 19 years of experience in IT
services.
 Led multiple projects involving end-
to-end delivery of Business
Continuity and Disaster Recovery -
across Consulting, Solution Design,
Implementation, BCP / DR Drill,
Transition & Steady State
management as PM / DPE.
 Track record of enabling nearly
100% successful recoveries for
multiple clients in different
scenarios.
 Rohit is a former Army officer. He is
also an alumnus of INSEAD,
Singapore/France & is an
Electronics engineer.
Rohit Chaudhary Anilkumar Khadke
 Offering leader in IBM for BCRS ,
India & South Asia.
 Over 22 years of experience.
 Handling services of consulting, IT
DR, backup and Work Area recovery
including cloud DR services.
 Previously, he served as a Head
Product management for Data
Center and managed services at
Reliance Communications.
 Speaker at many Business Continuity
events.
 Education: BE, MBA , DEM, BCCS.
Experience in Cloud computing, Data
Centers, Web hosting (.com),
Telecom services & Managed
Services .
Rohit Verma
 General Manager at IBM. Responsible for
handling BCRS Delivery for IBM
customers.
 Over 25 years experience in Risk and
Controls Management covering Business
Continuity Management, IT Disaster
Recovery, Operations Risk Management,
Information Risk Management, Audits.
 Previously, he was Vice President, Head-
Business Continuity Management, IT-
Disaster Recovery - Barclays Bank; and
earlier Asst. Vice President, Head –
Business Continuity Management,
Deutsche Bank – India, Pakistan and Sri
Lanka.
 Jury member in first ever Business
Continuity Institute (UK) and Deloitte BCM
Awards, India, 2009.
 Guest Faculty on BCM with Reserve Bank
of India and other industry Forums.
 Education: CBCP, BS 25999 Lead Auditor,
CISA, CSP, CA, MBA.
20
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