Business continuity planning involves 4 phases: risk analysis, plan development, testing plans, and ongoing review. It aims to minimize downtime from disruptions through identifying critical functions, assessing risks, analyzing impacts, and creating strategies for prevention, preparation, response and recovery. Testing plans regularly is important to ensure readiness. Without a plan, disruptions can lead to losses, failures, reputational damage and other issues. Quantifying the costs of downtime is crucial for justifying continuity investments and maintaining plans.

1. Business Continuity Planning
by Brian Andrews

2. Business Continuity Planning
• What is it?
• Why do it?
• How do you do it?
• Who does it?

3. Strategic Approach to Business Continuity
Phase Risk and Business Impact Analysis Business Continuity Plan Development Phase
1 • Review Existing Documents • Master Business Continuity Plan: 2
• Validate / Prioritize Mission Critical Business • Crisis Management, Command Center
Functions • Disaster Recovery, Hot Site
• Perform Risk Assessment • Business Resumption
• Conduct Business Impact Analysis • High Availability
• Analyze Alternative Solutions • Plan Monitoring Strategy
• Present Findings and Recommendations
Phase
Phase
3
4
Testing of Business Continuity Plans Cost of Downtime
• Create Enterprise Testing Strategy
• Productivity
• Prepare for Plan Tests • Damaged Reputation
• Test Scenarios
• Test Cases
• Execute Plan Tests
• Revise Plans (as required)

4. Risk Impact Analysis
Formulating Continuity Strategies
Without a plan, a natural or man made disasters are;
•Loss of work to competitors
•Failures within the supply chain
•Loss of reputation
•HR Issues
•Health and Safety Liabilities
•Increased Insurance Premiums
Worst Case: Failure of Business

5. Business Impact Analysis
Understanding the Balance between Costs, Likelihood of a Disruption
and Business Impact
Disruption • Likelihood
Occurs • Magnitude
• Financial Impact
Recovery Cost Resume
Ops
• Recovery Performance
• Time to Recover
Normal
Protection Investment Event • Scope of Recovery
Ops
• Crisis Management
• Identify Critical • Prevention / Preparation
Functions Strategy Based on ROI
• Risk Assessment • Plan and Response Business Impact
• Business Impact Development
Analysis • Scope of Protection • Lost Revenue
• Ongoing Incremental • Customer / Partner Confidence
Expense • Regulatory / Legal Issues

6. Business Continuity Plan
Development
PROCESS Ongoing
Change Management Education Testing Review Process
Testing
Group Plans Risk Implement
and Procedures Reduction Standby Facilities
Project
Create Planning Organization
Recovery Strategy
Risk Analysis
Business Impact Analysis
Policy Organization Resources Scope
Business Continuity Planning Initiation

7. Updating & Testing Plans
• Your Continuity plan MUST BE EMBEDDED in how
each business unit operates every day
• Business Function Managers MUST BE
RESPONSIBLE for ensuring that strong change
management controls are in place!
• Change Control ensures that NOTHING GETS INTO
PRODUCTION without Continuity Team sign-off!
• Constant TESTING IS IMPERATIVE!
• QUARTERLY AUDITS & executive reporting are
essential!
• Training off staff is imperative
7

8. What Is Your Cost of Downtime?
Productivity Revenue
• Number of • Direct loss
employees impacted • Compensatory
X hours out X payments
burdened hourly rate • Lost future revenue
• Billing losses
• Investment losses
Damaged Reputation Financial Performance
• Customers • Revenue recognition
• Suppliers • Cash flow
• Financial markets • Lost discounts (A/P)
• Banks • Payment guarantees
• Business partners Know your downtime • Credit rating
costs per-hour, -day, -two • Stock price
days ...
Other Expenses
Temporary employees, equipment rental, overtime costs,
extra shipping costs, travel expenses

9. Conclusion
• Development and implementation of BCP
maintenance processes are critical to ensure
that the BCP is in a state-of-readiness
• Management will only realise the value of
their investment in business continuity
when a real disaster situation strikes the
organisation