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This document provides an overview of business continuity planning. It defines key terms like disaster recovery planning and emergency response planning. It discusses why business continuity planning is important, noting that many companies fail after experiencing a disaster. The document outlines a 6-stage process for developing a business continuity plan: understand risks, perform a business impact analysis, develop a strategy, create the plan, test the plan, and maintain the plan. It provides examples and recommendations for each stage.
Building a Business Continuity CapabilityRod Davis
A detailed overview of the business continuity / disaster recovery planning process. Gives numerous tips for effective execution of plan development. Emphasizes development of a true recovery capability through exercises which reveal weaknesses in the plan or technology leading to improvements.
This document discusses approaches to implementing Manufacturing Execution Systems (MES). It begins by defining MES and describing the ISA-95 manufacturing operations model. It then contrasts two approaches: the "big bang" implementation of all MES functionality at once versus incremental implementation by selecting individual capabilities. The document advocates for the incremental approach, arguing it has advantages in terms of cost, change management, implementation complexity and return on investment analysis. It provides guidance on developing a long-term roadmap for MES implementation, including establishing goals, identifying opportunities and building implementation plans in a collaborative manner.
This document discusses approaches to implementing Manufacturing Execution Systems (MES). It begins by defining MES and describing the traditional "big bang" implementation approach versus a more incremental "evolutionary" approach. The incremental approach is recommended, where individual MES capabilities are selected and implemented over time in smaller projects. The document provides guidance on developing a long-term roadmap by understanding business goals, mapping manufacturing processes, and identifying initial high-impact opportunities. It emphasizes taking a process-centric view and including relevant stakeholders.
Disaster Recovery planning within HIPAA frameworkDavid Sweigert
This document provides guidance on developing contingency plans to address critical business processes that support HIPAA transactions. It defines key terms like contingency planning, disaster recovery planning, and continuity of operations plans. It discusses performing a risk analysis to identify critical processes and potential failures. Alternatives and workarounds are identified for different scenarios. The document provides guidance on developing a continuity of operations plan, including identifying triggers, response teams, procedures, training, and updating the plan over time. It emphasizes the importance of testing contingency plans periodically.
This document provides a report on the resources needed to operate a warehouse for importing and distributing liquor. It identifies that a sufficient property and warehouse space will be needed to accommodate unloading bulk containers, empty pallet storage, and a bonded storage area. The report also considers requirements for transport fleet, warehouse equipment, licenses, insurance, security, risk management, and the potential for outsourcing some operations. It provides tables outlining the proposed property layout, warehouse layout, risk assessment plan, and risk matrix. The conclusion is that a joint venture between two companies could provide synergistic benefits to establish this third-party logistics operation.
This document provides an overview of business continuity planning. It defines key terms like disaster recovery planning and emergency response planning. It discusses why business continuity planning is important, noting that many companies fail after experiencing a disaster. The document outlines a 6-stage process for developing a business continuity plan: understand risks, perform a business impact analysis, develop a strategy, create the plan, test the plan, and maintain the plan. It provides examples and recommendations for each stage.
Building a Business Continuity CapabilityRod Davis
A detailed overview of the business continuity / disaster recovery planning process. Gives numerous tips for effective execution of plan development. Emphasizes development of a true recovery capability through exercises which reveal weaknesses in the plan or technology leading to improvements.
This document discusses approaches to implementing Manufacturing Execution Systems (MES). It begins by defining MES and describing the ISA-95 manufacturing operations model. It then contrasts two approaches: the "big bang" implementation of all MES functionality at once versus incremental implementation by selecting individual capabilities. The document advocates for the incremental approach, arguing it has advantages in terms of cost, change management, implementation complexity and return on investment analysis. It provides guidance on developing a long-term roadmap for MES implementation, including establishing goals, identifying opportunities and building implementation plans in a collaborative manner.
This document discusses approaches to implementing Manufacturing Execution Systems (MES). It begins by defining MES and describing the traditional "big bang" implementation approach versus a more incremental "evolutionary" approach. The incremental approach is recommended, where individual MES capabilities are selected and implemented over time in smaller projects. The document provides guidance on developing a long-term roadmap by understanding business goals, mapping manufacturing processes, and identifying initial high-impact opportunities. It emphasizes taking a process-centric view and including relevant stakeholders.
Disaster Recovery planning within HIPAA frameworkDavid Sweigert
This document provides guidance on developing contingency plans to address critical business processes that support HIPAA transactions. It defines key terms like contingency planning, disaster recovery planning, and continuity of operations plans. It discusses performing a risk analysis to identify critical processes and potential failures. Alternatives and workarounds are identified for different scenarios. The document provides guidance on developing a continuity of operations plan, including identifying triggers, response teams, procedures, training, and updating the plan over time. It emphasizes the importance of testing contingency plans periodically.
This document provides a report on the resources needed to operate a warehouse for importing and distributing liquor. It identifies that a sufficient property and warehouse space will be needed to accommodate unloading bulk containers, empty pallet storage, and a bonded storage area. The report also considers requirements for transport fleet, warehouse equipment, licenses, insurance, security, risk management, and the potential for outsourcing some operations. It provides tables outlining the proposed property layout, warehouse layout, risk assessment plan, and risk matrix. The conclusion is that a joint venture between two companies could provide synergistic benefits to establish this third-party logistics operation.
Risk Management - Business Continuity Planning and ManagementCody Shive
This presentation outlines the basics behind Business Continuity planning and management. Targeted to CEO's, CFO's and CIO's, this presentation emphasizes the processes and the need to make BCP/M part of the Enterprise's fabric.
The document summarizes Air Products' efforts to increase supply chain agility in its Performance Polymers division. It discusses implementing integrated sales and operations planning, supply chain planning software, supply chain network simplification through plant/warehouse/product rationalization, establishing a distributor channel, and using standardized KPIs to measure performance. The overall goal was to transition from being forecast-driven to being more demand-driven and able to rapidly respond to unpredictable changes.
This document summarizes a presentation on using Oracle Hyperion EPM tools to improve financial processes. It discusses common issues with the financial close cycle such as unreliable spreadsheets and disconnected departments. It then outlines best practices of world-class finance departments, including continuous planning, clear goals and metrics. Finally, it describes several Oracle Hyperion EPM tools - Hyperion Planning for budgeting, Essbase for multi-dimensional analysis, Financial Management for reporting, and Financial Close Management to automate the close process. The presentation aims to demonstrate how these tools can help address typical problems and achieve efficiencies of leading organizations.
The document discusses business continuity and disaster recovery planning from an information systems auditing perspective. It covers key areas such as developing business continuity plans, evaluating backup and restoration procedures, reviewing disaster recovery plans, and auditing business continuity and disaster recovery processes. The case study describes an organization that needs to update its business continuity and disaster recovery plans given significant growth. The IS auditor needs to evaluate the plans and make recommendations.
The document discusses business continuity and disaster recovery planning from an information systems auditing perspective. It covers key areas such as developing business continuity plans, evaluating backup and restoration procedures, reviewing disaster recovery plans, and auditing business continuity and disaster recovery processes. The case study describes an organization that needs to update its business continuity and disaster recovery plans given significant growth. The IS auditor needs to evaluate the plans and make recommendations.
Let’s understand the concepts of business continuity and Disaster Recovery in brief. To know more, visit: www.eccouncil.org/business-continuity-and-disaster-recovery
This document discusses applying lean principles and value stream mapping to administrative and office processes. It provides an overview of value stream mapping and how to map both production and non-production processes. The document outlines a process for mapping the current state, which includes documenting customer needs, identifying processes, selecting metrics, and calculating performance. It also discusses designing a future state and applying lean thinking at the functional level throughout an organization.
This document discusses business continuity and disaster recovery planning. It outlines the history and types of planning, including crisis management, emergency response, disaster recovery, and business continuity. The key steps in planning are risk analysis, business impact analysis to determine recovery time objectives, identifying required resources, strategic planning to identify solutions, implementing solutions, writing the plan, testing the plan, and maintaining the plan. Business impact analysis establishes financial forecasts and recovery time objectives. Strategic planning identifies commercial and internal options, and a cost-benefit analysis is used to select strategies. Testing and maintenance are important to prove a plan's capability and keep it up to date.
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This document discusses various business management systems. It describes production operations management systems and their goals of transparency and quick response. It also discusses transportation management systems and factors driving their growth, including outdated legacy systems, growth of intermodal transport, new vendor capabilities, and ability to handle big data. Finally, it examines inventory control systems and their aim to minimize holding, ordering and shortage costs.
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This document provides an overview of failure mode and effects analysis (FMEA). It describes FMEA as a tool to identify potential failure modes, estimate the risk associated with failures, and prioritize actions to address high-risk failures. The document outlines the FMEA process, which involves identifying failure modes and their causes and effects, then calculating a risk priority number to prioritize issues. It also discusses design and process FMEAs and when each is used. Finally, it reviews how FMEA relates to and can be used along with other process analysis tools.
This document discusses improving supplier risk management programs. It begins with an overview of why risk management has become a priority, noting increased global sourcing, financial challenges, natural disasters, and other disruptions. It then outlines challenges like lack of resources and visibility beyond tier one suppliers. The document presents traits of advanced risk management programs and describes a typical risk management process. It provides examples of risk assessment criteria and tools. The document offers options for developing action plans to mitigate risks and looks at how risk management may continue evolving with more prevention, transparency, and third party solutions. It concludes with next steps organizations can take to strengthen their programs.
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This document discusses fast close management challenges and outlook. It defines fast close as actions taken to accelerate financial closures while ensuring data quality. Some key points made include:
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2. 2
Presentation Outline
ISO Principles of Risk Management
Disaster Recovery vs. Business Continuity
Unexpected Events
Business Continuity and Risk Avoidance
Planning and Management
Break
Development, Implementation and Exercise
Return on Investment
Business Continuity as an Operational Process
3. 3
ISO Principles of Risk Management
Should create value
Must be an integral part of organizational processes
Must be part of decision making
Should explicitly address uncertainty and assumptions
Is systematic and structured
Should be based on the best available information
Should be customizable
Takes into account human factors
Is transparent and inclusive
Is dynamic, iterative and responsive to change
Is continually improved and enhanced
Must be continually or periodically re-assessed
5. 5
Disaster Recovery vs. Business
Continuity
Disaster Recovery
The processes involved in restoring a business to normal
operation after its operations have been partially or
completely interrupted by some event
Business Continuity Planning
Planning to keep your business operating through an
unexpected event
Business Continuity Management
Managing the sustaining key business components,
bridging the event
Discussion
6. 6
Is Business Continuity Planning
Necessary?
Compelling Factors
Regulatory requirements
Competitive requirements
Customer impact
Investor impact
Potential litigation
Does Company Size Matter?
Is BCP for large companies only?
Bottom Line
Keep business functioning and
Protect Company assets (human, IP, infrastructure)
8. 8
What Constitutes a Disaster or
Business Continuity Interruption?
Catastrophic Events
Location destroyed
Distribution center destroyed
Headquarters destroyed
Event Rising From:
Supply Chain disruption
Smoke/Fire
Cyber attack
Terrorism
Earthquake
Affects of nearby disaster (RR tanker derails; Fukushima)
Social disturbance (people are hurt and facility is crime scene)
Be careful of playing the odds
Virginia’s last earthquake: over 100 years ago; until August,
2011
9. 9
Example Disruption Scenarios
Level 1 — Loss of secondary function
Loss of SaaS provider (Outsourced Accounting
System)
Level 2 — Technology offline
Loss of local computing environment
Level 3 — Distribution network impact
Loss of warehouse (physical goods)
Level 4 — Regional command and control
Loss of entire division
Level 5 — Disaster
Loss of entire company
$$$$
$
Cost
11. 11
Business Continuity
Overview
Business initiative, not an Information Technology
initiative
Must keep key revenue streams operating
Need a vulnerabilities list (highest to lowest)
Risk avoidance
Total Risk Avoidance
Replicated facility (higher cost)
Minimal Risk Avoidance
Essential operational systems (lower cost)
Balancing act
13. 13
List Vulnerabilities
Remember S.W.O.T. analysis
Strengths — your Company may have an effective
logistics network that can sustain loss of a warehouse
with little or no impact to continuing operations
Weaknesses — list areas where the Company is most
vulnerable to interruptions ordered by business impact
Opportunities — you may be able to consolidate
operations for the short term, or take advantage of
unused space in a lesser-used building in the event of
facility loss
Threats — including those listed under Example
Disruptive Scenarios, natural disasters (floods,
hurricanes, tornados, earthquakes), etc.
14. 14
Other Vulnerability Assessment Tools
Brainstorming
Questionnaires
Business studies assessing
both internal and external
factors which can influence
operations
Industry benchmarking
Scenario analysis
Risk assessment workshops
Incident investigation
Auditing and inspection
HAZOP (Hazard &
Operability Studies)
Dependency modeling
Event tree analysis
Real Option Modeling
(Valuation)
Decision making under
conditions of risk and
uncertainty
Measures of central
tendency and dispersion
(descriptive statistics)
PEST (Political, Economic,
Social,Technological)
analysis
Risk Identification Risk Analysis
15. 15
Total Risk Avoidance
How much is too much?
Total Replication of all operational systems
Example U.S. Postal Service (two of five Data Centers)
Discussion.
Internet
San Mateo
Data Center
Eagan
Data Center
Copied to
Eagan
Copied to
San Mateo
16. 16
Minimal Risk Avoidance
Essential
Systems
Payroll (time clocks)
Inventory and Order
Management
E-mail
(communication)
5 Business Days
A/R
A/P
Shipping
Is this right?
Accounts
Receivable
Payroll
Accounts
Payable
Inventory and
Order
Management
Shipping
E-mail
Business Functions Essential 5 Business Days
Payroll
Inventory and
Order
Management
Shipping
E-mail
Accounts
Receivable
Accounts
Payable
17. 17
Balancing Act
Objective: Determine What You Need
Total Risk Avoidance
Fully Redundant Systems and Operations
Facilities
Inventory
Shipping/Receiving
Minimal Risk Avoidance
Select functions deemed essential
Some disruption in service is acceptable
Discussion
19. 19
Managing the Risk
High-level planning
Develop the plan and publish it
Implementation and exercise
When is the plan considered complete?
20. 20
Getting Started: Objectives
Your Company’s Business Continuity and Needs
Define what business continuity means for your company
Determine what you need in order to maintain it
Take nothing for granted
Review all operational concerns
Review both internal and external factors
Discovery process budget
Determine a rough order of magnitude budget for the
discovery process
Fund it
Discussion: how can this be done?
21. 21
High-level Planning
Engage management and build the BCP team
CEO, COO, CFO, CIO
Name business and technology leaders as BCP
stakeholders
Create a standard Charter for the project
Make it an Enterprise project
Agree on a single individual as the owner with an
understudy
Assign a project manager
Isolate Continuity targets
Essential business functions (use a risk matrix)
Scrutinize pitfalls/darlings/issues
22. 22
Project Charter
A Project Charter:
Lists reasons for undertaking the project
Solidifies objectives and constraints of the project
Provides directions concerning the solution
Gives names and titles of the main stakeholders
Enumerates in-scope and out-of-scope items
Dictates as a high-level risk management plan
Serves as a communication plan
Targets project benefits
Authorizes high-level budget
and spending authority
Project Charters are used to:
Authorize a project
Aid with resource
management
Focus overall scope
23. 23
Risk Matrix Example
Threat Probability (P) Impact (I) Risk = P x I
Hurricane 80% 1 80%
Flooding – Internal 80% 1 80%
Severe Storms 25% 1 25%
Flooding – External 80% 0.2 16%
Wind Storm 10% 1 10%
Tornado 10% 1 10%
Terrorism 10% 1 10%
Fire – Internal 10% 1 10%
Fire – External 10% 1 10%
Earthquake 1% 1 1%
Helps isolate potential interruptions in service
Link this to affected operations service continuity
plan
Backup site for Coastal
Office Operations
Temporary Relocation
for Key (or all) Staff
Coastal Operations BCP
Rebuild/Repair
Return to Normal
Operation
24. 24
Plan Components
Establish objectives for the plan. Examples include:
Run payroll within 24 hours of event
Ship product within 48 hours of the event
Essential personnel
List personnel required for managing the processes
List backup personnel, in the event the primary personnel
are directly affected by the event
Calendar/Timeline
Create a calendar to pinpoint specific timing of actions
List important dates such as payroll, monthly close, and
other recurring events that can influence the required
availability
25. 25
Systems Recovery
What systems are crucial to maintain continuity?
Payroll and time clocks?
Inventory and Order management?
Shipping and Receiving?
Email?
All of the above?
Be careful of purportedly autonomous systems
Question from the shipping manager:
“Since FedEx has supplied my shipping stations, and they are
able to print shipping manifests, is it okay to go ahead and ship
product even if the inventory and fulfillment systems are
offline?”
Do you think it’s
okay?
26. 26
Data Recovery
Differences between System and Data Recovery
Systems are the substrate that manage and present data
Data carries the information
Data Recovery Point Objective
How old is the data that can be recovered?
Where is the backup stored? Offsite, or still on-site?
When was the last validation that data could be
recovered?
Data Recovery Time Objective
How long will it take to recover?
Will data be recovered to the point just prior to the event?
What about data that is lost?
29. 29
Develop the Overall Plan
Stakeholders
List their area’s essential business functions
List alternatives for each business function in a matrix
Plan for functions without immediate alternatives
Assess alternatives for strategic functions
Example: if a warehouse goes offline, can product ship from
other warehouses? Include the estimated cost difference.
Document a process flow for decision-making and
emergency response.
Ensure everyone knows who is in charge
Establish a single-point of contact for media relations and
ensure all responses are funneled through them
Do not depend on making good decisions inside the tornado
30. 30
Develop the Execution Plan
Formulate Business Continuity Management Plan
Assign point individuals to manage specific areas of
operation
Ensure everyone has a backup
Establish action plans for:
Running day-to-day operations
Contacting insurance companies and managing
distributions
Recovering from the interruption. Include vendors to
source product, infrastructure and services
Crisis communications to keep staff updated as changes
occur
31. 31
Implementation and Exercise
Train for the exercise:
Notify participants of it,
Stage it, and
Implement it!
Implement it in stages:
First , work out what you thought would happen
Adjust the plan based on what actually happens
Common misconception: you can’t exercise everything in the
plan
Yes, you can
You may choose not to, because of disruption or cost
Choose a cycle for exercise, and stick to it.
Minimal: annual (has drawbacks)
Optimal: quarterly
Super-optimal: continual (may apply to specific processes only)
No plan survives the battle
field.
— Helmuth von Moltke
32. 32
When is the Plan Considered Complete?
Never
Business Continuity is not a Project
It’s a program
It’s an operational process
It’s a strategy
It exists as long as your business does
Each exercise should reflect an updated plan
Exercising the plan is like putting on a play
Remember your lines
Discussion
34. 34
Quote #1
A Grudge Buy or Providing ROI?
“The fact that most organizations are
unlikely to ever use the full extent of the
services they have paid for has, in the past,
made disaster [recovery] something of a
‘grudge buy’ and not something that most
companies are eager to spend money on.”
ITWEB
September 25, 2001
35. 35
Quote #2
Probability or Availability?
“…the probabilities associated by corporate
management with the occurrence of most
disasters are so low that the expected value
of most disaster recovery programs does not
begin to cover the costs required to
implement
(or purchase) them.”
William Cappelli
Disaster Recovery Program Costing: The Missing Element
from GIGA
January 22, 1998
36. 36
Quote #3
Bottom Line or Bottomless Pit?
“Recovery services don’t add anything to the
bottom line, but the consequences of not
having a plan in place can be disastrous.”
Dave Linacre
Managing Director
IBM Business Continuity and Recovery Services
37. 37
Reasons ROI Is Not Calculated
Difficulties in making the calculation
Not a financial decision
Lack of commitment to the process
Not an important issue
Bottom Line:
Should it take a disaster to recover your investment?
38. 38
Calculating Return on Investment
Calculated on projects with fixed costs and an end
date
Business Continuity starts as a project, but becomes an
on-going operational program
Cost vs. Time to Ownership: hard to calculate
The project has high development costs up-front
The project’s long tail never ends (constant updates as new
systems and changes to business processes occur)
Value Perspective: possible to calculate
Complex calculation (host of factors including loss of
productivity)
Moderate calculation (risk register)
Simple calculation (loss by specific system)
Cost of Downtime
39. 39
The Cost of Downtime
Lost Revenue
Lost Wages
Remedial Labor Costs
Lost Inventory
Marketing Costs
Bank Fees / Penalties
Legal Costs
Lost Opportunity
Employee Retention
Loss in Share Value
Goodwill
Brand Damage
Tangible Costs Intangible Costs
40. 40
Example Costs of Doing Nothing
Airline Reservations:
Retail Catalog:
Infomercials /
Promotion:
Retail Banking:
Retail Brokerage:
$ 89,500
$ 90,000
$ 199,500
$1,000,000
$6,500,000
Average Hourly Costs of Downtime
42. 42
Implementing Business Continuity
What Not To Do?
Treat BCP like a one-time project
Turn BCP into a Compliance Program
What To Do?
Weave the program into processes as a forethought, not
an afterthought
Make BCP part of the operational fabric
Validate progress with each Business Continuity exercise
Grow Business Continuity as your business grows
43. 43
ISO Principles of Risk Management
and Business Continuity
Should create value
BCP creates value by ensuring
continued business operation
Must be an integral part of organizational
processes
BCP is an operational process and is
therefore integral to the organization
Must be part of decision making
BCP is strategic, and therefore part of
decision making
Should explicitly address uncertainty and
assumptions
BCP inherently addresses uncertainty
and assumptions
Is systematic and structured
BCP is a systematic and structured
process that grows with the business
Should be based on the best available
information
BCP is based on the best available
information at its inception, and it is
continually updated
Should be customizable
BCP can be customized as changes in the
business dictate
Takes into account human factors
BCP ensures that the plan addresses
capabilities of people who can facilitate (or
hinder) business continuity
Is transparent and inclusive
BCP is transparent and inclusive by
ensuring that stakeholders are fully involved
in every aspect of the process
Is dynamic, iterative and responsive to
change
BCP changes as the business grows and
expands
Is continually improved and enhanced
BCP is an operational process that
continually improves as the business
grows
Must be continually or periodically re-
assessed
BCP is continually re-assessed as changes
occur in the business.