Business Continuity Management Dhiraj Lal Company

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•  Why do we need BCM? •  How does BCM add value? •  BCM Trends •  Implementing High Quality BCM •  Q&A

Agenda

Responsible Care: The Competitive Advantage

About Continuity & Resilience (CORE) Company logo

•  Crisis Management •  Crisis Communications •  Business Continuity •  Disaster Recovery

Country •  India •  USA •  Canada •  UK •  Europe •  Africa •  Middle East

Institutions •  British Continuity Institute (BCI) – UK for offering BCM

Certification •  British Computer Society (BCS) – UK for offering the

Green IT Certification.

Our Range of Specializations in Consultancy & Training cover:

Global Experience Our Partnerships

•  Sustainability •  Information Security •  IT Service Management •  Project Management •  Quality

Industry •  Financial Services •  Telecom •  Manufacturing •  Airlines •  Trading •  Oil and Gas •  Government •  FMCG, Nuclear, etc.

Responsible Care: The Competitive Advantage

Why Do We Need BCM?

Protection from real-life embarassments

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Responsible Care: The Competitive Advantage

Why Do We Need BCM?

Consequences of Business Disruptions

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v  Indirect  (intangible)  • Reputation/  brand  image  damage  • Company  reliability  is  questioned  • Better  to  deal  with  someone  else?”  • Employee  morale  and  work  “joy”  takes  a  hit  

v Direct  (tangible)  • Decrease  in  revenues  and    proBits  • Lost  business  opportunities.  • Increased  Expenses  • Lost  Market  share  (long-­‐term/short-­‐term)  

“It   takes   20   years   to   build   a   reputation  and   Bive  minutes   to   ruin   it.   If   you   think  about  that,  you'll  do  things  differently”.                

Warren  Edward  Buffett  is  an  American  business  magnate,  investor  and  philanthropist.  He  is  considered  by  some  to  be  one  of  the  most  successful  investors  in  the  world.  

Responsible Care: The Competitive Advantage

Why Do We Need BCM?

Per some BCM Surveys

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• Firms  continue  to  operate  for  at  least  two  years  at  a  lower  performance  level  after  experiencing  a  signiBicant  disruption.  

•  In  the  year  post  a  disruption,  Birms  on  average  experience  a:  •   7  percent  lower  sales  growth  •   11  percent  growth  in  cost  •   107  percent  decrease  in  net  income    

Source:  Singhal  &  Hendricks,  “Association  between  Supply  Chain  glitches  and  Operating  Performance’  “May  1,  2005”  

BCM

In the Middle East, average financial loss due to disruptions was USD 1 million

An effective Business Continuity Plan can reduce the total loss by 90%+

Responsible Care: The Competitive Advantage

How Does BCM Add Value? Company logo

Prepare for EVERYTHING, have a SAFETY NET

Loss of IT

Loss of supply chain

Loss of data

Loss of people Loss of facility

Loss of utility

Responsible Care: The Competitive Advantage

How Does BCM Add Value?

Time-sensitive Recovery, more than just Crisis Response

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BCM

Reduce Respond Recover Resume Restore Return

Before During After

Reactive Corrective

Incident occurs

Recovery Time

Responsible Care: The Competitive Advantage

BCM Trends

Director Liability and Corporate Governance

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BCM

•  BCM is already Mandatory in the UAE, as also in some sectors in other GCC Countries

•  In KSA and Kuwait, all listed companies must have BCM in place

•  BCM expectations are in place in the Oil and Gas sector in KSA and the UAE, also in Banking across all GCC

•  Corporate Governance requirements in other GCC Countries also require basic BCM to be in place

•  BCM Capabilities are expected to span all resource categories, specifically Utilities, Supply Chain (Upstream/Downstream) etc

Responsible Care: The Competitive Advantage

Implementing High Quality BCM Company logo

BCM

Typical BCM Methodology

Responsible Care: The Competitive Advantage

Implementing High Quality BCM

1. Program Establishment

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BCM

Responsibilities

Clearly defined roles Reporting Structure Authority & Accountability Presence in abnormalities

Policy Management Understand Business Expectations of Interested Parties Regulatory requirements Purpose, Scope & Objective Approval & Communication

Project Management

Kick off meeting Project Plan Client & Consultant roles Escalation Matrix

Governance Structure

Identify Leaders Define BCM roles Provision resources Assign Ownership

1 2

3 4

Responsible Care: The Competitive Advantage

Implementing High Quality BCM

2. Implementation and Operations

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BCM

Documented Plans & Procedures

Recovery & Continuity Teams

Residual Risk Acceptance and Approval

Existing Controls Proposed Measures

Identify potential threats & take measures to mitigate impact

Vital Records, Vendors, Workforce

RTO, RPO, MAO, MBCO

Critical Vs Non Critical

Ris

k A

sses

smen

t

Treat Risks

Evaluate Risks

Analyse Risks

Identify Risks

Res

pons

e an

d R

ecov

ery

Str

ateg

y

Third Party Service Providers

Information & Records

Applications & Systems

People & Premises

Bus

ines

s Im

pact

A

naly

sis

Management Approval

Dependencies & Resources

Analyse Impact over time

Identification of activities

RA Strategy

BIA

Outcomes

Implement & Operate

Dependencies, Resources

Recovery & Continuity Strategies

Responsible Care: The Competitive Advantage

Implementing High Quality BCM

3. Validation

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Tests and exercises are activities designed to assess the ability of the organizations personnel to: Respond Manage Communicate & Recover from business disruption

Contents of a Test Plan are: Monitoring and reporting Risks Dependencies Assumptions Constraints Scripts

A test and exercise report should be completed immediately after each exercise and include: Results Issues Remediation's Observations

Tes ts and exerc ises a re activities designed to assess the ability of the organizations personnel to: Respond Manage Communicate & R e c o v e r f r o m b u s i n e s s disruption

Contents of a Test Plan are: Monitoring and reporting Risks Dependencies Assumptions Constraints Scripts

A test and exercise report s h o u l d b e c o m p l e t e d immediately after each exercise and include: Results Issues Remediation's Observations

Responsible Care: The Competitive Advantage

Implementing High Quality BCM

4. Review, Maintenance, Continuous Improvement

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BCM

Review &

Maintenance Management Review

Continual Improvement

Internal Audit

3rd Party Review

Internal audit should cover all requirements of the Standard

3rd Party Review should consider notification procedure, various plans, BIA mapping with SLAs in contract, exercise reports and gaps

Management Review should ensure alignment to goals, continuity adequacy and review results of previews reviews

Continual improvement should focus on raising the bar and taking actions to correct failures and improve efficiency of program

Responsible Care: The Competitive Advantage

Q&A Company logo

BCM

Questions?

Contact us at: info@continuityandresilience.com www.coreconsulting.ae +971 2 6594006 +971 52 9263933

Thank you www.gpca.org.ae