Rolling out Business Continuity Planning (BCP) for Manufacturer
Company
Click to start
Working on
Food Industry
Who we are?
Leads
Mohammad Khaliqur Rahman 150131
Shafiuddin Russel 150165
Forwarder
Md. Rafiqul Islam 150132
Defender
Uttam Banik 150137
Information Spy
Samsun Nahar 150119
BCP Objectives
Documents
Allow timely recovery of critical business operations
Minimize loss
Meet legal and regulatory requirements
Execute Testing
Document test result
Review process and test results
By test review
By Process review
By Event review
Test BCP Update Regularly
Project Domain
Biscuits and Wafers
Product Line
Noodles:
Chatni:
Project Domains
Work Activity
Work Environment
Business Process
Work Flow
Inform Local Police Station
Secure Documents
Activate fire protection
system
Secure machineries
Identify Causes/Demand
Negotiation with labor
leaders
Demolish/Violence?
Deploy Law Enforcement
Withdrawal Strike
Continue Core Business Functions
Open up all business wings
Labo
r Str
ike
Yes
Review and Update BCP
No
Start
EVENT
Impact
DisasterEventLabor Strike Y Y Y Y Y Y Y
Vehicle and product robbery N Y Y Y N N Y
Internal fraud N N Y Y N N Y
Power Outage Y Y N Y N N N
Food raw materials affected by moisture and insects
Y Y N Y N N N
Pro
du
ctio
n D
isru
pte
d
De
live
ry S
ch
ed
ule
fa
ile
d
Da
ma
ge
o
f A
sse
ts
Fin
an
cia
l L
oss
Re
pu
tatio
n h
am
pe
r
Lo
ng
tim
e e
ffe
cts o
n
reve
nue
Org
an
izatio
n b
ad
im
ag
e
on
c
usto
me
rs
** Y = More Negative, N = Less Negative
Disaster Impact Analysis
Basic Risk Assessment Process
We have followed following five Steps for Risk Assessment
Death by Cause in 2006 in Bangladesh (%)
Accident and Related,
10.04, 10%
Asthma and Related,
17.57, 18%
Infectious Disease, 10,
10%
Indirect Food and
related Complcation,
21.54, 22%
Foodborne Illness,
23.58, 23%
Old Age, 17.27, 17%
Source: Statistical Yearbook of Bangladesh 2010
What is Highest Risk?
Hazards from Farming to distribution
Farming Transport Production Packing Distribution
AnimalsChemicalsElectricityWeatherFloodCold
TemperatureTraffic JamPoor Road
Strike
ClassificationLabelingBSTI SealExp Date
Faulty Pack
Failure of DIS.Low Production
Hazard on Food Production
Severe Weather Event
Slips & Trips
Contact with Steam
Hot water
Hot Oil
Knives
Hazardous
Substances
Gas
Electrical
Fire
Machinery
Temperature
How we Rating the risk…
Consequence
Like
liho
od
Low (1) Medium (2) High (3) Extreme (4)
Almost certain (4) 4 8 12 16Likely (3) 3 6 9 12Possible (2) 2 4 6 8Unlikely (1) 1 2 3 4
Evaluation of Likelihood
Within the next 12 months the event is:
Almost certain Frequent occurence/ greater than 90% chance
Likely Regular occurence/ greater than 60% chance
Possible Occasional occurence/ greater than 10% chance
Unlikely Has never occurred/ less than 10% chance
Risk Rating: Likelihood X Consequence
High: 8 to 16Medium: 3 to 6
Low :1 to2
Evaluation of consequence
ExtremeFinancial impact greater than 100 Crore / international media attention / Government or stakeholder intervention / Total service disruption / Bankrupt.
HighFinancial impact greater than 50 Crore / national media attention / Adverse comment by minister or external auditor / significant service disruption / disabling injury.
MediumFinancial impact greater than 1 Crore/ Local media attention / Service user complaints / Service disruption / Lost time / Injuries.
LowLow level financial loss / isolated complaints / minor service disruption.
Food Factory Risk Assessment
Hazards Who harmed & how Risk level
Slips & Trips
Staff, visitors may beinjured if they trip
over objects or slip on slippery floor
Medium
Severe Weather EventLoss of buildings, personal property and businesses
High
ManualHandling
Staff may sufferpulled muscles,
strains and bruising.
Medium
Contact withsteam, hot water, hot oil and
hot surfaces
Oven staff, foodservice staff may
suffer scalding or burn injuries
Medium
KnivesStaff could suffer
cuts and finger amputationsMedium
Food Factory Risk Assessment Hazards Who harmed & how Risk level
GasAppliances
Staff and customerscould suffer serious or fatal
injuries as result of gas release or explosion
High
ElectricalStaff could suffer
serious or fatal injuries as result of electric shock
High
Fire
Staff and customerscould suffer serious injuries
and fatalities from burns and smoke inhalation
High
MachineryStaff could suffer
serious injury from contact with dangerous parts
Medium
Workplacetemperature
Kitchen staff maysuffer ill health when they overheat in hot working
conditions
Medium
Business Impact analysis (BIA)
Identified Business Areas Those Can Be Impacted
Fin
ance
Man
ufa
ctu
rin
g
Op
erat
ion
s
Info
rmat
ion
Tech
no
logy
Hig
hM
ediu
m
Hu
man
R
eso
urc
es
Mar
keti
ng
& S
ales
Faci
litie
s &
Se
curi
ty
Low
Res
earc
h &
D
evel
op
men
t
Lega
l/C
om
plia
nce
War
eho
us
e
S
U
P
P
L
Y
C
H
A
I
N
Quantitative or Qualitative Impact
Med
ium
Hu
man
R
eso
urc
es
Mar
keti
ng
& S
ales
Faci
litie
s &
Se
curi
tyFa
cilit
ies
&
Secu
rity
War
eho
us
e
Lega
l/C
om
plia
nce
War
eho
us
e
BIA Matrix
BC DR Templates Used
Work Flow Diagram
Raking Systems Book: Business Continuity & Disaster RecoveryChapter- Project Initiation Page-110
Disaster Impact Matrix
Risk Assessment Matrix
BIA Matrix
Lecture 4: Page – 24 of Dr. Syed Akhter Hossain
Lecture 4: Page – 25 of Dr. Syed Akhter Hossain
Lecture 6: Page – 35 of Dr. Syed Akhter Hossain
Lecture 8: Page – 31 of Dr. Syed Akhter Hossain
Activities (In Reality)
Informal Approval
Initial Business Process Analysis
Formal Proposal
Discussion/ Meeting
Final Approval Total Planning to Develop BCP
Business Process Analysis
Hazard Identification
Risk Assessment
Standards & Industry Best Practices, Testing, Maintenance, Awareness and Training
In RealityHurdles -1
Unawareness
Resist new things that pay cost
What is BCP?
Why BCP?
Any Extra Cost?
Hard to make them aware about BCP
Absence of practically long vision
BCP will ensure your business continuity after your death!!! Top Management Mindset
Unawareness
Make practice BCP guided process and regularly monitoring
Worry about operational
costRigidity
to change process
Hiding Tendency
Hard to make them convince about redundant process or steps for BCP:
Dedicate ongoing resources
Middle Management
TOP
Ma
na
gem
ent
Wo
rk F
orc
e
Ensure drills are conducted regularly at all units
BCP will make you relax while you work or at home
In RealityHurdles-2
Critical Analysis
200 Crore Project 50% invested for automated machines
Installed During 2008, Useful Lifetime = 10 years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
20
0
46
.9
Cro
re
50
100
150
200
20
0
86
.4
20
0
11
2.6
20
0
11
3.9 17
0
13
1.6
14
0
14
0
Straight Line Depreciation Method
Depreciation = (Cost - Residual value) / Useful life
=(100-40)/10=16%
11
0
15
0
80
17
0
50
19
0
Production Capability
Market Size/Sales
1. Hazard Identification2. Risk Identification3. Risk Assessment4. Risk Mitigation Strategy
Practical Risk Assessment with Small Example
The End
Thanks for your patience
Q & A