walter ammann - business continuity management within the concept of integrative risk and disaster...

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BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 1 www.grforum.org Business Continuity Management within the Concept of Integrative Risk and Disaster Management A Holistic Approach Walter J. Ammann, President Global Risk Forum GRF Davos Davos, Switzerland

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Page 1: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 1

www.grforum.org

Business Continuity

Management within the

Concept of Integrative Risk

and Disaster Management – A

Holistic Approach Walter J. Ammann,

President Global Risk Forum GRF Davos

Davos, Switzerland

Page 2: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 2

Values exposed to hazards

Damage potential

RISKS – THE VALUE AT RISK SIDE

Page 3: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 3

Damage Potential (what can be affected?)

• Human lives and health

• Live-stock (urbanisation)

• Critical Infrastructures and Services

(Hospitals, schools, transportation, energy,

food, water, waste-water, etc.)

• Communication (IT infrastructure)

• Production (Industry)

• Image, reputation

• Etc

RISKS - VALUES EXPOSED TO HAZARDS

Page 4: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 4

Processes

RISK – THE THREAT SIDE

Page 5: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 5

Processes Values exposed to hazards

Damage potential

RISK

RISK – THE POTENTIAL INTERATCTION SIDE

Page 6: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 6

(MATHEMATICAL) DEFINITION OF RISK

RISK Hazard Values at Risk Vulnerability = x x

Climate Change

will increase the

frequency and

intensity

Humans,

Animals, Assets,

Infrastructures,

Services,

Environment

All values are

vulnerable.

Vulnerability can

be reduced with

measures

Resilience

Page 7: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 7

Subsequent

Event

Primary Event

cause and effect

CHARACTERISTICS OF CASCADING EFFECTS

Secondary

Event

Secondary

Event

Secondary

Event

Subsequent

Event

Secondary

Event

Secondary

Event

Interactions

Uncertainties:

• Intensity

• Effects

• Interactions

• response

Intentional

(external)

threats/attacks

Page 8: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 8

Water

treatment works Railway station

Fire station

Electricity sub-station

Broadband antenna

Hospital

Supermarket

Power station

Waste water

treatment works

FLOOD SITUATION

Page 9: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 9

insignificant small perceptible critical catastrophic

IMPACT

Pro

bab

ilit

y

imp

rob

ab

le

ve

ry r

are

ra

re

po

ss

ible

fre

qu

en

t Technical

Other

Natural

RISK MANAGEMENT (RISK MATRIX)

Page 10: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 10

IRM - RISK REDUCTION & DISASTER MANAGEMENT

Integrative Risk Management IRM concentrates

equally on all phases of the risk circle - on prevention,

intervention and recovery

System approach

Page 11: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 11

Avoiding, eliminiating

risk situations

Risk reduction

by preventive

measures

Risk Transfer (Micro-)

Insurance

Self-Responsibility

(Residual Risk)

Tota

l ori

gin

al

risk

level

Emergency

Management

Rehabilitation

Insurance

Technical measures

Organisational measures

Education

Training

Recovery

Prevention

Organizational measures

Emergency/ Crisis Management

Intervention

Rehabilitation

Insurance

Technical measures

Organisational measures

Education

Training

Recovery

Prevention

Organizational measures

Emergency/ Crisis Management

Intervention

IRM – THE RISK REDUCTION STAIR-CASE

mitigate, adopt, share, suffer,

Page 12: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 12

Timely and appropriate

intervention influences extent of

damage and human behaviour

Damage as a result of human

actions and behaviour

12

THE HUMAN FACTOR - RESILIENCE

Robustness- redundancy –

resilience: A resilient system

helps to recover faster and to

keep secondary damage

contained

Page 13: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 13

Schematic of Resilience

Time

Fu

nctio

na

lity

100%

t event

Recovery Time

t recovery

Loss in

Functionalit

y

(Vuln

era

bili

ty)

Ro

bu

stn

ess

A

Resilience is high if A is small Event

Page 14: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 14

Resilience

Time

Functionalit

y,

Se

rvic

e L

eve

l

100%

t event

Recovery Time

t recovery

Vuln

era

bili

ty

Resilience

Page 15: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 15

SUMMARY – SUSTAINABLE COMMUNITIES

• All hazards approach for risk analysis and assessment, (cascading effects!) – Risk Matrix.

• Integrative risk management (prevention, preparedness, intervention/ response, recovery)

• Resilience, robustness, redundancy

• Proportionality, cost effectiveness, cost-efficiency

• Communication, awareness raising

Page 16: Walter Ammann - Business Continuity Management within the Concept of Integrative Risk and Disaster Management – A Holistic Approach

BCM IDRC Post -Conference Walter J. Ammann 31 August 2012 16

FROM THOUGHTS TO ACTION!

THANK YOU FOR YOUR

ATTENTION!

CONTACT INFORMATION

Global Risk Forum GRF Davos

Promenade 35

CH-7270 Davos

Phone: +41 (0) 81 414 1600

Fax: +41 (0) 81 414 1610

[email protected]

www.grforum.org

[email protected]

Vision without action – a day-dream

Action without vision – a nightmare

Jan Egeland, Kobe 2005