business continuity planning april 29, 2005 edmonton sean lawson, cbcp linc group corp
TRANSCRIPT
Business Continuity Planning
April 29, 2005Edmonton Sean Lawson, CBCP
Linc Group Corp.
Resources
DRI Canada – www.dri.ca Business Continuity Institute – www.thebci.org Disaster Recovery Information Exchange - West (www.drie-west.org)
Disaster Recovery Journal – www.drj.org
Laye, John. Avoiding Disaster, 2002
Business Continuity Planning
The process of developing advance arrangements and procedures that enable an organization to respond to an event in such a manner that critical business functions continue with planned levels of interruption or essential change. – DRI International
SIMILAR TERMS: Contingency Planning, Disaster Recovery Planning, Business Resumption Planning, Continuity of Operations Planning.
BCP is about managing risk
Employees
Market Forces Technology
Operations
Revenue
Stakeholders/Customers
Legislation
Suppliers
BCP is about managing risk
Employees
Market Forces Technology
Operations
Revenue
Stakeholders/Customers
Legislation
Suppliers
Threats Y2K 9/11 terrorist attacks Anthrax - Bio-terrorism SARS Power Black Out Enoch gas well blow-out Edmonton Floods Avian Influenza (verge of a pandemic)
Direct and Indirect effects
Risks
Injury/deaths (staff, public, stakeholders) Financial losses (revenue, cash flow) Lost customers, suppliers, partners Damaged reputation Lost equipment, property, facilities Legal liability
Cause Percentage
Power outage 27.7 Storm damage 11.7 Other 10.1 Flood 9.6 Hardware failure 7.7 Bombing 7.2 Hurricane 6.3 Fire 5.6 Power surge/spike 5.1 Earthquake 4.9 Network outage 2.1 Human error 1.0
*5,320 recorded incidents
Source: Contingency Planning Research, Inc.
Frequency vs. Likelihood
Business/ Industry Average hourly impact Airline reservations $89,500 ATM service fees $14,500 Brokerage operations $6,450,000 Catalog sales $90,000 Cellular service activation $41,000 Credit card authorization $2,600,000 Home shopping $113,750 Online network fees $25,250 Package shipping services $28,250 Pay per view services $150,250
Source: Contingency Planning Research, Inc.
Costs of an Outage
Source: Contingency Planning Research, Inc.
What if we’re not prepared
Consequences of a major business disruption in the absence of a BCP Plan:
• only 43% of businesses without plans resume operations after a disabling disaster; of these,
• only 12% are still in operation two years after a disabling disaster.
BCP - Professional Practices
1. Project Initiation and Management2. Risk Evaluation and Control3. Business Impact Analysis4. Developing Business Continuity Strategies5. Emergency Response and Operations6. Developing and Implementing Business Continuity Plans7. Awareness and Training Programs8. Maintaining and Exercising Business Continuity Plans9. Public Relations and Crisis Communication10. Coordination with Public Authorities
State of the BCP Industry Growing trend toward standardization. Formalized education and training Certified practitioners Standards and Legislation
PIPA ISO 17799 NFPA 1600
Increasing social and corporate awareness. Personal preparedness Corporate responsibility Business best practice
Fed/Prov/Local Activities Federal Emergencies Act, Emergency Preparedness Act PSEPC (OCIPEP) NERS
Provincial Disaster Services Act and Regulations GOA Planning and Coordination
EMA (and EPOs) Departmental BCP
Municipal Disaster Services Act and Regulations Engaging community partners Planning
BCP Benefits BCP is a “best practice” for any organization Resilient to minor and major events Increased capacity to meet operational surges Clarifies priorities Engages employees and builds confidence
Immediate value Understand your organization Identifying synergies within your operations Identify threats Feed priorities into strategic planning
What to do next?
Get affiliated. Get certified. Get planning.
