© BCI 2012

Business Continuity

Proven benefits and a future role for Business Continuity

www.thebci.org

Lyndon Bird FBCI

Business Continuity Institute

December 3rd, 2012

© BCI 2012© BCI 2012

• Founded in 1994, member-owned, not-for-profit organization

• 8,000 members in 110 countries. HQ in UK, chapters and forums established globally

• Entrance by examination only; professional

The Business Continuity InstituteTo raise awareness of the

• Entrance by examination only; professional grades earned through experience.

• Body of knowledge: Good Practice Guidelines

• BCI Partnership “think tank” for BCM awareness and promotion

• Flagship events: Business Continuity Awareness Week, BCM Executive Forum and BCM World Conference & Exhibition

www.thebci.org

To raise awareness of the art and science of business continuity management (BCM)

© BCI 2012© BCI 2012

BCI Members by Industry Sector

Manufacturing 5.0%

Retail 3.1%Support Services 3.0%

Utilities 2%

Education 2.2%

Health Care 4.5% Government 19% Construction 0.6%

Recreation 1.5%

Transportation 1.9%

IT 12.4%

Other 0.7%

Finance & Insurance 18.5%

Mining 1.0%

Real Estate 0.9%

Professional Services 24.0%

© BCI 2012© BCI 2012

RegionRegion ProportionProportion

Europe 49%

North America 19%

Asia 10%

Where geographically are BCI active?

Asia 10%

Australasia 9%

Africa 6%

Middle East 4%

Latin America 3%

TOTAL 100%

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Myths about Business Continuity

• It is only for large companies

• It is mainly about technology recovery

• It is very expensive to implement

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• It is just for regulated business (financial services)

• It’s primary purpose is compliance

• It has little or no direct benefit

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Purpose of Business Continuity

• Improve resilience and hence performance

• Improve management of business complexity and

process dependencies

• Improve customer service by protecting delivery

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• Improve customer service by protecting delivery

of goods and services

• To influence strategic decisions and enhance

corporate governance

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Causes of Disruption

Sources of Disruption (from 50 countries)

Adverse Weather

Unplanned IT or telecom outage

Transport Network Disruption

Earthquake/TsunamiEarthquake/Tsunami

Failure by outsourcer

Loss of key skills

Product Quality problem

Volcanic Ash Cloud

Insolvency of key supplier

Civil unrest/political conflict

Industrial dispute

Fire

Cyber attack

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Main Concerns by Sector

• FINANCIAL SERVICES– Unplanned outage of IT or Telecoms

– Adverse weather

– Cyber Attack (malware)

• RETAIL AND WHOLESALE– Adverse Weather

– Transport Network Disruption

– Fire to warehouse or retail outlet

• MANUFACTURING– Product Quality Incident

– Natural Disasters in Asia

– Adverse weather

• GOVERNMENT &PUBLIC SECTOR– Adverse weather

– Unplanned outage of IT or Telecoms

– Failure by outsourcer

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Reported Impacts

1. Loss of productivity

2. Increased Cost of working

3. Loss of direct revenue

4. Increased customer complaints

5. Reduced customer service

6. Delayed cash flows6. Delayed cash flows

7. Product release delay

8. Damage to brand image or reputation

9. Fine or an increase in regulatory scrutiny

10. Product recall or withdrawal

11. Shareholder concern

12. Share price fall against market trends

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BCM Benefits: Recovery, Continuity & Resilience?

If you have BCM arrangements in place, how strongly would you agree with the following

statements?

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© BCI 2012© BCI 2012

The Future for Business

Continuity?Continuity?

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Today “in-house BCM” dominates68% of respondents take a DIY approach to BCM

Base: 575

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There’s enthusiasm to align to the ISO

Certify

Comply

“We will not do this”“Don’t know”“Yes, we will”

Certification levels are forecast to treble over three years

Base: 546

Comply

Align

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Business Continuity

Capability of the organization to continue

delivery of products or services at acceptable

levels following disruptive incidentlevels following disruptive incident

– ISO 22301:2012

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A holistic management process that identifies

potential threats to an organization and the

impact those threats if realised might cause.

It provides a framework for building organizational

Business Continuity Management

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It provides a framework for building organizational

resilience with the capability for an effective

response that safeguards the interests of key

stakeholders, reputation, brand and value creating

activities.

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Traditional Business Continuity

ITPeople as a Resource

Sites & Facilities

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A new direction for Business Continuity

A strategic management tool / process for the business offering:

• Protection of value and reputation in a crisis;

• Competitive advantage through greater resilience; and

• Better risk management and more transparent corporate

governance.

© BCI 2012© BCI 2012

The evolution of Business Continuity

• Operational

• Specialist Practitioner

• Availability Risk Treatment

• Strategic

• Embedded

• All Risk Classes

One path looks familiar, the second less so…let the debate commence!