Business Continuity Planning

by Brian Andrews

Business Continuity Planning

• What is it?

• Why do it?

• How do you do it?

• Who does it?

Strategic Approach to Business Continuity

Cost of Downtime

• Productivity

• Damaged Reputation

Testing of Business Continuity Plans

• Create Enterprise Testing Strategy

• Prepare for Plan Tests

• Test Scenarios

• Test Cases

• Execute Plan Tests

• Revise Plans (as required)

Risk and Business Impact Analysis

• Review Existing Documents

• Validate / Prioritize Mission Critical Business Functions

• Perform Risk Assessment

• Conduct Business Impact Analysis

• Analyze Alternative Solutions

• Present Findings and Recommendations

Business Continuity Plan Development

• Master Business Continuity Plan:

• Crisis Management, Command Center

• Disaster Recovery, Hot Site

• Business Resumption

• High Availability

• Plan Monitoring Strategy

Phase

1

Phase

2

Phase

4

Phase

3

Risk Impact Analysis

Formulating Continuity Strategies

Without a plan, a natural or man made disasters are;

•Loss of work to competitors

•Failures within the supply chain

•Loss of reputation

•HR Issues

•Health and Safety Liabilities

•Increased Insurance Premiums

Worst Case: Failure of Business

Business Impact Analysis

Understanding the Balance between Costs, Likelihood of a Disruption

and Business Impact

• Likelihood

• Magnitude

• Financial Impact

• Prevention / Preparation

Strategy Based on ROI

• Plan and Response

Development

• Scope of Protection

• Ongoing Incremental

Expense

• Recovery Performance

• Time to Recover

• Scope of Recovery

• Crisis Management

• Identify Critical

Functions

• Risk Assessment

• Business Impact

Analysis • Lost Revenue

• Customer / Partner Confidence

• Regulatory / Legal Issues

Disruption

Occurs

Event Protection Investment Normal

Ops

Recovery Cost Resume

Ops

Business Impact

Business Continuity Plan Development

Business Impact Analysis

Risk Analysis

Recovery Strategy

Group Plans

and Procedures

Business Continuity Planning Initiation

Risk

Reduction Implement

Standby Facilities

Create Planning Organization

Testing

PROCESS

Change Management Education Testing Review

Policy Scope Resources Organization

Ongoing

Process

Project

7

Updating & Testing Plans

• Your Continuity plan MUST BE EMBEDDED in how

each business unit operates every day

• Business Function Managers MUST BE

RESPONSIBLE for ensuring that strong change

management controls are in place!

• Change Control ensures that NOTHING GETS INTO

PRODUCTION without Continuity Team sign-off!

• Constant TESTING IS IMPERATIVE!

• QUARTERLY AUDITS & executive reporting are

essential!

• Training off staff is imperative

Revenue

Know your downtime

costs per-hour, -day, -two

days ...

Productivity • Number of

employees impacted X hours out X burdened hourly rate

Damaged Reputation

• Customers • Suppliers • Financial markets • Banks • Business partners

Financial Performance

• Revenue recognition • Cash flow • Lost discounts (A/P) • Payment guarantees • Credit rating • Stock price

Other Expenses Temporary employees, equipment rental, overtime costs, extra shipping costs, travel expenses

What Is Your Cost of Downtime?

• Direct loss • Compensatory payments • Lost future revenue • Billing losses • Investment losses

Conclusion

• Development and implementation of BCP

maintenance processes are critical to ensure

that the BCP is in a state-of-readiness

• Management will only realise the value of

their investment in business continuity

when a real disaster situation strikes the

organisation