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David Teed: Business Continuity: Dramas, crises and other local difficulties… and how to survive them (7.05.13)

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David Teed provides an overview of how the discipline of Business Continuity Management can help to ensure that impacts will remain within predefined acceptable levels when incidents occur.

Proven and effective approaches will be outlined that provide an appreciation of how
organisations can:
1. Fully understand the implications of resource loss incidents
2. Identify appropriate risk mitigation and contingency measures
3. Improve current levels of preparedness
4. Satisfy customers and stakeholders that services will continue
5. Ensure effective methods and best practice are adopted.

Prior to founding Teed in 1999, David's background was in commercial insurance and risk management gained whilst working for 10 years as a commercial insurance broker. David is a Member of the Business Continuity Institute.

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David Teed: Business Continuity: Dramas, crises and other local difficulties… and how to survive them (7.05.13)

  1. 1. Dramas, crises and other localdifficulties… and how to survive themDavid Teed MBCITeed Business Continuity Ltd
  2. 2. Objectives – using business continuity to:1. Fully understand the implications of resource loss incidents2. Identify appropriate risk mitigation and contingency measures3. Improve current levels of preparedness4. Satisfy customers and stakeholders that services will continue5. Ensure effective methods and best practice are adopted
  3. 3. Business ContinuityQ1. How would you rate your knowledge of businesscontinuity (None, Some, Good)?Q2. Do you have some responsibility for businessSafeguarding credibility, operations and shareholdervalue through business continuity planningQ2. Do you have some responsibility for businesscontinuity within your organisation?
  4. 4. What is business continuity?Business continuity is thecapability of the organisation tocontinue delivery of operations atacceptable predefined levelsfollowing a disruptive incident• Assumes that the worst can stillhappen, however low the likelihoodhappen, however low the likelihood• Focuses on high impact, lowlikelihood events• Concentrates on threats andincidents involving the loss ofresource
  5. 5. An integrated approach to managing risksRiskManagementUnderstand & control risksObjective: Protect Market Share / Shareholder ValueManagementEmergencyResponseBusinessContinuityMaintain &recover criticalactivitiesSafeguard people& assets
  6. 6. You never know the scenario …
  7. 7. Resources & Threats• Fire• Theft, Sabotage or Terrorism• Flood or Severe Weather• Utilities (loss of)• Local Environment & Denial ofAccess• Personnel Loss• Pandemic• Loss of Data CentreEnvironment• Loss of Data and VoiceCommunicationsLoss of supplier orcustomer• Document Loss• Data Loss
  8. 8. Industry Example - Oil & Gas Dependencies
  9. 9. How does business continuity planning work?• Determines business priorities and minimum resources pre-incident• Develops strategies and contingencies to mitigate loss ofresource• Plans and solutions agreed upfront• Plans and solutions agreed upfront• Business continuity plans and related documents detailrecovery strategies and actions• Enables effective recovery of business critical activities post-incident
  10. 10. Business Continuity Management Process
  11. 11. Business Continuity StrategiesResource Strategy / SolutionPremises• Other site• Reciprocal arrangement• Remote working• Business recovery site• Ensure insurance is appropriatePeople• Cross training• Knowledge sharing• Documenting processesPeople• Documenting processes• Use of contractorsInformation• Take back ups regularly - store off site• Scanning of documents• Fire proof safeTechnology• IT - replicate to another location• Phones – transfer• Equipment – maintain old equipment & spares, other sites• Back up power suppliesSuppliers• Buffer stock, use separate locations• Supplier preparedness review• Reduce lead times
  12. 12. Incident Response & Recovery PhasesTimelineWithin minutes tohours:•Staff & visitorsaccounted for•Casualties dealtwith•Damagecontainment /limitation•Damageassessment•Invocation of BCPWithin hours todays:•Contact staff,customers,suppliers, etc.•Recovery ofcritical businessprocesses•Rebuild lost workin progressWithin weeks to months:•Damage repair / replacement•Relocation to permanent place ofwork•Recovery of costs from insurersImmediateResponseBusinessContinuityBusinessRecoveryBusinessResumptionBusinessas usualIncidentOverall Recovery Objective = Back to normal as quickly as possible
  13. 13. BCM Case Study - positive• Northgate Information Solutions plc• Provides outsourced HR, Public Services & Managed Servicesfor nearly 10,000 organisations• Including payroll (£1.4bn), web services & data processing• Buncefield Oil Depot• One of UK’s largest fuel supply depots• Explosion considered to be largest ever inpeacetime Europe• Northgate occupied one of the closestbuildings to the depot• Outcome• Immediate move to IT disaster recovery site• Relocation of displaced personnel• Effective prioritisation of systems recovery• Crucial pay run conducted on time (customers kept happy)
  14. 14. BCM Case Study - negative• Forties Pipeline System (FPS)• Operated by BP• Links Central North Sea oil production with Grangemouth• 50% of UK’s daily oil output (~ 700,000 barrels / day)• Ineos Grangemouth Refinery• Scotland’s main fuel supplier• Scotland’s main fuel supplier• Provides critical utilities (steam & electricity)for FPS Kinneil terminal• 2 day strike 27th/28th Apr 2008• Impacts• Complete shutdown of FPS for 48 hrs• Resultant cessation of offshore production affecting 80 companies• Estimated cost £50m / day
  15. 15. 10 Benefits of BCM1. Be in control post-incident2. Help safeguard human life3. Keep impacts within acceptable levels4. Maintain critical activities5. Protect reputation6. Stand out from competitors7. Improve insurance terms8. Understand and accept risk exposure9. Protect jobs10. Sleep at night….
  16. 16. What you can do1. Research potential BC threats and impacts2. Take action to mitigate3. Develop strategies & contingencies4. Write a business continuity plan4. Write a business continuity plan5. Become a “business continuity champion”6. Spread the word!
  17. 17. Thank youDavid TeedDavid TeedTeed Business Continuity Ltd01786 406370david@teed.co.ukwww.teed.co.uk