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XX NWith a Business Continuity Plan the loss of business income will be lessened. OOBusiness Continuity Plan( xA formal and comprehensive Business Continuity Plan (BCP) is an essential part of Business Continuity Management (BCM).yyx Business Continuity Institute $To quote the Business Continuity Institute, the professional body for Business Continuity Management:  Business Continuity Management is the act of anticipating incidents which will affect critical functions and processes for the organisation and ensuring that it responds to any incident in a planned and rehearsed manner . .GPh  Prevention: what can be done to prevent the crisis from occurring in the first place; Detection: what can be done to ensure timely detection of the crisis, and Correction: what can be done to respond to, and recover from the crisis. Business Continuity Plan( RList the risks List the corresponding impact on your business resources PrioritiseSS&H    !  Risk Summary    For a typical small business the risks can be summarised under the headings: Input risks Your unavailability Output risks (the reverse of input risks) Other risks0NZVZNV..   k  >Risk Assessment Prioritisation  &   Probability, and Impact (  # >Risk Assessment Prioritisation  &    Probability .  $  $ >Risk Assessment Prioritisation  &   Impact .$  % Calculation     )Risk Mitigation iMitigation strategies focus on: Recovery Continuity Delayed recovery Hours Days Weeks Cost effectiveness x    i +Business Continuity Plan( ?Compile the plan Test the plan Revise the plan Revisit the plan@@? -Business Continuity Plan( If there is time, I am available to answer any of your questions. 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S l 6#i  4m  i  >*  l 6(i  4L hm i  @* H l 0e ? 3380___PPT10.͞0N0 0\*(  \x \ c $    r \ S   `     H \ 0޽h ? '>3___PPT10i. +D='  = @B +! 0N0  @`(  `x ` c $Ui 8H i  H ` 0޽h ? '>3___PPT10i.0J+D='  = @B +3 0N0 2*`h(  h h c $hi p i   (CH h 0޽h ? '>3___PPT10i.PBI+D='  = @B +; 0N0 :2|(  | | c $ui  i  &x W | }H | 0޽h ? '>3___PPT10i.Ξ q+D='  = @B +; 0N0 :2(    c $ i  i  &x W | }H  0޽h ? '>3___PPT10i.Ξc+D='  = @B + 0N0  J(  x  c $}i W  i    c $ i  i  &xOtuH  0޽h ? '>3___PPT10i.О|+D='  = @B + 0N0 >(  r  S Di W  i    S %i  i  &x W | }H  0޽h ? '>3___PPT10i.?b+D='  = @B + 0N0 R(  r  S i   i    <i  "` P h*Create your own Business Continuity Plan "+)$  BE  < i  ,| q | }H  0޽h ? '>3___PPT10i.Ξ0P+D='  = @B + 0N0 >(  r  S Ti W  i    S i  i  &x W | }H  0޽h ? '>3___PPT10i.@p8j+D='  = @B +  0N0 >(  r  S ,i W  i    S  A i  &x W | }H  0޽h ? '>3___PPT10i.P1+D='  = @B +  0N0 B(  r  S  W     S l    *6LMNH  0޽h ? '>3___PPT10i.A8+D='  = @B +  0N0  0(  x  c $h W   x  c $    H  0޽h ? '>3___PPT10i.A8+D='  = @B +  0N0 @0(  x  c $H$ W   x  c $l&    H  0޽h ? '>3___PPT10i.A8+D='  = @B +q  0N0 ph`(  r  S , W   N  C &AMatrix%H  0޽h ? '>3___PPT10i.@d2+D='  = @B + 0N0 `(  r  S @2 W     <(8  P,   *WKLMH  0޽h ? '>3___PPT10i.:%L+D='  = @B + 0N0 D(  r  S ,B W     S `K >    ,GHIH  0޽h ? '>3___PPT10i.O`O+D='  = @B + 0N0 >(  r  S 8 W      S     &x W | }H  0޽h ? '>3___PPT10i.U"+D='  = @B +0 p(  p^ p S lP   i H p 0e ? 3380___PPT10.͞L0 B:t(  t^ t S lP   4 t c $V l    If a disaster hit your business, would you be prepared? Do you have a Business Continuity Plan? (BCP for short) The purpose of your Business Continuity Plan is to develop procedures to pro-actively minimise risks, and to act upon potential disruptions or disasters. Once your Business Continuity Plan has been developed, it will provide you with the structures, processes, procedures and resources needed to managing the actual crisis H t 0e ? 3380___PPT10.͞@0 tlx(  x^ x S lP   f x c $`l l    A Gartner research found that 50 percent of all businesses fail after experiencing a major disruption. A disruption may be a natural disaster, such as an earthquake, flood or a tornado. Or a local event like a major power outage. These types of disruption are beyond your control, but you must have procedures in place to enable you to continue your business with a minimum of delay and to minimise their impact on the quality of the delivery of your service or product. Other disruptions may be internal  computer failure, sickness, burglary. These types of disruption and the crisis they have created must also be addressed H x 0e ? 3380___PPT10.͞/]0 m(  ^  S lP     c $ l    cOA while ago a major electricity failure hit businesses here in Wanneroo, Western Australia. How many of them had a contingency plan to minimise loss? You are taken ill; your office is burnt down; your computer hard drive dies on you; a key staff member leaves at short notice. You lose your access to the internet and email messages? H  0e ? 3380___PPT10.Ξ0rX0 ph(  ^  S lP   b  c $X l    Businesses that manage risk effectively stay viable and profitable in the long term. Part of business continuity planning is the assessment of the likely risks that can occur, and the measure of their impact on your business. H  0e ? 3380___PPT10.Ξ0 x(  ^  S lP   r  c $ l    The cost of Business Continuity Planning is not insignificant. The cost of developing and maintaining these Plans should be reviewed as the cost associated with the survival of the business. This planning is a form of Insurance - insurance against failure of the organisation. Your planning should be conducted from the follow perspectives: Prevention, Detection and Correction. Addressing all three will provide the basis to develop a plan that is integrated, economically sound and comprehensive.H  0e ? 3380___PPT10.Ϟ۶!^0 n(  ^  S lP     c $ l    dPTo put it formally, Business Continuity Management (BCM for short) is the ongoing process of creating, testing, and maintaining the procedures to be followed in the event of a disaster. Disaster may sound too  heavy a word for any of the events to which reference has already been made, but to the average small business owner they would be a disaster because of the extent of their impact unless they have a BCP in place.H  0e ? 3380___PPT10.?!0 B:(  ^  S lP   4  c $@ l    BCM requires a comprehensive understanding of your business and all of its processes. These should be documented in your Operations Manual. Without this documentation, how could anyone fill in for you, effectively and efficiently, in your absence, either on holiday, or due to illness, whether short- or long-term? How else can you be consistent in operating your business? Have you got one?$yH  0e ? 3380___PPT10.@p 9x0 (  ^  S lP     c $ l    ~ So, step 1 Identify business critical processes and functions, Identify the key internal and external dependencies upon which these rely, and Identify external influences that may impact upon these critical processes and functions Then, step 2 Identify the risks. ( # (  " H  0e ? 3380___PPT10.ো 0 80(  ^  S lP   *  c $t l    This is an essential part of compiling your BCP. There is no sense in spending time and/or money on preparing for something that may never happen, or even if it did, would have no, or negligible impact on any of your business resources. So what we need is a method of calculating the priority of the risks we have identified. In other words, deduce the cost effectiveness of dealing with each risk. H  0e ? 3380___PPT10.@9^  0   n (  ^  S lP     c $,Ƽ l    dRisks can, in general, be divided into four groups. Input risks, for example, would be Supplier failure, Email, Fax, Telephone, Postal mail, and Courier. Your unavailability  illness or more important family commitment The  other risks group would contain risks such as human error, natural occurrences and technological. Make a list, small risks as well as large risks. Take a few minutes now to write down what are your resources, and then what first comes to mind as to the risks to these resources. You can make a more exhaustive list when you get back to work. & & & & & & & & & & & .(Two to three minutes) The next step in this process of Business Impact Analysis is to quantify the probability of the risk occurring. To keep it simple just use 1 for low or unlikely, 2 for medium and 3 for high  very likely. Then write in the impact of these risks on your business resources. Is it low, meaning it would have little or no effect; medium or high? Use a numbering system where 1 is low, 2 is medium and 3 denotes high. $F(W C` H  0e ? 3380___PPT10.lH0 0 0@(  d  c $lP     s *߼ l    *To repeat, the probability is the likelihood of an event impacting a business process. And we are using a 1, 2, 3 rating equating to low, medium, high. We mustn t forget that some events may be seasonal, thereby changing their rating with the season.  H  0e ? 3380___PPT10.@9< 0 PL(  d  c $lP     s * l    6Impact involves a further analytical measurement process including: Loss of income (for one hour, one day, a week, a month); Cost of replacing lost income; Damage to reputation; Any penalties that may be incurred as a result of not completing or delivering work on time (overdue by one hour, one day, a week, a month); Increased insurance premium(s), and Cost of organising business succession, if a choice. Once again, we are using a 1, 2, and 3 rating as for probability. @S      f H  0e ? 3380___PPT10.@9 0  z p (  ^  S lP   t   c $ l     2 Now we come to the interesting bit, calculating the values to be applied when determining priorities; and don t forget, cost effectiveness. You can construct a simple nine-element matrix to enable logical prioritisation of each item. This example is derived from  A Guide to the Perplexed Business Owner  published by ennovate inc. For example if the probability of losing your ISP connection is low (1), and the impact would be high (3), mark (1x3=3) in the matrix for this item. If the probability of an earthquake is high (3) and the impact high (3), mark (3x3=9) in the matrix for this item. Mitigation for the earthquake would rate higher in priority than for the loss of the ISP connection. Apply this process to each of the risks you have identified. I have read a recommendation that you toss a coin if the outcomes are equal. However, I suggest that a careful re-assessment of the ratings would be more effective, but the coin may have to be the last resort. Having made these calculations you can prioritise your mitigation. You might also need to anticipate subsequent contingencies, such as securing the premises to prevent looting after damage to the building. 6 ' O| _ D }'    H  0e ? 3380___PPT10. &l 0   | (  ^  S lP     c $h l    rBTo mitigate something is to moderate its severity so, starting from your  number 9 priorities write in the relevant mitigation activity. In other words what strategy or strategies would you employ when, or if, each of these events occur. For example, make complementary arrangements with another business in a different locale so that in the event of a local power failure you can conduct your current work at their premises if need be. The strategies devised should ensure the continuity, or timely recovery, of business activities whilst maintaining economic prudence. This can be achieved by using multiple strategies, each addressing the different priorities identified in the Business Impact Analysis. For example, some activities cannot and must not stop and require a strategy that ensures their continuity. Such activities would include airline reservation systems, patient care systems, etc. Other activities can sustain interruptions measured in hours, days or even weeks. Strategies are accessible to meet the needs of all such requirements. jH  0e ? 3380___PPT10.<!b0 r(  ^  S lP     c $X; l    hNow is the time to put things together. You ve listed the risks. You ve listed the impact of these risks. You ve listed the probabilities of their occurrence. You ve prioritised them. You ve devised strategies to mitigate these risks. Add to this fledgling plan responsibilities, emergency telephone numbers and contact numbers. If you have documented your business you will have a lot of material already. If you haven t then now is the time to do it. When you have written the first version of your plan test it to make sure you know what to do should the real thing happen. Testing provides concrete proof of the viability of your Business Continuity Plan and will probably lead to revision of some of your strategies. Better to find out now than when it actually happens. Remember - This planning is a form of insurance - insurance against failure of your business. Revisit and test this plan at least every six months, but keep the content current. Business drivers change and technology changes. The ultimate objective of Business Continuity Planning is to identify, analyse, evaluate, treat, and monitor and review risks. The plan should achieve an optimum balance between Exposure to Risk and its Treatment (Cost of Risk Control, Risk Retention and/or Risk Transfer / Insurance). In short, assurance as to the availability and continuity of your business processes. All responsible business owners have fire insurance. Most of them never have the need to use it but they carry it anyway. The same philosophy is true with a business continuity management plan. If you do not have one, stop and visualise how you would act and feel during the first five minutes after a disaster strikes your business. Ask someone who has experienced it, to describe how they felt when their hard drive crashed  and they had no backup. & and don t forget to keep at least one copy of your BCP off-ste. nPn T   : ^~ H  0e ? 3380___PPT10.QI`0 p(  ^  S lP     c $8f l    f6 If you have any questions or need any help you can contact me by email at info@virtualservices.com.au with  Business Continuity Plan in the subject line. 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