Business Continuity in Challenging Times: Integrating Resiliency as a Strategic Priority

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Business Continuity in Challenging Times
Integrating Resiliency as a Strategic Priority
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Presentation Aim

• To outline the operational and strategic value of
  business continuity, and how it can be achieved.

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Outline

• Background and Requirements
• Value of Business Continuity
• Integrated Program Structures
• How to make your program succeed at the Tactical,
  Operational, and Strategic levels

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• Background and Requirements

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Business Interruptions are Common
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Cost of Not Preparing

• Financial losses
• Business interruption
• Loss of key client/key supplier
• Loss of reputation
• Legal liabilities
• Injury to people
• Environmental damage
• Regulatory scrutiny
• Loss of customer service
• Going out of business

Blackout 2003
Labour Disruption
Pandemic
Border Shutdown
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What Does Management Need?

• Minimize negative surprise
• Resolve uncertainty and variances from
  expectations
• Process to identify opportunities
• Maximize opportunity for success and good
  performance
• Employ the entire organization in the business
  resilience process
• Alignment of organizational objectives
• Efficient communication process
• Ability to enhance stakeholder confidence in
  management of their plans

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• Value of Business Continuity

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What is Business Continuity?

• Business continuity is about capability to
  prevent disruption and mitigate risks associated
  with failure to meet objectives
• can mitigate significant operational risk
• encompasses people, processes, and technology
• is required for any organization offering
  continuous or a high level of customer service
• is about maintaining a competitive advantage
  before, during, and after a major event

Note These are strategic business issues
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Business ContinuityValue Proposition

• Minimize financial losses
• Protect personnel
• Protect assets
• Protect and improve reputation
• Enhanced customer service
• Ensure high quality and efficient processes
• Maintain stakeholder obligations

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• Integrated Program Structures

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Need for Integrated Programs

• Multiple silos across the organization
• Disjointed and sometimes ineffective programs
• Gaps between corporate goals and programs
• Limited manageability and accountability
• Often focus on compliance vs. competitive
  advantage
• Need for better customer service
• Business Continuity is not adequately leveraged
  into the strategic planning process

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Integrated Enterprise Risk Programs
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Integrated Business Continuity Functions
The Goal is Business Resilience
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Integrated Business Resilience Plans and
Programs
Integrated Program
Integrated Program
Business
Business
Crisis
Crisis
Business
Business
Disaster
Disaster
Enterprise Risk
Enterprise Risk
Continuity
Continuity
Management
Management
Continuity
Continuity
Recovery
Recovery
Management
Management
Planning
Planning
EVENT
EVENT
Recovery
Continuity
Recovery
Continuity
Response
Response
People
Resources
Procedures
People
Resources
Procedures
Applications
Infrastructure
Data Recovery
Applications
Infrastructure
Data Recovery
RM Optimization
Risk Assessment
Risk Monitoring
RM Optimization
Risk Assessment
Risk Monitoring
Management
Management
Coordination
Process
Coordination
Process
Risk Response
Risk Response
Crisis
Disaster
Crisis
Disaster
Emergency
Emergency
Location
Location
Technical
Technical
Business
Business
Communication
Interim Business
Communication
Interim Business
Post-Event
Pre
-
Pre-Event
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• Success at the Tactical, Operational, and
  Strategic Levels

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Elements of the Program

• Program Implementation

• Training

• Threat,
• Vulnerability, Risk Assessment

• Benchmarking

• Elements of an Effective Business Continuity
  Program

• Response
• Recovery

• Business Impact Analysis

• Program Maintenance

• Plan Development

Recovery Plan Testing Strategy Planning
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Areas of Focus

• An effective continuity program begins with
  understanding the business

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Areas of Focus

• achieves resiliency through
• Dynamic Planning
• Response and Recovery
• Focus on People
• Value Creation
• Communication

• Program Implementation

• Training

• Threat,
• Vulnerability, Risk Assessment

• Benchmarking

• Elements of an Effective Business Continuity
  Program

• Response
• Recovery

• Business Impact Analysis

• Program Maintenance

• Plan Development

Recovery Strategy Planning
Scenario Testing
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Building the Program
We must consider a business resilience program
based on business response and business recovery
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Building the Program
We must consider business response and business
recovery
Immediate internal emergency response plans
TACTICAL
Business Response
STRATEGIC
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Building the Program
We must consider business response and business
recovery
Immediate internal emergency response plans
Business Response
Externalcustomer-focused response/recovery plans
Business Recovery
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Building the Program
We must consider business response and business
recovery
Immediate internal crisis response plans
Business Response
Externalcustomer-focused response/recovery plans
OPERATIONAL
Business Resilience
Business Recovery
Risk plans linked to Strategy and Performance
Management
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What You Can Do
Tactical plans (response plans) keep your house
in order

• Plans should be aligned with your strategy

Tactical Planning Considerations

• Identify critical people, processes assets
  (BIA)
• Identify threats, understand vulnerabilities
  assess risks
• Incident Response
• Act Decisively
• Employee assistance programs
• Scenario Testing

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What You Can Do
Operational Plans (recovery plans) help to keep
your business in order and your clients satisfied
Operational Planning Considerations

• Protect your liquidity
• Identify critical suppliers
• Vendor and sourcing alternatives
• Streamlining processes for minimum disruption
• Reliable communication channels

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What You Can Do
Business Resilience transforms a crisis into a
competitive advantage

• Leverage your gains before the crisis worsens

Strategic Planning Considerations

• Understand changing customer requirements
• Review key business objectives to ensure
  relevancy
• Focus on value-creation Innovation customers,
  products, services
• Project volumes and set priorities
• Protect your brand

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Keys to Successful Program Implementation

• Strong tone at the top and sponsorship needs to
  be in place
• Self-assessment is a ongoing process, not a
  one-time event or a panacea
• People in the businesses will need to understand
  whats in it for me? and be motivated to adopt
  self-assessment
• Active participation will be required by all
  levels including senior management and support
  provided by designated champions in each key
  business unit
• Recognize that other organizations are leading
  the way, therefore, key learning from early
  implementers can be leveraged to facilitate
  progress

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Why Leverage Business Continuity Principles to
Manage Risk?

• Early Warning Systems
• Systematically identify, assess, and prioritize
  issues associated with driving forces
• Avoid unwanted risks and protect assets in place
• Reduce chance of repeat problems
• Identify value within the organization

• Operational Resilience
• Prevent and rapidly respond to potential
  catastrophic failures
• Secure and protect people, processes, and assets
• Align goals with vendor requirements

• Enhance Organizational Value
• Ensure threats are understood and impacts of a
  disaster mitigated
• Maintain public confidence by demonstrating
  service resiliency
• Accelerate ability to respond to change and
  capitalize upon opportunities

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Thanks Now we can eat!
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Thank you.
Cliff Trollope416-515-3851cliff.trollope_at_mnp.ca
When the tide goes out, we find out whos been
swimming without a bathing suit Warren
Buffett, July 07