BCM
Transcript: Business Continuity Management When a disaster happens in an area, all attention is ”logically” drawn to rescuing the "people". But little care is given to the affected organizations (companies, institutes, etc) which form the daily life of people. The maturity model for BCM Summary In the 9/11 terrorism attack, 550 of 930 offices (businesses) in the Twin Towers closed in the next 18 months and many of that was because of Figure : Sparing Strategy not having any other “spare“ site through which they can continue their businesses. Role of Businesses in Crisis Management Crisis Management Cycle BCM When a disaster happensin an area, regardless of the size of the region, everybody is concerned about the people there and number of casualties. This is admirable as saving lives is at the highest value in any society. But: what is the next step to bring the area to normal situation? Having checked several disasters all around the world, it can be said that a normal situation is the situation in which ”businesses” are back to normal situation and “people” can stand on their feet BCM as a strategic influence To answer this question, many have created different theoretical programs or models with 3, 4 or 5 phases. To judge on them we need to know ”what is the normal situation”? Does it mean preparing some camps for the people? Or building modern houses for them? Or else? Another example of “stock“ strategy is one the Arabic countries in Persian Gulf. The oil ministry has stored crude oil of 3 production days. It means, if for any reason the oil well stop (e.g. due to fire), this country can deliver another 3 days and has 3 days to manage the incident and bring it back to normal status. BCM as a strategic influence BCM Maturity Model BCM Maturity Model “Stocking“ Strategy “Stocking“ Strategy BCM “Stocking“ Strategy “Networking“ Strategy Without BCM There are a number of interrelated activities that work together to prevent and manage a significant business disruption event. These include: Business Continuity Management (encompassing IT disaster recovery); Risk Management; Emergency Response Management; Incident Management. Role of Businesses in Crisis Management The relationship between risk, emergency response, incident and business continuity management in managing a business disruption. Sparing“ Strategy Resilience: ability to return to the original shape References : Our maturity model distinguishes two different dimensions along which an organization matures. The maturity of BCM within a given organization is determined by both the process quality and the considered scope. We talk about… BCM as a strategic influence "Sparing" Strategy BCM BCM as a strategic influence With BCM Role of Businesses in Crisis Management BCM BCM Maturity Model BCM Maturity Model Survey Role of Businesses in Crisis Management 2010 EMEA business continuity benchmark report, In the United Kingdom, Marsh Ltd is authorized and regulated by the Financial Services Authority for insurance mediation activities only BUSINESS CONTINUITY MANAGEMENT, A Maturity Model – By Naomi Smit, Master's Thesis by Naomi Smit (271550), November 1st 2005 A framework for business continuity management, Forbes Gibb, Steven Buchanan Business Continuity Management System, NISCERT, Tehran, Iran Business Continuity Management, Building resilience in public sector entities, Better Practice Guide June 2009 One of the biggest “car manufacturing "companies in the world has a buffer “stock“ at the end of its production line. This stock contains the 10 days production, i.e. this stock guarantees that if for any reason the production line disrupts, the company can continue its normal delivery level for 10 days. By : Saeed Fallah BCM as a strategic influence "Sparing“ Strategy “Networking“ Strategy Having a spare site and equipments can be a very effective way to resume the business right after any crisis. e.g. After the London Subway terrorist attack, the neighborhood was under police control and shops there did not open for up to 2 weeks. Therefore for several cases, the shop owners went bankrupt and shop wasclosed (though other people replaced them). Role of Businesses in Crisis Management Business Continuity Management The Maturity Model This strategy needs a number of semi-network and whenever anyone of network members is in trouble, the others will provide his customer a minimum level of service/product. oven explosion in a catering centre in Tehran at 10:00 AM, (Iran Oil Co). They were a member of a network ; they helped him with 20% of lunch volume. So the lunch arrived on time to the customer sites, although was of less volume, variety and quality (Min SLA). The integration of these activities is a success factor for building entity resilience. These activities provide the tactical, strategic and operational response to a business disruption. Figure depicts the relationship between these key concepts.