Investing in business continuity management
Sponsored Links
This presentation is the property of its rightful owner.
1 / 14

Investing in Business Continuity Management PowerPoint PPT Presentation


  • 85 Views
  • Uploaded on
  • Presentation posted in: General

Investing in Business Continuity Management. ISSA 2003 Rick Cudworth International Service Line Leader for Business Continuity Management KPMG LLP. Agenda. What has changed? Why should I invest? How do I determine priorities? What are my options? How do I maintain my investment?

Download Presentation

Investing in Business Continuity Management

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Investing in Business Continuity Management

ISSA 2003

Rick Cudworth

International Service Line Leader for

Business Continuity Management

KPMG LLP


Agenda

  • What has changed?

  • Why should I invest?

  • How do I determine priorities?

  • What are my options?

  • How do I maintain my investment?

  • What is my return on investment?


What has changed?

  • September 11, world-wide terrorism, anti-globalisation

  • Increased regulatory pressure

  • Corporate governance

  • High dependence on information availability

  • Customers expectations

  • Employees livelihoods


Why should I invest?

  • Market

  • Brand value

  • Market share

  • Position

  • Customer loyalty

  • Cross-selling

  • Agility

  • Innovation

  • Reputation

  • Shareholders

  • Employees

  • Customers

  • Regulators

  • Financial markets

Business Continuity protects reputation and shareholder value

  • Costs

  • Customer turnover

  • Productivity

  • Backlogs

  • Recovery costs

  • Lost data

  • Litigation

  • Compensation

  • Results

  • Revenue growth

  • Cash flow

  • Share price

  • Competitive advantage


How much should I invest?

Best

Resiliencein place

Good Recovery

facilities

Basic

Plans and

procedures

Cost of Recovery Solution

DonothingBest endeavours

Time to Recover


How do I determine my priorities?

Mission Critical

Better

24 hour recovery

Best

<2 hour recovery

Payment and settlement

Portfolio VaR

ATMs

Trading

Daily management information

Market risk management

Exchange Positions

Slower

Faster

Minimal

>5 day recovery

Basic

3-5 day recovery

Accounts payable

Manage Compliance

Project tracking

Manage tax

Non-Mission Critical


How do I determine my priorities? (continued)

  • Capabilities to recover first

  • Next wave of capabilities to recover

  • What capabilities need not be recovered

100

80

  • Regular mid-office/ back-office functions in place

  • Commence entrepreneurial trading (at reduced trade volume)

60

% of business recovered

40

  • Close manage and control positions

  • Key decision parameters are likely to be:

    • Cost (upfront and ongoing)

    • Time to implement

    • Flexibility

20

0

4 hours

Week 1

Week 2

Month 1

Month 3

Day 1

Day 2

Day 3

2 hours


How do I determine my priorities? (continued)

  • React:

  • Manage:

  • Transform:

  • Is it sufficient to react to a disaster?

  • Is ensuring the availability of operations sufficient ?

  • Should business continuity capabilities be providedacross the extended enterprise?

React

Manage

Transform

Value

Recoverability

Availability

Competitiveness

Information assets

Competitive position

Physical assets

Risk

Facilities/ processes

Extended enterprise

Impact

Customer satisfaction

Customer

All stakeholders

Focus

Event

Downtimetolerance

Days

Zero downtime

Hours/ Minutes


What are my options?

Hot , Warm , Cold ?

Determine recovery strategies that are right for your business

People

  • Promote continuity culture

  • Invest in training and awareness

  • Reduce reliance on key individuals

  • Demonstrate leadership, commitment and clarity of thought in business continuity

Technology

  • Invest appropriately

  • Choose scaleable solutions

  • Embed business continuity within the SDLC

Facilities

  • Flexible and scaleable

  • Share costs

  • Split-sites

  • In-house or Outsource (Syndicated or dedicated)


How do I maintain my investment?

Provisioning with maintenance and governance

  • Process driven

  • Efficient

  • Cost effective

  • Long term value

Cost effectiveness of BCM programme

Provisioning with maintenance

but without effective governance

  • Project driven

  • Inefficient

  • Expensive

  • Short term value

Provisioning without effective maintenance and governance

Time


How do I maintain my investment? – The Testing Element

Testing

  • Emergency Response

  • Crisis Management

  • Command Centre

  • Call Tree

  • Desktop Walkthroughs

  • Simulation Exercise

  • Live Test !

Types of Test

Risk Profile

Reward

  • Ensures the organisation has developed viable business continuity arrangements that work.

  • Ensures the business continuity arrangements meet the needs of the business.

  • Ensures the organisation has identified and trained personnel for their business continuity roles and responsibilities.

  • Low Risk

  • Low Risk

  • Low Risk

  • Low Risk

  • Low Risk

  • Medium Risk

  • High Risk


How do I maintain my investment? – The Cultural Element

  • Practice managing the incident

    • Managing the immediate problems from capability loss

  • Practice recovering the business

    • Recovery/ restoration of all critical activities

    • Restoration of all data

  • Embed BCM within Change Management and Operational Risk

Making BCM a part of everyday normal business operations – managing risk so that I am always there for my customers and stakeholders.


What is the return on my investment?

  • A Business Continuity programme can help drive:

    • Effective risk management

    • Lower cost of data management

    • Contained insurance costs

    • Lower economic cost of capital

  • A recoverable, resilient and robust operational structure will result in improved shareholder value and company performance.


British Bankers Association Guide to Business Continuity Management

The Guide contains:

  • Forward by Sir Howard Davis

  • Step by step approach

  • Real life examples

  • Addresses difficult challenges

The BBA guide provides some helpful tips to delivering a successful Business Continuity programme


  • Login