1 / 14

Investing in Business Continuity Management

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?

gates
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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Investing in Business Continuity Management ISSA 2003 Rick Cudworth International Service Line Leader for Business Continuity Management KPMG LLP

  2. 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?

  3. What has changed? • September 11, world-wide terrorism, anti-globalisation • Increased regulatory pressure • Corporate governance • High dependence on information availability • Customers expectations • Employees livelihoods

  4. 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

  5. How much should I invest? Best Resiliencein place Good Recovery facilities Basic Plans and procedures Cost of Recovery Solution DonothingBest endeavours Time to Recover

  6. 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

  7. 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

  8. 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

  9. 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)

  10. 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

  11. 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

  12. 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.

  13. 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.

  14. 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

More Related