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Disaster Recovery and Business Continuity Planning

Disaster Recovery and Business Continuity Planning. Jane Holmes, CPP Director, US Payroll Meggitt USA . Title. Agenda. Disaster Recovery vs. Business Continuity Key Components to Disaster Recovery & Business Continuity Comprehensive

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Disaster Recovery and Business Continuity Planning

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  1. Disaster RecoveryandBusiness ContinuityPlanning Jane Holmes, CPP Director, US Payroll Meggitt USA

  2. Title Agenda • Disaster Recovery vs. Business Continuity • Key Components to • Disaster Recovery & • Business Continuity • Comprehensive • Business Continuity • Business Continuity Planning Cycle • Business Continuity Recovery Plan • Payroll Business Continuity Recovery Plan 2

  3. Disaster Recovery vs. Business Continuity Title • Disaster Recovery focuses on the plan to reestablish operations by protecting the “Tools” of the business… • Systems and Hardware • Data integrity and back-up • Facilities and security • Data Flow • People resources and documentation 3

  4. Disaster Recovery vs. Business Continuity Title • Business Continuity keeps the business running during a disaster… • Provides the location to perform work • Enables staff to resume work or provide for substitutes • Enables systems and hardware to be deployed or interim solutions placed in operation • Completes the functions of the payroll department 4

  5. Title Types of Disasters • Catastrophic climate or geological events • Pandemics • Fires, including arson • Terrorist attacks or instances involving significant destruction of property • Labor walkouts or strikes • Security breaches and computer attacks • System failures 5

  6. Title Disasters in the News • Australia/New Zealand • Chile • Japan • East Coast Whiteout • Mid-west Tornadoes & Flooding • Egypt • Other political challenges throughout Middle East and Africa 6

  7. 2011 Federal Disaster/ Emergency Declarations Title • Federal Disaster/Emergency Declarations thru July 2011 7

  8. Title Pandemics - H1N1 • April 2009 – Start of the H1N1 virus • Over 67 million cases reported thru 12/09 • 6/23/10 – CDC declares virus expired • 8/10/10 – WHO declares global concern over • CDC & other health organizations believe there will be instances of flu for years to come • Survey of Fortune 200 companies report most have taken some action to prepare 8

  9. Why It Is Important to Plan Title • Disruptions, even minor ones, can have serious impact • Missed or late payrolls • Potential federal, state, and local violations • Contractual breach – unions • Employee morale and productivity • Late third party payments • Late tax and regulatory filing • Late posting of General ledger data 9

  10. Key Components to Disaster Recovery Title • Create Comprehensive Recovery Plans • Identify communication vehicles and how they will be utilized • Involve Senior Leadership immediately • Establish government, civil authority, and private sector contacts before an event occurs • Ensure plan is communicated to team 10

  11. Key Components to Disaster Recovery Title • Emergency Management: Able to continue critical business processes within a predetermined period following a disaster or other business interruption • Continuity Planning: Able to resume normal business processes within a predetermined period following a disaster or other business interruption 11

  12. Comprehensive Business Continuity Title Lead the enterprise in all aspects of emergency management as well as developing a comprehensive plan to respond to a crisis INITIATE THE PROJECT PREVENT ____________ RESPOND ____________ RECOVER ____________ RESTORE ____________ RESUME Disaster Recovery Planning ANALYZE BUSINESS FUNCTIONS DEVELOP STRATEGY AND MITIGATION Emergency Management BUILD PLAN TEST, EDUCATE, & MAINTAIN 12

  13. Payroll Business Continuity Team Title • Include functional subject matter experts and project management resources • BCT should include representatives from: • Business Continuity (Lead) • Human Resources / Payroll • Benefits / Compensation • Legal / Public Affairs • Finance / Treasury • Communications • Operations 13

  14. RTO/RPO in Business Continuity Planning Title • RTO (Recovery Time Objective) – Amount of time it takes to recover from a disaster event • Payroll application failure recovery time drives solution and back up • Be conservative - assume system is down the day before payroll runs – what do you need? • Alternatives – file for check printing, paper check manual process, etc. 14

  15. RTO/RPO in Business Continuity Planning Title • RPO (Recovery Point Objective) – The amount of data, measured in time, that can be lost in a disaster • Consider if there is a means to reconstruct the lost data • Need to look at what risks you will bear for the costs 15

  16. Business Impact Analysis Title • Foundation for business continuity planning programs • Identify departmental business processes and potential impacts due to an interruption • Identify external resources that may impact your business • Link these processes to the key functions necessary to support organization 16

  17. Business Impact Analysis Title • Foundation for business continuity planning programs • Determine Recovery Time Objectives (RTOs) and Recovery Point Objectives (RPOs) based on their corresponding functions • Realize the current state of recovery preparedness and established workarounds • Evaluate recovery resource requirements 17

  18. Risk Assessment Process Title • Interview senior management about enterprise risks and vulnerabilities • Conduct formal risk assessment survey with key employees • Score risk scenarios on probability and severity • Consider options for each scenario – mitigate, plan and accept 18

  19. Business Recovery Strategy Title • Identify Business Functions, RTOs, & RPOs • Determine IT Network and System Requirements for current and future years • Design a Displacement Strategy • Educate Business Units on roles and responsibilities to build plans • Maintain & Exercise Business Recovery Plans 19

  20. Business Continuity Recovery Scenarios Title • Disaster – Event which renders company’s facility unusable or inaccessible for a period of time estimated to exceed “xx” calendar days • Worst-Case Interruption – Company’s facilities are totally unusable or inaccessible and there is no salvageable equipment, data, documentation, etc. 20

  21. Business Continuity Recovery Scenarios Title • Less-Severe Interruption – Ability to resume operations because of the plan identification structure for each time-sensitive operation, information system & support area • Localized Emergency – Equipment vendors & local utility companies able to replace computer & communications hardware & telephone circuits in “xx” calendar days 21

  22. Business Continuity Recovery Components Title • Documentation Files – Business documentation and necessary files for resumption/recovery purposes are backed up and stored or located off-site and/or electronically imaged • Computer Files – Required to implement resumption of Mainframe, WAN & PC/LAN operating environments, and/or support time-sensitive business operations are backed up, & rotated & retained off-site for a pre-determined period of time 22

  23. Business Continuity Recovery Components Title • Backup Storage Locations– Backup items for resumption/recovery stored on/off-site or quickly obtained or created from other identified sources • Internal and External Contacts– Information necessary to quickly complete internal/external contacts required during resumption is documented and maintained in plan 23

  24. Business Continuity Recovery Components Title • Cloud Computing - Applications hosted by vendor in the “cloud” are accessed through the internet along with data files 24

  25. Business Continuity Recovery Components Title • Resumption Time Frames– Time frame in which time-sensitive business operation and computer and application systems must be made current and available set by company at a maximum of “xx” calendar days 25

  26. Business Continuity Recovery External Stakeholders Title • Bank for ACH files • Tax authorities – federal, state, local • Benefit providers – health, 401(k), etc. • Third-party vendors – outsource providers • Distribution vendors – printing and distribution • Union organizations 26

  27. Business Continuity Recovery System Interfaces Title • Time and attendance application • Payroll application / ERP • Benefits application • Accounting system • Banking application • Tax application • ESS/MSS application • Data repository 27

  28. Business Continuity Recovery Components Title • Communication devices to feed various forms of communications receipt • Home/Cell Phone – off-duty and emergency response personnel (include “text” messaging) • Work Phone – emergency response on duty • Pager – (alphanumeric/digital/voice) on-call personnel • Fax Machine – transmit forms/reports to remote locations • Printer – document notification responses/reports 28

  29. Payroll Business Continuity Recovery – In Action Title • Step 1 – Senior Payroll Mgmt meet at disaster recovery site to identify: • Known impacts of disaster & determine action plan • Expected timeline of displacement of employees & system outages • Projected impacts to payroll processing 29

  30. Payroll Business Continuity Recovery – In Action Title • Step 1 (cont.) – Senior Payroll Mgmt meet at disaster recovery site to identify: • Availability of internal and external resources • Establish communication channels & communicate plan to supervisors & activate phone tree • Confirm available equipment and supplies 30

  31. Payroll Business Continuity Recovery – In Action Title • Step 2 – Senior Payroll Mgmt and key payroll personnel establish alternate work area(s) • Setup work spaces, resolve issues with equipment • Create shift schedules and confirm staffing roles • Set initial plan for following 2 weeks • Evaluate employee “assistance plan” needs • Confirm sufficient resources for those who will work from home or alternate location 31

  32. Payroll Business Continuity Recovery – In Action Title • Step 2 (cont.) – Senior Payroll Mgmt and key payroll personnel establish alternate work area(s) • Prepare communication to employees and plan for updates • Establish ongoing communication with employees and system support • Step 3 – Continue deployment as per plan 32

  33. Payroll Business Continuity Recovery Planning Title • Building the plan • Create a Disaster Recovery Plan binder • Establish approval process to initiate all security access to senior payroll operations • Include system support analysts on phone tree • Define the risks and plan for mitigation and response • Store off-site supplies critical to complete payroll processing 33

  34. Payroll Business Continuity Recovery Planning Title • Building the plan • Inventory and identify critical supplies and equipment for payroll processing • Ensure your plan includes third-party vendors and suppliers with points of contact • Identify the three components of your operations – input, process, and output 34

  35. Title Input, Process, and Output • Input • Setting up employee income and deduction records • Pay adjustments • Time data • Tax records • Process • Process data in application • Validate payroll data • Bank transfer processing • Validate general ledger data • Calculate gross to net • Generate tax deposits and filing • Output • Checks/advices • Third party payments • Tax returns and payments • Files for internal organizations • Files for external organizations • Reconciliations • Reports (internal and external) 35

  36. What Makes an Effective Disaster Recovery Plan Title • Involve All the Pertinent Groups • Make an Assessment of Needs and Resources • Plan, Test and Plan • Communicate, Communicate and Communicate • Review on a Regular Basis 36

  37. Thank you

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