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Presentation on theme: "Business Continuity & Disaster Recovery"— Presentation transcript:
Business Continuity & Disaster Recovery
Anchor Technologies & American Gas Association
What is business continuity?
Why does business continuity matter?Statistics on adoption of BC planningCase Studies
Business continuity planning processBusiness continuity best practicesDisaster
What is Business Continuity?
Business Continuity (BC) is defined as the capability of the organization to continue delivery of products or services at acceptable predefined levels following a disruptive incident.
(Source: ISO 22301:2012)
What is business Continuity Planning?
Consider the full spectrum of threats and disruptionsRisk-based decisions
Business impact analysisCost/benefit analysis
Core Business Continuity Principles
Why Does Business Continuity Planning Matter?
Zurich Insurance annual survey on supply chain disruptionsIn 2013, nearly every responding company reported at least one supply chain disruption.
Only 41% reported that all their supply chain disruptions were due to physical
events alone.38% experienced an insolvency in their supply chain.
Estimated Annual Cost of Business Disruptions
(businesses with $1-
Do not know 47%
& KPMG 2011-12 Survey
Estimated Cost of 5-Day Disruption
(businesses with $1-5B revenue)
Do not know 29%
Less than $250,000 6%
1 million to $5 million
than $5 million
Continuity Insights &
KPMG 2011-12 Survey
The 2003 Blackout
The August 2003 Northeast US blackout cost the US economy approximately $6B.2/3 of businesses lost a full day1/4 of businesses lost 2 or more daysAffected at least 8 petroleum refineries
Forced gasoline rationing in Detroit
Source: FEMA Emergency Management Institute
Sandy made landfall October 29, 2012.New York estimated $42B in response and repair costs; New Jersey estimate is $37B.US Department of Commerce estimates $25B of lost business activity ($10B/day at the peak).
The average business shuttered by the storm was closed 176 days.Damage and power loss impacted refineries and petroleum terminals in NY and NJ; two refineries shut down and 4 had to reduce capacity.
Gasoline refinery inputs were off 28% the week after the storm; refinery levels took a month to normalize.
Sources: Department of Commerce and Department of Energy
Statistics on BC Planning Adoption
Maple Leaf Foods case Study
August 2008 - Maple Leaf Foods was source of food poisoning from deli meats
53 cases and 23 confirmed deaths as a resultMaple Leaf activated their crisis communications planCooperated proactively with food safety
officialsReached out to customers via media to advise and reassureEstablished ability for public to contact them with concerns
sales initially shrank by 50%, by two months later they were down only 15%
Int. J. Business Continuity and Risk Management, Vol. 3, No. 1, 2012
BusinesS Continuity Planning Process
Key Component: Communications Plan
Disaster Recovery Principles
RedundancyBackup and recoveryOffsite capabilitiesSecurityEmployee preparation
Business Continuity Best Practices
Consider the full spectrum of threatsWeigh severity vs. likelihood in prioritizing threatsMake the hard decisionsCost - benefit