Business Continuity & Disaster Recovery
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Business Continuity & Disaster Recovery

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Business Continuity & Disaster Recovery




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Presentation on theme: "Business Continuity & Disaster Recovery"— Presentation transcript:

Slide1

Business Continuity & Disaster Recovery

Anchor Technologies & American Gas Association

Slide2

Agenda

What is business continuity?

Why does business continuity matter?Statistics on adoption of BC planningCase Studies

Business continuity planning processBusiness continuity best practicesDisaster

recovery

principles

Slide3

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)

Slide4

What is business Continuity Planning?

Consider the full spectrum of threats and disruptionsRisk-based decisions

Business impact analysisCost/benefit analysis

Slide5

Core Business Continuity Principles

ResilienceRecoveryContingency

Slide6

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.

Slide7

Estimated Annual Cost of Business Disruptions

(businesses with $1-

5B revenue)

Do not know 47%

Less

than

$250,000 37%

$

250,000 to

$1M 14%

Over $1M

1

%

Continuity Insights

& KPMG 2011-12 Survey

Slide8

Estimated Cost of 5-Day Disruption

(businesses with $1-5B revenue)

Do not know 29%

Less than $250,000 6%

$

250,000 to

$1M 25%

$

1 million to $5 million

21%

More

than $5 million

20%

Continuity Insights &

KPMG 2011-12 Survey

Slide9

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

Slide10

Hurricane Sandy

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

Slide11

Statistics on BC Planning Adoption

Slide12

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

While

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

Slide13

BusinesS Continuity Planning Process

Slide14

Hazard Assessment

FREQUENCY

IMPACT

Zombie Apocalypse

Power

Outage

Flooding

Fire

Terrorism

Hurricane

Late Delivery

Slide15

Key Component: Communications Plan

Safety Officials

Regulators

Senior Management

Suppliers Vendors

Customers

Business

Partners

LOB

Mgmt

LOB

Mgmt

Risk

Mgmt

Emergency Responders

Staff

Staff

Staff

Slide16

Disaster Recovery Principles

RedundancyBackup and recoveryOffsite capabilitiesSecurityEmployee preparation

Slide17

Business Continuity Best Practices

Consider the full spectrum of threatsWeigh severity vs. likelihood in prioritizing threatsMake the hard decisionsCost - benefit

PrioritizationKeep business impact firmly in view

Slide18

Questions?

“Failure to prepare…is preparing to fail.”

— John Wooden