bpm topic presentation syndicate 8

8/3/2019 BPM Topic Presentation Syndicate 8

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What is Business Continuity Planning?

BCP brings resilience in the business pillars so that they realign

more quickly during crisis to support products and services

A proactive planning process to ensure that critical services or

products are delivered during a disruption


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BCP LifecycleBCP Lifecycle


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Phases of BCPPhases of BCP

Initiation

Risk Assessment

Business Impact Analysis

Strategies

Goal Definition


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1. Initiation1. Initiation

Initiate BCP by obtaining commitment of

management.

Plan a set of measures to prevent disasters BCP operational team, trained to handle the

situation

A plan that provides a roadmap when disasterstrikes


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2. Risk Assessment2. Risk Assessment

Identifying and analysing the potential

vulnerabilities and threats

Identify sources of risks For each source identified:

the magnitude of the risk and

the probability of its occurrence judge the extent of risk exposure


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3. Business Impact Analysis3. Business Impact Analysis

Identifying the critical business functions and

the losses

Assess Impact on business Assess Requirements for recovery

BIA defines

Recovery Priorities Recovery Objectives

Resource Requirements


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4.Strategies4.Strategies

Business Continuity Planning should include

strategies on

Prevention

Response

Resumtion

Recovery

Restoration


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5. Goal Definition5. Goal Definition

The objective is to keep the business moving

Goals can now be quantified in terms of:

RecoveryT

ime Objective (RT

O) maximum permissibleoutage time

Recovery Point Objective (RPO)

Performance degradation on account of any measures

introduced as a part of BCP

Risks involved

Cost of implementing the BCP


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PAPA--CA ModelCA Model

BCP should not work on traditional Insurance

Model

Stabilize business enablers- people, technology,

site- to avoid crisis

Work on PA-CA model, i.e. Preventive actions

followed by corrective actions


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B

enefits

ofa

rob

ustBCP

B

enefits

ofa

rob

ustBCP

Reduces risk

Minimizesdowntime

Protects brand

and image

Improvesreadiness


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Challenge for a Telco is to maintain stability of its business layer, ensure availability of

product & service to the end customer.

Business layer is therefore under ever increasing pressure of customer expectation

Telecom equilibrium during crisisTelecom equilibrium during crisis


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Factors affecting Return on InvestmentFactors affecting Return on Investment


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BCP addresses 3 levels of disruptions


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BCP and BPM

Currently, BC/DR & BPM aretwo separate paths

Currently, BC/DR & BPM aretwo separate paths

Organizations proposing anapproach to use BPM tools forEA, BC/DR to increase ability

to plan & recover fromdisasters

Organizations proposing anapproach to use BPM tools forEA, BC/DR to increase ability

to plan & recover fromdisasters

Using appropriate BPM toolscould enhance the

enterprises BC/DR program,the selection of tool being

focused on

Using appropriate BPM toolscould enhance the

enterprises BC/DR program,the selection of tool being

focused on

Enterprises budget

Desire to incorporate this solution

Ability to harness human capitalpossessing ability to implement thisapproach

Enterprises budget

Desire to incorporate this solution

Ability to harness human capitalpossessing ability to implement thisapproach


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BS 25999BS 25999 Standard for BCPStandard for BCP

Worlds first British standard for business continuitymanagement by the BSI (British Standards Institute)

Suitable for an enterprise in high risk domains liketransport, telecom, finance and public sector

Comprehensive set of requirements based on BCMbest practices

Two parts BS 25999-1:2006 Part 1 , the code of practice

BS 25999-2:2007 Part 2, the specification

Worlds first British standard for business continuitymanagement by the BSI (British Standards Institute)

Suitable for an enterprise in high risk domains liketransport, telecom, finance and public sector

Comprehensive set of requirements based on BCMbest practices

Two parts BS 25999-1:2006 Part 1 , the code of practice

BS 25999-2:2007 Part 2, the specification


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Euroclear Bank applies the BCMEuroclear Bank applies the BCM

frameworkframework


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The Euroclear GroupThe Euroclear Group

Leading provider of settlement services fordomestic and international bond-market &fund transactions

All companies of the group had plans in placeto face nuts and bolts crisis like loss ofIT,staff, premises, etc.

Euroclear bank, went ahead to get a level ofpreparedness to deal with a financial crisis


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The extension of BCM frameworkThe extension of BCM framework

They adopted BCMs crisis management

structure

Gold level : strategic level

Silver level : tactical level

Bronze level : operational do level


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The exerciseThe exercise

Analysed on other financial institutions,payment systems and financial markets.

Scenario detailed the failure of a large multi-

market bank, which was both an importantsupplier to and a major client of EuroclearBank

Organised the crisis response teams into twostreams during that exercise run on 1st July2008.


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The Real CrisisThe Real Crisis

On September 15th 2008, Lehman Brothers

collapsed

Relevant crisis committees were available towork in virtual mode with the aid of their

Blackberry PDAs.

Impact>> Credit Exposure Risk


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The Real Crisis (contd.)The Real Crisis (contd.)

Credit Extensions were fully secured by

EuroClear Bank.

Euroclear Bank was able to liquidate the

collateral to safeguard its position.

The result was that Euroclear Bank came

through the crisis unscathed.


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KeyKey FindingsFindings

Clear benefit of investing in the exercise

and adapting procedures to reflect the unusual

circumstances. Some Bronze-level response procedures are

now being updated to build on that

experience and ensure faster execution in the

future.


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KeyKey Findings (contd.)Findings (contd.)

The Lehman crisis involved the Silver team

heavily for more than a week and showed the

importance of designating and training

deputies for core team members.

Need of external communication to be

streamlined and Euroclear is developing

response templates to a certain number ofidentified crisis scenarios.


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bpm topic presentation syndicate 8

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