business continuity expanded to include critical suppliers...
TRANSCRIPT
2015 Garden State Chapter Newsletter - 1st Quarter
Association of Contingency Planners Dedicated to the Evolution of Business Continuity
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ACP Garden State Chapterhttp://gardenstate.acp-international.com/index.htm
Adopting a business continuity (BC) program is the start of a journey, which ensures continuous operations of critical processes within a company and expands to include critical suppliers as the program matures. In this chapter we will discuss what business continuity is and once the program is robust how to apply it to a company’s supply chain.
A business continuity program’s mission is to assure the availability, reliability and recoverability of business processes servicing the company’s customers, partners, and stakeholders. In order for business continuity to be effective it must be an integral part of the business planning life cycle.
Business Continuity Expanded to Include Critical Suppliersby
Betty Byrnes - ACP Garden State Chapter President
Successful business continuity management requires a commitment from the company’s executive team in order to show commitment to, raise awareness and implement sound approaches to build resilience.
continued on page 2
ACP GARDEN STATE CHAPTER
Newsletter Features
Business Continuity, Emergency Management,
and Disaster Recovery “Tid-Bits” are back!!!
Advertising Section
Whenever business changes impact a process/function, business continuity considerations must be evaluated and adjusted as necessary to understand the affect to existing recovery strategies and plans.
We all make plans based on tradeoffs of cost and benefits. Business Continuity formalizes a company’s overall approach to effective risk management, and should be closely aligned to the company’s incident management, emergency response management and information technology disaster recovery.
Betty ByrnesPresident
Lori KeenanSecretary
Richard RehakTreasurer
Tatiana PezzoliEducation
Bernard JonesInformation
David StuartMembership
Richard YoungProgram
2015 ACP Garden State Executive Board Members
Inside This Issue
“BC Expanded to Include Critical Suppliers”
2015 Executive Board Members
BC, EM, and DR “Tid-Bits”
ACP National News
“Book of the Month”
Chapter Photo “Time Capsule”
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Business continuity life cycle
Business Continuity Expanded to Include Critical Supplierscontinued from p.1
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There%are%six%stages%within%the%BC%cycle.%%They%are:
1. Governance
2. Business%Impact%Analysis
3. Risk%Assessment
4. Recovery%Strategies
5. Business%Continuity%/%Disaster%Recovery%Planning
6. Test%and%VeriKication
Let%us%brieKly%describe%each%stage.
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Business Continuity Expanded to Include Critical Supplierscontinued from p.2
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Governance:*Senior%management%involvement%and%support%are%critical%to%the%success%of%a%company’s%business%
continuity%program.%%Executive%buyQin%enables%the%BC%program%to%be%in%alignment%with%the%
company’s%strategic%direction%and%business%objectives.%%%This%also%ensures%that%the%program%is%able%
to%obtain%appropriate%resources%and%visibility.%%Without%adequate%senior%management%involvement%
and%support,%a%business%continuity%program%risks%losing%effectiveness%and%alignment%with%business%
strategy,%misspent%or%unKit%resources,%gaps%between%capability%and%requirements,%or%in%the%worst%
case,%senior%management%cutting%business%continuity%altogether%because%they%do%not%see%the%value%
in%the%investment.%%A%key%component%for%governance%is%the%creation%and%enforcement%of%business%
continuity%standards%and%policies.%%These%standards%and%policies%outline%the%“what%“%and%“how”%of%
business%continuity.%%This%allows%for%the%program%to%be%consistent%across%the%company%and%
auditable.%%The%governance%board%has%the%responsibility%to%support%and%oversee%the%BC%program.%%
No%company%can%implement%a%robust%business%continuity%program%overnight;%it%can%take%years%for%a%
complex%global%company%to%fully%implement%their%business%continuity%program.%%Business%continuity%
is%a%journey%that%must%be%evaluated,%maintained%and%aligned%with%the%business%three%to%Kive%year%
strategy.%%The%governance%board%is%responsible%for%BC%oversight%and%direction;%they%are%in%charge%of%
the%journey.
Business*Impact*Analysis*(BIA):A%BIA%is%a%methodology%to%identify%critical%business%processes%and%functions%based%on%operational%
and/or%Kinancial%impacts.%%This%is%done%by%interviewing%business%process%owners%and%asking%them%
to%describe%their%business%process.%%This%interview%includes%the%identiKication%of%critical%resource%
requirements%(e.g.,%staff,%equipment),%vital%records%and%data,%along%with%internal%and%external%
dependencies.%%Analysis%of%the%data%gathered%through%these%interviews%paints%a%picture%of%the%
critical%paths%within%a%business%at%any%given%time.%%This%step%also%identiKies%the%business%threshold%
for%disruption%loss,%including:%applications,%systems,%platforms%and%infrastructure.%%The%business%
impact%analysis%identiKies%the%preliminary%recovery%time%objective%(RTO)%%and%recovery%point%
objective%(RPO)%%.%%It%is%important%to%remember%when%designing%a%business%continuity%solution%that%
it%is%not%restoring%business%to%normal,%it%is%the%restoration%of%what%is%most%crucial%at%the%giving%time.%%
For%example,%if%the%company%issued%payroll%the%day%previous%to%the%“event”,%restoring%the%payroll%
process%would%not%be%critical.%But%if%payroll%was%due%be%released%the%day%after%the%“event”%then%
restoring%the%payroll%process%would%be%critical,%especially%to%the%employees!%%The%business%process%
owners%also%describe%workaround%procedures%that%can%be%implemented%until%the%process%can%be%
resumed%or%the%staff%can%return%to%work.
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Business Continuity Expanded to Include Critical Supplierscontinued from p.3
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Risk*Assessment:The%risk%assessment%identiKies%business%continuity%risks%that%could%result%in%a%business%process%
disruption%or%hinder%recovery.%%A%risk%assessment%usually%includes%a%facility%assessment%and%an%
environmental%analysis.%%A%high%level%physical%inspection%of%a%facility%should%include:%review%of%the%
electrical%design,%mechanical%heating%ventilation%and%air%conditioning%(HVAC)%design,%
communications%and%network%architecture%review,%physical%security%evaluation,%emergency%egress/
ingress,%and%structural%design%of%the%data%center%and%call%center%(as%applicable).%%The%environmental%
risk%analysis%includes%the%analysis%of%the%likelihood%of%natural%and%manQmade%disasters%at%a%speciKic%
location.%%For%example:%hurricanes,%earthquakes,%lighting%strikes,%rainfall,%Klooding,%crime%rates,%and%
proximity%to%railroads,%highways,%and%airports.%%Once%the%risks%are%identiKied%they%should%be%ranked%
and%rated%by%criteria%speciKied%in%the%BC%standards,%(e.g.,%probability%of%occurrence%+%impact%to%
business%x%controls%in%place%to%remediate).%%For%example,%special%evacuation%plans%would%be%needed%
in%the%event%for%a%derailment%on%a%nearby%freight%train%line.
Recovery*Strategies:The%data%gathered%from%the%BIA%and%risk%assessment%portrays%the%existing%business%continuity%
capabilities%and%gaps.%%Recovery%strategies%are%developed%to%mitigate%these%potential%risks.%%The%
recovery%strategies%and%the%associated%estimated%costs%for%implementation%are%developed%and%
presented%to%the%BC%governance%board%for%review.%%It%is%up%to%the%BC%governance%board%to%approve%
and%fund%the%chosen%recovery%strategies.%%Note%the%governance%board%should%also%“signQoff”%on%high%
ranked%business%risks%with%the%reasoning%on%the%decision%not%to%remediate.
Business*Continuity*/*Disaster*Recovery*Plans:Business%continuity%planning%allows%for%the%availability%of%critical%business%processes%in%the%event%of%
an%incident%that%renders%facilities,%computer%systems,%and/or%employees%inoperable%or%inaccessible.%%
The%goal%of%the%creation%and%implementation%of%BC%and%DR%plans%is%to%minimize%economic%losses%
resulting%from%disruptions%to%business%functions.%%These%plans%provide%steps%and%procedures%to%
facilitate%an%orderly%recovery%of%critical%business%functions%and/or%systems.%%Business%continuity%
plans%address%the%recovery%of%business%functions%and%workspaces%while%disaster%recovery%plans%
address%the%recovery%of%the%information%technology%environment%and%systems%that%supports%the%
business,%(e.g.,%applications,%platforms,%infrastructure).
The%provisions%in%these%types%of%plans%are%used%as%the%basis%for%providing%guidance,%preparing%for,%
and%effecting%recovery%activities%in%connection%with%executive%management’s%(e.g.,%Governance%
Board’s)%discretion.%%Tactically,%the%BC%/DR%plans%address%the%following:
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• Minimize%business%losses%resulting%from%disruptions%to%business%processes.
• Provide%a%plan%of%action%to%facilitate%an%orderly%recovery%of%critical%business%processes%
and%technical%infrastructure.
• Identify%key%individuals%or%teams%who%will%manage%the%process%of%recovering%and%
restoring%the%business%and/or%technology%after%an%incident%or%disaster.
• Specify%the%critical%business%and%technical%activities%that%need%to%continue%after%an%
incident.%%
• Outline%the%logistics%of%recovering%critical%business%processes%and%technical%
infrastructure.
Proper%execution%of%BC%/%DR%plans%facilitate%the%timely%recovery%of%critical%business%processes.%%BC%/
DR%plans%are%effective%only%if%they%are%maintained%properly%and%the%content%information%is%kept%
current.%%A%key%element%of%business%continuity%/%disaster%recovery%plans%is%the%coordination%
between%information%technology%and%business%processes%to%align%RTO%and%RPO%with%business%
requirements%over%time.
Test*and*Verify:The%BC%standards%will%guide%the%Business%Continuity%Program’s%roadmap%to%the%development,%
testing%and%maintenance%of%BC%/%DR%plans%and%reporting%to%the%Governance%Board.%%The%tests%are%
used%to%train%associates%and%create%an%awareness%of%the%BC%program%model%and%individual%roles.%%
This%is%done%through%exercising%the%plan.%%Different%levels%of%plan%testing,%from%tabletop%/%structured%
walkthrough,%component,%to%mobilization%of%plan%actions,%require%increased%resources%but%provide%
more%through%results.%
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Business Continuity Expanded to Include Critical Supplierscontinued from p.5
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Tabletop*/*Structured*Walkthrough*Exercise:*• Paper%evaluation%of%a%portion%of%a%BC%plan%without%the%expenses%or%personnel%resources%
associated%with%a%full%test.
• The%exercise%scope%can%vary%from%a%review%of%a%portion%of%the%BCP%to%a%review%of%the%entire%
plan.
• Objectives:
o Verify%the%contents%of%the%plan;
o Prepare%for%simulation%testing;
o Train%new%members%and%create%employee%awareness;%
o Maintain%preparedness%while%limiting%use%of%resources;
o AfKirm%that%the%strategy%documented%in%the%plan%is%viable;
o Educate%critical%personnel%on%their%responsibilities%in%a%disaster;
o ConKirm%that%the%information%in%the%plan%is%current%and%accurate;%and
o Identify%areas%of%the%plan%that%need%revision%or%updates.
• The%beneKit%of%a%tabletop%exercise%is%that%it%is%costQeffective%and%nonQinvasive.
Component*Exercise:• A%component%exercise%is%usually%performed%during%offQhours%and%tests%a%particular%segment%
of%the%recovery%plan.
• It%differs%from%the%structured%walkthrough%in%that%it%involves%actual%recovery%activities.
• Types%of%component%tests%can%include:%
o Emergency%notiKication%test%(e.g.,%call%tree%tests);
o Evacuation%tests;
o Data%center%or%application%recovery%test;
o Remote%or%dialQin%access%test;%and/or
o Critical%business%function%recovery%test.
• Objectives:
o Demonstrate%accuracy%of%the%execution%of%the%plan;
o Verify%the%appropriate%operating%and%incident%escalation%procedures;
o Train%and%increase%awareness%of%personnel;%and
o Validate%previous%modiKications%of%the%plan%including%the%coordination%
between%the%business%and%information%technology.
• The%beneKit%of%a%component%exercise%is%that%it%is%nonQdisruptive%and%focused.
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Business Continuity Expanded to Include Critical Supplierscontinued from p.6
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Mobilization*Exercise:Is%an%integrated%simulation/full%operations%test;%that%includes:
• The%exercise%to%be%performed%at%the%actual%recovery%sites;
• The%utilization%of%the%backup%resources%(i.e.,%AS%400%systems%and%workspace);
• A%structured%walkQthrough%and/or%a%component%exercise%test%should%precede;
• A%mobilization%exercise%tests%the%transactions%or%replicated%“live”%transactions%are%processed;%
and
• That%reports%can%be%produced%(i.e.,%actual%results)%during%the%exercise%and%then%are%
reconciled%against%expected%results.
• Objectives:
o Test%entire%plan%or%a%portion%of%the%plan%under%emergency%scenarios;
o Validate%operational%effectiveness%and%business%unit%interdependencies;%and
o Provide%technical%and%administrative%measurable%results.
• An%exercise%of%this%proportion%is%normally%scheduled%to%take%place%after%hours%or%during%a%
weekend.
• While%the%most%costly%in%terms%of%resources,%the%beneKit%of%a%mobilization%exercise%is%that%it%
requires%interQdepartment%coordination%and%is%the%best%true%test%of%the%BC%program.
Once%the%exercise%type,%identiKication%of%recovery%priorities,%objectives,%timeline%and%scenario%has%
been%determined,%then%the%company%conducts%the%test,%analyzes%the%Kindings,%and%develops%
corrective%actions.%%The%Kinal%step%is%to%update%the%BC%/%DR%plan,%as%applicable,%to%incorporate%lessons%
learned%from%testing.%%The%BC%standard%has%outlined%the%BC%program’s%progress%timeline.%%The%
Kindings%from%the%test%indicate%whether%or%not%the%plan%is%where%it%should%be%on%its%BC%journey.%%
Through%this%program%all%business%continuity%initiatives%can%be%easily%measured%and%assessed%on%
their%maturity%level.%
Supply*Chain*Business*Continuity*AssessmentOnce%a%company%has%developed%a%strong%internal%business%continuity%program%they%begin%to%expand%
it%to%include%their%critical%supply%chain%vendors,%but%as%one%can%realize,%no%vendor%will%let%a%client%
company%dictate%their%business%continuity%program.%%So%companies%have%developed%a%highQlevel%one%
day%BC%supply%chain%assessment.%%This%entails%visiting%each%critical%vendor%within%their%supply%chain%
at%the%supplier’s%speciKic%location%that%performs%the%work%for%your%company.%%
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Business Continuity Expanded to Include Critical Supplierscontinued from p.7
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Mobilization*Exercise:Is%an%integrated%simulation/full%operations%test;%that%includes:
• The%exercise%to%be%performed%at%the%actual%recovery%sites;
• The%utilization%of%the%backup%resources%(i.e.,%AS%400%systems%and%workspace);
• A%structured%walkQthrough%and/or%a%component%exercise%test%should%precede;
• A%mobilization%exercise%tests%the%transactions%or%replicated%“live”%transactions%are%processed;%
and
• That%reports%can%be%produced%(i.e.,%actual%results)%during%the%exercise%and%then%are%
reconciled%against%expected%results.
• Objectives:
o Test%entire%plan%or%a%portion%of%the%plan%under%emergency%scenarios;
o Validate%operational%effectiveness%and%business%unit%interdependencies;%and
o Provide%technical%and%administrative%measurable%results.
• An%exercise%of%this%proportion%is%normally%scheduled%to%take%place%after%hours%or%during%a%
weekend.
• While%the%most%costly%in%terms%of%resources,%the%beneKit%of%a%mobilization%exercise%is%that%it%
requires%interQdepartment%coordination%and%is%the%best%true%test%of%the%BC%program.
Once%the%exercise%type,%identiKication%of%recovery%priorities,%objectives,%timeline%and%scenario%has%
been%determined,%then%the%company%conducts%the%test,%analyzes%the%Kindings,%and%develops%
corrective%actions.%%The%Kinal%step%is%to%update%the%BC%/%DR%plan,%as%applicable,%to%incorporate%lessons%
learned%from%testing.%%The%BC%standard%has%outlined%the%BC%program’s%progress%timeline.%%The%
Kindings%from%the%test%indicate%whether%or%not%the%plan%is%where%it%should%be%on%its%BC%journey.%%
Through%this%program%all%business%continuity%initiatives%can%be%easily%measured%and%assessed%on%
their%maturity%level.%
Supply*Chain*Business*Continuity*AssessmentOnce%a%company%has%developed%a%strong%internal%business%continuity%program%they%begin%to%expand%
it%to%include%their%critical%supply%chain%vendors,%but%as%one%can%realize,%no%vendor%will%let%a%client%
company%dictate%their%business%continuity%program.%%So%companies%have%developed%a%highQlevel%one%
day%BC%supply%chain%assessment.%%This%entails%visiting%each%critical%vendor%within%their%supply%chain%
at%the%supplier’s%speciKic%location%that%performs%the%work%for%your%company.%%
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A%company’s%business%continuity%program%should%require%that%the%company%assess%their%critical%
vendors’%recovery%capabilities.%%The%company%identiKies%key%suppliers,%which%could%result%in%a%risk/
disruption%to%a%Company’s%product%line%and%business.%%The%data%gathering%in%a%vendor%assessment%is%
done%by%conducting%a%site%visit,%reviewing%related%documents,%(e.g.,%BC%plans,%emergency%response%
plans)%and%faceQtoQface%interviews.%%The%objective%of%this%vendor%site%meeting%is%to%understand%the%
probability%and%impact%to%your%company’s%business%if%the%vendor%was%to%suffer%a%major%disruption.
The%site%visit%includes%the%following%areas%as%they%support%the%product%your%company%acquires%from%
the%vendor:
Survey'Area: Including:Product%Lines List%of%all%current%Company%product%lines%supported%by%the%vendor.
Resiliency Discuss/review%the%vendor’s%management%policy%and%standards%on%how%their%
company%manages%risk%and%implements%risk%mitigation.%%These%areas%should%
include%emergency%response,%crisis%management%and%business%continuity%/%
disaster%recovery%process.
Metrics Describe%the%vendor’s%metrics,%monitoring%and%reporting%procedures%
regarding%their%governance%and%policies.
Recovery%Capability What%is%the%vendor’s%current%recovery%capability?%%Do%they%have%a%recovery%%
plan?%%If%yes,%has%it%been%tested?
Alternate%Source Discuss%any%alternate%source%capability%that%they%have%built%into%their%process.
Procedures Describe%how%they%manage%your%company’s%raw%ingredients%to%Kinished%
product,%e.g.,%transportation,%warehousing,%logistics.
Supply%Chain Describe%where%and%how%they%get%the%precursors%for%“your”%products%they%are%
manufacturing%and%their%resilience%traceability,%(e.g.,%tier%1%through%tier%7).
Site%Tour Walk%through%the%vendor%site%to%gain%an%understanding%of%the%product%
manufacturing%process%and%the%supporting%infrastructure.
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An%example%of%a%Supply%Chain%business%continuity%maturity,%and%overall%readiness%graphic%is%below.
As%stated%this%is%a%very%highQlevel%evaluation%of%one%vendor%in%a%company’s%supply%chain.%%Many%
companies%are%conducting%these%oneQday%vendor%assessments%to%evaluate%each%critical%vendor’s%
resiliency%across%the%company’s%supply%chain.%And%identify%any%weak%links.
Concluding*PointsThe%key%to%a%thriving%business%continuity%program%is%that%it%is%never%stagnant.%%Constant%improvement%
and%evaluation%are%critical.%%It%is%a%living%process,%as%it%matures%it%should%evolve%into%being%part%of%
regular%business%operations,%not%an%addQon.
1%RTO%=%Recovery%Time%Objective:%The%maximum%tolerable%time%to%recover%critical%business%functions%and%the%existing%
resources%that%support%each%function.
%2%RPO%=%Recovery%Point%Objective:%The%maximum%amount%of%data%loss%allowable.
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Emergency Management, Business Continuity, Disaster Recovery “Tid-Bits”
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NIST publishes guidance on supply chain risk management practices
NIST has announced the release of NIST SP 800-161, Supply Chain Risk Management Practices for Federal Information Systems and Organizations.http://www.continuitycentral.com/news07599.html
New report: Cyber Security and Critical Infrastructure in the Americas
The General Secretariat of the Organization of American States (OAS) and the Trend Micro have jointly presented a new report ‘Cyber Security and Critical Infrastructure in the Americas,’ which gathers the views of governments and security professionals from key industries, such as communications, finance, manufacturing, energy and security, on cyber vulnerability in the region.http://www.continuitycentral.com/news07594.html
Does business continuity manage the real risks to your organization?
Charlie Maclean-Bristol discusses the remit of a typical business continuity manager and asks whether the BIA is fit for purpose.http://www.continuitycentral.com/feature1301.html
The challenge of keeping your critical applications running: how cloud and managed services can help
Legacy applications and older IT platforms can be a business continuity headache: Ian Masters offers some advice for those struggling with the issue.http://www.continuitycentral.com/feature1304.html
Reprinted with permission from Continuity Central
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