integrating resiliency as a strategic priority
TRANSCRIPT
Integrating Resiliency as a Strategic Priority: Seven Guiding Principles to Bring
Your Program to the Next Level
Chartered Accountants & Business Advisors mnp.ca
Our Aim
To share Seven Guiding Principles that can help you make your business continuity and emergency management programs a strategic priority.
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Outline
The Need - Background and Observations
The Audience - Who the Principles apply to
The Principles - Presenting the 7 Guiding Principles
Wrap Up, Questions, and Discussion
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Observations
Many organizations have sound individual plans but lack synergy between them, sometimes resulting in a disjointed and potentially ineffective program
Gaps between BCM/EM programs and strategic goals of the organisation
Often focus is on compliance vs. competitive advantage
BCM and EM practitioners struggle to obtain senior management and/or middle management support
Business Continuity and Emergency Management is not adequately leveraged within organisations
BCM and EM viewed as a cost centre not a value driver
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What does it all mean…
Continuity is not a strategic priority
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Business resilience is about capability to prevent disruption and mitigate risks associated with failure
to meet objectives
Can mitigate significant strategic and operational risk
Encompasses people, processes, and technology
Is required for any organization offering continuous or a high level of customer service
Is about maintaining a competitive advantage before, during, and after a major event
Note: These are strategic business and community issues
What is Resilience from a Strategic Perspective?
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Who Do These Principles Apply To?
Those responsible for business continuity and IT disaster recovery
Emergency Management Professionals and Staff
Executives and Senior Management
Risk Management Professionals
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The Seven Principles
#1 Integrate your program and link it with risk, performance improvement, and other business programs
#2 Identify, engage and manage key stakeholders
#3 Understand the business operations (and cost of not having resiliency) through comprehensive analysis and risk assessments
#4 Identify and support the needs of senior management
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The Seven Principles (continued)
#5 Emphasize the strategic aspects and value proposition of your program – how it protects people, reputation, cash flow, customer service
#6 Customize and “size to fit” – Apply best practices but tailor your program to fit the structure, culture, and budget of your organization
#7 Focus on people, process, technology and brand protection throughout response and recovery
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Integrate your program and link it with enterprise risk and/or other business programs
# 1 Integrate Your Program
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Integrate Your Overview
CRISIS
MGMT.BCPDRPERP
Business Continuity Plan and Program
Emergency Response Plan and ProgramCrisis Management
IT Disaster Recovery Plan and
Program
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Integrate Business Resilience with other Programs
Integrated Program
Pre -
Business
Continuity
Planning
Crisis
Managem
ent
Disaster
Recovery
Business
Continuity
Crisis
Management
Em
ergency R
esponse
Com
munication
& C
oordination
Interim B
usiness
Process
Business
Continuity
People
Location &
Resources
Procedures
Disaster
Recovery
Applications
Technical Infrastructure
Data R
ecovery
EV
EN
T
Enterprise Risk
Management
RM
Optim
ization
Risk A
ssessment
Risk R
esponse
Risk M
onitoring
Integrated Program
Pre-Event Post-Event
Business
Continuity
Planning
Crisis
Managem
ent
Disaster
Recovery
Business
Continuity
Business
Continuity
Planning
Crisis
Managem
ent
Disaster
Recovery
Business
Continuity
Crisis
Management
Em
ergency R
esponse
Com
munication
& C
oordination
Interim B
usiness
Process
Crisis
Management
Em
ergency R
esponse
Com
munication
& C
oordination
Interim B
usiness
Process
Business
Continuity
People
Location &
Resources
Procedures
Business
Continuity
People
Location &
Resources
Procedures
Disaster
Recovery
Applications
Technical Infrastructure
Data R
ecovery
Disaster
Recovery
Applications
Technical Infrastructure
Data R
ecovery
EV
EN
T
Enterprise Risk
Management
RM
Optim
ization
Risk A
ssessment
Risk R
esponse
Risk M
onitoring
Enterprise Risk
Management
RM
Optim
ization
Risk A
ssessment
Risk R
esponse
Risk M
onitoring
RM
Optim
ization
Risk A
ssessment
Risk R
esponse
Risk M
onitoring
Do not try to “go it alone”
Integration does not necessarily mean organizational redesign
Risk Management is a logical link but select what works best in your organization
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Example from our professional services firm
Integrated Resilience Functions
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Identify, engage and manage key stakeholders
# 2 Engage Key Stakeholders
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Conduct frequent and comprehensive analysis and risk assessments to fully understand business operations and cost of not building resiliency
# 3 Understand the Business Operations
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Understand Your Business
Response& Recovery
Program Maintenance
Benchmarking
Elements of a Resilient Program
Recovery
Plan Testing Strategy
Planning
Training Program Implementation
Plan Development
Threat, Vulnerability, Risk Assessment
Business Impact Analysis
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Understand Your Business
An effective continuity program begins with understanding the business
Recovery
Plan Testing Strategy
Planning
Response
&
Recovery
Program Maintenance
Benchmarking
Elements of
a Resilient Program
TrainingProgram Implementation
Plan Development
Threat,
Vulnerability, Risk
Assessment
Business Impact
Analysis
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An effective continuity program achieves resiliency through: Dynamic Planning Response and
Recovery Focus on People Value Creation Communication
Response&
Recovery
Program Maintenance
Benchmarking
Elements of a Resilient Program
Recovery
Strategy
Planning
Training Program Implementation
Plan Development
Threat, Vulnerability, Risk Assessment
Business Impact Analysis
Scenario
Testing
Understand Your Business
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Identify and support the needs of senior management
# 4 Support Needs of Senior Management
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Management needs to...
Minimize negative surprise
Resolve uncertainty and variances from expectations
A process to identify opportunities
Maximize opportunity for success and good performance
Employ the entire organization in the business resilience process
Align organizational objectives
Enhance stakeholder confidence through the execution of their plans
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Note: These are all value drivers a business continuity and emergency management programs
can influence
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Emphasize the strategic aspects and
value proposition of your program
# 5 Understand and Emphasize Your Value Proposition
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Minimize financial losses
Protect personnel
Protect assets
Protect and improve reputation
Enhanced customer service
Ensure high quality and efficient processes
Maintain stakeholder obligations
Value Proposition
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The Cost of Not Preparing:
Financial losses
Business interruption
Loss of key client/key supplier
Loss of reputation
Legal liabilities
Injury to people
Environmental damage
Regulatory scrutiny
Loss of customer service
Going out of business
Blackout 2003
Labour Disruption
Pandemic
Border Shutdown
Value Proposition
Blackout 2003
Workplace Violence
System Meltdown
Labour Disruption
Natural Disaster
Pandemic
Border Shutdown
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Apply best practices but tailor your
program to fit the structure, culture
and budget of your organization
# 6 Customize and “Size to Fit”
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• Understanding risks and business needs, you can customize your plans and response
• Not every organization needs the expensive strategy option; advancements in teleworking
and a sound BIA will allow for a more cost-effective and creative (i.e. In house) recovery
• You need to understand the culture and the tolerance
• You can’t do this in your office or straight from paper
• Every organization, or every department has different priorities that you need to understand
and address
Tailor to Culture
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Focus on people, process, technology and
brand protection throughout response and
recovery
# 7 Focus on People, Process, Technology & Brand
Throughout
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We must consider a business resilience program based on business
response and business recovery
OPERATIONAL
STRATEGIC
TACTICAL
…Throughout Response and Recovery
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We must consider business response and business recovery
Immediate internal emergency
response plansBusiness
Response
STRATEGIC
TACTICAL
OPERATIONAL
STRATEGIC
TACTICAL
…Throughout Response and Recovery
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We must consider business response and business recovery
Immediate internal emergency
response plans
External
customer-focused
response/recovery plans
Business
Response
Business Recovery
…Throughout Response and Recovery
OPERATIONAL
STRATEGIC
TACTICAL
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…Throughout Response and Recovery
Immediate internal emergency
response plans
External
customer-focused response/recovery
plans
Risk plans linked to Strategy and
Performance Management
Bu
sin
ess
Re
silie
nce
Business Response
Business Recovery
OPERATIONALOPERATIONAL
STRATEGIC
TACTICAL
We must consider business response and business recovery
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What can you do…
Plans should be aligned with your strategy
Identify critical people, processes & assets (BIA)
Identify threats, understand vulnerabilities & assess
risks
Incident Response
Act Decisively
Employee assistance programs
Scenario Testing
Tactical Planning Considerations:
Tactical plans (response plans) “keep your house in order”
OPERATIONAL
STRATEGIC
TACTICAL
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Protect your liquidity
Identify critical suppliers
Vendor and sourcing alternatives
Streamlining processes for minimum disruption
Reliable communication channels
Operational Planning Considerations:
Operational Plans (recovery plans) help to keep
your business in order and your clients satisfied
OPERATIONAL
STRATEGIC
TACTICAL
What can you do…
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Leverage your gains before the crisis worsens
Understand changing customer requirements
Review key business objectives to ensure relevancy
Focus on value-creation & Innovation – customers, products,
services
Project volumes and set priorities
Protect your brand
Strategic Planning Considerations:
Business Resilience transforms a “crisis” into a competitive advantage
OPERATIONAL
STRATEGIC
TACTICAL
What can you do…
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Conclusion
The 7 Guiding Principles HelpKeys to Successful Implementation
1. Strong “tone at the top” and sponsorship
2. Assessment is a ongoing process, not a one time
event
3. People in the businesses will need to understand
“what’s in it for me?”
4. Active participation will be required by all levels
5. Ask for assistance from
experts
#1 Integrate and link your program
#2 Identify, engage and manage key
stakeholders.
#3 Understand the business
#4 Identify and support the needs of
management
#5 Emphasize the strategic aspects
and value proposition
#6 Customize and size to fit”
#7 Focus on people, process,
technology and brand protection
throughout
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Thank You
“When the tide goes out,
we find out who’s been swimming without a bathing suit”
– Warren Buffett, July ‘07
Shanda Chronowich, CBCP
416-515-3820
Cliff Trollope, CBCP, CAS
416-515-3851