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NATURAL DISASTERS, RISK MANAGEMENT &BUSINESS CONTINUITY PLANNINGThe Brazilian Experience
Eng. José Eduardo Prestes Alves, M.Sc.
BRASIL MAJOR NATURAL CAUSES DISASTERS
Landslides, Floods, Inundations and Droughts
The landmark of the Brazilian Natural disasters timeline was the Rio de Janeiro landslide of 2011
( 916 casualties and 345 people missing )
Local ordinary people still sees Brazil as a
“natural disasters free” country;
They relate Natural disasters only to big issues: They relate Natural disasters only to big issues:
Huracanes, Earthquakers, Tsunamis, active
Volcanos and Tornedos
Droughts, landslides and floods are
considered to be part of urban life, acceptable
and well known “familiar risks“.
THE BRAZILIAN EXPERIENCE: The Civil Defense Role
•Natural Disasters : Focus on emergency short term priorities
People safety and security
Medical Care / Clothing / Fooding / Shelter
Protect and repair strategic publicinfrastructure assets (state owned)
Roads / Energy / Transportation / public buildings / Telecommunication / Water supply / sewage,etc.
CIVIL DEFENSE
Companies located in theaffected areas are “by their own”
WHAT ABOUT THE WHAT ABOUT THE BRAZILIAN COMPANIESBRAZILIAN COMPANIES
AFFECTED BY NATURAL DISASTERSAFFECTED BY NATURAL DISASTERS??
Going from a Reactive Emergency Response Culture to a• Going from a Reactive Emergency Response Culture to a
Proactive Risk Management behaviour
•• Using BCP as a Business Risk Reducing tool
THE RISK MANAGEMENT IN BRAZILIAN COMPANIES
Risk Analysis/Risk Map
What is important ?: “ Go back to Business, faster and safely” ( Back to Business ≠ Back to operations )
Emergency ResponseEmergency Response
Disaster recovery
( Back to operation )
Business Continuity
Reducing Risk by practicing good Risk Management and Business Continuity Planning
World CupRisk Management
Planning
Risk Reduction:Risk Reduction:Petrochemical Sector
BCP
Risk Reduction:Energy sector
BCP
FIFA World CUP & Brazil: Reducing Risks through Risk Management good practices ( case 1 )
US$ 1.170 billion budget to
Manage Safety Risks during
the World Cup. 30 days, 12 cities
and 600.000 tourists
Investments in intelligence,
27 MICCS ( Mobile IntegratedControl and command Systems) in
the 12 hosts cities and one ICC ( International Cooperation Center )
in Brasiia, the capital City
Investments in intelligence, technology, equipments and
training to get synergy among all policies and country armed
forces
Security forces of 177.000 men: 100.000 public forces, 20.000 private security and 57.000 army, navy and air
force soldiers
12 ICCS( Integrated Control andCommand Systems) in the 12
hosts cities
Companies are Reducing Risk by practicing good Risk Management and Business Continuity Planning ( case 2 )
A thunderstorm ( ND ) struck a power station in a key trasmission line in
the northern part ofBrazil
41 companies located in thebiggest Petrochemicalbiggest PetrochemicalComplex of the south
Hemisphere suffered a Blackout
2 weeks to go fully back to operations. Heavy business
damages. Local Class associationis promoting RM / BCP
initiatives to reduce risks andbusiness losses
NATURAL DISASTERS, RISK MANAGEMENT & BUSINESS CONTINUITY PLANNING
The Brazilian Experience
Local companies, indirectly affected by the ND, also have
financial losses due to important Business interruptions;
They are not yet part of the Brazilian authorities equation
(ND recovery = People + infrastructure care);
Brazilian companies: focus on Emergency Response and
Conclusions & Recommendations
production recovery, not on the business as a whole. Mentality
is changing;
Business is interrupted for companies located in the disaster
area, even if they are not physically affected;
Business Continuity Planning, as part of the
companies economical and social faster recovery
objectives ( after a ND ), is mandatory and shall be
promoted by government and international Institutions.