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09 impact of terrorism on sme's & business continuity eagle foc
1.
The Impact of
Terrorism & Critical Incidents, Inc’ Business Continuity By T: UK. (0) 843 155 0008 E: drmarkdyates@aol.com W: www.securityexpert.biz 1 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
2.
The Issue The
tragic events of Post Sept’ 11th, in particular July 7th 2005 in London, should make all HR managers think carefully about how prepared their business is for this kind of event. 2 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
3.
The Problem Statistics
suggest that almost half (46%) of London businesses do not have a business continuity plan in place. This means that those directly impacted, suffering a major or even a minor loss may find it impossible to continue to trade, particularly if they do not have terrorism insurance cover. Source: Vanson Bourne research, October 2004 3 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
4.
Critical Incident Downside
80% of all businesses affected by serious incidents never re-open, or close within 18 months. Business interruption hits companies in Customer Relationships. Cash Flow. Reputation. Staff Moral. Understanding incidents like fire, flood or computer failure, highlight where long term damage is done. 4 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
5.
Small Businesses Hit
Harder The impact of any critical incident is likely to be more pronounced for SME’s. The majority of SME’s operate in specialised markets with limited product ranges & relatively small customer bases. Any short interruption to business can have a disproportionate effect, totally halting output & leaving customers high & dry. Source: AXA Insurance. 5 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
6.
Insurance The impact
of this inability to trade will vary depending on the insurance arrangements in place. Both sums insured, and cover need to be adequate. Without cover for both material damage and business interruption, including an extension to cover denial of access, and with cover extended to cover terrorism, these problems could result in the business having to close permanently. Source: Business interruption. 6 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
7.
What Is Continuity
Planning It’s about anticipating crises that could befall a business & planning for them. It sets out clear roles & responsibilities. It states who takes charge of specific roles. It lists a series of contingencies. Details clear emergency procedures to ensure risks to staff are minimised. 7 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
8.
Continuity Planning Requires
an assessment of all critical areas of a firm. Business continuity management is a valuable management tool. Understanding potential crises, their effects & knowing how to overcome them is the basis for business continuity planning. It’s also the best way to create firm company foundations to ensure it is robust, flexible & fit for tomorrows business. 8 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
9.
Continuity Planning -
Staff If staff are injured, either physically or mentally When will they return to work? Will they return to work at all? Are there any liability issues towards them? Did they lose personal property in the incident or the subsequent clean-up operation? Will the act of terrorism impact their ability to recruit new staff? immediate help, support and counselling for people more directly involved needs to be addressed. 9 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
10.
Continuity Planning -
Customers If customers were unable to contact a business in the aftermath of the incident, might they move their business elsewhere? If so, is it short-term or long-term? What would happen to businesses if some customers find a better service or product elsewhere? Is a business seen as a high risk target by its customers? Has the incident changed customers’ habits? 10 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
11.
Business Continuity Put
simply, business continuity is about anticipating the events or circumstances that could hinder the running of a business, and planning to make sure that the business responds swiftly and continue to function in the event of an emergency. 11 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
12.
business continuity plan A
business continuity plan sets out clear roles and responsibilities, for example those assigned to manage all liaison with Customers. Employees. emergency services. It lists a series of contingencies that enable key business activities to continue in the most difficult circumstances. 12 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
13.
threats to a
business Examples of threats to a business are... A vital computer system is unavailable. Critical process machinery is damaged. Loss of key employees. The building, or part of the building, cannot be accessed, and... Suppliers are unable to deliver. 13 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
14.
Common Small Business
Disasters Fire/Flood Computer telecoms failure Key equipment failure People issues – illness, resignation, maternity leave Denial of access to premises Product defects Bomb – terrorism threats Legal regulatory action Utilities failure 14 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
15.
Emergency Procedures Importantly,
a business continuity plan also details clear emergency procedures to ensure that the safety and well-being of employees is a top priority. Because it requires an assessment of all critical areas of a firm, business continuity planning is a valuable management tool. 15 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
16.
Commercial Benefit Of
A Continuity Plan There is also the commercial benefit to consider. Companies with business continuity plans are more attractive to do business with. For example Large businesses that rely on the outsourced services of third parties will prefer to work with suppliers who have a Business Continuity Plan in place. 16 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
17.
Business Continuity Plans
Terrorism is only one aspect of threats that can adversely affect a business’s ability to trade. AXA Insurance recommends that all businesses should assess their vulnerability and reduce their susceptibility by developing business continuity plans. Source: Douglas Barnett, risk control strategy manager, AXA Insurance 17 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
18.
Terrorist Attacks Major disruption
to businesses and personnel. 18 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
19.
Business Continuity Bespoke
Guidance Business continuity need not be complicated. AXA Insurance has developed bespoke guidance documents on business continuity for SMEs, copies of which can be found at www.axa4business.co.uk 19 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
20.
Potential Hazards The
list of potential hazards to maintaining a successful business after a terrorist incident is endless. All businesses should give serious consideration to producing a robust business continuity plan. For SMEs it is even more important as they may not have the resources needed to fall back on. 20 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
21.
Other Disruptions
Disruptions (not limited to terror) but including Economic Pandemic Transport accidents Crime Weather Social and environmental or any other event that threatens us. 21 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
22.
Fail To Plan
– Plan To Fail Early in 2005, KPMG and the CBI surveyed businesses of all sizes across London on issues such as transport needs, skills shortages and how prepared they were for an attack on the city. In the SME sector 78% of businesses said they were prepared for an incident, but less than a fifth said that they had a dedicated team to handle a major incident, and barely a quarter of SMEs said they had managed to test their business continuity plans. Source: Alun Bowen, partner for middle market in London, KPMG 22 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
23.
Pressurised Workload While
these findings show that some SMEs are aware of the risks and are rising to the challenge of doing business in a major city, their workloads are often so pressured that business continuity planning and testing can slip off of the agenda. The issue of business continuity must continue to feature highly on the agenda, particularly as insurers are now seriously looking at how a business plans for a major incident before insuring them. Source: Alun Bowen, partner for middle market in London, KPMG 23 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
24.
Testing Plans The
recent events in London demonstrate the need for SMEs to have more confidence that the plans that they have in place are effective. Testing plans is an essential part of any strategy and in a sector which is so fiercely competitive and failure to effectively plan how a company will continue to operate in the event of a serious incident could see the more prepared companies running away with your business. Source: Alun Bowen, partner for middle market in London, KPMG 24 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
25.
IT Support Systems Numerous
IT Companies specialise in support systems for Business IT continuity. 25 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
26.
SME Business Continuity
The proprietor, director or owner of an SME will have to work out what solutions in business continuity are cost effective, scalable and appropriate for themselves. Business continuity should be about commercial advantage, leading to enhanced performance and inspiring confidence, not just about survival or picking up the pieces. 26 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
27.
Disaster Recovery Most
large organisations have some sort of disaster recovery plan for their IT. But where is the equivalent HR disaster plan? If people cannot get to work and the phone system in their office has been cut off, what should they do? 27 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
28.
Remote Working Facilities On
a daily basis thousands of 'information workers' commute into City offices to sit at an office desk and communicate to the rest of the world using email and the phone. With the right technology they accomplish this from home or another remote location. So the provision of remote working facilities should be a major part of the disaster recovery plan for all employees, not just a provision for a few flexible workers. 28 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
29.
Uncertain Times We
are all conducting business in uncertain times. Protecting the future of the firm has to be the number one priority for every business manager. 29 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
30.
Firm - Too
Small For A Business Continuity Plan? The smaller your business the more important it is to have a contingency plan in place. Any incident, no matter how small is capable of impacting your business & profitability. The size of any continuity plan will depend on the risks facing each business – it will be as large or as small as needed. 30 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
31.
The Real Problems
Incorrect mind-set - it will never happen to me. Procrastination – I’ll get around to it next week. Ineffective delegation – I’ll get someone in the company to look at this. We’ll test our plan sometime soon. 31 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
32.
Managing a Crisis
Lightening Never Strikes Twice... A business continuity plan is all about ensuring that a crisis is managed effectively - before it escalates to a disaster. 32 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
33.
Business Continuity Summary
80% of all businesses affected by serious incidents never re-open, or close within 18 months. 46% of London businesses do not have a business continuity plan in place. Less than 20% of London Businesses have a dedicated team to handle a major incident. barely a quarter of SMEs said they had managed to test their business continuity plans. Insurers are now seriously looking at how a business, plans for a major incident before insuring them. 33 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
34.
Our Professional Service Our
Threat Management Unit will Design Produce Test Evaluate Manage... Your Business Continuity Plan. © Dr. Mark D. Yates. T: UK. 0843 34 155 0008. E:
35.
Contact Us
For a business continuity planning consultation, or details on corporate training... Contact our UK office today Link Business Marketing Ltd T: UK 0843 155 0008 T: UK (0) 151 721 9078 E: drmarkdyates@aol.com W: www.elinked.eu 35 © Dr. Mark D. Yates. T: UK. 0843 155 0008. E: drmarkdyates@aol.com
36.
Key Words &
Key Phrases Used In This Presentation To enable clients & customers to find me easily & quickly, I have search engine optimised the following key words & key phrases relevant to me, my Linkedin profile and the professional services I provide . Linkedin Trainer Independent & Social Media & Business Networking Relevant: linkedin expert, linkedin trainer, linkedin mentor, linkedin experts, linkedin specialist, linkedin instructor, linkedin advisor, linkedin guru, linkedin training, linkedin coach, linkedin consultant, linkedin speaker, business networking, lion, top networker, power networker, business networking specialist, business networking expert, social media specialist, black belt networker, black belt power networker, power networking, social networks, affiliate marketing, network marketing, lead generation, databases, linkedin film production, linkedin writing, linkedin articles, linkedin profile scripts, linkedin videos, linkedin screenplays, linkedin expert business mentor, linkedin specialist business networking, linkedin trainer corporate events, linkedin instructor business support, linkedin coach web site development, linkedin consultant ecommerce, linkedin guru social media, search engine optimisation, Business Relevant: business, business development director, ceo, business growth specialist, management consultant, business advisor, business consultant, business mentors, business investment, iib, business angels, entrepreneurs, venture capital, Institute for Independent Business International IIB, Linkedin Training & Executive Coaching, management consultant & linkedin instructor, management advisor & linkedin coach, business threat management & linkedin consultant, business crisis management & linkedin trainer, business continuity & linkedin training, corporate consultant & linkedin expert, management consulting & linkedin specialist, linkedin expert article submission, business growth & linkedin instructor specialist articles, iib & linkedin consultant, executive management & linkedin advisor, change management & linkedin trainer, event management & linkedin training, risk management & linkedin coach, public speaking & linkedin expert, public relations & linkedin specialist, Security Relevant: security, security director, security expert, security consultant, close protection, british american security expert, dr mark d yates, mafia, security consulting, security business mentor, protective service director, executive protection director, close protection instructor, swat instructor, counter terrorism consultant, security directors, business intelligence, security experts, business consultants, security consultants, close protection, bodyguards, business advisors, close protection instructors, bodyguard instructors, counter terrorism, intelligence agencies, close protection advisor, anti mafia task force instructor, counter terrorist advisor, counter kidnap for ransom advisor, corporate travel security advisor, law enforcement trainer, firearms trainer, close quarter battle instructor, use of force instructor, linkedin advisor bodyguard updates, security management & linkedin consultant, physical security & linkedin advisor, security advisor & linkedin expert, security trainer & linkedin guru, corporate security & linkedin advisor, security audits & linkedin trainer, close protection & linkedin guru articles, 36 © Elinked W: www.elinked.eu
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