Business Continuity Management with JLT

1. Business Continuity Management
Tim Cracknell MSc FCII FIRM MBCI
Partner
Global Risk Solutions
London

2. Business Continuity Management (BCM)
Definition
‘Ongoing management and governance process supported by senior
management and resourced to ensure that the necessary steps are
taken to identify the impact of potential losses, maintain viable
recovery strategies and plans, and ensure continuity of
products/services through exercising, training, maintenance and
assurance.’
(Source: British Standard BS25999)
© Jardine Lloyd Thompson Limited

3. BCM Drivers
• Supply chain complexity
(continuity of supply, inventory levels)
• Reputation and brand protection
• Corporate governance/regulatory
requirements (Turnbull Code,
Basel Accord, PAS 56, Sarbanes-Oxley,
Civil Contingencies Act)
• History (isomorphic experience/active learning)
• Insurer pressure
• Risk financing (self insurance levels)
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4. BCM Benefits
• Identification and understanding
of critical business processes, impact
of disruption and priorities for recovery
• Increased levels of resilience
and recovery capability
• Competitive advantage over less
resilient competitors
• Higher levels of protection for interests of stakeholders
• Positive message and image to media and stakeholders in crisis
conditions
• Improved risk profile in minds of insurers
• Demonstrable corporate governance of risk
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5. BCM Business Case
(The Impact of Catastrophes on Shareholder Value – Rory Knight and Deborah Pretty, Templeton College Oxford, 1996 – www.templeton.ox.ac.uk)
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6. BCM Business Case – ‘Robustness’
(4 sources of competitive advantage in the supply chain)
Cost efficiency The level of resources needed to create a given level
of value
Value added / The level of value from a given level of resources
Effectiveness
Leverage The improvement in performance achieved through
the management of linkages between separate
resources and activities
Robustness The ability of an organisation to withstand shocks
*Johnson & Scholes – Sources of competitive advantage in the value chain (and DNV-Airmic research on ERM (June 2008)
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7. BCM Vision
• ‘A plan that can be easily used by senior executives under rapidly
changing and time pressured conditions.’
• ‘A management system, which embodies and maintains a fit-for-
purpose response and recovery capability, commensurate with
business objectives and stakeholder needs.’
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8. BCM – the 3 phases
Impact
Time
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9. Documentation
Business Continuity Plan – [Company] 1.9 - Organisation - Business Continuity Management - (Master) v0.1.vsd Controlled Copy
BCM Organisation
Corporate Strategic
[]
BCM Programme Sponsor
Tel: []
[] [] []
IT Strategy Finance Brand
Tel: [] Tel: [] Tel: []
Name Name
[] []
[]
Tactical
BCM Champion BCM Champion
BCM Programme Manager / []
Tel: Tel: [] []
Tel: [] Communications
HR COO Corporate
Director Corporate
Tel: [] Tel: []
Tel: []
Name Name
[] []
BCM Champion BCM Champion
[]
Tel: Tel:
Crisis Management Team []
Leader PA Support
Tel: [] Tel: []
BCM Programme Management
(Deputy)
Business Recovery Team
[] []
Leaders (Functional Heads)
Group PAs []
Tel: Tel:
[]
[] []
Head of Health &
IT Systems Estates
[] []
Safety
Tel: [] Tel: []
Personnel (Group) []
[]
Tel: []
Tel: Tel:
Legal (Group)
Tel:
Operational
[] []
[] [] []
Accounting (Group) []
[]
Tel: Tel: Telecoms Security Facilities Management
IT (Group)
Tel:
Tel: [] Tel: [] Tel: []
[]
Payroll (Group)
Tel:
Emergency / Crisis Management Team
Business Recovery Organisation
(c) JLT Limited & [Company] 1 of 2 06 May 2008
This document contains sensitive information and should be treated in a private and confidential manner
© Jardine Lloyd Thompson Limited

10. Documentation
Business Continuity Plan - [Company] Controlled Copy No.1
Emergency Response Plan
Logo
# Hours
Fire
Tackle fire
using fire
Team Raise
equipment
alarm
if safe to do
so
Team
Team
Business Continuity Plan - [Company] Controlled Copy No.1
Team
Crisis Management Plan
Logo
# Days
Team
Occupy Activate
Team Command Command
Centre Centre
Notes:
(c) JLT Risk Solutions Limited & [Client} 1 of 3 24 August 2005
Team
This document contains sensitive information and should be treated in a private and confidential manner
Team
Business Continuity Plan - [Company] Controlled Copy No.1
Team
Business Recovery Plan
Logo
# Weeks
Team
Assess Establish
Team impact of immediate
damage priorities
Notes:
Team
(c) JLT Risk Solutions Limited & [Client} 2 of 3 24 August 2005
This document contains sensitive information and should be treated in a private and confidential manner
Team
Team
Team
Notes:
(c) JLT Risk Solutions Limited & [Client} 3 of 3 24 August 2005
This document contains sensitive information and should be treated in a private and confidential manner
© Jardine Lloyd Thompson Limited

11. Documentation
06 May 2008
0606 May 2008
May 2008
[Company]
[Company]
[Business Function]
[Business Unit]
[Address]
Business Continuity Management
Business Recovery Plan
- Policy
Document version control
Document version control
Document title: 1.8 - Business Recovery Plan - (Master) v0.1.doc
Document title: Business Continuity Management - Policy (Template) v0.2.doc Version date: 06 May 2008
(Note: Copies of this Plan, other than those issued by the BCM Programme Manager / Business Recovery Team
Leader for the Business Function concerned, are considered to be uncontrolled, and it is the responsibility of the user,
Version date: 06 May 2008 under such circumstances, to ensure that the document is up to date and complete.)
Owner: Owner: []
Author: Author: Chris Rigby Smith (JLTL)
06 May 2008
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12. A ‘PACED’* Response
Proportionate Proportionate to the level of risk faced by the
organisation
Aligned Aligned with other activities in the organisation
Comprehensive Comprehensive embracing all parts of the
organisation
Embedded Embedded within core processes
Dynamic Dynamic and responsive to emerging and changing
risk
*HSE – successful implementation of health and safety
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13. Methodology
(Source: Based upon BSI /Business
Continuity Institute model 2003)
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14. Project Team
• BCM Sponsor
• BCM Manager
• Business Recovery Leaders
• Crisis Management Team
• Other Stakeholders
– Senior Management Team
– Group Risk Manager
– Internal Audit
– Customers
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15. Timetable (critical path)
• Project Kick-off June 08
• Analysis and strategy development July-September 08
• Plan writing and iteration October-November 08
• Embedding and exercising December 08
• Business as usual From January 09
Phase Task # Task Descriptor Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 26
02-Jun 09-Jun 16-Jun 23-Jun 30-Jun 07-Jul 24-Nov
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16. Costs
• Opportunity cost of management time expended
• Consulting costs
• Possibly some risk mitigation or implementation costs in supporting
recovery strategies
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17. Programme Prerequisites
• Strong sponsor / programme manager – disciplined project
management
• Realistic ‘project’ objectives – start small and build a platform
• Realistic ‘project’ timeframes
• Differentiate between ‘the plans’ and a BC ‘capability’
• Spread the development load to recognise business pressures
• Avoid heavily engineered plans / processes
• Avoid software / database driven planning
• Take time to identify the right people for key roles
• Build on what already exists
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18. Programme Prerequisites
• Focus on priorities within the supply chain
• Create a shared language and vision
• Avoid overly detailed Business Impact Analysis
• Be prepared to ‘invest’ to support recovery strategies / risk control
measures
• Keep plans flexible – especially Crisis Management
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19. A ‘LILAC’* Response
Leadership Leadership that is strong
Involvement Involvement of all stakeholders
Learning Learning from invocations and near misses, together
with ongoing training
Accountability Accountability for actions but stopping short of blame
culture
Communication Communication and openness
*HSE – successful implementation of health and safety
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20. It happens!
Buncefield Oil Depot Fire – December 2005
London Bombings – July 7th 2006 Katrina – September 2005
Floods across Europe – August 2002
Primark Warehouse Fire – November 2005
SARS – November 2002
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21. Contact
– Tim Cracknell
•Dir Tel: +44 (0)207 558 3941
•Mob Tel: + 44 (0)7920 586343
•E-mail: tim_cracknell@jltgroup.com
– Chris Rigby Smith
•Dir Tel: +44 (0)207 528 4840
•Mob Tel: + 44 (0)7917 627916
•E-mail: chris_rigbysmith@jltgroup.com
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