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8/3/2019 BPM Topic Presentation Syndicate 8
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What is Business Continuity Planning?
BCP brings resilience in the business pillars so that they realign
more quickly during crisis to support products and services
A proactive planning process to ensure that critical services or
products are delivered during a disruption
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BCP LifecycleBCP Lifecycle
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Phases of BCPPhases of BCP
Initiation
Risk Assessment
Business Impact Analysis
Strategies
Goal Definition
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1. Initiation1. Initiation
Initiate BCP by obtaining commitment of
management.
Plan a set of measures to prevent disasters BCP operational team, trained to handle the
situation
A plan that provides a roadmap when disasterstrikes
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2. Risk Assessment2. Risk Assessment
Identifying and analysing the potential
vulnerabilities and threats
Identify sources of risks For each source identified:
the magnitude of the risk and
the probability of its occurrence judge the extent of risk exposure
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3. Business Impact Analysis3. Business Impact Analysis
Identifying the critical business functions and
the losses
Assess Impact on business Assess Requirements for recovery
BIA defines
Recovery Priorities Recovery Objectives
Resource Requirements
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4.Strategies4.Strategies
Business Continuity Planning should include
strategies on
Prevention
Response
Resumtion
Recovery
Restoration
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5. Goal Definition5. Goal Definition
The objective is to keep the business moving
Goals can now be quantified in terms of:
RecoveryT
ime Objective (RT
O) maximum permissibleoutage time
Recovery Point Objective (RPO)
Performance degradation on account of any measures
introduced as a part of BCP
Risks involved
Cost of implementing the BCP
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PAPA--CA ModelCA Model
BCP should not work on traditional Insurance
Model
Stabilize business enablers- people, technology,
site- to avoid crisis
Work on PA-CA model, i.e. Preventive actions
followed by corrective actions
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B
enefits
ofa
rob
ustBCP
B
enefits
ofa
rob
ustBCP
Reduces risk
Minimizesdowntime
Protects brand
and image
Improvesreadiness
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Challenge for a Telco is to maintain stability of its business layer, ensure availability of
product & service to the end customer.
Business layer is therefore under ever increasing pressure of customer expectation
Telecom equilibrium during crisisTelecom equilibrium during crisis
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Factors affecting Return on InvestmentFactors affecting Return on Investment
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BCP addresses 3 levels of disruptions
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BCP and BPM
Currently, BC/DR & BPM aretwo separate paths
Currently, BC/DR & BPM aretwo separate paths
Organizations proposing anapproach to use BPM tools forEA, BC/DR to increase ability
to plan & recover fromdisasters
Organizations proposing anapproach to use BPM tools forEA, BC/DR to increase ability
to plan & recover fromdisasters
Using appropriate BPM toolscould enhance the
enterprises BC/DR program,the selection of tool being
focused on
Using appropriate BPM toolscould enhance the
enterprises BC/DR program,the selection of tool being
focused on
Enterprises budget
Desire to incorporate this solution
Ability to harness human capitalpossessing ability to implement thisapproach
Enterprises budget
Desire to incorporate this solution
Ability to harness human capitalpossessing ability to implement thisapproach
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BS 25999BS 25999 Standard for BCPStandard for BCP
Worlds first British standard for business continuitymanagement by the BSI (British Standards Institute)
Suitable for an enterprise in high risk domains liketransport, telecom, finance and public sector
Comprehensive set of requirements based on BCMbest practices
Two parts BS 25999-1:2006 Part 1 , the code of practice
BS 25999-2:2007 Part 2, the specification
Worlds first British standard for business continuitymanagement by the BSI (British Standards Institute)
Suitable for an enterprise in high risk domains liketransport, telecom, finance and public sector
Comprehensive set of requirements based on BCMbest practices
Two parts BS 25999-1:2006 Part 1 , the code of practice
BS 25999-2:2007 Part 2, the specification
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Euroclear Bank applies the BCMEuroclear Bank applies the BCM
frameworkframework
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The Euroclear GroupThe Euroclear Group
Leading provider of settlement services fordomestic and international bond-market &fund transactions
All companies of the group had plans in placeto face nuts and bolts crisis like loss ofIT,staff, premises, etc.
Euroclear bank, went ahead to get a level ofpreparedness to deal with a financial crisis
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The extension of BCM frameworkThe extension of BCM framework
They adopted BCMs crisis management
structure
Gold level : strategic level
Silver level : tactical level
Bronze level : operational do level
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The exerciseThe exercise
Analysed on other financial institutions,payment systems and financial markets.
Scenario detailed the failure of a large multi-
market bank, which was both an importantsupplier to and a major client of EuroclearBank
Organised the crisis response teams into twostreams during that exercise run on 1st July2008.
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The Real CrisisThe Real Crisis
On September 15th 2008, Lehman Brothers
collapsed
Relevant crisis committees were available towork in virtual mode with the aid of their
Blackberry PDAs.
Impact>> Credit Exposure Risk
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The Real Crisis (contd.)The Real Crisis (contd.)
Credit Extensions were fully secured by
EuroClear Bank.
Euroclear Bank was able to liquidate the
collateral to safeguard its position.
The result was that Euroclear Bank came
through the crisis unscathed.
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KeyKey FindingsFindings
Clear benefit of investing in the exercise
and adapting procedures to reflect the unusual
circumstances. Some Bronze-level response procedures are
now being updated to build on that
experience and ensure faster execution in the
future.
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KeyKey Findings (contd.)Findings (contd.)
The Lehman crisis involved the Silver team
heavily for more than a week and showed the
importance of designating and training
deputies for core team members.
Need of external communication to be
streamlined and Euroclear is developing
response templates to a certain number ofidentified crisis scenarios.
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