Upload
magdalena-anna-fas
View
743
Download
0
Tags:
Embed Size (px)
Citation preview
Contingency Planning and Crisis Management
An Introduction
The lead body promoting business continuity to the aviation business is the International Air transport Association
•It has established the ABC project which aims to support the non-competitive exchange of information and experience in the development of business continuity plans.
•It works closely with the BCI
•Business continuity within aviation has to cope with a complex web of interdependencies. Serious interruption to one company can have a costly impact on another.
•Other factors which to add to this complexity are a reliance on airport authorities, increasing use of third party contractors and vast legislative and institutional regulations.
•Financial institutions/audit requirements now specify that publicly quoted companies must have risk management strategies in place. (responsibility for not having them lies with the company directors)
•Automation of the industry has changed the risk profile unrecognisably
Why Business Continuity?Disrupted Operations can cause;
loss of operational capacity
loss of data
loss of intellectual property
loss of reputation
loss of confidence
diminished shareholder value
lost profits
lost customers
Phases of Business Continuity
Phase One - Preliminary Planning
•Business Impact Analysis
•Dependency Modelling
•Risk Identification and Analysis
•Business Contingency Strategy
Phases of Business Continuity
Phase Two - Continuity Plan Management
•Training of personnel in theories of risk, disaster management, plan development and implementation
•Validating plan through crisis simulations
•Implementing maintenance programmes to address industry changes
Phase Three - Crisis and Disaster Management
•Safe evacuation of premises in a crisis
•Liaison with emergency services and security teams at disaster scene
•Communication with the media, customers, suppliers and other key stakeholders
•Relocation of business operations
•Initiation of manual business operations
Phases of Business Continuity
Traditional Emerging
FocusMinimising the financial impact of disasters
Ensuring financial continuity, customer satisfaction and productivity despite a disaster
ApproachRecovery from single episodes of downtime only
Business driven continuous availability through management of information and operational risk
RisksLow frequency - high impact disasters
Traditional and emerging threats to infrastructure
BenefitsRecovery of downgraded service expected 12-72 hours after event
Up to 99.9% availability of critical infrastructure expected + performance improvement immediately.
EnablersDocumentary plans reply on after-event recovery
Emerging technologies
A Growing, Potentially Costly Capabilities Gap
The gap between the cost of
downtime and the ability to deliver is
widening
Increasing cost of unplanned downtime
Ability to deliver through traditional
mechanisms
Value layers in a business continuity framework.
Commitment and Value
Risk Exposure
Can I Recover my Physical
Assets
Can I recover my automated processes
Am I always able to be there for my customers
I am able to offer value chain excellence to all stakeholders
React / Control / Transform
1 Year
5 Years
10 Years
25 Years
50 Years
100 Years
Negligible Marginal Critical Catastrophic
PROBABILITY
SEVERITY
Action/controls already in place
Controls to limit severity
Controls to limit
Responsibility for action
Critical success factors and KPI’s
Review/test frequency
Key Date
Team members
Actions in first 24 hours - Stage 1
Action in next 3-5 days - Stage 2
Action from day 5 onwards - Stage 3
Person responsible for completion
Review/frequency
Test Date
Questions to ask business leaders
•Is the BCP event driven, risk driven or, stakeholder focused?
• Is the BCP aligned to organisational strategy?
•Who are our stakeholders and what is their tolerance for unplanned downtime?
•Does the BCP address people, processes, technology and the extended enterprise?
•Does the BCP eliminate single points of failure?
Crisis Management
Caroline Sapriel
“ A Crisis is, by definition, ‘an event, revelation, allegation or set of circumstances which threatens the integrity, reputation, or survival of and individual or organisation.”
To be effective, crisis management must be embedded into the corporations management System
Crisis Management gained more corporate focus as we moved into a new millennium.
• Conversion to 2000 in IT
•The events of September 11th
Crisis by type in the 1990’s (source - Institute of Crisis Management)
•65% sudden
•35% Smouldering
The Link Between BCP and Crisis Management
Source Journal of Communication Management vol 7, 4 349
Risk Identification
Risk Evaluation
Minor LossSevere Loss
Pre-loss Loss Post loss
Crisis Management Plan
Business Continuity Plan
Business Recovery Plan
•Transfer
•Prevention
Retain?
Crisis
Disaster
Emergency
Another area of crisis response , made
necessary by the attacks on Sept 11th is
managing the human element of a crisis.
Indeed managing the public, family and
employee communication is an
increasingly important component of
contingency planning.
• The airlines had procedures in place to deal with next of kin but, the companies in the world trade centre had very few.
• Major airlines have established processes and ongoing training programmes.
• When an incident occurs, airlines immediately activate their passenger information call centres and mobilise despatch teams to provide support at the accident site.
• Singapore airlines established its next of kin buddying system in 1992
Reputation ManagementIn a crisis, reputation management best practise
consists of
•Preparedness
•Robust yet flexible strategy throughout
•Transparency
•Integrity and honesty
•Two way communication with stakeholders
•Sensitivity
•Ownership and Responsibility
Image - jaso hawkes photography.com
Dragonair
2002 embarked on a FAST programme
Since Sept 11th = all major industries have expanded their family support programmes.
The management of next of kin is often linked with enhanced security procedures.
Image - jaso hawkes photography.com
Workshops to train leaders
Often scenario based to enable CMT’s to experience the difference between consensus based and command and control styles of management
Taught to work with stakeholder issues too / risk mapping procedures
Image - jaso hawkes photography.com
Examples of Aviation Risk Exposures
•Damage to wide body aircraft - (valued at $200,000,000 per aircraft - up to $300,000,000 with new generation aircraft)
• Injury to passengers, meeters and greeters (settled in UK in excess of £6m for a single life) multiply this by thousands in a terminal and losses could run in to billions.
•Fire risk - if recovery plans are not sufficient - could you rely on insurance £ to re-establish your business?
•Terrorism
• construction issues - I.e. financial performance / failure of contractors / gap in contractors programmes / revenue losses through delay.
Image - jaso hawkes photography.com
Conclusion
Organisations that are serious about embedding crisis management into the overall corporate
strategy have done the following things:
Ongoing risk assessments
Sound and tested processes
Training and practice
A strategic approach