09 impact of terrorism on sme's & business continuity eagle foc

© Dr. Mark D. Yates. T: UK. 0843 155 0008. E: [email protected]

1

The Impact of Terrorism & Critical Incidents, Inc’ Business Continuity By

T: UK. (0) 843 155 0008E: [email protected]

W: www.securityexpert.biz

mailto:[email protected]

http://www.securityexpert.biz/


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.


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


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.


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.


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.


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.


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.


9

Continuity Planning - StaffIf 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.


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?

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


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.


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.


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

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


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.


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


18

Terrorist Attacks

Major disruption

to businesses and

personnel.


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

http://www.axa4business.co.uk/


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.


21

Other DisruptionsDisruptions (not limited to terror) but including

Economic

Pandemic

Transport accidents

Crime

Weather

Social and environmental or any other event that threatens us.


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


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


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


25

IT Support Systems

Numerous IT Companies

specialise in support

systems for Business

IT continuity.


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.


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?


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.

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


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.

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


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.


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.

Our Professional Service

Our Threat Management Unit will

Design

Produce

Test

Evaluate

Manage...Your Business Continuity Plan.

© Dr. Mark D. Yates. T: UK. 0843 155 0008. E:

[email protected]

34


35

Contact our UK office todayLink Business Marketing LtdT: UK 0843 155 0008T: UK (0) 151 721 9078E: [email protected]: www.elinked.eu

Contact Us

For a business continuity planning consultation, or details on corporate training...

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,

© Elinked W: www.elinked.eu

36

http://www.linkedin.com/skills/skill/Business_Growth_%26_Linkedin_Instructor_Specialist_articles?trk=skills-ext-prof

http://www.elinked.eu/

09 impact of terrorism on sme's & business continuity eagle foc

Documents

Transcript of 09 impact of terrorism on sme's & business continuity eagle foc