The worlds fastest BCP implementer!

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1 Thai Floods 2011 Preparedness Lessons Cosmetics Session 2 Andrew Durieux, MBCI BANGKOK 2011 Preparedness How can the Cosmetic Industry manage future Floods and other Disasters? KEY MESSAGE is that it is possible to be prepared for any disaster at any time at a low cost Types of Plans Organisation Training/Testing Examples/Tips Andrew is The worlds fastest BCP implementer! 1

2 COVERAGE & Andrew CRISIS MANAGEMENT CONTINGENCY PLANNING RECOVERY PLANNING NEXT STEPS Coverage Ltd. Operating for 7 years Software Outsourcing BCP 70+ employees Wide client base Many industries Flexible Innovative Quick to respond Coverage The company that makes your life easier 2

3 Andrew MBCI 15 years BCP -4 continents Crisis and Recovery for 2 large Australian Corporates Telco, Logistics, Insurance, MFG, Tourism, Utilities, Banking Red Cross, UN, ADPC Pandemics, Storms, Terrorism, Fire, Earthquake, Computer, Flood Own training manual International standards Andrew The World s fastest BCP maker! Flood Effects 1/3 Thailand was underwater 1,000+ Factories closed 14,000+ Factories affected 1,000,000+ workers affected million people lifes affected Some areas unaffected but Tourism down Rice crops damaged SET Down Estimated 800 billion Baht Insurance claims 3

4 How can the Cosmetic Industry Players Manage Future Floods and other Natural Disasters? The only answer is to be prepared for any disaster. Why any disaster? Because we never know which disaster will strike and when, and we also cannot predict accurately how a disaster will proceed! Develop a BCP! Business Continuity Planning System or Holistic Approach to allow business operators to quickly resume their activities after a bad event strikes Can include: Risk Mitigation/Minimisation Crisis Management Contingency Planning Recovery Planning Can win business (before and after an event) and save money Reputation enhancing 4

5 How Do We Manage Bad Events? Event Occurs Learn Review Fix Problem Business as Usual 9 Expanded. Test Event Occurs Notification Train Prepare Fix process Activation Get Organised Make Plans Review Risks Business as Usual Take Action Prevent 10 5

6 What disaster will strike next? Which one is the highest risk in Thailand for next year? Earthquake Tsunami Pandemic Military Coup Flood What disaster will strike next? Which one is the highest risk in Thailand for next year: Earthquake = 1:1000 Tsunami = 1:500 Pandemic = 1:50 Military Coup = 1:4 Flood = 1:1 Which one would do the most damage? Which ones should you spend time and money on? 6

7 The Approach You should use a risk management approach. Standards exist in various countries: BS25999 ISO and ISO AS/NZ 5050:2010 SS540 How do we manage the risks we identify? How to Treat Risks? Operate your business Understand your Mission Critical Activities Determine the risks to the MCA s Tolerated Risks Treat Every Risk Terminated Risks Transferred Risks Trimmed Risks Develop CP s 14 7

8 The Whole Process. Coverage Ltd. Risk 1 T1 T2 T3 T4 CP MCA Risk 2 Risk 3 T1 T2 T3 T4 T1 T2 T3 T4 T1 CP CP CP CP Risk 4 T2 T3 T4 CP CP CP 15 That process costs you a lot of money and will take a lot of time There is a better way 8

9 All Risks Approach Generic Crisis Management system Cheaper and easier to develop Used for unanticipated events Can use it immediately Is flexible as doesn t require a set plan Structure can be changed to suit Can use the same system for every situation 17 How To Use? 18 9

10 Using The Flood Example Categories Under water Under threat Supply chain problems What can be done? Crisis Management Contingency Planning Recovery Planning Crisis Management How to kick into action and get moving 10

11 Aim Prime aims are to: Ensure safety Stabilize the situation Secure assets Minimize damage Doesn t have to be perfect But it has to be quick! Steps 1. Notification and Activation 2. Get Organised 3. Make a Plan 4. Implement and Monitor Develop & Implement Contingency Plans Develop and Implement Recovery Plans 11

12 Planning MCA = Life Support system Risk = Failure for technical reason 1-2hrs 2-8hrs 8-24hrs 24-72hrs 72hrs + Front of House Curatorial Accounting Marketing Keys to Success Communication Customers Suppliers Employees Flexible and Responsive Fatigue Management Decision Making Financial Pi-Nong Normal Roles Competition for Resources Record Keeping Feedback of Information 12

13 Ideas/Tips Involve the guys who have been here forever Consult but make decision and tell everyone If other parts of the business are still operating, don t put the Boss in charge (although he will try!) Watch out for Government interference For SME s use the concepts even if not enough people Contingency Planning How to make a plan B and start working 13

14 Steps 1. Get Organized 2. Make a Plan 3. Implement and Monitor Develop and Implement Recovery Plans Planning MCA = Life Support system Risk = Failure for technical reason 1-2hrs 2-8hrs 8-24hrs 24-72hrs 72hrs + Front of House Curatorial Accounting Marketing 14

15 Communicate with customersand suppliers to clarify their positions Consider legal and contractual positions Check with Insurance policy about what can and cant be claimed and what you are required to try and do! Doesn t have to be perfect but it has to be quick Consider options: Hotels Partner locations Other Countries Outsource some production/services Employee housing and travel Time to implement Costs 15

16 Factories: Raw material supplies? Equipment installation time and resources Storage facilities? Delivery options? BOI requirements? Offices: Vacant office buildings Communications facilities Internet capabilities Server locations and IP addresses PC s and networking Paperwork! 16

17 Keys to Success Communication Speed and Decisiveness Fatigue Management Support from staff Equipment/IT capabilities Record Keeping Feedback of information Ideas/Tips Still need to monitor and control damaged site Some staff will not want to move (for many reasons) Plan B may be required to survive, but may not be covered by Insurance You (managers) will discover many things that you didn t know about your own business! 17

18 Recovery Planning How to get back to Business as Usual Steps If done after a Contingency Plan is implemented 1. Get Organized 2. Make a Plan 3. Implement and Monitor Plan returning to Business as Usual 18

19 Planning Can use the same structure, or can be planned differently. May use different timelines for this. Planning is the Key! Can be done after a Crisis or after use of a Contingency Plan May be months before this is possible May decide not to do this if Plan B site works well Budget and timeframe will be affected by Insurance issues 19

20 Steps If done after as a result of a Crisis with no Contingency Plan used 1. Get Organized 2. Make a Plan 3. Implement and Monitor Plan returning to Business as Usual Planning MCA = Life Support system Risk = Failure for technical reason 1-2hrs 2-8hrs 8-24hrs 24-72hrs 72hrs + Front of House Curatorial Accounting Marketing 20

21 Keys to Success Quick and detailed Damage Assessment book now: Specialists needed? Utilities Building Access? Cleaning secure now Repairs/Replacements estimate now Stock Losses review now Data/Systems Recovery plan now Security teams?? Keys to Success Communicate early with Customers Suppliers Employees Fatigue Management/Stress of Team Use contractors Less emotions Easy to manage/claim Specialists Keep evidence 21

22 Ideas/Tips Start as early as possible Secure resources Talk with Insurers early Use outside resources (may be better from Insurance Claim) Start ordering early Check and confirm status of suppliers and customers PPPPP Listen to other ideas Next Steps 22

23 Are you? Under water Under threat Supply chain problems Decide what to do now: Crisis Management? Contingency Planning? Recovery Planning? Longer Term: Generic System for all possible events Tailor for high risk/high probability events Train/Test! 1. Get Organized 2. Make a Plan 3. Implement and Monitor 23

24 Why you need an expert s assistance with the floods and beyond? Your people know how to run your business in normal situations they are not experts in managing a crisis. Powerful, easy to use Crisis Management System that can be implemented quickly. Plan templates that can be adapted for individual company use. Simple process for getting moving on Contingency AND Recovery planning. All costs should be covered by Insurance claims. Develop a BCP now! Disasters occur more often than we think Think about the last 10 years in Thailand If you have a BCP in place, there are many benefits: You will recover from disruptions quicker and save money You may win business from your competition Your staff will be more confident of their ongoing employment Your customers will be more confident in your supply capabilities Your insurers should offer some form of discount You will be viewed as a good corporate citizen You will likely suffer from fewer disasters 24

25 Get Moving! Andrew and Coverage Team can help you get started quickly and easily. 25