Business Continuity at Airports

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1 2012 INSURANCE & RISK MANAGEMENT CONFERENCE Business Continuity at Airports Risk Solutions International LLC Michael J. Corby, Principal Investigator

2 Session Summary ACRP project Create a guidebook for all US airports to develop or enhance their Business Continuity Plan Structure of the deliverable How airports of any size can make use of this resource Research results: business continuity planning in US airports. Discussion and questions 2

3 ACRP Operational & Business Continuity Planning for Prolonged Airport Disruptions Project Review Panel 2 airport managers 2 FAA Staff liaisons 1 ACI-NA Staff liaison 1 TRB Staff liaison 4 aviation consultants ACRP Senior Program Officer Funding Premise: American airports have only a modest familiarity with business continuity planning Business continuity practice is comparatively unsophisticated Scope U.S. Airports of all sizes FBOs, SASOs Sustaining the airport as a critical business entity 3

4 Deliverable Content ACRP Business Continuity Guidebook for Airports Cook book process for BCP Risk Management Business Continuity Software Tool for Airports Non-proprietary plan management and development tool Produce a common base-line BCP that is effective for the smallest GA airport and single-site FBO, to Hartsfield, DFW, JFK, LAX and multi-site FBOs. 4

5 Design Objectives Simplify this process while retaining its relevance to many user types Easy to use Eliminate technical/professional jargon Provide general guidance (Guidebook) and context-sensitive guidance (drop-down Help buttons) Conversational level Single point of control start/resume Progress bar Clean, non-intrusive GUI 5

6 Functional Challenge Compress full BCP process into a simplified one-size-fits-all tool: Identify every essential function. Address every resource and process dependency that is critical to ongoing operation Human resources Physical resources Process resources Technical resources Document impact of the loss or degradation of every function: Time-to-recovery before impact/loss is material Tolerance for the loss of technology Analyze gaps between requirements and current practices. Develop and document a plan to: Manage with diminished resources DURING disruption Recover full function AFTER disruption 6

7 Operations and Business Scope Operations Passenger/Security Services Public Retail Concessions Commercial Concessions Ground Transportation/Parking Customs/Immigration On-Site Maintenance Winter Operation ARFF Indexed On-Site Fuel Supply Co-Located Military Terminal Buildings Avionics Aeronautical Operations General Aviation Operations Shared Infrastructure ATC-Staffed 24x7 Backup Power Sources Hangar/Ramp Space Other Property Management Cargo Operations Business Finance & Accounting Payroll & Benefits Human Resources Legal & Contracts Government Relations Public Parking Maintenance & Repair (Structural & Equipment) Area Public Relations Financial Reporting Grants and Projects Passenger Management Customer (Airline/Concession) Relations Environmental Reporting Infrastructure & Utilities Supplies 7

8 Functional Tool Architecture 8

9 Simple Questionnaire i For a Business Continuity Plan to be effective, financial transactions need to be processed continuously during any interruption. If your airport charges for parking on a daily or hourly basis or even on a flat fee, there are components that you should have in place to record those transactions and collect funds. Remember that for credit or debit card transactions, customer security must be preserved. 9

10 Practical Result - Every Plan Will Be Unique Standards compliant Appropriate to the user s unique operational model Resource lists specific to each site As short or as long as it needs to be Available as a modifiable document for enhancement, planning, exercising A practical guide to how to recover essential functions after disruption: Key contacts Teams Orders of succession Delegation of authority Facilities primary and alternate Security and access Communications Vital records/resources Plan maintenance File archive 10

11 Plan Format 11

12 Use of the Guidebook For the Largest Airports Review Benchmark of current Business Continuity Plans Guide for conducting plan exercises and validating results Shared resource for associated non-airport departments For Growing Mid-sized Airports Common document to support funding Bank Loans, Bond Issue, Tax Allocations Organizational jump start for creating formal BCP efforts For small airports and limited use air services Fulfill requests for Commercial Loans to fund Capital projects Sound business practice to enhance the airport value Necessary safety net to preserve stable owner income 12

13 Research Results BCP EM BCP is poorly understood Few airports have made anyone responsible for BCP We are usually introduced to the head of Emergency Management We rarely get to anyone in Risk Management, IT, business systems, internal audit (folks who usually know BCP) Even having a conversation about BCP is difficult because the knowledge-based frame of reference is often absent 13

14 Emergency Management Develops ways to protect people, property, assets and infrastructure Across 4 phases: Prevention/mitigation Preparedness Response Recovery Deals essentially, fundamentally and tactically with specific causes Airports do this really well: Staffing Training Funding Regulations Supplies, equipment, federal assistance Collaboration through Disaster Operating Groups (DOGs) 14

15 Business Continuity Planning Looks at the data, processes, information and systems that drive and support core business and operating functions Identifies how 4 essential types of resources are utilized to provide operational continuity: People Process Physical plant, equipment and supplies Technology Identifies recovery time objectives (RTO), recovery point objectives (RPO) and interdependencies, and develops recovery priorities, and strategies for reconstituting critical functions (regardless of the cause). Aligns with the business continuity requirements that it requires of its supply chain partners. Most airports do this poorly or incompletely. 15

16 Q&A Questions? Michael Corby Vice President Risk Solutions International (M) (O) 16