Business continuity management

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1 Business continuity management

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3 The world is a riskier place. Emerging threats such as product recalls with the increasing vulnerability of sophisticated global supply chains and unpredictable natural catastrophies mean that the threat of business interruption is as great as it has ever been. It is not just physical assets and staff that are at risk. Customer confidence, brand and reputation are all susceptible to badly managed incidents or events. Lost market share is almost impossible to recapture. In many markets, failure is not an option. The investment community expects companies to be well governed and competent in managing periods of volatility. Insurers increasingly require evidence of effective risk management before providing insurance cover. Market leaders expect the companies that supply them with products and services to guarantee continuity of supply. All risks are interconnected and businesses cannot prevent certain threats from materialising. However, businesses can assess exposure to the risks that they know about. The need for business to address the effects rather than the unpredictable and often uncontrollable causes of risk is greater than ever. Faced with a range of these unexpected and unpredictable risks, all businesses need to prepare for the consequences. That means building resiliency into your organisation and its supply chain as well as developing robust business continuity and crisis management plans. Marsh Risk Consulting 1

4 BCM advice from Marsh Risk Consulting Business continuity management (BCM) is all about creating assurances, so it helps when you can depend on your advisers to provide assurances of their own. When your organisation works with Marsh Risk Consulting to develop your business continuity management programme, you can be sure of solutions that prepare you for the unknown, while at the same time are fit for purpose for your organisation, its needs, and the sophistication of its current plans and programmes. At Marsh Risk Consulting, we are in the business of risk. We have in depth knowledge of industry sectors and the problems that each faces. We understand how threats to business are changing and the pressures that this creates for companies to refine and improve the quality of their BCM. However, we recognise that every organisation is unique in the way that it conducts its business. We take time to understand each client s aims and objectives and the context in which business continuity needs to be established. Few organisations have done nothing, so we also make sure that we understand what BCM work has already been done. A key characteristic of our advice is therefore assisting our clients in defining the level of preparedness that they require in different parts of their businesses for their own unique risk profile. This approach means that we work with a full spectrum of clients, from single site manufacturers developing BCM for the first time, through companies with existing BCM looking to review and exercise plans, to large and sophisticated multinationals seeking to optimise their investment in BCM and develop a corporate response to both strategic and operational threats. Whoever our clients are and whatever their aims, our goal remains the same to raise the bar of their business continuity management. 2 Business continuity management

5 At Marsh Risk Consulting, we think about our clients businesses according to their strategic objectives and the critical processes that underpin these, and concentrate on building resilience around these. Key features of our BCM advice include; Fit for purpose advice and deliverables. Our solutions don t come out of a box. Every client gets advice that is appropriate for their industry sector, size, critical issues and level of sophistication. We recognise and respond to challenges that may exist within an organisation, such as diversity between different business units, multinational operations or extensive supply chain dependencies. We tailor our reporting output to meet the culture of our clients, building plans in reference card format, flow diagrams, online and in traditional paper based formats. A focus on protecting reputation, revenue and key processes, not simply assets and facilities. Business continuity management used to be about protecting buildings and IT, and for some advisory companies it still is. At Marsh Risk Consulting, we think about our clients businesses according to their strategic objectives and the critical processes that underpin these, and concentrate on building resilience around these. Global methodology. Wherever your business trades in the world, you can be assured of the same approach to BCM advice from Marsh Risk Consulting. International clients can build global strategies and plans, safe in the knowledge that they are joined up and make best use of available resources. Defining industry best practice. Our people are not just leaders in BCM advice. They have helped to develop some of the business continuity industry s defining standards, including the British Standard for BCM, BS 25999, which all of our advice follows. Linkages to risk and insurance. At Marsh Risk Consulting we encourage our clients to think about risk in its widest sense. Investment in BCM may well have the potential to deliver value to a corporate risk management programme, or to improve the cost or terms of insurance. We have the skills and oversight to manage such considerations for our clients. Marsh Risk Consulting 3

6 Our services Capability reviews: Through formal reviews, we help clients to correlate their BCM requirements with the availability and quality of their plans. This can include an assessment of policies and protocols at group level, including group standards and frameworks, risk registers and crisis management plans, as well as an assessment of BCM implemented at operating company level. Where there are gaps, we help clients to define what success might look like, and develop realistic implementation plans to improve their performance going forward. These solutions typically include exercising plans at a site level. Exercising: Marsh Risk Consulting s range of exercising solutions are focused on evolving business continuity plans into business continuity cultures, through training for senior executives, rehearsing of emergency response and crisis management procedures and testing of current plans. Plan building: We assist clients in identifying and analysing their key business processes, and developing and enhancing their business continuity whatever their current levels of sophistication. A common approach underpins this process, but plans themselves are designed around our clients, to ensure maximum usage and value for them. Programme management: With the help of Marsh Risk Consulting, clients develop their existing plans into programmes of continuous BCM improvement, based on a framework linked to improving levels of resilience. We can help to facilitate this process on their behalf, ensuring consistency of approach and freeing up valuable project management resource. Our people are also skilled and experienced in winning the hearts and minds of senior managers, a vital component of a successful BCM programme. Crisis management planning: Marsh Risk Consulting regularly assists clients in developing crisis management plans, and training staff expected to be at the apex of a crisis with the appropriate skills to manage multiple stakeholders under pressurised conditions. Supply chain resilience: A business continuity strategy that ignores relationships with key suppliers is unlikely to work in practice, since many principal exposures exist outside of a company s own infrastructure or direct control. Marsh Risk Consulting helps clients to understand the role that suppliers play in critical business processes, to identify the risks and key impact points, and to build protection around them. Supply chain resilience often forms an element of our programme management approach, as clients broaden their definition of continuity to involve external stakeholders. For smaller businesses that are new to business continuity, or require less complex solutions to their needs, Marsh Risk Consulting has a full range of tailored services intended to assist them in reviewing, exercising and implementing their plans. Product risk management: Marsh Risk Consulting can help clients to identify and manage the product-related risks within their operations. We assist clients to make safer products, reduce the likelihood and severity of major product risk events, ensure regulatory compliance, conduct effective recalls and ultimately protect both clients and their brands. 4 Business continuity management

7 Marsh Risk Consulting provides advice to clients around a range of core BCM solutions, which align with BS Marsh Risk Consulting 5

8 Case studies A national petroleum company Need: Develop a company-wide framework of BCM, including recovery plans for the most critical areas of the business. Marsh solutions: 1. Designed and implemented an organisation-wide BCM policy and framework, in line with BS Developed impact and risk analyses of critical business areas, designed recovery strategies and produced business recovery plans, linked to existing emergency response plans. 3. Facilitated initial plan testing. 6 Business continuity management Our client is an oil and gas production and refining company in the Middle East. It provides petroleum (domestic, manufacturing, motor and aviation) fuel products. The company also exports refined petroleum product around the world by sea. The company embarked upon a programme of risk identification and, in conjunction with its insurers, identified the lack of business continuity planning as a risk to its business. In particular, this study identified a number of critical refinery operational areas where this risk was extremely high. Marsh Risk Consulting was appointed to design and implement a BCM framework across the business. Marsh Risk Consulting s BCM consultants and refinery engineering specialists worked together to analyse the processes, impacts, risks and in-scope production activities. The output helped the company to understand its business better, and which ultimately led to fit for purpose and robust recovery plans for the critical production areas of its refinery operations.

9 Our client is a major international sporting and music entertainment presenter and the owner of a number of international sports and entertainment venues. Our client identified a requirement to become an industry leader in best practice and implementation of BCM. Marsh Risk Consulting originally worked with our client to assess its BCM and identified the need to upgrade the existing incident management and business recovery capabilities to complement the high standard of emergency response capabilities that had already been developed. A programme was therefore developed to roll out BCM throughout the business at a flagship site with the aim of then using this approach as a model for the further rollout of BCM to the organisation s other venues and associated operations. These plans have been shown to be effective, helping our client to deal with a number of serious incidents that have occurred since the plans were developed. Marsh Risk Consulting continues to work with this client, to assist the organisation s management to gain the associated benefits from its investments in BCM. Major international sports and entertainment group Need: Develop comprehensive BCM, including recovery plans for the most critical areas of the business at one of the organisation s flagship sites. Marsh solutions: 1. Designed and implemented a BCM policy and framework, in line with BS Developed impact and risk analyses of critical business areas, designed recovery strategies and produced business recovery and crisis management plans, linked to the emergency response plans. 3. Delivered rehearsal exercises to senior management. Marsh Risk Consulting 7

10 FTSE 250 defence and aerospace electronics group Need: Develop a company-wide framework of BCM, including Group-level crisis management and business unit business continuity plans (BCPs). Case studies continued... Marsh solutions: 1. implemented a standardised approach to developing BCPs at each business unit within the Group, as well as creating a crisis management plan at Group level. The Group is a global engineering group specialising in extreme environment components and smart sub-systems for aerospace, defence and energy markets. When reviewing the Group s overall risk management programme in 2002, it was identified that there was no standard approach to BCM across the Group. This was mainly due to multiple acquisitions which had been made over preceding years. To meet best practice in corporate governance, it was agreed that a review of existing BCM requirements was necessary, with any identified gaps to be addressed. After reviewing BCPs at multiple operations globally, a lack of both consistency and quality was identified. A programme was therefore developed and rolled out in This programme has assisted over 30 business units to implement BCM successfully, and is consistently highlighted in the Group s annual report. These plans have been shown to be effective, most notably through responding to the Buncefield fire and explosion in December 2005, as well as being implemented for other less serious interruptions such as a tornado in Texas and a furnace fire in Ohio. Marsh Risk Consulting continues to work with this client, ensuring newly acquired business units go through the standard BCM programme, as well as carrying out ad-hoc sample audits and crisis management exercises with the more mature business units. 8 Business continuity management

11 Marsh Risk Consulting s global business continuity practice comprises over one hundred fully-employed professionals across five continents. About Marsh Risk Consulting Marsh Risk Consulting s global business continuity practice comprises over one hundred fully-employed professionals across five continents. Experience within this team stretches across public, industrial and commercial sectors, and all verticals. We assist our clients in developing, implementing and enhancing business continuity and operational resilience capabilities. Our portfolio of expertise includes incident management, business/operational recovery and crisis management solutions as well as a deep understanding of risk issues around supply chain, product recall, information technology and communications. Our clients range from small privately-owned companies to some of the world s largest multinational organisations. Marsh Risk Consulting is a thought and industry leader in risk management and has been voted winner of the Excellence in Business Continuity in the Insurance Industry category at the Business Continuity Awards five out of the last six years. Marsh Risk Consulting was awarded Risk Service Provider of the Year in 2009 European Risk Management Awards for its excellence in enterprise risk management. Marsh Risk Consulting 9

12 For more information, please contact: Rod Ratsma UK Business Continuity Management Practice Leader +44 (0) The information contained herein is based on sources we believe reliable and should be understood to be general risk management and insurance information only. The information is not intended to be taken as advice with respect to any individual situation and cannot be relied upon as such. In the United Kingdom, Marsh Ltd. is authorised and regulated by the Financial Services Authority for insurance mediation activities only. Copyright 2012 Marsh Ltd All rights reserved