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Business Continuity Plan PowerPoint Templates

Business Continuity Plan PowerPoint Templates is a corporate presentation slide deck. It is a disaster management and prevention strategy concept. The business continuity planning or BCP involves methods of risk prevention, mitigation, and recovery from threats. These plans help organizations to protect businesses from potential threats. BCP identifies potential risks in advance by taking inputs from key stakeholders and past experiences.

The business continuity management and IT professionals outline strategies to keep company operational during emergency situations. These risky situations could be power outages, social & political, or environmental. The most recent health crises and global warming bring new strategic discussions on the table. To prepare companies for such situations, business continuity planning covers following risk management components:

Identify potential risk factors and how they could affect operations across all boards Define and implement safety measures or procedures to mitigate risks beforehand Test safety procedures to ensure they work Review all processes are up-to-date

The Business Continuity Plan PowerPoint Templates are a collection of business diagrams, charts, and models. There are 15 slides that will help you demonstrate a business continuity plan with supporting visual content. The business continuity plan template could be used in all types of industries for IT disaster recovery. These plans will help businesses to continuously provide services and have backup on different operations. The PowerPoint templates of business continuity management are also useful for training sessions. For example, the importance of BCP, testing of software and tools, emergency backups, security protocols, etc.

The 15 slides of Business Continuity Plan PowerPoint Templates capture following risk management topics:

• Presentation agenda – It includes risk management factors, business impact analysis, and policy framework
• Management Oversight – Organization structure in three levels i.e. Strategic, Tactical, and Operational
• Risk Identification – Data table for a list of potential risks
• Risk Evaluation – Analyze risks, their likelihood, consequences, and levels
• Risk Assessment – 7 column risk impact assessment
• Risk control matrix – Controls available to manage risks
• Business Impact Analysis – Analyze the impact of risks on business sections
• Business Continuity Policy Framework – Define various policy elements
• Risk Response Matrix – probability and business response
• Mitigation Plan – Guideline to mitigate the impact of risks
• BCP Plan Oversight – BCP system including policy, processes, suppliers, and customers
• BCP Process – 5 steps process cycle diagram and 5 steps horizontal timeline diagram

The Business Continuity Plan is a time invested in pre-planning for when disaster strikes. A well-documented plan communicates how businesses will respond during disruption to mitigate risks. Since frequency of disruptive events is increasing. Businesses need to be prepared for existing and emerging risks. Business Continuity Plan PowerPoint Templates will enable organizations to develop and showcase their survival through business continuity strategy.

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Business Continuity Frameworks

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Ensure that your business continues to thrive under unfavorable conditions with our Business Continuity Frameworks deck. This presentation includes practical frameworks to help you perform better impact assessment, Risk Management , prevention and recovery strategies and protect your company.

Slide highlights

One of the first steps in planning for business continuity is identifying potential threats. Use this slide to list them all. The threats may include: data loss, cyberattacks, malware and viruses, network and internet disruptions and others.

With this slide, communicate your plan for business resilience. Some of the key items to include here are: business impact analysis, essential functions, vital records and resources plan, risk assessment and management plan.

Using this slide, deliver the analysis of your business' continuity management lifecycle, which includes the evaluation of program management, determining the business continuity plan (BCP) and embedding it in the organization's culture.

49 questions and answers

What are the steps in the business continuity management lifecycle?

The steps in the business continuity management lifecycle typically include: 1) Identifying potential threats, 2) Conducting a business impact analysis, 3) Identifying essential functions and vital resources, 4) Conducting a risk assessment and creating a management plan, 5) Developing a business continuity plan (BCP), and 6) Embedding the BCP in the organization's culture.

How can a business effectively manage its risks?

A business can effectively manage its risks by identifying potential threats, conducting a business impact analysis, planning for essential functions, creating a vital records and resources plan, and developing a risk assessment and management plan. It's also important to evaluate the business continuity management lifecycle, which includes program management, determining the business continuity plan (BCP), and embedding it in the organization's culture.

What are the key elements of a business continuity plan?

The key elements of a business continuity plan include identifying potential threats such as data loss, cyberattacks, malware and viruses, network and internet disruptions. It also includes a business impact analysis, essential functions, vital records and resources plan, risk assessment and management plan. Additionally, it involves the evaluation of program management, determining the business continuity plan (BCP) and embedding it in the organization's culture.

Business continuity planning is the process of developing systems to prevent potential risks and recover from a threat. One of the main goals of the planning is to establish continuing operations prior to and while implementing the execution of disaster recovery.

Application

Wayne Elsey, Founder and Head Coach and CEO at The Funds2Orgs Group, in his article for "Forbes Business Development Council," recommends taking these three vital steps when planning for business continuity:

1. Risk-assessment + impact analysis

According to Elsey, during the risk-assessment phase, it's essential to pinpoint and understand all the exposure risks for your venture. "By doing a business impact analysis (BIA), you can gain clarity about every potential threat to your business. The BIA will provide you with critical information, such as who your stakeholders are, your supply chain gaps, and your levels of resilience. It will also inform you about the core team that you should keep in place in the face of potential catastrophe," he writes.

How can a Business Impact Analysis (BIA) help in the overall growth and sustainability of a business?

A Business Impact Analysis (BIA) can significantly contribute to the growth and sustainability of a business. It helps identify and understand potential threats to the business, providing critical information about stakeholders, supply chain gaps, and resilience levels. It also informs about the core team that should be maintained in case of potential catastrophe. This knowledge allows businesses to prepare and plan for risks, ensuring their ability to recover and continue operations, thus promoting growth and sustainability.

What are the common mistakes made during a BIA?

Common mistakes made during a BIA include not identifying all potential threats, not understanding the supply chain gaps, not identifying key stakeholders, and not establishing a core team for potential catastrophe.

How can a Business Impact Analysis (BIA) help in identifying the key players in a business?

A Business Impact Analysis (BIA) can help identify the key players in a business by providing critical information about the stakeholders, supply chain gaps, and levels of resilience. It also informs about the core team that should be kept in place in the face of potential catastrophe.

2. Business continuity plan construction

Once BIA and any gap analyses are ready, create your business continuity plan. "Initially, the team should create a draft document, and then they can present it to the senior executives who have to sign off on it," Elsey says. When it comes to a business continuity plan, no area of your business should be ignored. According to Elsey: "Consideration and review should move through the entire company, including every division and into each department, role and function."

48 questions and answers

What are some ways to test the effectiveness of a business continuity plan?

There are several ways to test the effectiveness of a business continuity plan. One of the most common methods is to conduct a tabletop exercise, where team members walk through the plan to identify any gaps or issues. Another method is to conduct a full-scale drill, simulating a disaster and the subsequent recovery process. This can help identify any practical issues that might not be apparent in a theoretical exercise. Additionally, the plan should be reviewed regularly and updated as necessary to ensure it remains effective as the business evolves.

What are some strategies for getting buy-in from all departments for a business continuity plan?

Some strategies for getting buy-in from all departments for a business continuity plan include: \n\n1. Creating a draft document of the business continuity plan and presenting it to the senior executives for approval. \n\n2. Ensuring that the plan is comprehensive and covers all areas of the business. \n\n3. Moving through the entire company for consideration and review, including every division and into each department, role, and function.

How can a business continuity plan help in impact assessment?

A business continuity plan can help in impact assessment by identifying potential risks and vulnerabilities in all areas of the business. It allows for a comprehensive review of every division, department, role, and function within the company. This thorough examination helps in understanding the potential impact of a disruption on the business operations and aids in creating strategies to mitigate these risks.

3. Testing and maintenance

It is important that your business continuation plan is reviewed and evaluated regularly. "I can't emphasize this enough – preparation is critical, and at moments like the present, planning is happening daily. Ultimately, it's all about coming out on top. Building relationships, having strategic discussions and developing clear messaging are key. It's also important to reframe and refocus your operations, marketing and sales strategy to fuel your revenue generation and cash flow during difficult times. For more information about business continuity planning, you can visit the Small Business Administration website or even SCORE's small business disaster preparedness resources," Elsey writes.

46 questions and answers

How can businesses overcome these challenges to ensure continuity?

Businesses can overcome these challenges by regularly reviewing and evaluating their business continuation plan. Preparation is critical and planning should be done daily. It's important to build relationships, have strategic discussions, and develop clear messaging. Reframing and refocusing operations, marketing, and sales strategy can also help to fuel revenue generation and cash flow during difficult times. For more information, businesses can visit resources like the Small Business Administration website or SCORE's small business disaster preparedness resources.

What are some common challenges businesses face when implementing a continuity plan?

Some common challenges businesses face when implementing a continuity plan include ensuring regular review and evaluation of the plan, preparation for unexpected events, building relationships, having strategic discussions, developing clear messaging, and reframing and refocusing operations, marketing, and sales strategy to maintain revenue generation and cash flow during difficult times.

How can businesses learn from past disasters to improve their continuity plans?

Businesses can learn from past disasters by analyzing what went wrong and what strategies were effective during those times. This can involve reviewing their business continuity plans and identifying areas for improvement. They can also learn from the experiences of other businesses and industry best practices. It's important to incorporate these lessons into their continuity plans and regularly update them. Building relationships, having strategic discussions, and developing clear messaging are key. Reframing and refocusing operations, marketing, and sales strategy can also help to maintain revenue generation and cash flow during difficult times.

According to business continuity services provider, Invenio IT, the March 2018 SamSam ransomware attack on the City of Atlanta devastated the city government's computer systems and disrupted numerous city services, police records, courts, utilities and parking services included.

Computer systems were down for five days, which required various city departments to complete important paperwork by hand. The complete recovery took several months, Invenio IT reports.

The attackers' demand was a $52,000 ransom payment, but the financial damages didn't end there – the recovery resulted in over $17 million losses (almost $3 million alone was spent on contracts for emergency IT consultants and crisis management firms).

The Atlanta ransomware attack is a bitter lesson in inadequate business continuity planning, Invenio IT states, as it uncovered the fact that the city's IT was completely unprepared for the disaster. According to "StateScoop," two months prior to the attack, an audit found 1,500 to 2,000 vulnerabilities in the city's IT systems, which were compounded by "obsolete software and an IT culture driven by 'ad hoc or undocumented' processes."

Experts from Invenio IT speculate that weak passwords were the main vulnerability that allowed for the attack to happen in the first place. "That is a common entry point for SamSam attackers, who use brute-force software to guess thousands of password combinations in a matter of seconds. Frankly, it's an unsophisticated method that could have been prevented with stronger password management protocols," the experts say.

• Search Search Please fill out this field.
• Business Continuity Plan Basics
• Understanding BCPs
• Benefits of BCPs
• How to Create a BCP
• BCP & Impact Analysis
• BCP vs. Disaster Recovery Plan

Frequently Asked Questions

• Business Continuity Plan FAQs

The Bottom Line

What is a business continuity plan (bcp), and how does it work.

Investopedia / Ryan Oakley

What Is a Business Continuity Plan (BCP)? 

A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster.

Key Takeaways

• Business continuity plans (BCPs) are prevention and recovery systems for potential threats, such as natural disasters or cyber-attacks.
• BCP is designed to protect personnel and assets and make sure they can function quickly when disaster strikes.
• BCPs should be tested to ensure there are no weaknesses, which can be identified and corrected.

Understanding Business Continuity Plans (BCPs)

BCP involves defining any and all risks that can affect the company's operations, making it an important part of the organization's risk management strategy. Risks may include natural disasters—fire, flood, or weather-related events—and cyber-attacks . Once the risks are identified, the plan should also include:

• Determining how those risks will affect operations
• Implementing safeguards and procedures to mitigate the risks
• Testing procedures to ensure they work
• Reviewing the process to make sure that it is up to date

BCPs are an important part of any business. Threats and disruptions mean a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition. It is generally conceived in advance and involves input from key stakeholders and personnel.

Business impact analysis, recovery, organization, and training are all steps corporations need to follow when creating a Business Continuity Plan.

Benefits of a Business Continuity Plan

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic. Business continuity planning is typically meant to help a company continue operating in the event of major disasters such as fires. BCPs are different from a disaster recovery plan, which focuses on the recovery of a company's information technology system after a crisis.

Consider a finance company based in a major city. It may put a BCP in place by taking steps including backing up its computer and client files offsite. If something were to happen to the company's corporate office, its satellite offices would still have access to important information.

An important point to note is that BCP may not be as effective if a large portion of the population is affected, as in the case of a disease outbreak. Nonetheless, BCPs can improve risk management—preventing disruptions from spreading. They can also help mitigate downtime of networks or technology, saving the company money.

How To Create a Business Continuity Plan

There are several steps many companies must follow to develop a solid BCP. They include:

• Business Impact Analysis : Here, the business will identify functions and related resources that are time-sensitive. (More on this below.)
• Recovery : In this portion, the business must identify and implement steps to recover critical business functions.
• Organization : A continuity team must be created. This team will devise a plan to manage the disruption.
• Training : The continuity team must be trained and tested. Members of the team should also complete exercises that go over the plan and strategies.

Companies may also find it useful to come up with a checklist that includes key details such as emergency contact information, a list of resources the continuity team may need, where backup data and other required information are housed or stored, and other important personnel.

Along with testing the continuity team, the company should also test the BCP itself. It should be tested several times to ensure it can be applied to many different risk scenarios . This will help identify any weaknesses in the plan which can then be corrected.

In order for a business continuity plan to be successful, all employees—even those who aren't on the continuity team—must be aware of the plan.

Business Continuity Impact Analysis

An important part of developing a BCP is a business continuity impact analysis. It identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis. The worksheet should be completed by business function and process managers who are well acquainted with the business. These worksheets will summarize the following:

• The impacts—both financial and operational—that stem from the loss of individual business functions and process
• Identifying when the loss of a function or process would result in the identified business impacts

Completing the analysis can help companies identify and prioritize the processes that have the most impact on the business's financial and operational functions. The point at which they must be recovered is generally known as the “recovery time objective.”

Business Continuity Plan vs. Disaster Recovery Plan

BCPs and disaster recovery plans are similar in nature, the latter focuses on technology and information technology (IT) infrastructure. BCPs are more encompassing—focusing on the entire organization, such as customer service and supply chain. 

BCPs focus on reducing overall costs or losses, while disaster recovery plans look only at technology downtimes and related costs. Disaster recovery plans tend to involve only IT personnel—which create and manage the policy. However, BCPs tend to have more personnel trained on the potential processes. 

Why Is Business Continuity Plan (BCP) Important?

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic and business continuity plans (BCPs) are an important part of any business. BCP is typically meant to help a company continue operating in the event of threats and disruptions. This could result in a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition.

What Should a Business Continuity Plan (BCP) Include?

Business continuity plans involve identifying any and all risks that can affect the company's operations. The plan should also determine how those risks will affect operations and implement safeguards and procedures to mitigate the risks. There should also be testing procedures to ensure these safeguards and procedures work. Finally, there should be a review process to make sure that the plan is up to date.

What Is Business Continuity Impact Analysis?

An important part of developing a BCP is a business continuity impact analysis which identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis.

These worksheets summarize the impacts—both financial and operational—that stem from the loss of individual business functions and processes. They also identify when the loss of a function or process would result in the identified business impacts.

Business continuity plans (BCPs) are created to help speed up the recovery of an organization filling a threat or disaster. The plan puts in place mechanisms and functions to allow personnel and assets to minimize company downtime. BCPs cover all organizational risks should a disaster happen, such as flood or fire.  

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15 - 17.

Ready. “ IT Disaster Recovery Plan .”

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15-17.

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Business Continuity Planning

Organize a business continuity team and compile a  business continuity plan  to manage a business disruption. Learn more about how to put together and test a business continuity plan with the videos below.

Business Continuity Plan Supporting Resources

• Business Continuity Plan Situation Manual
• Business Continuity Plan Test Exercise Planner Instructions
• Business Continuity Plan Test Facilitator and Evaluator Handbook

Business Continuity Training Videos

The Business Continuity Planning Suite is no longer supported or available for download.

Business Continuity Training Introduction

An overview of the concepts detailed within this training. Also, included is a humorous, short video that introduces viewers to the concept of business continuity planning and highlights the benefits of having a plan. Two men in an elevator experience a spectrum of disasters from a loss of power, to rain, fire, and a human threat. One man is prepared for each disaster and the other is not.

View on YouTube

Business Continuity Training Part 1: What is Business Continuity Planning?

An explanation of what business continuity planning means and what it entails to create a business continuity plan. This segment also incorporates an interview with a company that has successfully implemented a business continuity plan and includes a discussion about what business continuity planning means to them.

Business Continuity Training Part 2: Why is Business Continuity Planning Important?

An examination of the value a business continuity plan can bring to an organization. This segment also incorporates an interview with a company that has successfully implemented a business continuity plan and includes a discussion about how business continuity planning has been valuable to them.

Business Continuity Training Part 3: What's the Business Continuity Planning Process?

An overview of the business continuity planning process. This segment also incorporates an interview with a company about its process of successfully implementing a business continuity plan.

Business Continuity Training Part 3: Planning Process Step 1

The first of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “prepare” to create a business continuity plan.

Business Continuity Training Part 3: Planning Process Step 2

The second of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “define” their business continuity plan objectives.

Business Continuity Training Part 3: Planning Process Step 3

The third of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “identify” and prioritize potential risks and impacts.

Business Continuity Training Part 3: Planning Process Step 4

The fourth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “develop” business continuity strategies.

Business Continuity Training Part 3: Planning Process Step 5

The fifth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should define their “teams” and tasks.

Business Continuity Training Part 3: Planning Process Step 6

The sixth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “test” their business continuity plans. View on YouTube

Last Updated: 12/21/2023

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Business Continuity Planning

Jul 12, 2014

550 likes | 760 Views

Business Continuity Planning. CSH5 Chapter 58 Business Continuity Planning Michael Miora. Topics. Basic Concepts Defining Goals of BCP The BIA BIA Matrix Analysis Justifying Costs of BCP. (1992). Basic Concepts of BCP. BCP and DRP Overview Enterprise Risks and Costs

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Presentation Transcript

Business Continuity Planning CSH5 Chapter 58 Business Continuity Planning Michael Miora

Topics • Basic Concepts • Defining Goals of BCP • The BIA • BIA Matrix Analysis • Justifying Costs of BCP (1992)

Basic Concepts of BCP • BCP and DRP • Overview • Enterprise Risks and Costs • Types of Disasters • Recovery Scenarios

BCP and DRP • Business Continuity Planning • Identifying critical functions • Developing the critical path for recovery • Evaluating costs • Gaining management approval • Disaster Recovery Planning • Preparing specific strategies for recovery • Defining specific tasks (steps) needed to implement those strategies • Testing and revising

Overview • Increasing dependence on technology • Mission-critical systems (production) • Development • Management • Business Continuity Planning (BCP) • Protecting organizations against consequences of unavailability of such systems • Focus on enterprise operations, not just IT • Must define “fast enough” • In each context of the business

Enterprise Risks and Costs • Fundamental risk is to survival of organization • Case of La Ferme St Laurent • Clients of Mathema in Montréal in 1980s • Failed in 1986 when computer error caused them to stamp milk products with wrong expiry dates

Enterprise Risks and Costs (cont’d) Exhibits are from Michael Miora’s Chapter 42 in CSH4.

Types of Disasters

Types of Disasters (cont’d) • The specific disaster scenario is not as important as the recovery process and recovery time • Group disasters into types to facilitate planning • Break BCPs into modules to activate as appropriate

Recovery Scenarios • Recovery scenarios have 3 phases Exhibit 42.4 Determine the effect of the emergency Major recovery steps Restore normal ops

Topics • Basic Concepts • Defining Goals of BCP • The BIA • BIA Matrix Analysis • Justifying Costs of BCP

Defining Goals of BCP • Overview • Scope • Correlating Objectives to Corporate Missions and Functions • Validating Goals • Mapping Goals to Recovery Phases • Emergency Issues

Overview of Setting Goals • Setting goals a multi-step process • Define minimum service levels required for acceptable performance • Define specific goals for specific sectors • Gain approval and support of steering committees of appropriate sector • Gain overall approval of upper management • Goals are defined in business terms not in terms of means and systems • Process may be iterative

Scope • Define environment to be protected • Who and what are to be included? • Will protect specific • systems, • equipment, • procedures, • locations, and • support capabilities • Expect to refine and redefine scope during planning process • May have to define stepwise (phased) implementation plan for BCP

Correlating Objectives to Corporate Missions and Functions • IT often (usually) develops BCP • Systems engineering disciplines help • IT infrastructure critically important • May already have contacts throughout organization for functional support • Must expand beyondIT • Need business perspective • CIO is only one C-level exec • Much may depend on processes outside scope of IT function • Must not overlook non-IT-dependent systems • SCM and CRM go beyond automated systems

Corporate Missions and Functions (cont’d) • Examples of often-overlooked functions • Mail room • Facilities support • Especially important in emergencies and for recovery • Security forces • Work from 3 main documents • Organization chart • Corporate phone directory • List of corporate operations budget line items

Missions and Functions (cont’d) Exclude Include

Validating Goals • Distinguish between importance of a function • To the overall corporate goals • To BCP / disaster recovery goals • Mostly a matter of timeline • Determine how long function can be suspended (or running at minimal levels) without harming organization • May change depending on circumstances • E.g., corporate tax function may be long-term goals at mid-year yet more critical at tax-filing time • Need top-management sign-off on fundamental goals – affects everything else

Mapping Goals to Recovery Phases

Emergency Issues • Ensure safety of employees and others potentially affected by disaster • Health protection (gas masks, hazmat suits, etc. as appropriate) • Safety preparedness (fire extinguishers, training, CPR…) • Shelter & care for employees involved in disaster or in recovery • Search & rescue teams • Effective public relations may keep a problem from becoming a disaster • Honest, timely, accurate and controlled release of information

Establishing Scope of BIA • Inventory equipment & capabilities to be protected or recovered • Will change over time • Must be kept up-to-date • Remember communications infrastructure • Establish documentation • Office equipment may also be critical • Include security systems

Interviews (cont’d) • People who do the work are the best sources of information about those functions • Determine whom to interview • List departments • Select individual in each dept as 1° interviewee • Determine functions within each department • Avoid excessive detail • Group means into functional goals • E.g., specific forms for SEC = “SEC reporting”

Interviews (cont’d) • Goal: develop chart showing relative importance of different functions • Will be important in determining critical path (timeline) for recovery

Ops Describing Functions • Must include summary information about each function listed • 1 or 2 ¶ • Reduce confusion • Focus discussions • Use functional matrix as shown below to represent functions

Ops Definition of Departments & Functions • Survival Days • How long can organization survive without this function before significant damage?

Definition of Departments & Functions (cont’d) • Criticality • What happens when the damage starts?

Definition of Departments & Functions (cont’d) • Operational Impact • Convert criticality to Operational Impact • 4 levels instead of 10 • Reduces granularity of criticality

Ops The Ranking Factor • Combines survival time and operational impact • Low number is most important • Multiply survival time (days) x operational impact • E.g., 1 day survival x op impact critical (1) = 1 • 10 day survival x op 1 = 10 • 3 day survival x “some op impact” (3) = 9

Ops Category • Sort by Ranking Factor in ascending order • Category groups functions with similar recovery periods

Category (cont’d)

BIA Matrix is Heart of BIA • Basic information needed to • Establish recovery requirements • Timelines • Estimate costs of outages • Useful in • Translating business objectives into BIA objectives

. . . Listing the Functions Organizationally

Finding Cross-Department Functions • Emphasize similar functions in different departments • Titles may differ but functions same or almost • Especially important to resolve different estimates of parameters (Survival days, criticality, impact, ranking factor….) • Must adapt to irreconcilable perspectives

. . . Cross-Department Functions

. . . Using the Ranking Factor

Ranking Factor (cont’d) Critically important functions that must be restored first

Quantitative Risk Model (QRM) • Annualized Loss Expectancies • ALE = pici • pi is probability of event or strategy i • ci is cost (or gain) of event or strategy I • E.g., in roulette (gambling game), • Probability p1 of winning $1 bet on a single number on 1 roll of wheel is 1/38 and gain c1 is 36 times the bet = $36 • Losing: p2 = 37/38 with c2 = -$1 • So ALE for this bet is p1c1 + p2c2= 0.0263*$36 + 0.9737*(-$1) = $0.9468 - $0.9737 = -$0.0269 per bet

Problems of the QRM • Costs depend on level of loss • E.g., costs will rise as outage lengthens • Complicates calculations • Most important: exact probabilities difficult to determine • Some events have extensive data base • Actuaries keep records for insurance companies – fire, flood, etc. • But IT-related probabilities difficult to find • Huge variations in infrastructure, configuration, exposure to threats • Operational standards affect vulnerabilities

Generalized Cost Consequence Model (GCC) • Estimate cost of damage for each function • When does the loss begin? • What are the monetary consequences? • Apply cost when appropriate • Collect costs by category

GCC (cont’d) • Evaluate total losses day-by-day

GCC (cont’d) • Estimate costs with Disaster Recovery Plan in place and compare to costs without DRP

Review Questions (1) • Distinguish between BCP and DRP • Why is BCP important to IT today? • What is the advantage of grouping disasters into types in BCP? • What are the three phases of recovery scenarios? • Why do you need BCP steering committees for different sectors of the organization? Why can’t a BCP expert simply define the goals of the process herself? • How does defining the scope of the BCP support the planning process? • Why does the IT sector so often get the responsibility for coordinating BCP?

Review Questions (2) • What are the 3 main documents recommended by Prof Miora as the basis for identifying key corporate functions? • In the description of functions for the functional matrix, what does the criticality score signify? • What is the relation between the operational impact score and the criticality score in the functional matrix? • In the functional matrix, how is the ranking factor calculated? What is the ranking factor used for? • In the functional matrix, what is the relation between the category and the ranking factor? What is the category used for? • What’s the benefit of listing functions organizationally in the BIA matrix?

Review Questions (3) • How does sorting by ranking factor in the BIA matrix serve BCP needs? • A fire-insurance policy costs Megahard Corp $10,000 per year for the Miora Complex on the Northfield Campus to cover the $8,000,000 cost of rebuilding it were it to burn down. Actuaries inform the risk managers at Megahard that the probability of a catastrophic fire is 0.001 per year. Calculate the ALE of the insurance policy and then calculate the ALE of total destruction of the building; compare the two numbers. Is the insurance policy cost-effective? (Hint: in the insurance contract, Megahard bets the insurance company that they will have to pay out $8,000,000 and the insurer bets that they will not pay anything). • Why is it so difficult to apply the quantitative risk model to BCP? • How does the Generalized Cost Consequence model support BCP?

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