Investing in Business Continuity Planning (BCP) for Coastal Community

Transcription

1 Advancing Business Continuity in a Challenging Environment Investing in Business Continuity Planning (BCP) for Coastal Community Dr. Khairul Hisyam Kamarudin May 2018

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4 INTRODUCTION Malaysia has a tropical climate with warm weather all year round + is vulnerable to natural hazards including floods, forest fires, tsunami, cyclonic storms, landslides, epidemics, and haze. Additionally, the effects of climate change have resulted in an increasing amount of climate related disasters, resulting in a newfound threat to Malaysia s health and development.

5 INTRODUCTION Malaysia is considered a middle-income country and has emerged as a multi-sector economy. There are various efforts in place to achieve high-income status by The Five Year Malaysia Plan represents a planning document for Malaysian economic development. It includes plans for improvement in agriculture and urban expansion as well as Disaster Risk Reduction (DRR).

6 Fisherman boats and cars were pushed by the tidal wave and left stranded at Kuala Chenang, Langkawi (2004) Tsunami in Kedah 2004 Causing abandonment of properties, business losses and affecting local economy and livelihood of people (local businesses, services, tourism, farming, damaged infrastructure etc.) Recovery Time? Cost?

7 Mud flood & Landslides in CH 2013 Causing business losses and affecting local economy and livelihood of people (local businesses, services, tourism, farming, damaged infrastructure etc.)

8 Major flood in Kelantan 2014 Causing business losses and affecting local economy and livelihood of people (local businesses, services, tourism, damaged infrastructure etc.)

9 Earthquake, rock fall, debris flow & landslides in Kundasang 2015 Causing business losses and affecting local economy and livelihood of people (local businesses, services, tourism, farming, damaged infrastructure etc.)

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20 Businesses are increasingly subject to disruptions. It is almost impossible to predict their nature, time and extent (of disasters). Malaysia lies in a geographically stable region, but often affected by annual natural and man-made disaster, e.g. flooding, landslides, haze and other man-made disasters.

21 Flood are the major natural disaster threat facing Malaysia. With an average annual rainfall of 2500 mm, Malaysia is prone to flooding The 2014-year downpour were the worst ever floods in the country s history affecting more than half a million people. Damage to infrastructure alone was estimated at $670 million U.S dollars (RM2.851 billion)

22 Event-Based Temporal DataAnalysis Seismic Magnitude in Richter Scale (Data from USGS & MMD) Precipitation Rate Rain Gauge (MMD and JPS) and Satellite Precipitation Radar (NASA)

23 Hazard and Risk Zonation Flood-prone Area in Malaysia

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25 Landslides were also found in the form of slope failures along highways and roads in rural, residential and urban areas. This includes man-made and natural slopes types of landslides

26 All of the natural disasters impact to the countries is depending on the communities preparedness to reduce the economic losses and rejuvenate process of the businesses to the normal after the disaster strikes

27 Disaster Risk Reduction (DRR) is the concept and practice of reducing disaster risks through systematic efforts to analyze and reduce the causal factors of disasters

28 Hyogo Framework for Action (HFA) The Melaka Declaration on DRR in Malaysia (2011) Five Year Malaysia Plans DRR and climate change adaptation into land use planning system, disaster planning and prevention, poverty reduction, and national legislation The Sendai Framework for DRR Recovery, rehabilitation and reconstruction phases that needs to be prepared ahead of a disaster Build Back Better A Business Continuity Management (BCM) Business Continuity Planning (BCP) improving capability of effective business continuity in disaster-prone areas

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30 Disaster Risk Management (van Westen,2012)

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32 What is BCP? A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue operating during an unplanned event. The BCP should state the essential functions of the business, identify which systems and processes must be sustained, and detail how to maintain them. It should take into account any possible business disruption.

33 What is BCP? Business continuity planning (BCP) is the creation of a strategy through the recognition of threats and risks facing a company, with an eye to ensure that personnel and assets are protected and able to function in the event of a disaster. Business continuity planning involves defining potential risks, determining how those risks will affect operations, implementing safeguards and procedures designed to mitigate those risks, testing those procedures to ensure that they work, and periodically reviewing the process to make sure that it is up to date. Read more: Business Continuity Planning (BCP)

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36 Understand the company Initiate the BCP Initial data, including important contact information, located at the beginning of the plan Revision management process that describes change management procedures Purpose and scope How to use the plan, including guidelines as to when the plan will be initiated Policy information Emergency response and management Step-by-step procedures Checklists and flow diagrams Schedule for reviewing, testing and updating the plan

37 Wat is the purpose of BCP? Business continuity is a proactive plan to avoid and mitigate risks associated with a disruption of operations. It details steps to be taken before, during and after an event to maintain the financial viability of an organization. Disaster recovery is a reactive plan for responding after an event. What is the primary goal of business continuity planning? Maintaining business operations with reduced or restricted infrastructure capabilities or resources.... The company is implementing a Disaster Recovery Plan(DRP) and a Business Continuity Plan(BCP). The difference between disaster recovery and business continuity The terms business continuity and disaster recovery are often mistakenly used interchangeably.... Business continuity (BC) planning refers to a strategy that lets a business operate with minimal or no downtime or service outage.

38 For rapid recovery + to restore the organization s critical functions and minimize the impacts of a disruption Engaging business stakeholders, understanding the area + knowledge inputs (existing BCP) Business Impact Analysis (BIA) Q: Potential use of BCP for SME in coastal region of Malaysia? Empower local business community/owners + local disaster manager

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40 The reproduction of businesses at affected areas after disasters were took a longer times than usual due to many complications in term no specifically guidelines of them to recover in a short time.

41 This DBCP were develop to create an atmosphere to prepare plans for each stage of Disaster Management Cycle (DMC) is a benefit to Area Business Continuity Planning (ABCP) whereas private company tends to prepare only the plans for response due to their financial constraints and lack of experiences.

42 Application of DBCP will enhance the coordinated disaster management capacity within the target areas. Continuous revision and improvement through the BCP process will strengthen the resilience by reducing the vulnerability of the business community.

43 Enhanced continuity of the business in affected areas as a result could foster the local economy and employment which may have huge impact to the nation. The output to build a disaster resilience based community is a long term plan. From this DBCP, this output will give out some of ideas how to maintain the framework within the stakeholders for a long term in order to helping them in business rejuvenate after a disasters strike.

44 CBS News

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48 Before and after images show a Haitian street unchanged seven months after a January 2010 earthquake Latest Stories - National Geographic

49 To continue business above the acceptable limit To recover the degree of operation within the acceptable limit Recovery curve after BCP implementation Present anticipated recovery curve Promotion of Business Continuity Plans (BCP) and Business Continuity Management (BCM)

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52 DBCP will focus on scientific knowledge-based decision making based on Transdisciplinary Approach Co-design; Co-produce; Co-deliver; Co-implement

53 Risk map + area zoning of businesses according to different level of hazards Propose different BCP for businesses based on zoning Dissemination of information, awareness and education (preparedness)

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55 Thank you. KHAIRUL HISYAM KAMARUDIN, PHD Senior Lecturer & Researcher in Planning (Rural Development & Sustainable Tourism) UTM Razak School of Engineering & Advanced Technology UTM Kuala Lumpur