BCP At Bangkok Bank, Thailand Bhakorn Vanuptikul, BCCE Executive - - PowerPoint PPT Presentation

Bhakorn Vanuptikul, BCCE

Executive Vice President Bangkok Bank Public Company Limited 10 May 2012

BCP At Bangkok Bank, Thailand

1

Agend enda

• Business Continuity Management at Bangkok Bank
• Success Factors in implementing BCM
• Past Crisis
• Lessons Learned

2

Abo bout ut Ban angk gkok

• k Ban

ank

• Largest bank in Thailand
• Total assets of US$ 68.3 billions
• Profit before taxes of US$1.1 billion reported in 2011
• 22,000 of employees
• 960 Branches in Thailand
• 27 Overseas Branches

3

Why hy we nee e need B d Bus usin iness ess Con

• nti

tinu nuity ity Management? Management?

• Finan

ancial cial Sector

• r is an Integral

gral Part rt of o

• ur

ur Econ

• nom
• my.
• Finan

ancial cial Instit tituti utions

• ns are

re IT c centric ntric and are e inter erdependen dependent t with

• thers.

ers.

• Finan

ance ce Instit tituti utions

• ns are

re expose posed to s sev everal eral within in and d outside ide risks. s.

• Bank

nk of T Thai ailand land and d Stock Exchan ange ge of T Thai ailan land require quire Bank nks s to do BCP to ensure ure that the finan ancial ial system em is always ays function ional.

4

• BCP will even be more integral part of Financial Services

because we are in the higher risk environment.

• Global

bal warm rming ng and d its conseq nsequences uences

• Terror

rrorism ism

• Financial

ancial Meltd ltdow

• wn and

d Curren rrency cy Flow

• We rely

ly on mor

• re

e digita ital l infra rastructur structures es

• Multi-nat

nationa ional supply upply chains ains

• New

w arm m races aces

5

Reg egul ulat ation ions s in in Th Thai aila land nd

Financial Institutes and Public Companies are required by Bank nk of Thailand ailand & Stoc

• ck

k Exc xcha hang nge e of Thail ailan and to prepare BCM policy & BCP along with these outlines:

• BCM policy

cy

• Risk Analysi

ysis

• Busine

ness ss Impact act Analysis ysis

• Identify

ntify Criti tical cal Busine ness ss Functio ctions ns

• Recovery

very Object ctives ves

• Busine

ness ss Contin inuity ity Plan

• Testing

ting & Reviewing ewing

6

Reg egul ulat ation ions s in in Th Thai aila land nd

But the most important of all the guidelines:

• Board of Directors are responsible for the setting up
• f the BCM Policy as well as allocating enough

resources to conduct the BCP as part of the overall risk Management.

7

B C M covers many components

To ensure business continuity, Bank has set up the Business Continuity Management (BCM) program, which incorporates DRP, BCP, Security plan, and Crisis Management plan. DRP (Disaster Recovery Plan)

• DRP is prepared to manage the continuity and recovery of

systems, data centers, and communication services in the event

• f disaster.
• Bank must have at least 2 Data Centers (which locate in

appropriate distance). These 2 data centers back-to-back back up critical applications.

• Bank must test DRP annually.

BCP (Business Continuity Plan)

• BCP focuses on the continuity of critical functions of the Bank in

the event of disaster.

• All critical function units have developed and prepared alternate

sites distributing to many locations.

• Bank must test BCP annually.

Crisis Management plan

• The plan details actions to deal with incident, emergency and

crisis.

• Bank has set up Crisis Management Team which is consisting of

senior management and unit head of relevant critical function to be responsible for managing and making critical decision regarding the crisis response.

8

Business Continuity Management Process

9

Suc uccess cess Fac acto tors rs in in im impl plem emen enting ting BCM

• Strong
• ng Manag

anagem ement ent Support port

• Use

e Consul nsultant tant with Trac ack k Reco cords

• Strong
• ng Team

am with Strong

• ng Pers

rsonne nnel

• Has

s Good

• d Method

hodology

• logy and

d Proc

• cess

ss in plac ace

• Know

w Your ur Busin siness ess and d Know

• w Your

ur Organizat ganization ion

• Si

Simple, ple, Ef Effect ctive ive but Flexible xible BC BCP P is Critic ical al to BC BCM

• Each

ch BU is familiar liar and is testing ing its BCP regu gularly larly

• Inter

ernal nal & Ex Exter ernal nal Commu mmunic nication

• n is Critic

itical al in BCM

10

Le Lessons

• ns Le

Lear arne ned d fr from

• m Prev

evio ious us Crisis isis

• Political

ical Cr Crisis s of May 2010

• Great

eat Flood of No November ber 2011

11

Pol

• lit

itical ical Crisis isis of

• f Ma

May 20 2010 10

12

Pol

• lit

itical ical Crisis isis of

• f Ma

May 20 2010 10

Bangkok Bank was caught in the Political Crisis of May 2010. The Damages Done:

• A few Branches in Bangkok were seriously burned and

damages.

• Around 100 ATMs were smashed and a few were burned.
• Over 40 Branches across the country were damaged with

home-made bomb, shot with assault rifles or smashed with rocks and batons.

• Luckily, no casualties on staff.

13

How

• w we man

e manag aged ed th the e crisis? isis?

• Put priority on safety of our staff and customers at the top.
• Set up Crisis Management Team early on to monitor every

development of the conflict 24/7.

• Has all the BCP in place and test them regularly.
• Establish good relationship with the government agencies

including Central Intelligent Services, Army and Police Forces.

14

How

• w we man

e manag aged ed th the e crisis? isis?

• Keep Low Profile in every operation we do.
• Buy Riot Insurance just 2 months ahead of the crisis.
• Move Staff to remote back up site before the second clash
• f army and protesters on May 19, 2010
• Get cooperation from the media to keep the news of the

damages as low as possible.

• Don’t fight back with either words or weapons. This would

escalate the situation.

15

Le Lessons

• ns Le

Lear arne ned d 1

• Better External Communication may help reduce the

impact from the conflict.

• Better Internal Communication would also foster staff’s

confidence in the bank’s ability to handle the situation.

• Better relationship with communities around our premises

could help prevent the fires and damages to properties.

• More Backup Locations as some were inside the

dangerous zones.

16

Le Lessons

• ns Le

Lear arne ned d 2

• Re-evaluate the Risk Analysis as political conflict was

considered to be low risk but high impact.

• Re-thinking about key staff and alternates as staff were not

able to come to work because of safety concerns.

• Re-thinking about equipments and supplies as the event

like this, you may not be able to purchase anything.

17

Grea eat t Fl Floo

• od

d of

• f Au

Augu gust t to to Nov

• vember

ember 20 2011 11

• 16 Billion Cubic Meter of Water

that caused the flood over 14,000 Square Kilometer of Land

• Financial Impacts:

US$ 45 Billions in damages and losses to properties, industrial plants, goods and services.

• Impacts to Population:

5 Million Peoples or 1.9 Million Households were effected. 728 deaths, mostly from drowning or electrocution.

18

Ge Geograp

• graphical

hical extent tent of f th the fl flood

• od

19

Great at Fl Flood d of 2011

20

Cr Crisis is Ma Mana nage geme ment nt & B & BCP CP Le Lesso sons ns Le Lear arne ned d 1

• Scenari

arios s study dy to underst stan and d the developme

• pment

nt of the Di Disaster. ster.

• This

s is a r regi egion

• nal

al disast aster er that is:

• Sl

Slow w to ta take ke place ce but would ld last st more

• re than

n a mont nth. h.

• Not all your

ur facil ilitie ities s will face ce the disast aster er at the same me time so you u will have ve to d deal al with them m at differ eren ent stage ges s of the crisis isis. . Se Set up teams ms to d deal al with spec ecifi fic c task sks. s.

• You hav

ave e time to prep epare are but you u would uld have ve to fi fight t for the limited ed res esourc

• urces

es beca cause use everyo eryone ne wants nts to d do the same me.

21

Le Lesso sons ns Le Lear arne ned d 2

• Transp

nsporta

• rtati

tion

• ns
• Impact

ct to your staff, aff, logis gistics, tics, other er services vices.

• Electricity

tricity

• Poss

ssibl ible e power er outage age and duratio tion. n.

• Co

Communicati unication

• ns
• Impact

ct to your work k proce cedu dures res, , trans nsac actio tions. ns.

• Public Water

ter

• Impact

ct to ability lity to cool l the Data a Center ter, , life fe suppor port t for staff ff.

• He

Health h cares s syste stem

• Impact

ct to your staff aff and their ir fami mili lies, es, poss ssibl ible e pandem demic ic dise seas ases es after er the flood.

• d.
• Food supply chains.

s.

• Imp

mpact ct to your staff aff and their ir famil ilie ies s durin ing g the flood

• od.

An Anticip cipate ate the potent entia ial l impacts cts to:

22

Le Lesso sons ns Le Lear arne ned d 3

• Monitor

tor the situa uatio tion n and infor

• rmati

ation

• n close

sely: ly:

• There

re we were so many sources ces of inform rmat ation,

• n, sort

t out wh which ones are reliable e and releva vant nt.

• Social networ

works ks could be useful ful and more e up t to date in this s kind of disaste ster

• Inform

format ation n may be neither her complet ete or accurate, rate, try ry to assess ss the situation ation yourse rself. lf.

• Us

Use these e inform rmat ation

• n to form

rmulat ulate e wh what t wi will impact ct you, , not only ly your operation, ation, your r busin iness ess volu lume, me, but als lso your customers’ operations.

23

Le Lesso sons ns Le Lear arne ned d 4

• Look

k after ter your r stak ake e holder ers: s:

• Staff

aff :

• Put their

ir welfare fare as your ur prior iority.

• ty. Allow

w them em to ta take ke time off to take e care re of th their ir houses uses, their ir famil ilies. ies.

• Transpo

ansportat rtation ion for staff ff

• Cu

Custo tomers mers :

• Prov
• vide

ide alter ernat native ive chann annel el for ser ervic vices

• Flexib

xible le ways ys to ident ntify ify your

• ur customers

stomers

• Match

tch their ir other er needs eds (no

• fee for inter

er-bank ank transactions) ansactions)

• Co

Communi uniti ties s

• Suppo

port the commu mmunit nities es aro round und your ur prem emise ises. s.

24

Le Lesso sons ns Le Lear arne ned d 5

• Fo

Focus us on some new impact cts s and new circu cumstan mstance ces. s.

• Impa

pact ct on your staff aff availabili lity ty

• Mor
• re

e alter erna nate e of key y staff ff who

• live

e in differ erent ent area ea

• Foods
• ds and beds

ds for BC BCP P staff around round backup ckup sites es

• Impa

pact ct on your facili liti ties

• Power

er and d water er supp pplies ies

• Commu

mmunic nicati ation

• ns
• Establ

ablis ish h backup ckup sites es outsid side e of th the disa saster ster area ea

• Stock

ck up your ur cri ritic ical al suppl upplies ies or pre re-arrange range for them

• Impa

pact ct on your wo work loads

• Impa

pact ct on your logisti tics cs

25

Con

• nclusio

lusions ns

• Disaster is dynamic, follow it closely but most

importantly, anticipate the potential impacts.

• Focus on how to reduce these impacts.
• Re-assess your plan, find vulnerabilities that may

be associated with this type of disaster but be flexible.

• Don’t rely on outside help, they are all busy.
• If you remember your staff, your customers in time
• f need, they will always remember you.

26

Q & A Q & A

Bhakorn.van

• rn.van@b

@bbl.co.th bl.co.th

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