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

BCP At Bangkok Bank, Thailand Bhakorn Vanuptikul, BCCE Executive Vice President Bangkok Bank Public Company Limited 10 May 2012 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 ok 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 onti tinu nuity ity Management? Management? Finan ancial cial Sector or is an Integral gral Part rt of o our ur Econ onom omy.  Finan ancial cial Instit tituti utions ons are re IT c centric ntric and are e inter erdependen dependent t with  others. ers. Finan ance ce Instit tituti utions ons 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 own and d Curren rrency cy Flow  We rely ly on mor ore 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 ock 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 of 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 DRP (Disaster Recovery Plan) components  DRP is prepared to manage the continuity and recovery of systems, data centers, and communication services in the event of 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 To ensure business continuity, Bank has set  The plan details actions to deal with incident, emergency and up the Business Continuity Management crisis. (BCM) program, which incorporates DRP, BCP, Security plan, and Crisis Management  Bank has set up Crisis Management Team which is consisting of plan. 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 ong Manag anagem ement ent Support port  Use e Consul nsultant tant with Trac ack k Reco cords  Strong ong Team am with Strong ong Pers rsonne nnel  Has s Good od Method hodology ology and d Proc ocess ss in plac ace  Know w Your ur Busin siness ess and d Know ow 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 on is Critic itical al in BCM 10

Le Lessons ons Le Lear arne ned d fr from om Prev evio ious us Crisis isis  Political ical Cr Crisis s of May 2010  Great eat Flood of No November ber 2011 11

Pol olit itical ical Crisis isis of of Ma May 20 2010 10 12

Pol olit itical ical Crisis isis of of 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 ow 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 ow 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 of 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 ons 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 ons 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 ood d of of Au Augu gust t to to Nov ovember 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 ographical hical extent tent of f th the fl flood ood 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 opment nt of the Di Disaster. ster.  This s is a r regi egion onal al disast aster er that is:  Sl Slow w to ta take ke place ce but would ld last st more ore 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 ources 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 Anticip An cipate ate the potent entia ial l impacts cts to:  Transp nsporta ortati tion ons  Public Water ter  Impact ct to ability lity to cool l the  Impact ct to your staff, aff, Data a Center ter, , life fe suppor port t for logis gistics, tics, other er services vices. staff ff.  Electricity tricity  He Health h cares s syste stem  Poss ssibl ible e power er outage age  Impact ct to your staff aff and their ir and duratio tion. n. fami mili lies, es, poss ssibl ible e pandem demic ic dise seas ases es after er the flood. od.  Co Communicati unication ons  Food supply chains. s.  Impact ct to your work k  Imp mpact ct to your staff aff and their ir proce cedu dures res, , trans nsac actio tions. ns. famil ilie ies s durin ing g the flood ood. 22