Continuity Planning Background A total of 12,161 square kilometers - PowerPoint PPT Presentation

The Importance of Business Continuity Planning

Background • A total of 12,161 square kilometers had burned by the end of the 2017 fire season, the largest total area burnt in a fire season in recorded history at that time (1.3% of BC total area). • This record was broken the following year, with five of BC's worst 10 fire seasons occurring since 2010. • The 2017 fire season was also notable for the largest number of total evacuees in a fire season (65,000 people) • The Plateau Complex fire covered a combined area of 545,151 hectares, making it the largest fire in B.C.'s recorded history (roughly the same size as Prince Edward Island).

Background

Background

Background • O’Leary and Associates was hired to the Economic Recovery Workplan for the TNRD • Work from the ground-up: engaging businesses in community sessions, and online • Estimated 457 businesses negatively impacted

Highlights From the Study • Most businesses surveyed (~75%) typically have annual revenues below $250,000 per year and 85% of them have ten or fewer employees. • Just over 40% of the businesses captured in this recovery initiative are owner/operators.

Highlights From the Study • Overwhelmingly the economic loss suffered by businesses in the TNRD due to the wildfires of 2017 was related to business interruption. • Only 16% of businesses engaged in the initiative indicated that their business loss was attributed to direct fire damage.

Highlights From the Study • When businesses in the survey were asked if they were aware of business interruption insurance, 62% said yes. • Of the respondents who said yes, only 14% of the businesses indicated that they had successfully made a claim • This means that only 8.5% of businesses surveyed held business interruption insurance AND were able to successfully make a claim.

Highlights From the Study • Businesses and communities are interested in having assistance with disaster planning now, as a proactive measure, before the next disaster strikes. • When asked if business owners would like to know more about programs and services that could help their business with economic recovery, there was an overwhelming response of “yes”. • When businesses were asked if they had a Business Continuity Plan, nearly two thirds (61%) reported that they did not!

Business Continuity Planning

What is a Business Continuity Plan? • A Business Continuity Plan is a plan that focuses on the ability of a business to prepare for and respond to unexpected disruptions. • Well prepared businesses have been proven to fare much better through and after a disaster because they have already considered the possible impacts to their business and developed strategies ahead of time for dealing with them.

The Basics of f Business Continuity Planning • There are a series of activities which are fundamental to all business continuity planning guides, which help business owners to better understand their business and risk exposures: • Identify possible hazards; • Identify core functions and assets; • Identify what impacts the loss of these core activities will have; and • Identifying what hazards pose the most business risk to their business • Identify steps to mitigate or prepare for these hazards.

Why is it important? • Emergencies and disasters are unavoidable and are happening more and more frequently in British Columbia • Although it is impossible to predict what will happen in the future, it is possible to take steps to help reduce any negative impacts • The best time to strategize is when business owners are not in an emergency situation and instead have time to think

To the rescue!

Step 1: : Collect Key Business In Information • The first step is to document all of the critical information that the business owner might need should an emergency arise. • This way, in the event of a business disruption, they will not have to waste valuable time scanning through stacks of documents to obtain vital information (such as key contacts and insurance information). • Furthermore, if they have been evacuated, they will have all the information you need to answer questions for aid groups and authorities as well as be able to stay connected with key contacts.

Step 1: : Collect Key Business In Information • Registration numbers Business Specific • Business Continuity Leads Information • Locations of important items • Contact information Insurance Specific • Agent Information Information • Summary of coverage and policies • Employee contact information Important • Supplier contact information Contact • Major customer contact information Lists • Emergency contact information

Step 1: : Collect Key Business In Information Step 1: Collect Key Business Information • This page also summarizes all of the important “business specific” information which business owners may need available during an emergency. • For example: If business owners had been evacuated and needed to contact Canada Revenue Agency to check and see when their next GST remittance is due, what information would they likely require? • If business owners had their business registration number and GST account number business owners would likely be able to get an answer. Similarly, using their BCeID business owners might be able to login and check for theirselves.

Step 1: : Collect Key Business In Information Step 1: Collect Key Business Information Locations of Important Items Emergency Kit Storage room - top shelf of first rack First Aid Kit Storage room - top shelf of first rack Important Documents Tall Filing Cabinet in manager's office Fire Extinguisher Behind front desk “Grab and Go” Bag Behind front desk First Responder Package Behind front desk Shut-down Procedures Posted on the bulletin board in staff room

Step 1: : Collect Key Business In Information Step 1: Collect Key Business Information Business Registration/Accounts Incorporation or Business # BN123456789 GST account # 123456789 PST account # 123456789 Business license # 123456 WorkSafeBC account # 123456789BW0001 Payroll account # 123456789BW0001 BCeID flyingfeathers

Step 1: : Collect Key Business In Information Step 1: Collect Key Business Information • Staff contact information will be useful in an emergency. It is also a useful list to be able to give to support organizations such as Interior Health or Red Cross who might be trying to connect with people affected by an emergency. • Supplier and customer lists should only include those which are deemed critical to the operation of the business.

Step 1: : Collect Key Business In Information

Step 2: : Risk Analysis

Step 2: : Risk Analysis Inventory Critical Identify Hazards Analyze Impacts Business Assets in Your Location and Risks and Functions

Step 2: : Risk Analysis Identify Hazards Specific to their Business and their Probability • For the purpose of this workbook, hazards are defined by conditions which are exterior to their business operation and outside of their control . • For example: Loss of electricity is a hazard because it is an outside influence and is out of their control. • Loss of frozen food inventory because of a loss of power is a business function (cold storage) and critical asset (operating freezer), which are both internal to their business – Not hazards .

Step 2: : Risk Analysis Pop Quiz: What are the top 4 hazards in the Interior of BC?

Step 2: : Risk Analysis Brainstorming Exercise: Identify Hazards in and around your region

Step 2: : Risk Analysis

Step 2: : Risk Analysis Inventory Critical Business Assets and Functions: • Next, create an inventory of critical business assets and processes: what things are essential to keeping their business running and determine a Recovery Time Objective (RTO). • This is not an exhaustive list Try to “deconstruct” their business down to the absolute core functions and pieces • For example, if their business is a bakery, printing receipts for customers is not an absolute core function/asset, but having a working oven is!

Step 2: : Risk Analysis Inventory Critical Business Assets and Functions: BUSINESS STAFF RESOURCE FUNCTION REQUIREMENTS REQUIREMENTS RTO Score Sales Managers, Sales Computer, landline, customer 3 Sales Associates contact list, printer, email 1 Delivery Delivery Driver Refrigerated van, fuel, GPS Shipping and Receiving Computer, landline, sales and 1 Shipping and Receiving Manager delivery records, vacuum sealers Shipping and Receiving 5 Food Storage Refrigerators, electricity Manager

Step 2: : Risk Analysis Analyze Impacts and Risks of the Hazards on their Business: • Next identify the potential impacts of being unable to resume the business function within the specified RTO. • Potential impacts may be financial, organizational, operational, and/or social. • Assign a score of severity — would they disrupt their operations for a few hours? A few days? Shut their business down completely?