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

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The Importance of Business Continuity Planning

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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).

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Background

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Background

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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

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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.

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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.

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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.

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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!

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Business Continuity Planning

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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

f time for dealing with them.

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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.

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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

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To the rescue!

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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.

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Step 1: : Collect Key Business In Information

Business Specific Information

Registration numbers
Business Continuity Leads
Locations of important items

Insurance Specific Information

Contact information
Agent Information
Summary of coverage and policies

Important Contact Lists

Employee contact information
Supplier contact information
Major customer contact information
Emergency contact information

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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

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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

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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

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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

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Step 1: : Collect Key Business In Information

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Step 2: : Risk Analysis

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Step 2: : Risk Analysis

Identify Hazards in Your Location Inventory Critical Business Assets and Functions Analyze Impacts and Risks

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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.

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Step 2: : Risk Analysis

Pop Quiz: What are the top 4 hazards in the Interior of BC?

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Step 2: : Risk Analysis

Brainstorming Exercise: Identify Hazards in and around your region

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Step 2: : Risk Analysis

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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!

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Step 2: : Risk Analysis

Inventory Critical Business Assets and Functions:

BUSINESS FUNCTION STAFF REQUIREMENTS RESOURCE REQUIREMENTS RTO Score

Sales Sales Managers, Sales Associates Computer, landline, customer contact list, printer, email

3

Delivery Delivery Driver Refrigerated van, fuel, GPS

1

Shipping and Receiving Shipping and Receiving Manager Computer, landline, sales and delivery records, vacuum sealers

1

Food Storage Shipping and Receiving Manager Refrigerators, electricity

5

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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?

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Step 2: : Risk Analysis

Analyze Impacts and Risks of the Hazards on their Business:

Business Function/ Asset POTENTIAL IMPACTS

Severity (1-5)

Computers

Backlog of sales and shipping transactions.

2

Operational difficulties.

4

Food Storage

All the inventory is perishable and will be lost without refrigeration.

4

Shipping and Receiving

Unable to package products.

1

Unable to send and receive products.

4

Will damage business reputation and cause financial repercussions.

3

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Step 3: : Business Im Impact Assessment

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Step 3: : Business Im Impact Assessment

A business impact assessment takes a more detailed look at all of the

information business owners have already identified, combines it all together and then prioritizes which Hazard Action Plans should be created first.

It does so by assigning an overall impact score which represents the

risk exposure for their business (the higher the number, the higher the risk exposure).

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Step 3: : Business Im Impact Assessment

Hazard Probability (1 to 5) Business Functions Impacted RTO Score Severity Subtotal Overall Impact Score Flooding

4

Sales 3 5 60 80 Delivery 1 3 12 Shipping and Receiving 1 2 8 Forest Fires

5

Sales 3 5 75 100 Delivery 1 3 15 Shipping and Receiving 1 2 10 Cyberattack

3

Computers 3 5 45 54 Internet 3 1 9 Owner injury

2

Sales 3 3 18 18 Loss of electrical service

2

Computers 3 2 12 12 Internet 1 1

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Step 4: : Risk Reduction - Mitigation & Preparedness

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Step 4: : Risk Reduction - Mitigation & Preparedness

After identifying the greatest risks to their business, it is time to start

thinking about how to reduce those risks.

Mitigation and preparedness are two ways to do this:
Mitigating risk is an action which business owners undertake before a hazard

situation to reduce businesses’ vulnerabilities and risk exposure. By mitigating the risks, when a hazard occurs, it will have less of an impact.

Preparedness means putting resources in place before an emergency, so that

when a hazard occurs business owners are better equipped to deal with it. This will also lessen the impact.

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Step 4: : Risk Reduction - Mitigation & Preparedness

For example:

A mitigation measure is implementing recommendations from the

FireSmart Program to reduce their businesses wildfire risk, such as fuel management around the property or tree limb removal.

A preparedness measure would be creating their emergency

preparedness kit before a wildfire, so that if a wildfire happens business owners have the supplies needed to reduce their risk.

Both are examples of ways to reduce the impact that a wildfire might

have on their business.

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Step 4: : Risk Reduction - Mitigation & Preparedness

Alternative Suppliers
Power Failure Strategy
Power Generators
Implement Redundancies
Cloud Storage and Computing
Back up Data Regularly
Include their Staff in the planning process
Cross-Training and Succession Planning

Pages 38 to 44 outline some suggested mitigation and preparedness strategies, but there are many more ideas out there.

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Step 4: : Risk Reduction - Mitigation & Preparedness

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Step 4: : Risk Reduction - Mitigation & Preparedness

Insurance:

Having proper insurance coverage is one of the most important things

businesses can do as far as risk reduction

Only 8.5% of businesses in the 2017 TNRD wildfires held business

interruption insurance and were able to successfully make a claim.

This is especially important as businesses are not eligible to apply

for government disaster financial assistance if insurance was available for a particular loss and the business chose not to obtain coverage

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Step 4: : Risk Reduction - Mitigation & Preparedness

Insurance: The Business Impact Assessment, business owners with the core information required to investigate insurance options:

What are the most likely hazards which will have the biggest impact on

their business and what were the key business functions/ assets impacted?

Next, consider the amount of the coverage which business owners require.
Review any exclusions or other considerations for a given policy: i.e. Does
perating a welder on premises make a given fire insurance policy void?

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Step 3: : Business Im Impact Assessment

Hazard Probability (1 to 5) Business Functions Impacted RTO Score Severity Subtotal Overall Impact Score Flooding

4

Sales 3 5 60 80 Delivery 1 3 12 Shipping and Receiving 1 2 8 Forest Fires

5

Sales 3 5 75 100 Delivery 1 3 15 Shipping and Receiving 1 2 10 Cyberattack

3

Computers 3 5 45 54 Internet 3 1 9 Owner injury

2

Sales 3 3 18 18 Loss of electrical service

2

Computers 3 2 12 12 Internet 1 1

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Step 4: : Risk Reduction - Mitigation & Preparedness

Insurance Questions to Ask:

What perils or causes of loss does my policy cover?
How will my property be valued?
What does my policy require me to do in the event of a loss?
For how long is coverage provided?
How long is my coverage for lost income if my business is closed by order of a civil

authority?

To what extent am I covered for reduced income due to customers not all immediately

coming back once the business reopens?

What types of records and documentation will my insurance company want to see?
How will my emergency management program affect my rates?

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Step 4: : Risk Reduction - Mitigation & Preparedness

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Step 4: : Risk Reduction - Mitigation & Preparedness

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Step 4: : Risk Reduction - Mitigation & Preparedness

Insurance:

Insurance Company Information

Name Inclusive Inclusions Ltd. Street Address 209 Dutch Lake Road, your region, BC Telephone Number (250) 555 – 5555 Fax Number (250) 555 – 5555 Website www.II.ca Contact Emergency Telephone 1-888-555-5555

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Step 4: : Risk Reduction - Mitigation & Preparedness

Insurance:

Insurance Agent's Information

Agent's Name Billy Billings Agent's Direct Line (250) 555 – 5555 Agent's Email XXXXXXX@XXXXXXX.ca Contact Emergency Telephone 1-888-555-5555

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Step 4: : Risk Reduction - Mitigation & Preparedness

Insurance:

Insurance Policy Information

Type of Insurance Provider Name Policy Number Policy limits Coverage (General Description) Fire and Flood Impact Ltd. 123456 $1,000,000 Basic coverage from Fires and Floods Business Interruption Intact Ltd. 123456 $ 250,000 Loss of income from interruption Liability Indeed Ltd. 123456 $3,000,000 General liability

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Step 5: : Hazard Action Plans

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Step 5: : Hazard Action Plans

Hazard Action Plans are single page “mini-plans” which are hazard

specific and are designed to be a single go to source of information used before, during and after a hazard situation.

Beforehand they represent a reference point for preparedness and mitigation

strategies specific to each hazard

During an emergency situation they can be easily referenced to review likely

impacts and strategies already identified

After a hazard situation they represent a reference point for recovery and

response activities to help get their business back online as soon as possible.

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Flooding

Recovery Time Objective

2 Weeks 4 weeks 6 weeks Inventory damage financial impact reputation damage Landline or mobile phone Sales and shipping records Key customer contact list Sales manager Sales staff Shipping and Receiving staff

Potential Impacts

Hazard:

Business Functions Impacted

Sales Shipping Receiving

Resource Requirements Staff Requirements

Step 5: : Hazard Action Plans

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Develop a flooding strategy Locate a temporary warehouse backup Develop a communications plan Ensure resources are available on the cloud Contact the Business Continuity Manager Implement communications plan Move as much inventory as possible to backup warehouse location Implement startegies to mitigate flood damage Do an inventory check for damage Contact insurance company Prioritize shipping and receiving Continue with communications plan

Mitigation and Prepareness Strategies

BEFORE DURING AFTER

Step 5: : Hazard Action Plans

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That’s it!

Business owners have now created their own customized Basic Business Continuity Plan! Throughout this workbook, tables will be completed which are marked in the upper right hand corner with this special symbol:

Take these specially marked pages and put them into a separate binder,

This is now their finished Basic Business Continuity Plan.

Additional components located in part 2, can also be added to this basic

plan.

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Feedback fr from Business Owners

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Feedback fr from Business Owners

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Feedback fr from Business Owners

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Feedback fr from Business Owners

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Feedback fr from Business Owners

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Feedback fr from Business Owners

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Why is Business Continuity Planning so Im Important?

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The top fi five ways a busin iness continuity pla lan can help min inimize the effects of f emergencies and dis isasters*:

1) ) Maxi ximiz ize th the chances th that im important busin iness operatio ions conti

tinue. A

business continuity plan helps identify even simple contingency plans, such as installing generators at a hospital to ensure important equipment continues to operate during power outages.