Business Continuity Management - Example

Business Continuity Management Name: Tutor: Course: Date: Business Continuity Management (BCM) Business Impact Analysis (BIA) Potential source of disruption for the storage of raw materials at Marine/Harbor works based at Abbot Point and Port Hedland could result from a number of risks. These risks or disruption scenarios are; fire, flood, chemical spill, storm damage, power failure, cyber attack, construction works, industrial disputes, upstream/downstream losses by customers, vendors and suppliers and the failure of building access controls among others. The ten risk events have been identified and listed in the table below. CBF (Critical Business Function) Risk Overall disruption scenario Likelihood Consequence Risk rating Risk priority Warehouse Fire explosion in the warehouse Loss of human life and damage to property Possible Major High 5 Industrial disputes or go-slow by workers Delayed deliveries and shipments Unlikely Moderate Medium 3 Failure of building access controls Delays in shipments Possible Minor Low 2 Storm damage of storage area Damage to stored goods Possible Moderate Medium 3 IT inventory systems Cyber attack by hackers Unauthorized access to internal inventory data Possible Severe High 4 Customer service Upstream/downstream losses by customers, vendors and suppliers Dissatisfaction among customers and suppliers Unlikely Moderate Medium 3 Maintenance operations Chemical spills during maintenance and servicing operations Slips and inhaling of toxic chemicals Possible Moderate High 4 Power failure during cleaning and replacement operations Lack of access and lighting Possible Moderate Medium 3 Port expansion works Floods during construction of port facilities Damage of construction site Possible Major High 5 Delay in construction works Cost and time overruns Unlikely Moderate Medium 3 Following the identification and assessment of risks, the Business Impact Analysis (BIA) was made as shown in the table below. CBF (Critical Business Function) Business process Interfaces MAO(Max. Acceptable Outage) RTO(Recovery Time Objective – Capability Levels) RPO (Recovery Point Objective-time to normal operations) Warehouse Picking and packing orders Staging orders for shipment and tracking shipments Receiving and stocking new inventory Power supply IT software/hardware reliability Remuneration systems Inventory control 12 days 9 days 15 days IT inventory systems Inputting and updating inventory systems with receiving and shipping data IT hardware reliability Intranet supplier Power supplier Records backup and recovery 3 days 2 days 7 days Customer service operations Processing wrong items or returned damaged items Managing missing or damaged inventory Online customer survey validity and reliability IT software reliability 3 days 6 days As long as one data collection method is manually operated 12 days Maintenance operations Cleaning warehouse areas Repair of warehouse equipment and storage areas Restriction of access (chemical spills) Occupational safety and health guidelines 10 days 7 days More than half of maintenance operations completed 16 days Port expansion works Construction of steel precinct facilities Procurement of steel handling equipment Power supply Remuneration systems Offsite construction works Project change management 28 days 20 days 60 days From the BIA above, the specific import orders include iron ore and coking coal, limestone, natural gas, water, coke, burnt lime, sinter and steel while export products are steel as slab or coil. The BIA has confirmed that the Warehouse and construction works are critical business functions that require proper management incase a major fire explosion takes place. This applies to both coal and iron ore slab storage at Abbot Point and Port Hedland respectively. The warehouses will store natural gas and coke for blast furnaces which are very flammable and volatile once the facilities are ready for use. However, coal storage remains a risky business for the harbors. This plan considers the existing recovery assessments using scenario-analysis approach for both man-made and natural disasters and possible threats to the ongoing business operations at Abbot Point and Port Hedland. Potential disruption threats The project reputational and financial impacts of fire on the warehouse in managing the resources of a number of scenarios Scenario 1: Loss of property and stored goods to fire Scenario 2: Loss of human life and key staff Scenario 3: Loss of IT inventory systems and data for one week Scenario 4: Floods during construction works of port facilities Assumptions Some assumptions were made regarding the loss of human life and the loss of IT inventory systems. The first assumption is that adequate fire alarm systems and means of escape have been enabled for easy evacuation of workers. The second assumption is that sufficient backup and recovery systems have been installed to aid recovery of IT inventory systems. This aspect leaves us with scenario 1 and 2 of loss of stored goods and property and human life. Response procedures and logistics The plan of action relates to logistical support and response procedures for fire as provided in storage area under Australian Standard AS3745:2010. This standard provides for planning for emergencies in the facilities under the fire prevention plan. Plan activation – delegated authority The managing director of Marine and Harbor works at Abbot Point issued a memo no. 3489/340-002 on 12 June 2017 decreeing the industrial and safety manager to test and activate the fire prevention plan for the facility. The safety manager is required to escalate fire incidences as soon as they occur and memo will remain in force until advised by the MD. Business continuity teams At Abbot Point, the business continuity teams will execute the plan and make reviews for the changes that may occur. These teams include; Management coordination Recovery Damage assessment Incident response such ambulance services and first aiders The teams may be assigned different work roles depending on the severity and impact of events during the actual or test plan activation Primary support activities The fire response teams mentioned above shall be directly responsible for: Responding to restore and preserve human life as well as property Evaluating recovery options and activate recovery teams Assess and evaluate the fire damage assessment findings Conduct fire safety audit and highlight fire risks around the warehouse Provide updated status information on fire incidence reporting Work with vendors and first responders in repairing and rebuilding schedule Responsibility of individual members The response teams shall have an updated contact list of all mobile contacts of team members Subject to the approval of the safety manager, a team member will nominate a substitute that is suitable Team members should be familiar with the plan’s contents All team members should have the copy of the fire prevention plan at home to cover for the disaster if it occurs after or before the normal workings hours Training Fire safety plan will involve staff induction for new employees as well as casual and temporary warehouse storage staff. The staff shall be trained on ongoing basis on use of fire equipment onsite and response to fire emergencies. A confident response team shall maintain an accurate entry system to track staffs movement within and outside the warehouse. Training of fire wardens shall be trained on communication systems on the premises, emergency warning and fire equipment handling. All team members shall be trained on fire prevention on appropriate dates. Team meetings Team meetings will be held after every two months starting 15th June 2017. Status reports shall be shared among, team members, functional heads and the managing director immediately after the meetings. The schedule of the next meeting shall be arranged two days to the scheduled meeting. For members who will not be present, videoconferencing or teleconferencing will be made available. Fire response procedures The response procedures have been devised to comply with the AS/NZS 3745-2002 and state/territory OH&S Regulations. These are matters that were identified in the BIA and require urgent and immediate attention. The response procedure shall entail: Pressing the alarm bell to alert all the staff and management on the occurrence of fire Convening all the staff at a designated fire assembly point and doing a roll call Arranging for an alternative recovery site particularly ‘cold or hot’ sites A special mitigation program and compensations shall be made for staff and their families Recovery process shall be facilitated for critical IT information All IT operations and inventory systems will be mirrored and backed up Physical, mental and psychological examination of staff in the event of fire Reinforcement of municipal or city ambulances and firefighting services Relocation of operations and employees if the premises are completely destroyed by fire Emergency response procedures The procedures will involve the first responders or incident response team, damage assessment and the management coordination team. Incident response team will be tasked saving lives and restoring people’s infrastructure and welfare. The response procedure is as shown in the table below shall be read out on 10th June 2017. Who (Team Leader) What When Identify First responders/Incidence response Impact on people’s lives At the point of the fire incident occurring Assess Damage assessment The level of damage caused Within 3 hours after the fire incident Contain Management fire response Any loss of human life or damage to property and goods Immediately the first responders clears their part Continuity response procedures The continuity procedures are steps taken by the industrial and safety manager at Abbot Point storage facility to ensure processes and critical business functions operate while recovery efforts are underway. The selected strategy for the storage area and construction works will involve relocation to a ‘warm site’ under the details provided below; Location: Creston Building, Ground Floor, 214 Hogan Street, Abbot Point, Queensland Phone number: 1300 75 83 23 Fax number: 1300 75 32 43 Postal Address: P.o. Box 55342 Abbot Point Queensland Related government legislation: AS/NZS 3745-2002 and state/territory OH&S Regulations The strategy shall be executed by the industrial and safety manager. All trained staff or fire marshals will be allocated 4-5 staff and an action plan will be activated for any loss of life, property or goods. One assumption made is that the safety manager will broadcast the fire prevention plan and steps to be taken as well as its initial impact and duration before the plan is activated. Plan of action The plan of action is as shown below. Plan of action Scenario: Loss of human life, property and goods Purpose: Maintain the critical business function with regard to alternative ‘warm site’ for recovery Authority: Industrial and Safety Manager Trigger point: Within three hours after the warehouse and construction works has been gutted by fire and is inaccessible When What Who When the decision to activate the fire plan has been reached Contact the MD, internal communications unit, response team over the fire incident Engage ambulance services and first responders Alert all staff to convene at designated assembly point Industrial and safety manager Incident response TM 1-2 hours after the declaration is made Set site emergency response center for first aid I&S Manager 2-3 hours after the declaration is made Contact families of staff and manage welfare Assess damage and approve back facilities for staff I&S Manager Damage Assessment TM Within one day of the declaration being made Relocate warehouse storage operations to a ‘warm site’ Perform offsite construction works Review CBFs and their commencement dates Damage Assessment TM Within three days of the declaration being made Recommence the CBFs Put into operation the alternative offsite construction and storage area I&S manager Recovery TM The responsibility of the above personnel shall be changed depending on the nature of response and the need to meet the recommended actions and time frames. 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