Time to Rethink our Assumptions about Risk and Resiliency Approaches. Business Continuity and Disaster Resiliency Forum Manila, Philippines
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1 IBM Global Technology Services Time to Rethink our Assumptions about Risk and Resiliency Approaches Business Continuity and Disaster Resiliency Forum Manila, Philippines Patrick Corcoran, Global Business Development Executives IBM Business Continuity & Resiliency Services
2 Headline events often mobilize our clients to pause and reflect on their current IT resilience standing... 2
3 The increasingly connected world has magnified the impact on every aspect of life, including its disruptions. 90% of WW BT resin supply stopped BT Resin Shortage Mobile Circuit Production Issue Earthquake and Tsunami Car Parts Shortage WW car production was down 20-30% for some major auto manufactures during April and May WW impact to Car Production Volcano Nuclear Plant Explosion Decreasing Tourism Visitors to Japan dropped 60% in April Game site attacked by hacker Flight Cancellation Airlines Discontinuation Class Action Lawsuit Personal Information Stolen The Iceland volcanic eruption cost airlines $1.7 billion with more than 10 million people affected Personal information leaks have cost millions of dollars, led to class action law suits, and damaged corporate reputation Servers shut down by human error Platform Outage Downstream Service Provider Disruption Hosting provider service outages affect PaaS and SaaS for other vendors 3 3
4 2011 World Wide Disasters One of the Costliest Years on Record Flash Floods, Italy, Spain, France 4-9 Nov Wildfires, Canada May Winter Storm Joachim, France, Switzerland, German December Hurricane Irene, USA, Caribbean 22 Aug 2 Sep Floods, Pakistan Aug - Sep Cyclone Yasi, Australia 2-7 Feb Drought, Somalia Oct 2010 Sep 2011 Climatalogical Events extreme temperatures, drought, wildfires Meterologic Events - storms Hydrological Events floods, mass movement Geophysical Events earthquake, tsunami, volcanic activity Source: Munich RE 4
5 Japan: March 11, 2011 Earthquake and Tsunami 5
6 Outline of East Japan huge earthquake 3/11 14:46 The earthquake of magnitude 9.0 occurs at 24km in Miyagi Prefecture offing 130km depth. Tsunami exceeded 10m as a result of the earthquake had a big influence on Iwate Prefecture, Miyagi Prefecture, Fukushima Prefecture, and Ibaraki Prefecture. 13,392 dead, 15,133 missing, and 150,000 or more victim as of April 14. The Fukushima nuclear plant lost cooling function due to Tsunami, then generated core meltdown, and the government declares INES level 7. A wide-ranging power failure occurs and it influences the society's infrastructure and the information technology operation greatly. Since 3/11, 400 times or more aftershock with magnitude 5.0 or more occurred. Damage is assumed to become 100 trillion yen scale according to the report of CNN. 1:Affected area by earthquake and Tsunami 2:Affected area by nuclear plant accident 3:Affected area by earthquake Concerns Aftershocks Nuclear reactors down 3 2 Planned Power outage Huge loss of infrastructure due to earthquake and Tsunami. Fukushima nuclear plant #1 radiation leak Even the metropolitan area Big confusion by rolling blackout 6
7 What follows is IBM's history of involvement in humanitarian disaster response since Incidents Gujarat, India, earthquake, Jan 2001 New York City, September 11, 2001 Tsunami - Sri Lanka, Dec 2004 Tsunami - India, Dec 2004 Tsunami - Indonesia, Dec 2004 Tsunami - Thailand, Dec 2004 Mexico, Hurricanes/flooding 2005 US Gulf Coast Hurricanes Katrina and Rita, August 2005 Pakistan earthquake, October 2005 Philippines Guinsaugon landslides Feb 2006 Indonesia - Mt. Merapi (Jogja) volcano/quake, June 2006 Peru earthquake, Aug 2007 San Diego, wildfires, October 2007 Mexico, Tabasco flooding, November 2007 Bangladesh, cyclone, November Indonesia mud slides, December 2007 Sri Lanka - flooding December 2007 Sichuan Province, China, earthquake, May 2008 Myanmar, Cyclone Nargis, May 2008 Bihar, India, flooding, August 2008 Australian bush fires, Victoria Feb 09 H1N1 response - Centers for Disease Control (U.S.) server donation Italy earthquake, April 2009 Mexico - H1N1 response August 2009 Taiwan typhoon - August Kidsmart donation, investigation of Sahana Philippines typhoon Ketsana/Ondoy - September 2009 Indonesia earthquakes - September 2009 Vietnam flooding - September 2009 India flooding - Kamataka and Andhra Pradesh - September 2009 Haiti earthquake - January 2010 Chile earthquake - February 2010
8 Hindsight is 20/20 where traditional IT disaster plans often fall short Most disaster plans fail to account for: Disasters create other disasters domino effect Japan: earthquake => tsunami => nuclear plant damage => power problems => supply chain problems Human issues Will people be available? How about their families? Financial assistance? Communications issues Communicating with, supporting and mobilizing employees, customers and suppliers, the press and the public at large Community issues Fulfilling responsibilities to host communities Infrastructure issues Anticipating how roads, travel and power supplies might be affected Vulnerability of sites Business issues Keeping business processes running Managing insurance claims Disaster plan currency Keeping plans up to date and well tested Availability of data and hardware To learn more about lessons learned from regional disasters, listen to the following webinar: 8
9 Key areas to consider when creating or updating your business continuity plans. people communications travel / transportation plan currency insurance infrastructure power hardware replacement data availability 9
10 people communications travel / transportation plan currency IBM Business Continuity Key areas to consider when creating or updating your business continuity plans. Problems encountered Availability of employee Conflicts with families and spouse conflicts How people respond to different disaster scenarios Who and where are decision makers during disaster Employees safety Emergency loans / funds for employees insurance infrastructure power hardware replacement data availability Actions to Consider Consider employees prior, during and after event Roles during and after disaster, safety, trauma, transportation, housing and funding Consider addressing employees families in BCP Include IT, lines of business, HR and auditors in BCP Consider having alternate teams available 10
11 people IBM Business Continuity Key areas to consider when creating or updating your business continuity plans. Problems encountered communications travel / transportation plan currency insurance infrastructure power hardware replacement data availability No centralized number for employees/customers/partners Cell phones didn t work No power for cordless phones Limited access to internet for No or limited plans to address media No or limited communications with public sector agencies Actions to consider Create centralized number, address and/or web site Consider alternate communication tools: satellite phones, cell phones outside of affected region, common address, wireless cards for laptops, text messaging Create an external communications plan 11
12 people communications travel / transportation plan currency IBM Business Continuity Key areas to consider when creating or updating your business continuity plans. Problems encountered People did not follow local agencies directions Limited or no availability of fuel Limited or no air transportation Limited or no availability of rental vehicles Heavy traffic, long delays Vehicles disabled due to high temperatures insurance infrastructure power hardware replacement data availability Actions to Consider Work with local government agencies Understand and follow evacuations guidelines Anticipate, move key employees (and families) and data out of the affected area Consider availability of hotel and car rental Have extra supply of fuel for travel 12
13 people communications travel / transportation IBM Business Continuity Key areas to consider when creating or updating your business continuity plans. Problems Encountered Outdated or non-existent plan Plans were not available Plans were not linked to change management No Crisis Management Team plan currency insurance infrastructure power Actions to Consider Keep plan current Integrate plan with IT and business change management Keep DR vendor contract current Test plan annually or more often Create crisis team to manage crisis hardware replacement data availability 13
14 people communications travel / transportation IBM Business Continuity Key areas to consider when creating or updating your business continuity plans. Problems Encountered Unknown, poor and/or inadequate coverage Did not know what disaster scenarios were covered No inventory or documentation of activities for claims adjuster plan currency insurance infrastructure power Actions to Consider Understand your risks and ensure adequate insurance coverage Understand and test different disaster scenarios Keep an inventory of all assets Document all activities throughout the disaster event Obtain independent review of insurance coverage hardware replacement data availability 14
15 people communications travel / transportation plan currency IBM Business Continuity Key areas to consider when creating or updating your business continuity plans. Problems Encountered Location in high risk areas Mold, contaminants Structural damage Storage / location of critical assets (i.e., Basement) Mobile solution didn t work in affected area insurance infrastructure power Actions to Consider Understand risk and vulnerabilities of facility location(s) Consider security and accessibility of facility Conduct a vulnerability assessment of facility Have vendor contacts ahead of time to fix or clean facility if required hardware replacement data availability 15
16 people communications travel / transportation plan currency IBM Business Continuity Key areas to consider when creating or updating your business continuity plans. Problems Encountered No power or fluctuating time estimates for restoration No/limited redundant power supplies (i.e diesel generators) Poor location of generators / UPS (basement, roof) No inadequate supply of fuel insurance infrastructure power Actions to Consider Ensure redundant power supplies are tested Consider location of redundant power supplies Have contacts for acquisition of generators Ensure adequate fuel supply hardware replacement data availability 16
17 people communications travel / transportation plan currency IBM Business Continuity Key areas to consider when creating or updating your business continuity plans. Problems Encountered Hardware was damaged No power for equipment to repair No plans to relocate equipment to alternate location No plans to dispose of damaged equipment Incomplete coverage on service contracts insurance infrastructure power hardware replacement Actions to Consider Consider a contract for equipment acquisition Have vendor(s) lined up for equipment relocation Understand methods and procedures for removing and moving equipment Understand methods and procedures for disposing of damaged equipment. data availability 17
18 people communications travel / transportation plan currency IBM Business Continuity Key areas to consider when creating or updating your business continuity plans. Problems Encountered Tapes were stored in affected areas or at office Tapes/DASD/documents were destroyed or damaged Tapes were lost in transport Tapes could not be shipped because of travel restrictions Restoration processes were unknown or untested insurance infrastructure power hardware replacement Actions to Consider Utilize electronic media Set up multiple locations for backups, one set near your recovery location Store critical documents on electronic media in remote locations Ensure restoration procedures are part of your BCP and tested data availability 18
19 Business resilience refers to the ability of enterprises to adapt to a continuously changing business environment. Business resilience helps organizations maintain continuous operations and protect their market share in the face of disruptions such as natural or man-made disasters. It requires the engagement of everyone in the organization and often means a change in corporate culture to instill awareness of risk. Business resilience planning is distinguished from enterprise risk management (ERM) in that it is more likely to build capacity to seize opportunities created by unexpected events. 19
20 A resilient framework helps identify areas of risks and vulnerabilities, and allows a company or organization to develop a enterprise resiliency roadmap. Strategy Risk mitigation strategies Business driven Data driven Event driven Organization Processes Applications and Data Technology Facilities Business resilience 20
21 A business resilience program should utilize a methodology that encourages a continuous monitoring and improvement. Understand the organization requirements and risks Develop solutions to increase Resiliency objectives Improve the efficiency and cost effectiveness of our program Policy Formulation / Committee Awareness, Regular Validation, Change Management, Executive Reporting Program Management Risk Assessment Business Impact Analysis Program Assessment Program Design Strategy Design Develop & Implement Program Validation Risks Vulnerabilities Threats Organization objectives Tangible (financial) Intangible (brand image) Current capabilities Crisis team Business Resumption Disaster Recovery Information Security People Procedures Infrastructure Facilities Documented Actionable Measureable Assess Plan Implement Manage 21
22 IBM delivers unsurpassed geographic scope combined with a thorough knowledge of local, regional and global regulations. Over 160 data centers globally 100 percent recovery for IBM clients who have declared a disaster (over 800) More than 1,875 professionals dedicated to business continuity and resiliency More than 9,000 disaster recovery clients More than 10,000 client rehearsals per year More than 50 years experience helping clients with their backup and disaster recovery needs Over 800 client declarations supported since 1989 Scalable, end-to-end, cloud-based data backup and recovery solutions Five million square feet of floor space for disaster recovery, with 40,000 seats 22 22
23 Thank You! Any questions, contact me Patrick Corcoran
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