About BSI & Brexit. Presentation by: Asghar Ashrafi BSI Retired Employee : Oct 2016
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1 About BSI & Brexit Presentation by: Asghar Ashrafi BSI Retired Employee : Oct
2 An introduction to BSI Copyright 2016 BSI. All rights reserved. 2
3 Contents Who is BSI? Our end-to-end solutions Our people Our belief Organizational Resilience Our clients Summary Copyright 2016 BSI. All rights reserved. 3
4 Who is BSI? Experienced Trusted Specialist Reputable The world s first National Standards Body established in 1901 and a founding member of ISO and IEC A Royal Charter company reinvesting profits back into our business Standards Creation, Training, Certification, Software Solutions, Supply Chain Solutions and Specialist consultancy services Thought Leaders Shaped the world s most adopted standards Copyright 2016 BSI. All rights reserved. 4
5 Some of the world s top standards created by BSI (1987) Quality BS 5750 (1979) > ISO 9001 (1999) Health & Safety BS 8800 (1996) > BS OHSAS Reputable (1996) Environment BS 7750 (1992) > ISO (2012) Business Continuity BS (2007) > ISO (2005) Information security BS 7799 (1995) > ISO Thought Leaders Shaped the world s most adopted standards Copyright 2016 BSI. All rights reserved. Over 1.6m organizations worldwide use these standards as best practice, helping them to run more efficiently, saving money and resources 5
6 Standards as acceleration for innovation Asset Management and Building Information Modelling (BIM) Offshore Renewables, Assisted Living, Cell Therapy, Synthetic Biology Cyber Security Innovation Healthcare, Biometrics, Medical Devices, Dementia Care, Agri-tech Smart Cities Fuel Cells, High-value Manufacturing, Nanotechnology, Energy Management, Waste Management 6
7 A truly global brand 51% 75% of Fortune 500 of FTSE % of Nikkei Index 80,000 clients 182 countries 3 regional hubs 76 offices worldwide NPS +51 Over 37,000 standards available Copyright 2016 BSI. All rights reserved. 7
8 The difference standards have made to the world Product Specification Standards Business Process Standards Business Potential Standards Technical standards for products and services emerged at the end of the 19 th century, simplifying procurement and supporting trade and quality. Process standards supporting management systems enabled businesses to improve their performance. Business Potential Standards The third dimension of business standards are focussed on principles and frameworks, helping people and organisations deliver their full potential. Product Specification Standards Business Process Standards Today Copyright 2016 BSI. All rights reserved. 8
9 Our end-to-end solutions Shape International Standards ISO European Standards - EN British Standards BS Other e.g. PAS 10,000 experts Standards are estimated to have contributed 28% to UK GDP between Share Online Standards Portal Network Licenses Over 37,000 standards published Embed In-Company Training Public Training Business improvement software Advisory services Over 113,000 people trained in last 12 months BSI tutors rated 8.9/10 Assess Management Systems Certification Gap Analysis Verification services 2 nd Party Assessment Product Certification Kitemark and CE marking BSI assessors rated 9.3/10 Over 195,000 assessment days conducted globally at over 128,000 sites Support BSI Excellerator Report Continual Assessment Visits Business improvement software Advisory services 93% of clients report that SCREEN improves their supply chain visibility Copyright 2016 BSI. All rights reserved. 9
10 Our people Globally available standards, training, certification and advisory services Strong network of 10,000 experts Supported by 350 knowledge specialists Industry specialized assessors constantly trained on the new standards and processes Valued and appreciated by our clients our BSI assessors score 9.3/10 in our Global Client Satisfaction Index and world class Net Promoter Score of 51 Copyright 2016 BSI. All rights reserved. Tutors skilled in transferring knowledge to your employees We have a global network of over 4,000 people supported by 10,000 industry experts 10
11 Our belief The ability of an organization to anticipate, prepare for, respond and adapt to incremental change and sudden disruptions in order to survive and prosper. BS guidance on organizational resilience Copyright 2016 BSI. All rights reserved. 11
12 Organizational Resilience Managing and securing information Governing your business Ensuring regulatory compliance Protecting infrastructure Enabling trust & reputation Running your business Valuing your people Protecting brand reputation Safeguarding people Ensuring supply chain continuity Addressing your customer needs Minimizing security risk Mitigating social risk Copyright 2016 BSI. All rights reserved. 12
13 80,000 clients 51% 75% of Fortune 500 of FTSE % of Nikkei Index Copyright 2016 BSI. All rights reserved. 13
14 Summary Relevant Global network Over 100 years experience We re the business solutions company that can help your organization be resilient Helps you grow internationally and manage compliance throughout your supply chain The world s first National Standards Body and a founding member of ISO Industry thought leaders Market leading Trusted Our ethos We continue to shape the world s most widely adopted standards, so you can stay ahead Number 1 certification body in UK and US Royal Charter Company that invests in creating new standards and improving clients experiences Making Excellence a Habit is our commitment to excellence in client service and innovation Copyright 2016 BSI. All rights reserved. 14
15 Appendix Copyright 2016 BSI. All rights reserved. 15
16 Our heritage 2000 s 2010 s ISO published ISO 9001 published BS 7750 the worlds first environmental standard published BS 5750 the worlds first quality standard published 1990 s 1970 s 1960 s First committee meeting BSI testing labs open s 1940 s 1950 s Copyright 2016 BSI. All rights reserved. 16
17 Operational resilience Operational Resilience focuses on a company identifying operational improvements, including performance & sustainability, across its products/services and processes in order to meet the needs of its customer, through to how it values its people and governs itself. Delivering quality products/ services Quality ISO 9001 Aerospace AS 9100 Automotive TS Oil & Gas TS Telecoms Management TL 9000 Protecting the Environment Environment ISO Energy ISO Sustain. Events - ISO Emissions Verification ISO Carbon Neutrality PAS 2050/2060 Social Responsibility SA 8000 Keeping your people safe Health and Safety BS OHSAS Road traffic safety ISO Managing your business Collaborative Rel BS Asset Management ISO Anti-bribery BS Copyright 2016 BSI. All rights reserved. 17
18 Supply chain resilience Supply Chain Resilience is the ability to quantify and mitigate supply chain risks, including procurement, manufacturing, transportation and sales life cycle minimizing disruption impact and protecting a firm s global operational, financial and reputational exposures. Supply Chain Resilience Supply Chain PAS 7000 SCM SCREEN BSI VerifEye Directory Copyright 2016 BSI. All rights reserved. 18
19 Information resilience Information Resilience is the management an organization s information including physical, Intellectual Property and digital, throughout its lifecycle, from source to destruction, allowing stakeholders to store, access and use information securely and effectively. Information Resilience Info Security ISO IT Service ISO Cloud Sec CSA STAR Business Continuity ISO Data Protection BS Payment Card PCIDSS Electronic Info BS Copyright 2016 BSI. All rights reserved. 19
20 Royal Charter Royal Charter Royal Charters are granted by the Sovereign on the advice of the Privy Council. Originally, a Royal Charter was the only way to incorporate a company. Today, new Charters are normally reserved for bodies that work in the public interest (such as professional institutions and charities) and which demonstrate pre-eminence, stability and permanence in their particular field.* No conventional ownership No governmental influence (but close collaboration with BIS) Governance assured by strong Board of Directors *From Chartered Institute of Internal Auditors website Copyright 2016 BSI. All rights reserved. 20
21 BSI post Brexit Currently, membership of the single market is conditional upon states accepting free movement of labour, one of the EU's founding principles. Chancellor of the exchequer Philip Hammond is believed to be ready to give up access to the single market to satisfy voter concerns about immigration, according to reports. 21
22 BIS Standards policy on UK leaving the EU Following the result of the UK referendum and changes in government, BSI as the UK National Standards Body has been working with its stakeholders to communicate the key messages about the vital role of standards in supporting trade, growth and productivity. The expected triggering of Article 50 is by March 2017 will start a transition period lasting some years while the UK government negotiates the arrangements for its withdrawal from the EU and its future terms of trade with Europe and the rest of the world. Below is an explanation of how this affects the different roles of the National Standards Body. 22
23 At National level BSI will continue to develop and publish British Standards. No changes are anticipated to it s activity in this area. 23
24 At European level CEN and CENELEC are private organizations outside the EU coordinating the work of 33 countries in the making and dissemination of European Standards (EN). Membership of CEN and CENELEC is linked to the adoption of European Standards and the withdrawal of conflicting national standards, facilitating market access across the member countries. It is BSI s ambition on behalf of UK stakeholders for the UK to continue to participate in the European standards system as a full member of CEN and CENELEC post- Brexit. This would bring maximum benefit to the UK economy and society in its new status outside the EU, as reciprocity of market access with European countries and the maintenance of a unified domestic market structure across the UK facilitates trade and reduces complexity for SMEs and consumers, ultimately saving time, money and effort while ensuring product quality and safety. 24
25 What are standards and why are they important for industry? Standards are effectively a body of knowledge, available to all, that helps build trust and deliver aspirational performance of goods or services. They support trade, interoperability, quality, performance, innovation and market access. Standards may describe good business practices, set out guidance or document technical specifications. They facilitate business-to business (B2B) and business-to-consumer (B2C) transactions around the world. European standards help businesses and industry trade more easily within the European Single Market. 25
26 The single standard model that underpins the European Single Market (1of3) Standards are developed by industry experts with the involvement of other interested parties (such as societal organizations, academics and regulators). A formal consensus process is used that includes open public scrutiny. Standards are also maintained through a formal committee structure independent of government, commercial or societal interests. Compliance with a standard is up to the market: 26
27 The single standard model that underpins the European Single Market (2of3) The single standard model supports the European Single Market as it means that there is only one standard in use across all the countries of the single market on any given issue. The model is favoured by industry because it reduces the number of standards that an enterprise may have to consider in order to trade across borders. It also reduces cost and increases choice for consumers by making it easier for goods and services to be traded. Businesses gain the benefits of market-driven good practice developed by broad communities of experts through robust and open standardization processes. 27
28 The single standard model that underpins the European Single Market (3of3) Around 25 per cent of European standards are developed following a European Commission (EC) request, and the resulting standards support public policy in a variety of ways. The majority of these standards specifically respond to harmonized regulatory requirements across the single market. The 75 per cent of European standards that are not developed to meet European Commission requests meet other market needs and include test methods, terminologies, specifications for products and services, business process standards and guidance on good practice. 28
29 Withdrawal of conflicting standards a fundamental principle (1 of 2) CEN and CENELEC rules require that when work is started on a European standard, a standstill procedure applies and members cannot start or continue national work on the same subject. Once a European standard is published, CEN and CENELEC members are required to implement the European standard as a national standard and withdraw any preexisting standards that conflict with the new European standard. National standards development has to be reported at least annually by each NSB under the European Union Regulation (EU) No. 1025/2012 on European standardization to provide transparency on the national work programmes. In the case of harmonized standards, standstill and withdrawal have regulatory force. 29
30 Withdrawal of conflicting standards a fundamental principle (2 of 2) The UK currently has just over 7 per cent of votes at the main stages of the development process of each CEN and CENELEC standard. 30
31 What is the European Single Market? The European Single Market comprises the 28 Member States of the EU, with over 500 million consumers, plus the four members of the European Free Trade Association (EFTA): Norway, Iceland, Liechtenstein and, through bilateral agreements, Switzerland. The influence of the European Single Market is further extended by the customs union with Turkey; EU accession negotiations with Albania, FYROM, Montenegro and Serbia; and negotiations with other countries under the European neighbourhood policy. 31
32 What benefits do European standards bring to the European Single Market? The European Single Market is fundamental to the four freedoms of the EU Treaty: freedom of movement of people, goods, services and capital. It involves the removal of tariff and non-tariff ( technical ) barriers to trade (known as TBT). 32
33 How are these benefits delivered? The single market is delivered through regulatory and voluntary measures at European and national level, primarily through either mutual recognition or a process of harmonization. 33
34 Harmonization in the European Single Market Old approach legislation, e.g. cars, food, fertilizers. REACH New Approach or New Legislative Framework: voluntary standards for products, services, Mixed approach legislation, e.g. CPR, eco-design, cosmetics. Minimum harmonization e.g. General Product Safety Directive (GPSD) European Standards Non-harmonized area: national regulation (usually) subject to mutual recognition. This is the default condition in the absence of other legislative approaches to the use of standards. 34
35 What would be the impact of a UK exit from the EU in terms of UK participation in the European standardization system? How a possible UK exit from the EU would affect UK participation in the European standardization system. It is reasonable to assume that there would be an urgent re-negotiation of trade agreements with both the EU and other countries. There would be a number of impacts on BSI in its role as the UK NSB, most importantly on its role to represent UK interests in the development and use of standards by business and industry for trade, interoperability, quality, performance, innovation and market access. Clearly the precise impacts would depend on a range of political choices that would be made by HMG, some of them in conjunction with the EU and/or EFTA countries. 35
36 What would be the impact of UK exit from the EU on the UK memberships of CEN, CENELEC, ETSI, ISO and IEC? 36
37 General impacts on standardization in the UK of EU exit It is possible that the UK s standing and influence in the regional and international standardization organizations would decline in the event that the UK left the EU. 37
38 European standards provide a means for business and industry to trade more easily within the European Single Market. They are developed through a consensus process by industry experts and all the other stakeholders likely to be affected by the standards. Standards are maintained for as long as the market needs them through a formal committee structure managed by the national members of CEN and CENELEC. This process is independent of government, commercial or societal interests. 38
39 The End 39
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