Business Interruption Crisis Management

June 17, 2023

這是在溫習時節錄的重點~

 

Definitions (定義)

Hazard

  • a source of potential harm or a situation to cause loss.

Risk

  • effect of uncertainty on objectives (ISO31000:2018 3.1)
  • “effect” is a deviation from the expected. It can be positive (+ve), negative (-ve), or both, and can address, create or result in opportunities and threats

Consequences

  • the outcome of an event expressed qualitatively or quantitatively, being a loss, injury, disadvantage or gain. There may be a range of possible outcomes associated with an event (ISO31000:2018 3.6)

Likelihood

  • used as a qualitative  description of probability or frequency. (ISO31000:2018 3.7)

 

 

 

Risk is uncertainty concerning a potential loss

The potential loss that risk presents may be in the form of :

  1. Physical
    • death / personal injury / assets
  2. Financial
    • money
  3. Emotional
    • feeling / reputation

Physical and Financial loss are insurable risks (while emotional loss are not insurable)

 

 

用人群大小分 risks

  1. Particular risks
    • affect an individual or a small number of people
    • have relatively limited consequences
  2. Fundamental risks
    • affect large numbers of people
    • e.g famine, war, terrorist attack, widespread flood

用類型分 risks

  1. Pure risk
    • potential of loss only (no gain)
    • e.g fire, accidents, theft…
  2. Speculative risk
    • potential of gain or loss
    • e.g gambling, business ventures

Particular risk is insurable (while fundamental risk is not insurable)

Pure risk is insurable (while Speculative risk is not insurable)

 

 

Fundamental Components of BCM

  • 3 Phases in BCM: Emergency Response (當下處理), Crisis Management (交代), Business Recovery (回復正常)
  • 上圖「波」的高低代表intensity of reaction (effort needed) – Emergency Response phase need much more effort and resources
  • Safety Personnel 通常focus more on Phase 1
  • Capital-intensive company 通常focus more on Phase 2
  • Operational-intensive company 通常focus more on Phase 3

 

Emergency Management

  • focus on safeguarding people, company assets and environment from hazard risks and operational risks
  • e.g hazard
  • Tactical communication – warning & notification
  • Company’s first response and on-going management of the incident (i.e evacuation) – at the scene
  • report to Incident Support Team (IST) – IST members are administration functional managers

Crisis Management

  • focus on managing the issues and implications (governance & liability, stakeholder management)
  • e.g brand reputation, relationships
  • Strategic Communication – messages to all internal and external stakeholders
  • work between stabilize situation and recovery stage
  • members include public relations, legal, security, operations, finance, and human resources
  • spokesperson is the key component of the crisis management team

Business Continuity

  • focus on fast stabilization, restoration and recovery of critical business processes
  • e.g product performance, service performance

 

Business Recovery ≠ Disaster Recovery

Business Recovery is focusing on business critical process to minimize revenue loss

Disaster Recovery is focusing on restore damaged property and asset to resume normal operation at the same location

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