Correlation between risk management and business continuity management are now embedded in the insurance purchase process. Insurance is central to BCM – but it is not always given the attention that it deserves. There are at least three aspects of insurance that need to be considered in relation to BCM:
? Management may take the view ‘we have insurance – why do we need to concern ourselves with BCM?’ Read the rest of this entry »
Business Continuity Management (BCM) has close relationship with Risk Management. In many organizations BCM is part of
an overall risk management function. This is particularly the case in financial organizations where risk management is well established, features very high on the corporate agenda, and is usually represented at board level. While the Turnbull
Committee has placed a lot of emphasis on risk, there are other factors that impact on the regulatory environment within which financial organizations operate. The international banking regulations established through the Bank of International
Settlements in Basle, Switzerland, have imposed increasingly sophisticated and extensive requirements for risk management within the banking system. The Basle Committee’s 2001 proposals (‘new Capital Accord’) are a major overhaul of the 1988 Capital Accord. The accord will apply to all major banks in the G10 countries from 2004 and it is likely that regulators in many other countries will adopt it. In the EU, the European Commission has stated its intention to apply the new Capital Accord to all credit institutions and investment businesses. The implications are regarded as far-reaching and will require significant investment by financial institutions in order to comply. There are onerous requirements which
will impact on risk management and business continuity activities.
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Business continuity management is the act of anticipating incidents which will affect mission-critical functions and processes for the organization and ensuring that it responds to any incident in a planned and rehearsed manner.
Some of these emphasize the combination of management disciplines and activities that help to ensure the continuous operation of the essential business functions under all circumstances.
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Permitting difficulty was a common issue raised among managers. The need for program-level and umbrella-type permits was expressed to reduce the time and expenses involved in the various counties or agencies each repeatedly applying for and obtaining all the appropriate permits needed for maintenance and improvement activities such as dredging, boat ramp maintenance, cleaning of sanitary facilities, and maintenance of fueling stations. The problem is further confounded when permit issuance is delayed, leading to more funding losses and loss of access to facilities. Programmatic DFG permits and general permits that do not expire after one year were mentioned as recent improvements to the permitting programs. The permit application process for events such as boat races was another constraint discussed by some managers. The sharing of information and expertise in permitting or possibly some type of joint effort to obtain permits was identified as desirable.
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