Page 23 - Insurance Times February 2023

Why a Business Continuity Management It is important to remember that incidents can occur across,
or affect a range of categories, and are not limited to the
Approach ?
traditionally-expected areas of Facilities Emergencies and IT
Due consideration needs to be given to management of incidents Disasters. Taking a broader view allows a wider classifications
and crises across the Organization from a multi-unit, multi-city, of impacts as the following impact categories all of which are
multi-man-power perspective. This requires collaboration low frequency high severity which may lead to: substantial
between all units and people and a two-way flow of information loss of life, high value property damage, long interruption
during incidents and events. Planning also allows for both correct periods and all other associated effects.
local and high level response to occur and also drives fundamental
awareness at the Management and core resource area level of Catastrophe: A sudden and widespread disaster. FEMA
capital requirements, service availability and 'gaps'. definition: "… Any natural or man-made incident, including
terrorism, that results in extraordinary levels of mass
By implementing a Business Continuity Management casualties, damage or disruption severely affecting the
Framework an Organization is able to: population, infrastructure, environment, economy, national
Recognize the risks and impacts, key resources and core morale, and or government functions. Compared to disaster,
processes in a catastrophe most or all of the community built structure
Respond to the event; protect life, property, systems is heavily impacted; most, if not all, of the everyday
and other resources community functions are sharply and simultaneously
interrupted and help from nearby communities cannot be
Recover the resources, systems and processes
provided.
Restore to full operations, and
Review response, test preparedness and recalibrate planning. Disaster: Disaster Management Act 2005 defines disaster as
"Disaster is an event of natural or man-made causes that
lead to sudden disruption of normalcy within society, causing
Definition of Event Levels :
damage to life and property to such an extent that is beyond
Business Continuity Management acknowledges that despite
the capacity of normal social and economic mechanism to
the best efforts employed in organizational risk
cope up with."
management, events adversely affecting (disrupting)
organizational operations will sometimes occur. These events
Industrial Disaster: "Industrial Disasters are caused by
usually are categorized as follows :
chemical, mechanical, civil, electrical or other process failures
Minor Incident A Minor incident or outage within due to accident, negligence or incompetence, in an industrial
a single area or process, plant which may spill over to the areas outside the plant
insignificant or minor impact on causing damage to life and property."
the organization. However,
Multiple or ongoing incidents may Chemical Disasters: "Chemical disasters are occurrences of
have a cumulative effect, becoming emission, fire or explosion involving one or more hazardous
a major incident or crisis. chemicals in the course of industrial activity or storage or
Critical incident A Critical incident or outage
where key business process are
disrupted or resources are lost,
has a moderate or major impact
on the organization. May affect
external areas.
Major Critical Incident A Major Critical Incident, or series
of incidents, that have the
potential for extreme impact on
processes, resources and the
Organization's long term
prospects or reputation. May
affect external areas.

The Insurance Times January 2023 21