business continuity: best practices and challenges

21
Middle East Annual Conference 2014 Business continuity: Best practices and challenges Guy Peterson Senior Assurance and Resilience Expert Booz Allen Hamilton

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Page 1: Business continuity: Best practices and challenges

Middle East Annual Conference 2014

Business continuity: Best practices and challenges

Guy Peterson

Senior Assurance and Resilience Expert Booz Allen Hamilton

Page 2: Business continuity: Best practices and challenges

This document contains Booz Allen Hamilton Inc. proprietary and confidential business information.

Ready for what’s next.

Guy Peterson

Abu Dhabi

30 April, 2014

BCM Trends, Best Practices and Challenges

Page 3: Business continuity: Best practices and challenges

3

Table of contents

• How ‘Resilient’ is your own organization?

• Today’s threat environment

• Why is business continuity important

• How do we successfully implement a business continuity program

• Key Considerations when implementing regulation and/or setting up a new BCM

program

• Questions

Page 4: Business continuity: Best practices and challenges

4

How ‘Resilient’ is your organization ?

1. Do you have a contingency planning framework adapted to your

Organization and associated Operating model?

2. Are your plans driven from the ‘top down’, and aligned with strategic

needs?

3. Is your contingency planning coordinated across all departments

within the organization?

4. Do you conduct ‘Enterprise’ wide Risk & Business Impact Analysis?

5. Do you regularly test and exercise your plans?

6. Do you capture ‘lessons learnt’ as part of a continuous improvement

process?

… If you answered NO to any of these questions your organization may

not be best positioned to respond to business disruption or disaster

Page 5: Business continuity: Best practices and challenges

5

Jul

1976

Risk management as a formal process has undergone substantial

evolution over a relatively short period of time …

Hurricane &

flood

destroys

Galveston,

Texas.

Jan

1900

Dec

1920

Sep

1921

1920 - 1970

BP forms

“Tanker

Insurance

Company LTD”

“Risk, Uncertainty

& Profits” published

by Frank Knight

Period where Risk

was largely shaped

by Financial

Services industry

1975 - 1995

Period where Risk

Management was

heavily adopted

into broader

business decision

making

“The Risk

Management

Revolution”

published by

Fortune Magazine

First Risk

Management

Standard Published

“AS/NZS

4360:1995”

Sep

1995

1995 –

20xx

Period where Risk

Management

undergoes

significant change

to adapt to new

demands

Page 6: Business continuity: Best practices and challenges

6

… and Risk continues to evolve in response to a constantly changing

threat environment

Enterprise perspective

Risk governance in place, and

incorporated across

organization

Risk imbedded into decision

making processes and

organizational culture

Cross functional

Risk workshops used to provide

degree of integration in risk

treatment

Risk Reporting performed;

however, focus is on

compliance Internally looking

Focused on already realized

issues or known risks

Very tactical

Business Unit Location/Regi

on

Enterprise

Risk- driven

Scope

Event-

driven

Audit- driven

Ap

pro

ach

Reactive

1

Integrated

2

Adaptive

3

Labour

Strike

Terrorist

Attack

Natural

Disaster

Facility

Incident

Cyber

Attack

Pandemic

Page 7: Business continuity: Best practices and challenges

7

This highly dynamic threat environment creates many challenges for

security professionals in addressing enterprise risk exposure …

LOB requirements

& deliverables

Risk / compliance

roles

Governance

committees

Risk reviews and

events

Charters, rules &

responsibilities

Meetings, agendas

& participants

Timelines

Operational Risk

Compliance

Physical Security

Market Risk

Cyber Security

Personnel Security

Credit Risk

Legal & Contractual

Types of Risk Management

Functions Threats Challenges

• What are the major

risks, issues and

controls?

• Where is governance

and oversight

exercised?

• What key items are

driving expense

growth?

• What redundancies

exist?

• What gaps exists?

• How can the current

state be improved?

• How can risk and

functionality be

effectively balanced?

• How do we break down

the functional siloes

that exist across

different business

lines?

Labour

Strike

Terrorist

Attack

Natural

Disaster

Facility

Incident

Cyber

Attack

Pandemic

Page 8: Business continuity: Best practices and challenges

8

Today’s threat environment is further complicated through our

dependence on technology which has created many opportunities for

malicious attacks Most organizations are only

prepared to handle a fraction of

security concerns Risks

Intellectual Property Theft

Government and military

strategy compromised

Monetary Losses

Operational Disruptions

Theft of classified

information

National security at risk

Media Publicity

Regulator Intervention

Loss of Public

Confidence

Vulnerabilities

Hyper-Interconnectivity

of Information Systems

Rapid Technological

Infrastructure Expansion

Hard to Define

Organizational

Perimeters

Unprepared Workforce

and Culture

Dissimilar Security

Models Applied Across

the Enterprise

Misaligned Policies

Known

Threat

Actors

Insiders

Criminals

State

Actors

Hacktivists

Affinity

Groups

Representati

ve Attacks

felt in Middle

East

Gauss (2012) One of the most sophisticated

pieces of malware yet

designed to monitor bank

account information and the

money flow for various Middle

Eastern banks.

Shamoon (2012) Saudi Aramco, the worlds

largest oil producer, was

targeted by hackers for the

government’s supposed

support of “oppressive

measures” in the Middle East.

RasGas Attack (2012) A highly public attack

against one of our most

valuable national assets that

resulted in widespread loss

of information services

Mahdi (2012) Trojan espionage attack

designed to target Middle

Eastern critical infrastructure

firms, engineering students,

financial services firms, and

government embassies.

Page 9: Business continuity: Best practices and challenges

9

The risk management programs of many organization’s have not kept

pace with the changes in business complexity …

Centralized Distributed (Decentralized)

Networked

“Adaptive”

Enterprise Resilience

“Integrated”

Risk Management “Reactive”

Risk Mitigation

1990s 2000-10 2010 +

Business Environment Complexity

Largely independent and autonomous

business environments

Point of Presence (PoP) type

operating model serving a locality or

region

Clearly defined boundaries in terms

of markets, areas of operation, etc

Regional business environments

PoP with regional governance

structures

Boundaries not always clearly defined

Global business environments

PoP with global governance

structures

Boundaries no longer apply, or are

not easily distinguishable

Page 10: Business continuity: Best practices and challenges

10

Traditional ‘Stovepipe’ approaches to managing security fail to

adequately mitigate Risk in today’s highly dynamic business

environments

IT Security

Incident

Management Physical

Security

Typical Organisational ‘Stovepipes’

Limitations of Traditional Model

Limited awareness of operating conditions,

risk exposures and critical gaps across the

organisation – focus on individual silos

Responsibilities and activities are dispersed

across various functions with potential for

overlap or duplication

No clear accountability exists for ensuring the

continuity of the business

No clear performance metrics exist

Difficulty in linking organisational strategy to

multiple similar functions

Investment decisions are not optimised across

the enterprise

Management and the Executive Boards have

limited transparency into incident, recovery

and continuity management

Operation

s Center

IT Security

Information

Security

IT Disaster

Recovery

IT Disaster

Recovery

Critical

Infra.

Protection

Incident

Response

Continuity

of

Operations

Physical

Security

Risk

Management

OHS

Personne

l Safety

Operational

Risks

Project

Risks

Strategic

Risks

Early

Warning

Personnel

Security

Personnel

Security

Incident

Command

Framewor

k

Crisis

Comms

Page 11: Business continuity: Best practices and challenges

11

The solution is to take a broad Enterprise wide program that

consolidates the full breadth of available resources in managing Risk

Optimized Integrated Siloed

ICT Security

DRP

Emergency Management

Physical Security

Personnel Security

BCP

Crisis Management

Operational Risk

Strategic Risk

Incident Response

Incident Response

BCM Enterprise Security

Enterprise\ Risk

Management

Incident Response Enterprise

Security BCM Enterprise\

Risk Management

Enterprise

Resilience

• Little or no functional

fragmentation

• Top-down management

approach

• Highly dynamic response to

risk

• Resilient security posture

• Some levels of functional

fragmentation

• Decentralized management

• Improved ability to respond to

risk

• High levels of functional

fragmentation

• Complex management

processes

• Slow reaction time to risk

• Promotes dysfunctional

behavior

Page 12: Business continuity: Best practices and challenges

12

Business Continuity is most effectively implemented using ‘business

strategy’ principles to position the program for success

Strategy

Mission &

Vision

Views &

Perspectives

Priorities & Imperatives

through Goals

Risk Assessment

Implementation

Implementation Roadmap Busines

s Need

Engagement of Executive Staff Develop Contingency plans Integrate situational awareness capability

Establish cross-functional capability Enhance response capabilities Facilitate dynamic Risk response capability

Engage appropriate resources Performance Measurement Mature and test the program

Release policy and guidance Establish a monitor and update capability

Risk & Business Impact Analysis

Implement Enterprise Risk Management framework

Action Plan(s)

Framework

Corporate Strategy

Key Earnings Drivers

Essential Processes, Technology

& Organizations

Risks & Vulnerabilities

CLIENT Dependencies

Additional Insights

Capturing perspectives through:

Stakeholder Management;

Purpose Management; and

Issue Management

1 2

3

4

5

6

Options

The

Enterprise

Resilience

Program will

Page 13: Business continuity: Best practices and challenges

13

An appropriate framework needs to be developed to manage the

business continuity planning process in context of unique

organizational requirements

Enterprise Risk Management

Strategic Risk

Operational Risk

Security Risk

Integrated Security

Physical Security

Information Security

Personnel Security

Response Management

Situational Awareness

Incident Response

Test & Exercise

Contingency Planning

Operations (COOP);

Processes (BCP);

Functional (DRP, etc)

Risk & Business Impact Analysis

(BIA) and Management

Governance

Management, Capability & Preparedness

1

2 3

4 5

6

7

Project Planning

Business Impact Analysis

Strategy Development

Plan Developmen

t

Awareness &

Training

Testing & Exercising

Maintenance & Updating

Risk Assessment & Analysis

The Plan

The Business Continuity Planning

Process

Source: Disaster Recovery Institute International (DRII)

Page 14: Business continuity: Best practices and challenges

14

A gap analysis is used to develop options, and a single ‘go forward’

strategy is recommended to implement the business continuity

program

Integrated Security

Response

Management

Contingency Planning

Business Impact Analysis

Optimised

Capability

No

Capability

Risk Management

– +

– +

– +

– +

– +

Resilience Maturity Scale

Management, Capability &

Preparedness

Governance

– +

– +

1

2

3

4

5

6

7

Desired

Maturity

Siloed

Capability Integrated

Capability

Limited

Capability

Current State

Capability

Capability Gap

Page 15: Business continuity: Best practices and challenges

15

The Strategy provides clear guidance across the organization to

ensure the program is successfully implemented

Engagement of Executive Staff

Develop Contingency plans

Integrate situational awareness capability

Establish cross-functional capability

Enhance response capabilities

Facilitate dynamic Risk response capability

Engage appropriate resources

Performance Measurement

Mature and test the program

Release policy and guidance

Establish a monitor and update capability

Risk & Business Impact Analysis

Implement Enterprise Risk Management framework

Foundational:

Establishing the necessary

capability to build the program

Maturing:

Integrating the program and

introducing functional capability

Optimized:

Transformation to ‘Best

Practice’ capability

Phase 1

x – x Months

Phase 2

x - x Months

Phase 3

x – x Months

Wo

rk s

tre

am

s

Page 16: Business continuity: Best practices and challenges

16

Each strategic activity is supported by an ‘Action Plan’ to establish

clear direction, expected performance measures and accountability

Strategy Supporting Initiatives

Phase in

Which

Initiatives

Commence

Capability Uplift

Engagement of

Executive Staff

Assign appropriate

ownership and

accountabilities

Establish defined roles and

responsibilities

Phase 1 Program established at enterprise

level

Establish cross-

functional

capability

Establish appropriate

governance framework

through forums, committees,

R&R, etc

Develop initial team makeup

requirements for an

Emergency Operations

Centre, covering a range of

business disruptions

Phase 1

Enterprise wide pragmatic view of

BCM capabilities

Engage

appropriate

resources

Establish BCM team with

sufficient resources to

undertake qualitative

analysis of program

Phase 1

Resources in place to apply

qualitative assessment of program

content

Release policy and

guidance

Formalise information flow

between existing forums

Build on current capabilities

through increasing

collaboration across

program capability areas

Build capabilities focused on

integrating BCM domains

(Risk, Security etc)

Initiate Training and

Awareness Program

Develop Contingency

Planning Policy and

Guidance

Phase 1

Alignment around common

objectives

Action Plan

Engagement

of Executive

staff

Action Plan

Establish

cross

functional

capability

Action Plan

Engage

appropriate

resources

Action Plan

Release

Policy &

Guidance

Page 17: Business continuity: Best practices and challenges

17

Ultimately the ‘vision’ is to position the organization to respond to an event

in a ‘planned’ way, with ‘managed’ levels of business disruption

Source: Booz Allen

Lifecycle Event Management Phases and Activity Streams

Following a crisis, an “Adaptive”

program is positioned to more

effectively respond to a given

event within required timelines

while managing cost /benefit

tradeoffs

Approaches to Crisis Management

Page 18: Business continuity: Best practices and challenges

18

Business Continuity Management is standardized both internationally &

nationally, and becoming heavily regulated at a federal and/or industry levels

International

National

Abu Dhabi

• International Organization for Standardisation (ISO) 22301:2012 Societal

Security – Business Continuity Management Systems – Requirements.

• ISO31000:2009 Risk management – Principles and guidelines

• ISO27001:2013 Information Security Management

• ISO27031:2011 ICT Readiness for Business Continuity

• Business Continuity Management Standard AE/HSC/7000:2012 Version

(1) issued by the National Emergency Crisis and Disasters Management

Authority of the Higher National Security Council of the United Arab

Emirates; and,

• Environment, Health & Safety (EHS) – currently under development

• NESA – currently under development

• CICPA – Regulations & Requirements for security permits

• Sector/Industry regulators i.e. Telecommunications Regulatory Authority

(TRA) • Various Laws & Regulations

• ADSIC Information Security Policy & Standards

• Sector/Industry regulators i.e. Regulation & Supervision Bureau (RSB)

Page 19: Business continuity: Best practices and challenges

19

In context of a regulatory environment and/or a new BCM program,

there are many valuable lessons learned to be considered …

• The ‘processes’ described in standards should only be seen as minimal considerations.

Standards are intentionally written at a high level to be broadly applicable to all organizations! Relevant

to the “AE-HSC-7000 Standard”, the concepts described in the standard must be adapted to

organizational context to be successfully implemented!

• Don’t only seek to ‘comply’ with regulation – taking a minimal approach to business continuity may

pass audit requirements; however, is unlikely to address risk appropriately.

• Tradeoffs need to be understood to make informed decisions

—Amount of analysis required to provide meaningful data

—Analysis methodologies

– Risk Management : All Hazards vs. detailed threat analysis

– BIA : Detailed business process mapping vs. Value Chains, etc

—Return on Investment (ROI) needs to balance investment decisions into risk control

Page 20: Business continuity: Best practices and challenges

20

Enterprise resilience is a reality for many organizations that choose

to invest in business continuity

• Executive Support is mandatory to success!;

• A strong culture of Responsibility and Accountability must be imbedded over time.

• Upfront investment into Strategy development will ensure the program is adapted to the

organization;

• Defining accurate strategic objectives;

• Structures and Frameworks;

• Performance Monitoring;

• Assessing Options, tradeoffs, etc.;

• Skills and Expertise;

• Having the right people available throughout different stages of implementation

• Alignment of other activities and projects;

• Understanding the environment, and simplifying wherever possible

Page 21: Business continuity: Best practices and challenges

21

Questions ?

Guy Peterson Senior Associate

Booz Allen Hamilton

Office: +971.2.691.3629;

UAE Mobile: +971.50.558.6314;

[email protected]