Industry News – Crisis Planning and Management
By Raha Naddaf, staff writer
From
Disaster Recovery to Business Continuity
The International Data Corporation (IDC) has predicted that the
market for business continuity/disaster recovery will double from
US$6.3 billion in 2002 to US$12.3 billion in 2006. According to
the Disaster Recovery Institute International, the term "disaster
recovery" refers to a set of activities and programs designed
to return the entity to an acceptable condition. It measures the
ability to respond to an interruption in services by implementing
a disaster recovery plan to restore an organization’s critical
business functions. Business continuity management (BCM), is not
just about disaster recovery—crisis management, risk management
control or technology recovery, according to the Business Continuity
Institute (BCI). BCI defines BCM as a holistic management process
that identifies potential impacts that threaten an organization
and provides a framework for building an effective response that
safeguards the interests of its key stakeholders, reputation, brand
and value-creating activities.
Source: ComputerWorld
More
Companies Have Crisis Management Plans
More companies have crisis management plans in place today than
they did at this time last year, an American Management Association
(AMA) survey shows. According to the results, 64 percent of executives
said their companies have a crisis management plan, up from 49 percent
in 2002. And 62 percent of the companies have designated a crisis
management team compared to 54 percent last year, while 42 percent
have conducted crisis drills or simulations, up from 39 percent
in 2002. AMA surveyed 146 members and customers, about the preparations,
if any, their companies have taken in the event of a crisis. Of
those companies that have crisis management plans, 87 percent also
have written contingency plans in place. According to the respondents,
the primary reason for having a plan is to ensure continuous customer
service (71 percent), mitigate financial loss (12 percent) and protect
the company brand/reputation (7 percent).
Source: American Management Association
Survey of Media Finds Corporate Credibility Crisis Having
Effects on Business Coverage
Twenty months of spectacular corporate scandals have taken their
toll on the nation's journalists, according to results of the Euro
RSCG Magnet Survey of Media. The findings chronicle journalists'
growing distrust of senior executives and other established sources
for business coverage and reveal a credibility crisis that spans
all of corporate America, not just those companies embroiled in
controversy. According to the survey, only 14 percent of respondents
say they are very likely to be informed by CEOs. CEOs fell to ninth
place from last year's fourth place as the most-frequently cited
sources. Respondents list product quality as the most important
attribute they consider when reporting on a company overall. Forty-six
percent say it is an absolutely critical attribute when reporting
on a company in general, and 31 percent say they consider product
quality more carefully this year.
Source: Euro RSCG Magnet
Crisis
Planning Boosts Scots Companies' Chances of Survival
The latest Grant Thornton International Business Owners Survey (IBOS)
reveals that more Scottish firms see a lack of demand and economic
downturn as the greatest threat to their business than any other
part of the U.K. Scottish firms are the best organized for loss
of key customers, with 44 percent of businesses saying they had
contingency plans if this was to occur against the lowest figure,
which was 26 percent for businesses in the Southwest, Wales and
west of England. Scots were also the most organized for succession
planning, with 62 percent saying they had procedures in place to
cope, against the lowest figure of 32 percent for firms east of
England. Overall, U.K. businesses are better equipped at dealing
with key business risks than their EU and global counterparts. The
IBOS survey reveals that in comparison with the global and EU average,
the U.K. shows a certain level of sophistication with its management
of key business perils, but still appears to overlook a number of
fundamental risk factors, such as loss of key personnel and major
clients.
Source: Scotsman.com
Communication
Is the Key to Keeping Your Customers
Research by the Chartered Management Institute found that loss of
either IT capacity or telecommunications were the top two key disruptive
scenarios. “Telecommunications have become essential to most
organizations,” said Peter Mellor a director at Insurance
Brokers and Risk Consultants, Aon. “In the survey, 86 percent
cited maintenance of voice communications as critically important
to their organization. Companies who are heavily reliant will insure
against loss of revenue under their Business Interruption policy,
though it’s important to have the policy correctly extended
for the cover to operate,” he said. Simon Vye, managing director
at COLT Telecom, said, “Recent events highlight the pressing
need for organizations to implement resilient business continuity
plans and also assess secondary telecoms suppliers to ensure that
their business communications operate as normal in the event of
a disaster.”
Source: Manchester Online
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