7 ObjectivesDescribe what is a disaster? Describe the differences between natural and man-made disasters.Describe what is business continuity?Discuss why continuity planning?Discuss the prime elements of BCP.Develop and document project scope and plan.Conduct Business Impact Analysis (BIA).Implement and maintain the plan.Conduct training in terms of BCP.Describe the differences between BCP and DRP.
8 ReadingsHansche, S., Berti, J. and Hare, C., Official (ISC)2 Guide to the CISSP Exam, Auerbach, Chapter 9 (Required).Swanson, M., Wohl, A., Pope, L., Grance, T., Hash, J., and Thomas, R., Contingency Planning Guide for Information Technology Systems, NIST Special Publication , June 2002.Wikipedia, Business Continuity.NFPA 1600, Standard on Disaster/Emergency Management and Business Continuity Programs,
9 What is a Disaster ?“A business disaster is that point in time after the “cause” when you can not provide your customers and users with the minimum level of services they need and expect”
10 DisastersA disaster is any sudden, unplanned calamitous event that brings about great damage or loss. In the business environment, it is any event creating an inability for the organization to support critical business functions for some predetermined period of time.If it harms critical business processes, it may be a disaster.Time-based definition – how long can the business stand the pain?Probability of occurrence.Anything that diminishes or destroys normal data processing capabilities.Example: a disaster for a small business that depends on its web presence might be an errant backhoe operator cutting a fiber optic line.Example: Similarly, if the ISP hosting the web site for that business goes out of business and there is no plan to recover, that might be a disaster.Example: a plane landing on FREH would be a disaster for Purdue
12 Business Continuity Scenarios Large-scale natural disaster (hurricanes, earthquakes)Power outage caused by a winter stormMalfunctioning softwareServer malfunctionFailed hard driveOffice fireComputer virus outbreakTerrorist attackPandemic disease outbreak
13 Why Doesn’t Everyone Plan? The Human element.The “it’s not going to happen to me” view or philosophy.We have a tendency to view concerns from a “life span” and personal experience aspect.It hasn’t happed yet…Not on Manager’s list of goalsWe’ll get to itLooks to BIG! Where do we start?
14 Contingency Planning and Risk Management EmergencyEventsContingency PlanningContingencyPlanExecutionRisk ManagementSecurity ControlImplementationPlanResponseRecover
16 Business Continuity (1) Business continuity is the activity performed by an organization to ensure that critical business functions will be available to customers, suppliers, regulators, and other entities that must have access to those functions. These activities include many daily chores such as project management, system backups, change control, and help desk. Business Continuity is not something implemented at the time of a disaster; Business Continuity refers to those activities performed daily to maintain service, consistency, and recoverability.
17 Business Continuity (2) Organizations write several types of plans, such as the Contingency Plan, Business Continuity Plan (BCP), Business Resumption Plan (BRP), or Disaster Recovery Plan (DRP), to ensure the availability of critical information system resources in the event of an expected network interruption or a disaster.
21 Scope of Business Continuity BCP and DRP addresses the preparation, processes, and practices required to ensure the preservation of the business in the face of major disruptions to normal business operations.BCP and DRP involve the identification, selection, implementation, testing, and updating of processes and specific actions necessary to prudently protect critical business processes from the effects of major system and network disruptions and to ensure the timely restoration of business operations if significant disruptions occur.
22 Business Continuity & Disaster Recovery Business Continuity and Disaster Recovery are a part of Business Continuity ManagementIncidentDeclare a disasterRecovery of IT completelyEnd of disaster recoveryBack to normal operationsAssessmentWithin HoursTravelToDRRestore InformationTechnologyStabilization of production operationsCleanup the messPlan for return to primary siteReturn toprimarysiteBusiness Continuity ManagementBusiness Continuity PlansDisaster Recovery PlansBusiness Resumption PlansCrisis Management PlansNormal problem managementEmergency response plansCopyright 2006 VCPI
23 Scope of Business Continuity Continuation of critical business processes when a disaster destroys data processing capabilitiesUsed to be just the data centerNow includes:- Distributed operations- Personnel, networks, power- All aspects of the IT environment
25 Business Continuity Planning IT contingency planning refers to a coordinated strategy involving plans, procedures, and technical measures that enable the recovery of IT systems, operations, and data after a disruption. Contingency planning generally includes one or more of the approaches to restore disrupted IT services:Restoring IT operations at an alternate locationRecovering IT operations using alternate equipmentPerforming some or all of the affected business processes using non-IT (manual) means (typically acceptable for only short-term disruptions).
26 Business Continuity Planning To prevent interruptions to normal business activityTo protect critical business processes from natural and man-made failures or disasters and the resultant loss of capital due to the unavailability of normal business processesA strategy to minimize the effect of disturbances and to allow for resumption of business processes
27 Why Continuity Planning (1) Reality of Terrorist Attack. E.g., September 11 attack.Natural Disasters. E.g., Hurricane Katrina, Fire, flood, hurricane, tornado, earthquake, volcanoes.Economic Frauds. E.g., the recent corporate corruption cases of WorldCom, Enron, HealthSouth, etc.Internal and External Audit Oversight.
28 Why Continuity Planning (2) Legislative and Regulatory Requirements:HIPPA (Health Insurance Portability and Accountability Act)SOX (Sarbanes–Oxley Act)GLB (The Gramm-Leach Bliley)The Patriot Act
29 Why have a Business Plan ? According to research data kept at the National Archives& Records Administration in Washington, DC:Nearly 90% of all small businesses don't have a continuity plan in placeOnly 43% of businesses suffering a disaster ever recover sufficiently to resume businessOf those that do reopen, only 29% are still operating two years later93% of businesses that lost their data-center for more than 9 days filed for bankruptcy within one year of the disaster.50% of businesses that found themselves without data management for more than 9 days filed for bankruptcy immediately.
31 Broad BCP ObjectivesCreate, document, test, and update a plan that will:Allow timely recovery of critical business operationsMinimize lossMeet legal and regulatory requirementsAvailability – the main focusConfidentiality – still importantIntegrity – still important
32 Categories of Potential Loss Revenue Loss.Extra Expense.Compromised Customer Service.Embarrassment or Loss of Confidence Impact.Hidden Benefits of Continuity Planning.
35 The Five BCP Phases Project Management & Initiation Business Impact Analysis (BIA)Review Recovery StrategiesPlan Design & DevelopmentTesting, Maintenance, Awareness, and TrainingPhases are covered in detail in next slides
36 1. Project Management & Initiation Establish need (risk analysis).Get management support.Identify strategic internal and external resources.Establish team (functional, technical, BCC – Business Continuity Coordinator)Create work plan (scope, goals, methods, timeline)Prepare and present an initial report to managementObtain management approval to proceed.Develop formal meeting schedules.If you don’t establish need, how can you get management support? A BCP costs a lot to develop and maintain. No ROI either.Functional leads are necessary because the IT staff don’t understand the business.The BCC is the project manager for the BCP creation, the most important person.The work plan will be like the phases of a traditionally managed project
37 BCP Team Members Senior management. BCP planner/coordinator. Recovery team members.Business unit representatives.Crisis management team.User community.Systems and network experts.Information security department.Legal representatives.
38 2. Business Impact Analysis (BIA) The BIA is a management-level analysis that identifies the impact should a potential data processing outage occur.Goal: obtain formal agreement with senior management on the MTD for each time-critical business resourceMTD – Maximum tolerable downtime, also known as MAO (Maximum Allowable Outage).Quantifies loss due to business outage (financial, extra cost of recovery, embarrassment)Does not consider what types of incidents cause a disruption; only identifying consequences.A lot of the BCP creation is driven by the MTDs assigned to various business functions, so the BIA is very important.
39 Purpose of BIAProvide written documentation to understand the impact associated with possible outages.Identify an organization’s business functions and determine how critical those functions are to the organization.Identify any concerns that staff or management may have.Prioritize critical systems.Analyze the impact of an outage.Determine recovery windows for each business function.
40 BIA ProcedureChoose information gathering methods (surveys, interviews, software tools).Select interviewees.Customize questionnaire.Analyze information.Identify time-critical business functions.Assign maximum tolerable downtimes (MTDs).Rank critical business functions by MTDs.Document, prepare, and report recommendations.Obtain management approval.There are nine phases to the BIA.Selection of interviewees is very important. These will be the subject matter experts from the business units, and they have to be the people who know the business.Customize questionnaire: there is no standard set of questions – it varies with each businessTime-criticality – some processes are more critical than others. Printing a payroll is important, but not time-critical usually.if you’re Amazon.com, keeping your web site up is critical. The business won’t go under if you print paychecks a couple of days late, but they would lose millions in potential revenue if their web site were down for a day. The BIA aims to rank-order business processes in these terms.
41 Critical Business Function Categories ItemRequired Recovery TimeNonessential30 daysNormal7 daysImportant72 hoursUrgent24 hoursCritical/Essential1 – 4 hours
42 Critical Business Function Categories ItemRequired Recovery TimeVery High (1)0 – 12 hoursHigh (2)12 – 24 hoursModerate (3)hoursLow (4)> 72 hours
43 Example of BIAAn order department might list the following tasks and recovery time periods:Receive orders electronically via e-commerce Web site: Critical/EssentialReceive orders by facsimile machine: Critical/EssentialReceive orders by phone system: Critical/EssentialInput orders into ordering system: ImportantProcess orders: ImportantIssue and mail invoices: Important
44 Sample BIA Question Topics Business function.Date of interview.Contact name.Business process.Financial impacts.Operational impacts.Legal obligations.Damage to reputation.Technological dependence.Interdependencies.Existing BCP measures.Alternate processing options.Customized options:- Financial impact- Operational impact- Legal obligation- Damage to reputation
45 4. Plan Development and Implementation Determine management concerns and priorities.Determine planning scope.Establish outage assumptions.Define prevention strategies for risk management, physical security, information security, insurance coverage, and how to mitigate the emergency.Identify resumption strategies for mission-critical applications and systems at alternate sites.Identify recovery strategies for non-mission-critical applications and systems at alternate sites and for relocating the emergency operations center/command center to the recovery site.Step one above is what you might think of as the BCP, but the next 3 bullets are equally important.
46 Plan Development and Implementation Develop service function recovery plans, including information processing, telecommunications, etc.Develop business function recovery plans and procedures.Develop facility recovery plans.Identify the response procedures.Gather data required for plan completion.Review and outline how the organization will interface with external groups. (Communication)Review and outline how the organization will cope with other complications beyond the actual disaster.
47 BCP Coverage General Introduction and Overview. Policy Statement. Functional Areas Priorities.Critical Resources / Non-critical Resources.Procedural Considerations.Emergency and Evacuation Procedures.Recovery Teams.Recovery Processes.Emergency Operations Center/Command Center.Facility Considerations.Inventory Considerations.
48 BCP Coverage Equipment Considerations. Communication Considerations. Documentation Considerations.Data/Software Considerations.Transportation Considerations.Supporting Equipment.Responding to the disaster.Resume critical business functions.Resume Non-Critical Business Functions.Planning for Return to the Primary Site (Restoration Operations).Interfacing with External Groups.
49 Continuity Plans Components Awareness of Roles and ResponsibilitiesWho will do what? Employees and staff are critical. Pandemic is an extreme example of a disaster where employee resources will be very limited!Defined recovery time objectivesRisk Management to identify & reduce risksAlternate Processes (telecommuting, distance learning)Alternate recovery locationsOff-site storage of critical media and non-media itemsWritten plans, reviewed & updated regularlyFrequent plan exercises
50 Business Continuity Plans must be useful Make sure the plans that protect each of us is more than ……..Successful Business Continuity Planning helps ensure that employees and the interests of owners and customers are protected.
51 5. Plan Testing - Structured walk-through Until it’s tested, you don’t have a plan.Types of testing:- Structured walk-through- Check List- Simulation- Parallel- Full interruptionStructured walk-through – step-by-step review of the BCP by functional reps who meet together – no one is actually walking anywhereChecklist – similar to SWT but checklists are distributed to business units, who review the checklists individuallySimulation – kind of like “war games” – simulation stops at point where equipment would be relocatedParallel – DR site is put into full operation without taking down the primary – results compared between the twoFull interruption – Full-scale test of BCP by a planned fail-over to the secondary site and fail-back to the primary. Risky.Note: more than one kind of test may be useful. For instance, a simulation and a parallel test complement each other.
52 Goals of Plan TestingEnsure the understanding and workability of documented recovery procedures.Acquaint test participants and recovery teams with their roles in the event of a disaster.Verify that recovery strategies are viable.Train team leaders and members in the procedures of executing the continuity plan.Identify flaws and oversights in plan procedures and strategies.Obtain information about recovery strategy implementation.
53 Goals of Plan TestingDemonstrate that output performance of backup systems and networks are consistent with production systems and networks.Adapt and update existing plans to encompass new requirements.Test all components of the plan, including hardware, software, personnel, data and voice communications, procedures, supplies and forms, documentation, transportation, utilities, alternate site processing, etc.
54 5. Plan MaintenanceResolve all problems/deficiencies found during testing.Implement change management.Audit and address audit findingsBuild maintenance procedures into the organization operation.Annual review of planCentralize responsibility for updates.Report updates regularly to team members and, if necessary, to senior management.
55 5. Awareness and Training BCP team is probably the DR team.All staff should be trained in the business recovery process.Training should cover a range of outcomes, from simple awareness of the major provisions of the plan to the ability to carry out specific procedures.BCP training must be on-going.BCP training needs to be part of the standard on-boarding and part of the corporate culture.How often do disasters occur?How good are people at executing procedures that they don’t use very often?How do you ensure something is part of the corporate culture when it’s designed to deal with an event we hope never happens?
56 BCP Training CoverageDescribe the recovery organization (teams and functions).Explain the flow of recovery events and activities following a disaster.State team members’ responsibilities in recovery activities.Provide an opportunity for each recovery team to meet to develop in-depth knowledge of their responsibilities and procedures.Require teams to conduct drills using the actual checklists and procedures in their section of the recovery plan.If possible, include a plan for cross-training teams so those individuals are familiar with a variety of recovery roles and responsibilities.
57 Sponsorship is Key to Success Board of Directors or Senior executives (president, vice presidents, officers) must identify BCP a priority.Executives and senior managers must actively support the BCP Process.Business Recovery Coordinators (BRCs) within business units / departments must be actively involved, developing, implementing, and exercising BC plans, and accept ownership of their plans.
58 Communication is Critical Employees, customers, business partners must know key information about your plan if your plan is to work.Plans must be periodically reviewed in team meetings and shared with new team members.Secret Plans won’t work!
59 Communication…..Contact information for all team members must be currentMake sure employees have Emergency Wallet Cards with key phone numbers, etcPlans must include:Clear chains of authorityClear listing of tasks, roles and responsibilitiesDR conference lines or standing communication toolsStanding meetings (times, numbers)Alternate meeting locationsCentralized communication facility (VM, web site, etc…)
60 Off Site Storage is Critical ! When a facility is lost or inaccessible, all items inside are no longer available. What is needed in off site storage if you had to recover from scratchPC backup media must be stored off-site?Critical, non-media, documents and materials must be available in an off-site location, accessible by appropriate individuals or teams during a disaster or exercise.Key personnel must know where off-site storage items are located and to where items will be shipped (Hot-site, Incident Command Center or remain in off-site storage?)
61 Effective BCP Is Built On 7 P’s Programme the total BCM strategyPeople Roles and responsibilities, H&S,awareness and educationProcesses all organisational processesincluding ICTPremises buildings & facilitiesProviders supply chain inc. outsourcingProfile brand, image and reputationPerformance - benchmarking, evaluation & audit
62 Essential Elements of BCM Take a holistic approach‘End to End’Effects, not causesPrevention, not just cureCulture of BCMNeed to measurement
64 Industrial and Professional Standards (1) BS (2006), Business continuity management, Part 1: Code of practice, The British Standards Institution, United Kingdom.HB 221 (2004), Business Continuity Management, Standards Australia, Australia.HB 292 (2006), A practitioners guide to business continuity management, Standards Australia, Australia
65 Industrial and Professional Standards (2) BS ISO/IEC (2005), Code of practice for information security management, The British Standards Institution, United Kingdom.NFPA 1600, Standard on Disaster/Emergency Management and Business Continuity Programs, The National Fire Protection Association, United States.Defense Security Service (DSS), formally known as Defense Investigative Services (DIS).National Institute of Standard and Technology (NIST).
66 Current Regulations/Standards US - Securities and Exchange Commission - NASD Rules & 3520 and the NYSE Rule 446Basel II & E-bankingUK Civil Contingencies ActSarbanes OxleyUK FSA – BCM GuidancePAS 56 and from Summer 2006 BSIKing II in South AfricaSingapore - MAS BCM StandardAustralian Standard for BCMUS - NFPA 1600Europe - Netherlands, Luxemburg, Belgium, et al
67 A Changing World Corporate Governance Basel II Sarbanes Oxley Act CCA, Comp ActISOGDPdU & GoBSBSNF ZCOBITAIPAITILKing IIMASIT BaselineChinaAPOBasel IISarbanes Oxley Act
70 BCP Planning ResourceContingency Planning Association of the CarolinasDisaster Recovery JournalDisaster Recovery Institute International (DRII)DHS -FEMA -Institute for Business & Home Safety (IBHS)Premier Safety Institute
72 Key TerminologiesBusiness Continuity Plan (BCP): A document describing how an organization responds to an event to ensure critical business functions continue without unacceptable delay or change.Business Continuity Planning. Business continuity planning will help organizations:Identify the impacts of potential data processing operational disruptions and data loss.Formulate and implement viable recovery plans to ensure the availability of data processing support for critical applications, data, and services.Develop, implement, and administer a comprehensive BCP training, testing, and maintenance program.
73 Key TerminologiesBusiness Resumption Planning (BRP). BRP develops procedures to initiate the recovery of business operations immediately following an outage or disaster. It can also outline the procedures for returning critical business functions to the normal processing site following the interruption.Continuity of Operations Plan (COOP): A COOP is a document describing the procedures and capabilities to sustain an organization’s essential, strategic functions at an alternate site for up to 30 days.
74 Key TerminologiesCrisis Communication Plan. A document that outlines the procedures for disseminating status reports to personnel and the public in the event of an outage or disaster.Cyber Incident Response Plan. This document provides the strategies to detect, respond to, and limit consequences of malicious cyber incidents. The focus is on information security responses to incidents affecting systems and/or networks.
75 Key TerminologiesDisaster Recovery Planning. Disaster recovery refers to the immediate and temporary restoration of critical computing and network operations after a natural or man-made disaster within defined timeframes. An organization documents how it will respond to a disaster and resume the critical business functions within a predetermined period of time; minimize the amount of loss; and repair (or replace) the primary facility to resume data processing support.