2 Why Marsh & McLennan Global BCM Practice: 80 consultants 30 countries BenchmarkexperienceConsistent BCMConsultingprocess anddeliverableStrategicRisksFinancialRisksOperationalRisksMMCHazardRisks
3 Safeguard stakeholders investments and company’s assets Company objectivesGlobal leadershipSatisfied customersStable profit levelsReturn on shareholders investmentsSatisfied employeesProfitable partnershipsCorporate Governance issues- transparencyThe nature of activitiesStrategyFinancial policySocial participation and responsibilityOrganisational structureSource: Philips.com; Shell.com; Unilever.com, Akzo.com & DSM.com
4 Impact To Your Shareholder Value Companies with positive approach to business continuity15Recovers105Management skills and responseStakeholder CommunicationInsurance alone is inadequatePlans need to be implementedTime-5CAR %-10Other companies-15Nonrecovers-20| Event occurs250 days |Source: Knight / Pretty high profile catastrophes impact on shareholder value (CAR = Cumulative Abnormal Returns)
7 Focused on the strategic and operational issues and implications. How to handle a crisis?+Operationaland/ orHazard risksRisk =EmergencyResponseRecoveryFocused on controlling and fixing the exposure involved in the accidentCrisismanagementFocused on the strategic and operational issues and implications.
8 BCM Objective To be prepared in case of a major incident or disaster: Organisational structureIncident responseIssues & implicationsIssues & implicationsClient perspectiveShareholder perspectiveEmployee perspectiveLiability issuesSocial responsibilitiesReputationContractual obligationsMarket positionMediaetc..
9 Integrated plan development Company structurePotential threatsCompany resultsFinancial performance indicatorsObjectivesCompetitionLiability claimsCustomer demand shortfallExternal processesClient satisfactionImpact on societyLoss of reputation / ImageChanging legislationInterruption of servicesInternal processesOperational processesPartnershipsPeople managementFireLogistic / production interruptionLoss of knowledgeKnowledge - ManagementLeadershipStrategy & policyPricing policyOrganisational structureLoss of management info. systemsFormulate a worst case scenario
11 BCM deliveryTo create a compact and orderly action-oriented response and recovery plan which will assist senior management to minimize the impact of a catastrophic event and support them during the recovery stage.
13 Benefits to your organisation Being preparedImproving the risk awareness within your organisationThe final plan will be a practical and workable management tool showing your stakeholders that risks are understood and managed.Protecting the enterprise value of your company looking at the total value supply chain.