Can you afford to ignore the threats?

Business Management sits down with Kevin Burton to discuss how organisations need to cover al bases with their all-important business continuity planning.

What is driving the need for sound business continuity/disaster recovery policies and strategies within organisations today?
More than simple business continuity and disaster recovery planning and strategies, the global organisations we serve at Burton Asset Management, Inc. are telling us that they are seeing a need to integrate across the risk management spectrum so that they can lower cost and increase their level of preparedness. This means that companies are seeking out ways to integrate emergency management, security and disaster recovery/business continuity. The process is referred to as 'fusion' and seems to be getting lots of traction in both western HQs and regional offices.

What are the challenges faced and common mistakes made in your experience?
Even as companies we serve 'fuse' these functions and realise a higher return on their risk management investment, they also recognise the unique challenges posed by new cultures and new terrains in which they are expanding. To the extent that planning is very different in Britain or the US than it is in say, Bahrain, we are recommending in-close operations and studies prior to planning that help with clarifying risk issues, understanding response capabilities and assuring that cultural challenges are met head on.

Specifically, we are finding that companies that have far-off operations become aware that resources you would find as helpful allies in their home country simply do not exists or could become competitive for resources with them during a disaster. Having clarity around what to expect from first responders in Britain or the US is very different from having clarity around the same challenges in areas where scarcity dynamics or even hostility toward the organisation is found.

Being penny-wise and cash-foolish is a sure way to increase the risk of your investment in new markets. A complete understanding of the local, the geopolitical and natural hazards as well as they host countries willingness and ability to respond are key factors in building contingency plans. We are deploying more former intelligence agents into these areas on our client's behalves to gain a clear picture of the cultural, ethical and response expectations that locals have around disasters and being more aware of those things increases the chances of the organisation not only surviving a disaster but thriving after one.

An excellent example we just experienced in this area came about when a transnational organisation asked us to look at a sub-48 hour recovery time for their operations in Japan. It became clear very quickly that in Japan, an organisation is expected to help the community during the first 48 hours of any disaster, and then to help themselves. The original plan of focusing on near-term recovery had to be balanced against the cultural realities of the new market in order to assure that not only would the organisation recover, but do so without loosing the market share that they were so invested in building.

Are there any unique business continuity issues in the Middle East?
Absolutely. Business continuity and disaster recovery plans that are well crafted have a complete view of the risks of any area and are clear on how to militate against those risks. They rely heavily on employee honesty and the availability of key decision makers during crisis. We have added kidnap and hostage components to plans. We have added bombing and heavy security elements to plans. We have recommended lowering the profile of organisations that might be viewed as targets in these locals and encouraged deeper employee screening and monitoring to assure that the disaster we are trying to prepare for does not originate from within. What you need to be looking for when you're building a business continuity or disaster recovery capability into a Middle East operation is the ability to have mitigation in front of the problem, not after the fact. Simply put, any organisation should plan on risk management in these areas being a normal part of their overall operating expense.

Kevin D. Burton is CEO of Burton Asset Management, Inc.  Burton has a broad range of experience and has helped clients address many issues to increase their IT process efficiencies or to address business process needs, staff and governance issues, and business-to-IT communication.