Beginning of the financial year … One fine morning, Mr Mohammed Akbar, the Managing Director of a reputed Bank, was getting ready as usual for the Bank meeting. Around half past 8, Akbar receives a call from the Bank’s call centre on the non-performance of ATM machines around the city… By the time he had a solution, he found that their data has been hacked.
After a few minutes…. News Flash… “Reputed Bank in Chaos. Investors mobbed the Bank”…
By this time, you could have anticipated the situation very well. Now, how would Mr Mohammed mitigate the crisis?
Business Continuity Myths
- A disaster is always a singular event
- Disaster is limited to any size or form
- Disaster Plan is a project – not a continuous process
Globally, many companies are subjected to following Global scenario, in absence of a Business Continuity Plan / Crisis Management Plan:
- 90 % of companies that experience a serious disaster close within five years
- For every day of down time, you can lose a full point of market share, which takes three years to win back
- 50 % of companies that lose their critical systems for more than ten days never recover
According to global Business Continuity Experts, organisations should have an attitude to change, rather than sketching a blueprint. They should know where to start, what to do and how to do it – efficiently and effectively;
Handle the Crisis or Give Up
In the above scenario, Mr Mohammed has 2 choices.
Expected action plan
- Acknowledge the crisis situation
- Crisis Management Team leader to decide whether there is a need to brief the CEO
- Alert colleagues to new information, including relevant EVPs
- Business Continuity Management to reassess whether the situation has now become an emergency/crisis that requires call cascade to be invoked (Crisis LT members and relevant EVPs)
- Analyse whether IT disaster recovery and business continuity plan needs to be summoned
- Intimate CEO and the board of members
- Send an email or SMS message on follow-up staff briefing
- Update relevant messages and prepare press statement
- Check whether core banking vendor support is required.
- Decide whether staff need to come to the site or can manage online
- Prepare and distribute a defined script to call centre staff to manage the callers
Suffer or Give Up due to following facts
- Delayed crisis management planning
- No proper timelines to resolve the situation
- No definite structure in the team
- Lack of ownership in the team
- No process to solve the critical issues
How to implement crisis management?
Organisations need a tactical and strategic plan to reduce the possible risks through proactive management and an attitude to consider how to recover the situation as quickly as possible.
The decision makers should identify all the business interruption risks, whether caused by major disasters or minor incidents.
A successful Business Continuity Management is possible with the combination of BCM Consulting, Software and Training. It is always advisable to prepare your staff and the crisis management team through effective crisis management workshops, under the guidance of external consultants.
Now, the million dollar question is, are you ready for the change?