Business Continuity Management (BCM)

Many organisations have Business Continuity Plans, covering areas such as IT recovery or emergency response, but they are often too narrow in focus, or are unable to cope with new and emerging threats that severely disrupt and prevent operating normally like - fire, power failure, natural catastrophes, swine flue or even within there own supply chain.

Questions to consider

Case Study                                                 A major blue chip company wanted to improve its business continuity management (BCM) by broadening its scope beyond IT disaster recovery

A Gap Analysis was undertaken, involving all staff; to identify weakness in the current system was developed through analysis of their systems.

This led to the completion of a detailed action plan and to the implementation of exercises by implementing this process; we defined a value chain, which consisted of 32 core business areas prioritised for recovery in the event of a crisis.

As a result, good cooperation & communication was built between departments. Another area of weakness was the mechanism for reviewing supplier competencies was also addressed.

·   Do you understand what your stakeholders expect of you do exceed these expectations?

·   Have you fully considered the 'people issues' when drawing up plans - such as capabilities for employees to work from home?

·   Have you considered all business processes (even your supply chain) that may be affected in the event of business interruption?

·   Do you test your plans on a regular basis so that gaps can be identified and update your plans to take into account new threats, such as Swine Flu, and the changes taking place within organisation?

Corporate governance

A case for responsible reporting: in considering ways to improve internal control over financial reporting, organisations should look to corporate responsibility reports

In the safety, quality, and environmental arenas, new tools, procedures, or controls are implemented only after gaining an understanding of how they are impacted by, and how they in turn impact, human behavior.

The financial assurance profession recommends controls and expresses control effectiveness opinions with little evidence as to what constitutes "effective control."

Companies are seeking the development of assurance standards to guide independent opinions on corporate responsibility reporting. Both the International Standards on Assurance Engagements (ISAE 3000) and the AA100 Assurance Standard (AA100AS) are aimed at the full range of corporate responsibility reporting as it currently exists.

By meeting corporate governance demands, companies can demonstrate they are well managed, identify threats to their corporate survival and provide stakeholders with confidence that the organisation’s strategic objectives will be achieved.

Questions to consider

Case Study                                                 Following a stakeholder meeting a SBS client was required to provide evidence of effective corporate governance through developing a framework for managing risk.

SBS ran a series of board-level workshops to identify the main risks to the business.

A risk register was created along with an ongoing action plan that not only set objectives but developed subsequent controls allocated to senior management.

The exercise integrated the risk management activity in a follow up session with HSE & IoD guidance, to date the company now expanded and is looking for new markets to diversify into

·   How are you addressing the risk management requirements under Corporate Governance?

·   To what extent are you effectively communicating your existing risk management to both internal and external stakeholders?

·   Do risk management and Corporate Governance consider the ‘total’ risk footprint of the organisation e.g. strategic issues?

·   Can you demonstrate integration of good health & safety management with visible, active commitment from the board

Employee absence

Any business can experience’s a degree of sickness absence due to work-related accidents, illnesses and stress.

But many are developing a risk management approach to combat this issue but are poorly equipped to address key issues and design an intervention plan to achieve maximum attendance among their workforce.

Questions to consider

Case Study                                                 A recent client asked us to target and to reduce their long-term absence?

Using a case management approach, staff were involved in return to work workshops by gaining commitment that these were seen to be followed.

The workshops made it policy always to carry out a return to work interview.

This was often just let the employee know that their contribution was missed, or to help identify underlying problems that affected the management strategy.

·   Do you have commitment and support in addressing this issue?

·   Are management trained in impact  of handling attendance issues?

·   Do you know your absence level are you suffering from, customer dissatisfaction and loss of skills?

·   Have you created an organisational culture that encourages employee attendance and productivity?

Employment risks

Once they are properly measured, employee risks such as poor attendance, high staff turnover and stress can be directly reduced by management, in contrast to external, more intangible risks that are harder to measure and control.

However, implementing effective risk management processes in this area can be a real challenge, given the typical need to involve employees, change working practices and persist with new initiatives over long time-frames

Questions to consider

Case Study                                                     

Client asked us to develop a module programme that would influence management issues in relation to health, safety, quality and risk namely competence, communication, control and co-operation in securing safe working practices.

The system is still used today and all are able to:

·      Understand and analyse the contribution of competence in relation to health, safety & risk.

·      Demonstrate an understanding of how training needs in relation to risk are identified & met.

·      Identify the contribution of employee relations in relation to health & safety and risk.

·      Apply professional and ethical risk standards.               

·   Do you feel that your Employers' Are you unsure where to start or are your liability costs spiralling out of control to meet legal obligation?

·   Is your productivity being affected by employee absence, skill gaps & poor staff retention or turnover?

·   Are you struggling to get to grips with compliance with ongoing safety codes and regulations?

·   Do you find employee training and a drain on your resources or that behavioural change a challenge?

Fleet risk management

We understand that work-related road risks vary from business to business and that you need a solution that's right for you. 

That's why we provide a range of modular products designed with your needs in mind. 

We work with you to identify what particular risks you face and how we can help you manage them.

Only a solution that combines risk management expertise with fleet management experience can expect to tackle these issues in a sustainable way.

Questions to consider

Case Study                                                       Two examples of the achievements that our clients have had, working with us.          

Dairy transport division

35% reduction in reversing collisions.

23% improvement on 'at fault' collision rate

26% improvement in collisions per million miles 

Electrical / Builder contractor

·   Restructuring of fleet vehicles saving £26,000

·   Driver training programme, leading to an 89 % claims reduction and a fall in related costs.

·   Skilled Driver retention rate of 47% 

·   Are you aware of your obligations under Health and Safety law to manage 'occupational road risk'?

·   Are you compliant with legislation and improved Corporate and Social Responsibility requirements?

·   Have you considered occupational driver risk surveys and individual journey risk assessments?

·   Did you know vehicle collision are estimated to be four times the cost of repairing the damaged vehicle.

Safety Management Systems

Your stakeholders look for good governance, and a stricter regulatory environment, governments and the public are becoming less tolerant of poor management.

The business value of looking at H&S beyond compliance is clearer than ever and by improving standards, organisations can, among other things, reduce staff absence rates and Employers' Liability claims and protect their reputation with stakeholders.

Questions to consider

Case Study                                                        SBS was commissioned by a global organisation to benchmark their Management Systems.

The client perceived their operations to be low risk,the ownership, responsibilities and practices employed were not defined and hazard / risk management process did not meet client needs.

SBS reviewed operational activities and identified the need for comprehensive Safety Management System that was suited for implementation at all of their sites across Europe.  

·   Management risk assessments & accident investigations compliant?

·   Are you benchmarking your SMS performance using H&S audit and evaluation against your peers?

·   Can you demonstrate your accident & absence trends are in decline to Employers' Liability underwriters?

·   Do you understand behavioural issues associated with H&S?

Pandemic diseases

Pandemic diseases such as Swine flu are not 'normal' business continuity risks - they are more sudden in nature, can have a major, disruptive impact on business and larger numbers of people, often by the time you have found out ‘its to late’ the damage is done

A serious outbreak will severely test any Business Continuity Management (BCM) plan and your ability to respond quickly and effectively is the key to protecting your reputation.

Questions to consider

Case Study                                              Our client a private school needed to establish a steering group to establish Prep preparedness. 

Part of the strategy included:

·      Assessment and medical review of nurse’s office and influenza inoculation program

·      Review of other supplies and services that would be needed in an extended pandemic that included water, power, gas, food and all staffing requirements necessary to cover for absenteeism estimated to reach 25 to 40%

·   Can you see why it is different to a conventional business risk?

·   Many existing plans do not allow for a proportion of lost workforce?

·   Has your Team a plan for problems thrown up by any outbreak?

·   How will this impact your supply chain, often you are not in control?

Creating a Risk Register

Historically risk registers are a key business management tool that equip management with a clear understanding of the issues that need to be managed to ensure success.

Whilst most organisations will have some form of risk identification in place often this is operationally focused, does not consider strategic risk issues, and the process to identify the risks is neither robust nor applied organisational wide.

An effective risk register is key in equipping management to make decisions based on time allowed, capital and resources required in a transparent, confident and robust way.

Questions to consider

Case Study                                                       Our client a machine shop wanted its partners to be more involved in its supply chain; they wanted a shared understanding of risks and agreed plans for managing them.

A risk log was set up for the project, and a risk management framework agreed and audited.

The client and partners are now creating a new company with new bigger business horizons                                                       

·   Can you formally demonstrate your risk management is adequate?

·   What is your risk exposure, do you have plans to mitigate loss?

·   Senior management have a clear understanding of company risks?

·   How many stakeholders are actually involved in reviewing your register?

Stress

When you are trying to introduce a new system you will always come across issues that you think may be impossible to get around.

It is important that you realise that your organisation is not the first to undertake the change and may very well not be the first to experience this particular problem.

Questions to consider

Case Study                                                       The initial challenge was persuading the company to accept stress as an important business issue.

In addition, ensuring that all line managers received training on managing stress.

The Board acknowledging stress & mental health problems was an important step and created the framework for success.

·   Can your company talks about stress or is it not mentioned?

·   Is your communication group with a broad representation at all levels?

·   Do you have effective rehabilitation in place and support systems?

·   Managers are confident addressing employee risk and concerns?

Supply Chain Risk

How exposed is your supply chain from receiving the service or product it expects - from disruption to transport networks, to natural catastrophes, international trade disputes and man-made disasters ~ Often it’s the little things that go wrong that catch you out ~.

In a world where customers expect high standards of service, business interruption due to supply chain problems can be very costly, and the nature, with multiple production sites, means that there are many more potential points of disruption in the chain.

Questions to consider

Case Study                                                            A client was concerned that they were vulnerable to sudden supply chain disruptions and wanted to stay in control over resulting consequences.

Main insights were in five categories:

·      Integrating stakeholder strategic objectives;

·      Defining what constituted success factors;

·      Engaging environment and stakeholders;

·      Key Performance Indicators & principal risks;

·      Agree the principal risk response strategies.                                                          

§   If your supplier fails you have you identified alternative sources?

·   Can we say our standards of ethics and social responsibility comply?

·   Do suppliers standards match our Business Continuity Management?

·   Do business processes need to be protected in a supply breakdown?