CONTINUITY DISASTER IMPLICATIONS OF A MEDIUM TO LARGE
HYPOTHETICAL ORGANIZATION TO THE TECHNICAL ELEMENTS.
Globally, business condition …
CONTINUITY DISASTER IMPLICATIONS OF A MEDIUM TO LARGE
HYPOTHETICAL ORGANIZATION TO THE TECHNICAL ELEMENTS.
Globally, business conditions and atmosphere are becoming more unpredictable and turbulent
sometimes. Situations like social dynamics and sudden technology advancements affect
almost everyone including most organizations around the globe (Mitroff, 2004; Pollard &
Hotho, 2006). As aresult of these uncertainties, organizations that desire to be successful and
stay competitive must be protected well, to their profits remain sconstant even in the cases of
any business disruption s. Any organizations that incorporate Business Continuity
Management (BCM) in their strategic management gains a distinctive competency and
profitability remain high over their competitors such as in terms of operational resilience,
including the ability to swiftly recover in case of acrisis or disaster while also experiencing
reduced adverse impacts to their value and reputation Wong (2009).
Overview of the organization
Dow Jones is aNews Corp oration company that is committed to the tenets that responsible
corporate citizenship uplifts the lives of everyone as much as possible .Corporate citizenship
at News Corp oration focuses mainly on three areas: volunteering ,philanthropy and reducing
Dow Jones is aleading global provider of integrated technology solutions ,best risk data and
have comprehensive services for reputational risk and regulatory management. The company
deliver sauthentic ,actionable applications and information that are developed to specifically
cater for compliance requirements and workflows related to counter-terrorism financing ,
international trade compliance, sanctions, anti-bribery, and corruption.
Dow Jones is a modern ingress to intelligence, with advanced data feeds , innovative
technology, award -winning journalism, expert research, integrated solutions and customised
apps and delivery systems that can bring information that matters most to customers, where
and whe nits needed .
September 11 tragedy negatively impacted many businesses. It was very disastrous in away
that many organizations failed, and others took time to recover their operations .However,
organizations that had comprehensive Business Continuity Management plan demonstrate d
high adaptability and within afew hours or day after the incident, their services had already
been restored .Dow Jones, located on 9thto12 thand 14 thto16 th of the World Trade Centre and
which had about 800 employees during the incident period saw all employees survive and no
loss of service or data was reported. This was attributed to the company having a
comprehensive Business Continuity Management plan in place (Childs & Dietrich, 2002).
Most important types of risk for the organization
Day to day management of organisation business requires hard work. While business growth
is the key ,risk swhen experienced in an organization can easily stop the organisation from
business continuity .
Below are types of risk sthat may face on organisation .
1. Economic Risk
Organization â€™seconomy can constantly change due to market fluctuations. Fluctuation can be
either positive and negative and both affects organizations continuity. For instance, positive
events are good for the economy, leading to business boom and more income ,while negative
events on the other hand can reduce organisation sales resulting to economic instability .
Bearing that in mind, its thus prudent to monitor trends and plan for economic decline.
To prevent economic risk, organisations needs to invest and save money so as to keep a
stable cash flow .Also, operat ing with in alean budget is key in reducing economic risk to any
2. Compliance Risk
Organisations are governed by laws and regulations that need to be complied with, failure to
which may result into penalties and fines .To avoid the risk, organisation needs to trac k
compliance by regularly reviewing government agency information ,joining an industry
3. Security and Fraud Risk
When organisations customers and staff mostly use online and mobile systems as mediums
for shar ing personal data, there are increased chances and opportunities for hacking .This risk
not only impact trust and reputation, but also organisation financially liability for any data
breaches or fraud. For effective risk management to be achieved ,the organisation should
focus on security solutions and fraud detection tools .
4. Financial Risk
Th erisk may involve credit extended to customers or organisations debt load. Interest rate
fluctuations can be athreat also .To reduce the risk organisation can adjust on their business
plan as this will avoid impact on cash flow or creating losses. The debts should be kept at
minimum and aplan should be created that will aid in lowering the debt.
5. Reputation Risk
This is arisk to the organisation from stakeholder or people perceptions of the organisation
profitability, authenticity, brand value, ability to perform your corporate function. To reduce
the risk organization should come up with strategies that can aid in regular monitoring .
6. Operational Risk
This business risk can involve several factors and can happen internally or externally.
Something can happen unexpectedly that can cause organization to lose or tamper with
business continuity. It could be a fire or any natural disaster and can damage or destroy
business. It can range from a technical problems or even power outage .In most cases
operational risks are related to people related and can impact organization with respect to
time, money and reputation.
7. Competition Risk
The risk happens when an organization becom es comfortable with their success such that
they they don’t innovate for organization continual improvements. In the case of Increas ed
competition and the organization is reluctant to to change and adopt new ways of operations
may result in aloss of customers.
Organization must frequently improve their performance, while maintain ing strong customer
relationships and audience as well as refine their strategy to suit their customers. In Addition,
itis very key to be on the look out on the competition through conducting research online.
In addition to the risks discussed above, below chart demonstrates the percentage and disaster
causes that are threat to any organisation.
Figure 1.Causes of Disasters (Telovations, 2012)
Risk management process is significant, and it entails pinpointing and analyzing risk s
involved in an organization ,and either take up or cushion that risk .
Figure 2: Risk Management plan
The table below shows lists of predominant continuity disaster implications for different
Table1: Business Impact Analysis and Disruptive Events Relationship (Kirvan, 2015)
Technology Element Affected Operational Loss Business Activity Affected
Data and Apps Business inability to
Processes supported by
specific data and Apps
IT Network systems Business cannot function
IT System supported
processes will be affected.
Specific servers Specific business operations
cannot be performed
Activities supported by such
specific servers affected
Low ability in providing
Activities that require
specific DBMS needs
Below are approaches that could be used to measure and present risk. Includ ing the
implications for data in terms of needs to match the requirements of the organization.
Risk Matrix Approach- The approach allows expression of risk using classes instead of
exact values and thus forming agood measure for risk analysis and reduction .The challenge
with this approach is that it cannot provide quantitative values and poses difficultly in
assessing impacts and frequencies .
Figure 3:risk matric approach, consisting of matrix and the consequences.
Indicator based Approach- The approach, is mostly used in instances where there is lack of
enough data to undertake quantitative analysis, but also serves as a continuation of
quantitative analysis as it allows to consider other aspects than just physical damage. The
shortcoming with this approach is that itdoesn â€™tprovide foreseen losses expected.
Figure 4:Risk Indicator based approach.
Quantitative Risk Approach- The method provides aquantitative risk information that is
used in analysing Cost-benefit Analysis (CBA) of risk reduction measures. The approach
requires alot of data thus sometimes difficult to quantify probability, vulnerability as well as
Figure 5: Quantitative Risk Assessment.
Event-Tree approach- The event-tree analysis provides the best approach for complex
chains analysis of events and the probabilities associated with it,the challenge that affects
theapproach is that different nodes probabilities are difficult to assess, and due to lack of data
spatial implementation is not easy to undertake.
Figure 6: event-tree analysis.
Although a good contingency plan is key to an organization ,it is regrettable that many
organizations lack it. As this is the case it is important for organization to have disaster
recovery and business continuity automation plan that anticipates giving many benefits for
the organization in terms of consistency, budget, quality, software update, testing, updating
the plan according to the latest technology changes, maintenance, and using the business
continuity software that ensures having astandard format all around the organization.
Performing Business Continuity Risk Assessment involves identifying the risks to the
business, this is the initial step in identifying factors that threaten operation of the
organisation. Secondly is analyzing the impact and extend of the risks to the organisation, one
could view this in terms of staff that will be affected or financial impact to the organisation. It
Is prudent to consider and handle each risk separately when performing impact analysis.
Thirdly is checking on the available risk management plan this is because many threats, risks
or disasters that impact on the organisation can be monitored.
It is always important to think of ways to restore organisational operations in case of disaster,
business operations must be able to recover after an incident for business continuity. Finally
in risk assessment it is very important to develop acontingency plan that is resistant to risks.
And as business continuity is unpredictable, itâ€™sparamount to come up with plan that can
restore and help the organisation recover timely when itfaces arisk, threat or disaster.
Mitroff, I. I. (2004). Think like asociopath, act like a saint. Journal of Business Strategy,
25(5), 42 â€“53. doi:10.1108/02756660410558933
Pollard, D., & Hotho, S. (2006). Crises, scenarios and the strategic management process.
Management Decision, 44(6), 721 â€“736. doi:10.1108/00251740610673297
Wong, N. W. (2009). Journal of Business Continuity & Emergency Planning. Henry Stewart
Publications, 4(1), 62 â€“68.
Wong, W. N. Z. (2009). The strategic skills of business continuity managers: putting business
continuity management into corporate long-term planning. Journal of Business Continuity &
Emergency Planning, 4, 62 â€“68.
Childs, D., & Dietrich, S. (2002). Contingency Planning and Disaster Recovery: A Small
Business Guide. Hoboken, NJ.: John Wiley & Sons.
Telovations. (2012). Breakdown: Disaster recovery and business continuity. Retrieved from
Kirvan, P. (2015). Today â€™s most popular business continuity/disaster recovery standards.
Tech Target. Retrieved from http://searchdisasterrecovery.techtarget.com/tip/Todays-