Risk 101 – Know the Unknown by Nehru Nagappan

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MEET THE EXPERTS

RISK 101 – KNOW THE UNKNOWN

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AGENDA

Definition of Risk & Risk

Management

Risk Identification Risk LifeCycle

The Known Unknown -

BiotechCorp Case Study

Where do we go from here?

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What is Risk?

• Potential Loss exposure due to a threat; which causes disruption to business operations

• Preventing them from achieving the Minimum Business Continuity Objective (MBCO)

• 3 components:– An Event – A probability – An Impact

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What is Risk Management?• An on-going process of assessing the risk to mission /

business as part of risk-based approach used to determine adequate security for a system by analyzing threats and vulnerabilities and selecting appropriate, cost effective controls to achieve and maintain an acceptable level of risk.

- BCMPedia

• An organized means of identifying and measuring risk, and selecting, and managing options for handling these risks.

- Harold Kerzner

• Is a PROACTIVE approach

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Be prepared for any eventualities!

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Risk Life Cycle

PLANProject

Risk Manageme

nt

AnalyzeRisks

AssessRisks

RiskTreatment

Monitor& Control

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Examples of Risks

Natural Man-made Business Technology

TyphoonFlood due to unplanned construction

Unskilled Labor Poor quality of product

Strong Earthquake in neighbouring country

Riots Material availabilityPreventive maintenances not carried out

Sinkhole found near building Bersih 2.0 Assembly Strikes Virus attacking network

TsunamiLost of key resource due to accident

Lack of Management Support

Data being stolen (via P2P)

Peat fire Terrorist attack Changes in schedulesData Restoration exercise never done

Arson attack Regulatory requirements Network Hard disk crash

Fire in buildingno control system in place

Sars Virus attack

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The known unknown

Donald Henry Rumsfeld, Secretary of Defense, 2001-2006

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BiotechCorp Case Study – The Known Unknowns

• We occupy Top 4 levels (L23, L22, L21, L20) + Level 1

• Fire Drills was an “annual casual leisurely walk” since 2005

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Reality Check

What we think…. The usual reality..

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The Known Unknowns

• Assembly Point - Logistic nightmare (KLCC Mosque (public assembly issue), Menara Atlan public Car Park)

• Sink Hole NEAR Office (KLCC) & Kg. Baru

• KLCC – Protest Zone!

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The Known Unknowns

• Oversized, disabled and Pregnant – mobility issue

• Stairways blocked – rubbish

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The Challenge we face

• “We’ve never had that kind of loss”• “What, change my procedure? I’ve always

done it this way!”• “I’ve lived here for 20 years without a

problem!”• “All Risk Management has is: bad news

with higher price tags!”• No communication!

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The Known Unknowns

• What are OUR Obligations (as BCM Professionals)?– DISCUSS

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RISK MANAGEMENT:

NOT YOUR DUTY?- Ownership- Leadership

- Accountability- It really is our DUTY (not job) to ensure that our staffs are informed

of our policies, procedures and expectations.

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BCMI

BE AN EXPERT.JOIN THE EXPERTS.

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Questions?