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Phil
Carter discusses the strengths and weaknesses of PAS 56.
Business
continuity management continues to be a hot topic as evidenced in
the Information Security Breaches Survey 2004 (PriceWaterhouseCoopers)
which stated that 87 percent of UK businesses are now highly dependent
on business continuity, compared with 76 percent two years ago.
Our [SunGard’s] own research shows that a key driver for this
rise is regulatory requirement and an increasing reliance on technology,
making business continuity and information availability a necessary
cost of doing business rather than a ‘nice to have’.
With downtime costs so high and the real threat of terrorism, it
is not surprising that companies are gravitating to business continuity
for protection. Publicly Available Specification 56 (PAS 56) is
the first step in the process towards a standard for business continuity
provision and aims to set our guidelines for best practice, to help
businesses improve business continuity planning and management.
At this stage PAS 56 is an informal standard, and the British Standards
Institution (BSI) is currently brokering the process for it to become
a full British Standard.
Driving demand
There are a number of factors driving demand for a consistent approach
to business continuity planning and PAS 56 provides a universal
framework for businesses to follow, to ensure that BC plans are
fit for purpose.
In the UK regulatory pressures are a key driver for a business
continuity standard, with Basel II, FSA regulations and the Civil
Contingencies Act all requiring various organisations to have business
continuity plans in place. However such regulations state that organisations
must make business continuity provision but do not give any detail
on what this should entail or how comprehensive it must be, leaving
it up to individual organisations to deem what is appropriate. The
emergence of PAS 56 goes some way towards setting a benchmark for
businesses on what planning they should have in place, making it
easier for them to achieve compliance with the raft of existing
and future regulations.
The prevalence among businesses to outsource key business functions
to cut costs, and the reliance on supply chain processes to provide
good and services, also highlights a key area where business continuity
provision must be made. Businesses are increasingly demanding that
their suppliers or outsourced partners have appropriate business
continuity plans in place because if they fail to deliver a service
or can’t access data due to an incident, the potential to
have a huge impact on others in the supply chain exists. Working
with a supplier who has achieved a recognised standard for business
continuity provision will give organisations peace of mind that
the supply chain won’t fall over in the event of a disaster.
Insurers are also advising businesses to have contingency plans
in place to benefit from lower premiums as a result of reduced risk.
A British Standard will enable companies to meet this requirement
and prove to insurers that the appropriate plans are in place.
Setting the standard
The main aim of PAS 56 is to:
* Define the process, principles and terminology of business continuity
management.
* Provide a generic framework for incident anticipation and response.
* Describe evaluation techniques and criteria.
PAS 56 advises how to implement good business continuity management
which it outlines as: linking to corporate governance, having board
level endorsement and accountability, clearly defining and documenting
accountabilities and responsibilities, and making it a ‘business
as usual’ process. The guidelines are intended for use by
those charged with defining, developing, implementing and managing
a business continuity management programme.
PAS 56 is a precursor to a full British Standard for business continuity.
It must be based on a legal framework for it to become a national
standard, be auditable and advise a consistent approach to business
continuity. To become a national standard it must firstly have the
full backing of all interested parties including government, businesses,
trade associations and consumers, a process which can take up to
six months. If the consensus is to make it a standard then the BSI
will facilitate a full British Standard for business continuity.
The next step in the process is for BSI to set up a national committee
for risk management and a sub-committee for business continuity.
These groups will be tasked with drafting the standard, which can
take up to nine months. It is then made available for public consultation
for between three and six months at which time all interested parties
can offer feedback and comments before the standard is approved.
Making the grade
The wording of PAS 56 as it currently stands may cause concern for
organisations and during the consultation stage there are a few
areas which must be reviewed and revised if the standard is to be
taken up among businesses.
For example, the current document recommends live testing twice
a year. Testing is a crucial part of business continuity as it supports,
matures and develops the plan. A business continuity plan is no
good sitting on a shelf – it has to be useful and usable and
must reflect the fact that organisations are dynamic entities where
the only constant is change. Regular testing ensures that the plan
is fit for purpose and in step with the recovery needs of the business.
With live testing, organisations would need to close down all applications
as if a disaster had occurred and invoke their BCP. But running
this type of test could have disastrous effects in itself, by putting
businesses at risk and tempting fate. Testing the business continuity
plan is designed to spot oversights and omissions such as holes
in vital processes or to determine where upgrades are needed; but
with live testing it’s too late if your plan is not up to
scratch and could result in lost business and customers not being
able to access staff or services. The other advantage of testing
is to engender staff confidence and competence in the BCP and how
they will utilise it in an emergency. To ensure that business continuity
plan testing has the desired effect in this respect requires careful
planning and preparation and a live approach may be counter-productive.
A better approach would be to suggest carrying out testing out
of normal office hours, at the weekend or in the evenings, to minimise
potential disruption to staff and critical business processes; but
with a realistic scenario to put them through their paces with a
degree of rigour.
The guidelines are intended for businesses of all sizes and types,
but to be applicable to a larger number of organisations the guidelines
would benefit from being more flexible. They need to take into account
that small businesses and large enterprises have different needs
and recommend suitable planning strategies accordingly. What will
be appropriate for a global organisation won’t necessarily
suit a smaller operation. This flexibility also applies to different
industry sectors which have different needs, both in the daily running
of their business and in regulatory requirements which govern specific
industries. Although a framework suitable for all businesses would
be hard to achieve, the standard needs to be as flexible as possible
to enable all businesses to apply for certification, if they wish.
Delivering the goods
In the UK over 3,000 organisations have bought the guidelines and
the feedback has been encouraging. PAS 56 is a good starting point
and with constructive feedback from the industry it will be a step
in the right direction for a consistent approach to business continuity
planning.
For businesses, a formal British Standard will provide a valuable
tool to putting appropriate BC plans in place. For the industry,
it is recognition that business continuity is a necessary part of
doing business: it is no longer appropriate to be satisfied with
IT-centric reactive disaster recovery only – though this will
always have its place; we need the resilience, continuity and availability
of the business to be regarded as a proactive management concern
and PAS 56 provides a framework for this to happen.
Not only this, PAS 56 is indicative of the movement towards information
availability – the process of keeping your people and information
connected. In the ‘always-on’ environment of today’s
business and consumer world, where 24/7 and on-demand are par for
the course, business continuity and information availability should
no longer be considered optional or specialist concerns; they actually
are - and should be perceived as - part and parcel of the way we
live today. Business as usual – no matter what!
Phil Carter is head of professional services at SunGard Availability
Services.
For more information contact 0800 143 413, infoavail@sungard.com
or www.availability.sungard.com
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•Date:
30th November 2004 •Region: UK •Type:
Article •Topic: BC
general
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