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Andrew
McCrackan looks at the wider effects of disasters and their knock-on
impacts on businesses and communities.
How does the effect of disaster on businesses
affect the continuity of our society as a whole? Are governments
responsible for an overarching social continuity plan and are they
doing anything about this? Does a disaster that impacts one business
have a knock-on effect to other, seemingly unrelated, organisations?
In treating global terrorism issues, are we creating an environment
for western terrorism? Just a few questions that I’m sure
we would all like to know the answers to. Unfortunately I don’t
have these answers but can provide some insight and commentary on
these very critical issues. I’m sure it will promote some
discussion, be it positive or negative.
In a capitalist, democratic, western
world all business is linked through world stock markets, inter-governmental
relationships and international trade. The impact of a major crisis
on one organisation can have consequential effects on other businesses,
government and national economies as a whole. Consequential impact
can be felt even if there is no defined relationship between organisations,
by virtue of the underlying link to national and global economies
affected through stock markets, public perception and so on. For
example, a vulnerability exploited in the banking cycle may target
one bank and impact that bank’s continuity of business. However,
public perception and perhaps a belief that other banks are vulnerable
to the same event may impact directly on other banks operating in
the same market. In this way an isolated event at one organisation
can send out ripples that cause an impact on other organisations.
While current business continuity efforts focus on dealing with
the initial event, few organisations are prepared for scenarios
such as this type of secondary impact from a non-direct event. A
‘run’ on one bank, for example, is likely to cause a
consequential, though perhaps less prevalent, ‘run’
on other local banks. The impact to economies as a whole can be
significant if the organisation directly impacted does not manage
their crisis adequately. In this way, poor business continuity management
on the part of one organisation can in fact constitute a continuity
impacting event in itself, for others.
This is essentially the driver behind
industry based business continuity standards and regulation; prudential
regulatory authorities are a good example. Civil contingencies,
critical infrastructure initiatives, government terrorism reinsurance
pools and so on are all examples of society in general reacting
to the increased levels of threat that we all live with today. The
problem of course, given that we operate in a ‘free market’,
is that some things are outside of anyone’s control, particularly
where impacts cross borders of sovereignty. This type of situation
is often used as an argument for world government, not that I necessarily
agree. The same issues are faced when dealing with international
policing or taxation. The reliance is on conventions agreed between
some countries. The nature of agreements will vary depending on
the countries concerned and many do not subscribe to any convention,
nor can they be made to.
No-one could have devised an adequate
strategy for dealing with the general decline of the US stock market,
and other markets, when they re-opened after September 11, 2001.
In this case an event that was, in a global sense, isolated, had
far reaching consequential impact on a wide range of mostly unrelated
businesses, markets, governments and people. While most people do
not consider market movements critical to their day to day lives,
market performance is of course directly related to our wealth,
prosperity, and ability to service our basic human needs. If our
companies are not profitable then we lose our jobs, eventually falling
back on social welfare safety nets, theoretically. However, if a
wide range of companies are impacted, then this impacts overall
tax collections, over time, and social welfare may no longer be
financially feasible. Social benefit, including health, education
and so on, is generally accepted as the demarcation line between
the first world and the third.
In looking at the root causes of terrorism,
the effects of which are driving many business continuity behaviours
at this time, most experts conclude that terrorism is the result
of a real or perceived state of oppression; a result of inequality
between the west and a mix of third world imbalance and suffering
under totalitarian regimes. These are the conditions under which
terrorist groups have been borne and have flourished. No individual
comes into this world and thinks, ‘when I grow up I want to
be a terrorist.’ Terrorist nature is socially conditioned
and can be thought of, largely, as a result of environment. Oppression,
combined with disillusionment with the perceived riches of the western
world, which is largely an unfounded perception, lead in some to
a feeling of being second class global citizens. Add to this a spiritual
belief set that contradicts this second class status before God,
and you have a potential terrorist in the making. Unfortunately,
the response of the west is focused on treating the effects rather
than the root cause. Clearly, effects need to be addressed but it
could be said that this is only a tactical solution to the problem.
The strategic solution must be to treat the root cause, and it is
only world governments that are able to do this.
In many cases the battle against terror
is leading to our own societies becoming more restrictive. To implement
generalised measures, impacting civil liberties, to defend against
terror means that we all are seen as potential terrorists in the
eyes of authorities. This ultimately leads to a more totalitarian
or draconian west, which I expect upsets most people. Add to this
a degree of normalisation of western and third world order, which
is slowly happening due to globalisation, immigration and so on,
and we have created a potential terrorist environment in our efforts
to stop terrorism. This is clearly a conundrum, but it can be prevented
by focussing efforts on the root cause of the problem, in addition
to the proactive and reactive capabilities currently being addressed
by us all through business continuity management.
In the west a different type of social
conditioning is evidenced, and can be seen in patterned behaviour,
which can be more or less evident depending on cultural background.
I’ve witnessed people standing at pedestrian crossings in
the dead of night waiting for the instruction to ‘walk’.
This is an example of a patterned behaviour. Because we are all
so well trained in western rules, rebellious behaviour is often
limited in extent and frequency. Drivers for antisocial behaviour
are more financially rather than politically motivated, but there
is sometimes a link. Fraud, for example, is rapidly on the increase
and may be directly attributed to increases in social systems of
control. Most people think of fraud as an executive taking off with
millions and heading for Barbados, but most fraud is small time
credit card fraud and the like. This type of fraud is mostly undertaken
by regular people with regular lives. So fraud, in a way, can perhaps
be thought of as the first sign of general rebellion in the west.
The tighter the system of social controls we implement the more
fraud, serious crime, and eventually terrorism, will prevail upon
us. Increased controls remove flexibility in social systems, leading
to overly proscriptive rules and laws. Unfortunately life is not
black and white and control systems cannot be designed that take
into account every possible scenario. Proscriptive control can have
the effect of backing otherwise reasonable people into a corner,
and in this situation human nature will dictate an unmeasured response.
Last month’s issue of National
Geographic magazine features a report on the efforts of scientists
around the globe, to discover a new Earth. This is perhaps one of
the only, if not the most ambitious, internationally collaborative
business continuity initiatives currently underway. While this would
indeed be an interesting project, I hope that we can implement some
initiatives at a slightly lower level that deliver real benefit
both in the prevention of terror and other controllable events,
the protection of society at large, and recovery from the unavoidable.
Andrew
McCrackan is the author of a Practical
Guide to Business Continuity Assurance, Artech House, Boston,
2004.
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•Date:
18th January 2005•Region: World •Type:
Article •Topic: BC
general
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