| The Higgs Report: a double-edged sword for the business continuity manager? Phil Carter discusses the implications of the UK Higgs Report for business continuity professionals. The Higgs Report, which sets out a code for boardroom reform, is due to come into force on 1st July and calls for non-executive directors to satisfy themselves that systems of risk management within a company are robust and effective. This offers the promise of raising the profile for business continuity within many companies but might it also be looked upon as a double-edged sword for the business continuity manager? Let’s look at the possible fall-out from Higgs. On the upside, Higgs has the potential to guarantee that business continuity will become a board-level issue, and not before time. Research (1) suggests that there are three main factors driving the take-up of business continuity; an increasing reliance on IT systems, experience of a disaster or knowledge of one such as 9/11 and regulatory requirements. The latter is becoming increasingly important, especially in the financial services industry (in the UK the FSA is currently drawing up guidelines to ensure that every company in the sector has in place adequate risk management procedures). The Higgs Report gives the business continuity manager further ammunition with which to lobby the board if he or she is struggling to obtain board-level buy-in or requires an increased budget to improve the business continuity plan. On the other hand, the work of the business continuity manager will come under closer scrutiny from the board. In the past, while a board member might have had a nominal responsibility for risk management and contingency planning, in practice this meant delegating (or abdicating) to the business continuity manager, many of whom are used to being left to their own devices. Invariably they have retained complete control over day-to-day business continuity planning, requiring only sign-off on the budget from the finance director. Post-Higgs, there will be increased awareness of the need for business continuity planning amongst board and non-executive directors, together with much greater responsibility for its efficacy. Unfortunately, for the person that has always been in control of planning, this could result in too many cooks spoiling the broth, as individuals at a senior level attempt to provide ‘helpful’ input. Overall, the publication of the Higgs Report should be viewed as a good thing for business continuity and an opportunity for it to further raise its profile within the corporate environment. However, for the business continuity manager, it might be advisable to pre-empt it, and ask directors for a meeting to discuss the impact of the report on contingency planning, before its recommendations come into effect – thus proving that the business continuity manager is in control of the situation already. This is a good opportunity to present to the board existing contingency plans, highlight risk and resilience issues and discuss future planning requirements in light of the report. Phil Carter is director of planning solutions at SunGard Availability Services. (1) Research conducted by SunGard
•Date:
2 June 2003 •Region: UK •Type:
Article •Topic: BC
general
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