Business Proposal for Hotel Management

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					              State of Oregon

Enterprise Business Continuity
      Planning Initiative

                  March 2005
Enterprise Business Continuity Planning
“Ensuring the continuous operations of state government”

     We are here to discuss:
     •       Business Continuity Planning: What Oregon needs to do to
             ensure continuous operations of state government.
     •       The solution: How Oregon will do it
     •       Resources needed: Staff time – NOT dollars
     We will cover today:
     •       Business Continuity Planning: Why it is important
     •       Natural and Man-Made Disasters: Causes & impacts
     •       Vulnerabilities: The Reality
   Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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                                               Agenda

     1. Vulnerabilities and Impacts
     2. Enterprise Business Continuity Planning
     3. Action Plan




Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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The Many Faces of Disasters

 “Disasters take many forms. They’re caused by gale
 force winds, sudden floods, releases of deadly
 chemicals, fire, ice, upheaval of earth itself. When
 disaster strikes, the best protection is knowing what
 to do.”


                         Federal Emergency Management Agency (FEMA)


Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Vulnerabilities and Impacts

                                                                      Acts of Terrorism


                                                                                                          Cyber
                                                                                                          Attacks



         Natural Disasters or Accidents
                 Regardless of the cause, most organizations are not
                       prepared to recover from a disruption.
 Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Vulnerabilities and Impacts
   Why do we need Business Continuity Planning?
43% of US companies never reopen after a disaster and 29% more
close within 3 years.
93% of companies that suffer a significant data loss are out of business
within 5 years.
20% of small to medium size businesses suffer a major disaster every 5
years.
78% of organizations which lacked contingency plans but suffered
catastrophic loss were gone within 2 years…most had insurance, and
many had business interruption coverage!
                   Sources: U.S. National Fire Protection Agency, U.S. Bureau of Labor, Richmond House Group and B2BContinuity.com


                     Business Continuity Planning is a business issue.
  Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Vulnerabilities and Impacts

                           Most Common Causes of
                            Business Interruption
         Nearly 75% of all U.S. businesses have
         experienced a business interruption
               72% of the time suffered from power outages
               52% of the time dealt with hardware problems
               46% of the time suffered telecommunications failures
               43% of the time dealt with software problems


             Infrastructure is increasingly a target for cyber terrorism.
 Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Vulnerabilities – Types of Disruptions
   A recent study by SunGard showed the following breakdown of 1,256
   documented disruptions to business services:     Terrorism
  40%
                                                                                               Hurricanes/Weather
  35%                        36%
                                                                                               Software/Hardware
  30%                                                                                          Failure
  25%                                                                                          Power Outages

  20%                                                                                          Network Outages

  15%                 16%            16%                                                       Flood
              14%
  10%
                                                                                               Fire
   5%
                                             5%      6%
                                                           3% 2% 2%                            Bomb Threat
   0%
                                                                                               Earthquake
    With our increasing dependence on technology – our vulnerability increases.
    Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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   Vulnerabilities – Computer Hackers
 HIGH

                        Terrorist
                         State                                      2005             POTENTIAL TARGETS
  D                    Sponsored
  A                                                                                       Air Traffic Control
  M                    Industrial                                                         Power Grid
  A                    Espionage
  G
  E
                                                   2004                                   911 / Emergency Response
                        Criminals                                                         E-Government / E-Commerce
                                                                                          Financial / Credit Cards
                           2003

MEDIUM
                      NUMBER OF INCIDENTS
               The likelihood of business disruptions from cyber security threats
                      increases the need for business continuity planning.
         Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Vulnerabilities – Others

     In addition to threats of terrorism and cyber
     attacks, organizations must consider all their
     vulnerabilities:
            • Loss of workforce
            • Loss of facility
            • Loss of data / vital records
            • Loss of infrastructure

                     Business Continuity Planning is a business issue.
  Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Impacts – US Related Disaster Losses
INCIDENT                              DATE:                         LOCATON:                                 LOSS:
Terrorist Attacks           September 2001                  NY, PA and Wash DC                      $27 Billion
Hurricane Andrew            August 1992                     Florida, Gulf Coast                     $24 Billion
Earthquake                  January 1994                    Los Angeles, CA                         $11 Billion
Floods                      April 1992                      Midwest                                 $10 Billion
Riots                       May 1992                        Los Angeles                             $2 Billion
Blizzard                    March 1993                      24 States                               $1.8 Billion
Wildfires                   October 1991                    Oakland, CA                             $1.7 Billion
Bombing                     February 1993                   NY World Trade Center                   $540 Million
Heavy Rains                 January 1993                    Arizona                                 $56 Million
Tornados                    April 1991                      Andover, KS                             $50 Million
Power Outages               August 2003                     US and Canada                           $ N/A
                                Business disruption = BIG BUCKS!
 NOTE: Figures are reflecting infrastructure and cleanup costs – not loss of business revenues
   Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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              Are We Ready For Anything?




         This figure is most likely under reported…AND they had plans!
Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Impacts – Losses and Government Operations


                      Businesses have been forced
                       to close their doors due to
                          major disruptions…

                                                ~ BUT ~

                the State can NOT close its doors!


 Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Impacts: Actual Oregon Events
  • October 2004, a squirrel in the generator caused power outages to entire capital
    mall for 90 minutes triggering multiple system resets and loss of critical data.
   February 1996 heavy rains and floods caused 7 agencies to be without power or
    access to their building for 2 to 5 days.
   In 2004 a snow storm caused state agencies to shut down for one day.
   In 2003 vandals in Coos Bay broke out windows in the entire first floor of a state
    building causing that part of the facility to be inaccessible for several days.
   August 2002, vandals in Woodburn flooded a state office building with water taking
    one full week for that agency to return to normal business operations.
   The Columbus Day Wind Storm of 1962 caused severe devastation, fatalities, loss
    of power, and interruptions to state and private businesses for up to 3 weeks.
   2003 Cyber Security incidents caused:
        Email and scheduling of services halted for one week for 800 employees.
        Communication with field offices halted during peak fire season.

     There has been a FEMA-scale event in Oregon in each of the last 10 years.
    Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Impacts: The World Is Different
Why is BCP important to us now?
    • Higher reliance on technology infrastructure
    • Increased cross-dependencies between agencies
    • More shared services
    • Increased vulnerability from cyber attacks
    • Higher recovery costs - less ability to pay

       Now is the time for Oregon to protect its vital enterprise operations!

   Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
                                                                                                                          15
              What Have We Learned?
1.      Business Continuity Planning is a business issue.
2.      It is not a question if disaster will strike…but when!
3.      Most organizations are not prepared for a major
        disruption.
4.      2 out of 3 companies have been forced to close due to
        major disruptions…but the State can not close!
5.      The world is a different place now.
6.      Advanced planning reduces the impact of a disruption.


 Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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                                       Agenda

     1.        Vulnerabilities and Impacts
     2.        Enterprise Business Continuity Planning
     3.        Action Plan




Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Enterprise Business Continuity Planning


  “Life is not a matter of having good cards, but of
  playing a poor hand well.”


                                                          Robert Louis Stevenson




  Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Enterprise Business Continuity Planning

                                                      EBCP

                                                   Cross-
                                                Dependencies


                                       Mission Critical Functions



                                      Mission & Service Priorities




  Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Enterprise Business Continuity Planning

                                                       Agency



                           Agency                                                  Agency

                                                        EBCP



                                                                         Agency
                                      Agency                             Agency


  Enterprise BCP – not just a roll-up of agency plans, but a network of plans.
  Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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The Enterprise BCP Project
                                                                                                                    EBCP

                                                                                                                   Cross-
                                                                                                               Dependencies


                                                                                                          Mission Critical Functions



                                                                                                         Mission & Service Priorities




The purpose of the Enterprise BCP project is to create
an integrated enterprise business continuity plan that:
• Is composed of a network of agency plans;
• Identifies the agency processes that support mission
  critical enterprise functions; and
• Ensures state government is able to continue
  business operations when a major disruption occurs.
  Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
                                                                                                                                       21
The Enterprise BCP Project
                                                                                                                    EBCP

                                                                                                                   Cross-
                                                                                                               Dependencies


                                                                                                          Mission Critical Functions



                                                                                                         Mission & Service Priorities


Continuity Planning Occurs at Two Levels:
  Agency Level – Includes details on functions, and the processes
  and infrastructure that support those functions. Restoration priorities
  based on agency needs and mission.
  Enterprise Level – Includes enterprise functions that have cross –
  dependencies across multiple agencies. Restoration priorities based
  on critical enterprise needs and mission. May impact/re-order agency
  priorities.
                       The Enterprise BCP Project is a dual benefit effort.

  Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
                                                                                                                                       22
  The Enterprise BCP Project
                                                                                                                          EBCP

                                                                                                                          Cross-
                                                                                                                      Dependencies




Impact of enterprise business processes on agency
                                                                                                                Mission Critical Functions




process priorities
                                                                                                                Mission & Service Priorities




                        Enterprise
                        Critical              “Public Health”                                “Cash Payments”
                        Functions
Enterprise
priorities may
affect agency
restoration
priorities.

  Agency Top
  Critical Functions




Agency Functions
Supporting Enterprise                Agency A                            Agency B                            Agency C
Function

   Agency critical processes are not necessarily the highest priority for the enterprise.
         Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
                                                                                                                                               23
                                       Agenda

     1.        Vulnerabilities and Impacts
     2.        Enterprise Business Continuity Planning
     3.        Action Plan




Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
                                                                                                                       24
Action Plan: Conduct BIA
  • Business Impact Assessment (BIA) will:
       – Identify and/or validate 12 agency’s top 6 business functions
         and priorities
       – Identify cross-dependencies among the enterprise, individual
         agencies and infrastructure
       – Quantify impacts to enterprise functions in terms of
                • Dollars - cost and loss of disbursements
                • Time - maximum down time for each process
                • Service - direct and indirect impacts on state clients


 Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Action Plan: Conduct BIA

  The BIA process will use an automated data collection
  tool that will:

• Enable Oregon – for the first time – to be able to identify
  its enterprise critical functions and cross-dependencies;
• Map impacts and effects across agencies if those
  functions are not able to be delivered.




 Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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  Action Plan: Conduct BIA
  Enterprise BCP Process:
  Develop                                                                           Meet                        Function
 Strategy &                 Select 12                  Engage                                                   Selection
                            Agencies                  Contractor                  with State
Methodology                                                                       Leadership                    Sessions




                      Develop BIAs,                        Presentation
  BIA                 BCP Road Map,
Workshops                                                   of Findings                            Final Report &
                      Business Case
                                                                                                  Recommendations
                                                                                                     for Ongoing
                                                                                                    Program and
                       Pilot Agencies                                                                Governance
                                                       Develop Report &
                          Test Tool                    Recommendations

    Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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    Project Time Line:

                  Executive
Assessmt
Conduct



                   Business
                    Impact
                  Assessment
                   April 05
                                  BIA & Business
Strategy
 Form




                                 Case Development
                                      May 05
                                                              Enterprise BCP
Proposal
 Submit




                                                               Governance
                                                                 June 05
                                                                                                 Enterprise & Agency
                                                                                                        Plans
Implement
 Program




                                                                                                       EBCP Program

                  April 2005              May 2005                  June 2005                       July 2005 ~ June 2007
            Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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Resource Commitment:

    Agency representatives to participate in the BIA information
    gathering workshops
       • Function Selection Sessions
             – Meet with agency heads to determine top 6 mission critical functions
             – Week of March 28 - Approx. 1-2 hours total

       • BIA Workshops
             – Meet with agency deputies, administrators, program directors to complete
               BIA questionnaire on top six mission critical functions
             – Weeks of April 12-14, and April 19-21- Approx. 2-3 hours total




   Enterprise Business Continuity Planning Program ~ Information Resources Management Division ~ Dept. of Administrative Services
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                 State of Oregon

                     Enterprise BCP
Ensuring the continuous operations of
                    state government

                  Questions And Answers

				
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