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When the Storm Comes: Why You Need Business Continuity Planning

01 Mar When the Storm Comes: Why You Need Business Continuity Planning

Business Continuity Planning (BCP), defines a process or system for recovering a business during and after a disaster. It is one of the most critical components of any recovery strategy, and one that is often overlooked. The process outlined by BCP will enable businesses to continue to operate in the aftermath of an unplanned event like a natural disaster or technological shutdown due to a computer virus.

Nobody can predict the future but it is paramount that your business is ready with a sound plan should the worst happen. By developing BCP procedures, you are making a conscious choice to proving yourself to your shareholders and employees that you are a proactive organization, improving efficiency and ensuring the future of your company.

 

 

Why Thai Companies Need to think about BCP: Thailand V Nature

 

In Thailand there is a high likelihood that an unforeseen circumstance will disrupt your company, leaving you unable to operate. This was borne out during the floods of 2011 which crippled the country and its businesses. In an emergency situation, your employees may not be able to come to work, suppliers may have shortages or your services may decrease in demand. All of these can cause your business to cease, possibly permanently.

 

It’s particularly prudent to have a BCP plan in the south-east Asian region. Thailand is a high-risk area for natural disasters, which over the past two decades include tsunamis, floods, cyclones, droughts, and earthquakes. The impact of disaster variability and the extreme hazard they cause results in substantial economic damage.

 

Average Annual Loss (AAL) by hazard

Hazard
Absolute
[Million US$]
Capital
stock [%]
GFCF
[%]
Social
exp [%]
Total
Reserves [%]
Gross
Savings [%]
Earthquake 32.56 0.002 0.031 0.057 0.020 0.029
Wind 0.02 0.000 0.000 0.000 0.000 0.000
Storm Surge 0.10 0.000 0.000 0.000 0.000 0.000
Tsunami 0.53 0.000 0.001 0.001 0.000 0.000
Flood 2,586.19 0.188 2.498 4.509 1.603 2.338
Multi-Hazard 2,619.40 0.190 2.530 4.567 1.624 2.368

 

 

The 2011 flood, caused an estimated 45 billion USD in damage and had significant impacts on businesses. The BOT conducted a survey after the flood, where over 50% of all businesses said that had been impacted either severely or very severely by the floods – only 5% indicated no impact. Studies analyzing the likelihood of natural disasters in Thailand found that between 2014 and 2016 there were a reported 37 cases of natural disaster, to varying degrees across the country.

 

Simply put, if you are doing business in Thailand – there is a significant probability that you will be impacted by a natural disaster. And as such, you should have a recovery strategy in place.

 

Why Thai Companies Need to think about BCP: Thailand V Technology

 

It’s not only natural disasters which can result in your business being impacted or becoming unoperational. As we have seen in 2017, with WannaCry and NotPetya  the spread of ransomware and other viruses has hindered some of the biggest companies on the planet including, Honda, Maersk and Nissan.

Worryingly, Thailand is renowned for having some of the laxest cybersecurity anywhere and is often ranked near the top of “riskiest” locations for cybercrime. According to Allianz Global, Thailand is the second most targeted country for cybercrime, all these issues are parsed into an environment where internet usage and mobile proliferation is rapidly on the rise.

According to Microsoft, 35% of computers in Thailand have encountered malware of some variety against a global average of 24% making it the 9th highest in Asia. The charge toward Thailand 4.0 is relentless, as is the growth of internet coverage throughout the country which currently stands at 90%. This is all juxtaposed by a substantial upsurge of viruses, ransomware, and cybercrime which will continue to be increasingly problematic in cultures where cybersecurity is not rigorously implemented.

 

What Can be Done?

 

A multi-layered approach is required for any successful recovery strategy and BCP is just one factor within it. As an IT services and technology company, we have found that across the board, the only way to mitigate the issues outlined above, is to have sufficient, accurate and up-to-date back-ups.

By having a library of easily accessible back-ups you can recover all mission-critical information to remote locations anywhere in the world. Carefully, select a diaster recovery site and effectively train your staff – so you have your employees organised, a location and your information should the worst happen.

 

Written by Sean Allan, Digital Marketing Manager, Aware Group