Area Business Continuityy Managementg
Scalable Cross Sector Coordination Framework ofDisaster Management for Business Continuity

Japanp International Cooperation
pAgencygy

Why the “AreaArea BCM”
BCM initiative?
Billion US$$ 400
350
300
250
200
150
100500
1950

1960

1970

1980

1990

2000

Source: large photo: AFP PHOTO / Pornchai KITTIWONGSAKUL (Photo credit should read PORNCHAI KITTIWONGSAKUL/AFP/Getty Images),
Small photo: AP Photo/Apichart Weerawong, Chart: Global economic loss of disaster by EMDAT

2010
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Why the “AreaArea BCM”
BCM initiative?
BCMS is standardized as ISO22301 anddisseminated in many business enterprises
around the world.
In Great East Japan Earthquake,
Earthquake, however,
the efficacy of prearranged BusinessContinuity Plans (BCP) in private enterprises
becomes insufficient due to disruption ofcommon resources such as energy
energy, water
water,transportation and communications.

Source: photo: ChiefHira, Internet, 7 June 2011

chart: H Baba, 20143

Why the “AreaArea BCM”
BCM initiative?

Contraly to Internal resources, such as company’s buildings, facilities, parts and row
materials, the External resources*
resources*,, such as energy, water and transportation
infrastructures, are managed normally by public sector and not controllable by private
enterprises. The external resources are also distributed not only for business purposes but
also for securing community life. Therefore, in case of emergency that imposes limited
allocation of those resource,, collaborative efforts are requiredq
between the private
psector,,public sector and the local community to maintain the critical external resources.
Source: photo: top: http://www.af.mil/shared/media/photodb/photos/110313-F-NW653-528.jpg by Samuel Morse. Right: Sendai Airportby Mainichi News Paper, 11 March 2011, bottoｍ: Fire Department of Shiogama district fire Affairs Association, 13 March 2011

4

What is “AreaArea BCM”?
BCM ?
Scalable Cross Sector
Coordination Frameworkof Disaster Managementfor Business Continuity

5

What is “Area
Area BCM”?
BCM ?
Risk and Impact Analysis
Impact to BusinessConttinuity

Large

Volcanic
Eruption

Identify Predominant Hazard

Understanding
Risks andImpacts

SmallLow(1/200～1/100)

High

Unknown

Probability

Risk Assessment
Implementing
Vulnerability ofInfrastructure,utilities and the area
Current measures by
public sectors andprivate enterprises

Sharing
Area BCM
Strategy

Monitoring& Improving
SystemHazard Simulation

Measures &Reviewing

BusinessImpactDeveloping
yAnalysis

Area BCP(Plan)

Disaster Scenario
6What is “Area
Area BCM”?
BCM ?
Stakeholder’s
Stakeholder s forum– Sharing risk and impact information
Understanding
Risks and– Strategy
Sand direction off business
Impacts
continuity of the area Monitoring
Sharing
Area BCM& Improving– Scope of Area BCM coordination
Strategy
Systemamong public and private sectors
Implementing
Measures &Reviewing

Developing
Area BCP(Plan)

7

What is “Area
Area BCM”?
BCM ?
Formulating/developing the Area BCP
Area BusinessBC
Continuity Plan

Area BCM organizational structure
UnderstandVulnerability and Riskof the Area

Leading industry of the area

Understanding
Risks andImpacts

Dominant hazard, risk andimpact
Monitoring& Improving
Business impact analysis
SystemSharing
Area BCM
Strategy

Challenges in the Area BC
Strategy of Area BCM
Direction of actions
Formulate the Area
BCP
Implement measuresand Evaluate theperformance

Implementing
Area BCP, including preparedness
andcontingency plans
Measures &Reviewing

Developing
Area BCP(Plan)

Performance evaluation
Continuous improvement8What is “Area
Area BCM”?
BCM ?
Measures should be balanced in all stages of Disaster
Management Cycle of:Understanding• Prevention and Mitigation,g,
Risks andImpacts• Preparedness and Response, and• Rehabilitation and Reconstruction.
Monitoring
C bi d ttactics:
Combinedti& Improving• Strengthening existing area
area--wideSystem
capacity of DRR,
• Preparing
pg alternative measures,, and• Making temporary backback--ups.

Sharing
Area BCM
Strategy

Multi--Scheme
MultiImplementing Developing
Measures &Area BCP• Cooperation with other(Plan)
Reviewingstakeholders to share essential
resources for business continuation,• Making new investment for area
area--wide resilient development, and• Transferring the risks by insurance or public compensation

9

What is “Area
Area BCM”?
BCM ?
A
Area BC M
ManagementtA
Area BCP Pl
Planningi

FFundamentaldl IIssues

ANALYZE(UNDERSTAND)DESIGN(STRATEGY)

DEVELOP(PLAN)

IMPLEMENT(ACTIONS)• Organize
Stakeholders• Understand Area andits function• Analyze Regional
Hazards,
Vulnerability andRisks• Evaluate resilience ofinfrastructure andother businessresources• Sharing Concepts ofArea BCP/BCM• Preparing Disaster
Risk Scenario• Business Impact
Analysis• Problems/Bottlenecks for Area BusinessContinuity• Analyze Existing DM• Area BCP Strategy• Planning Area
Business Continuity
by:• Critical Infrastructure
Protection• Coordinated Disaster
Preparedness andResponse• Quick Recovery,
Supply Chain
Cooperation, etc.

• Effectuate Area BCP• Measures to reducerisks,, preparednessp pand effective
response• Simulation Trainings
by utilizing Area BCP• Alternative
coordination
measures

Revision/I
Improvementt

Revision/
Improvementp

Revision/
Improvement

EVALUATE(MONITOR)

Understanding
Risks andImpacts
Monitoring& Improving
SystemRevision/IImprovementt• Advise• Evaluation andfeedback to improve
the Area BCM System

ContinuousSharing
Area BCM
ProcessStrategy
with
Multi hazard &Multi scenario

Implementing
Measures &Reviewing

Developing
Area BCP(Plan)

Evaluation of economic benefit through the probabilistic analysis of hazards, damages and mitigations
Accumulated Damage
Costs of Multiple
Hazards in certain
Probability

Period total or Annual
average of damage costin the area

Expectable Mitigation ofDamages by Area BCM
actions

Comparing with Disaster
Risk Reduction
Investments

10What are the Benefits of Area BCM?
Encourage Public sector to invest
more robust infrastructure.

Unifies the efforts of the area,
directs toward a common goal,
achieve restoration quickly,
efficiently and effectively.
effectively

PublicSupport

Increase responsibility under theArea BCM. Start establishinggown BCP/BCM.
Increase asset value forinvestment, Attract otherenterprise for newly
Self-Support
settling,
pull down the disasterinsurance cost
Enhancing
Resiliency

CommunityS
Supportt

OutsideSupport

Enhance supply chain
coordination network,
promote cooperation
li industry.
i d t
among line

Add redundancy of different
scheme’s combination

Cooperate with otherpartners and clients ofeach enterprise throughenhanced communication.

Foster local economyand employment

11Case study of Area BCM

12

Case study of Area BCM
Buildings in industrial park••

Karawang City and surrounding area is inundated more than 2 weeks
weeks..
Industrial parks however are not inundated, facilities are not damaged.
damaged.

Electric power and Lifelines• Two Substations in Karawang City are inundated over 2m depth and stop the operation for two weeks
weeks..
• Some of base stations of telephone and mobile phone stop the operation because of the shortage ofelectricl t i power.

Transportation infrastructure••

Freeway is closed both in west and east of Industry Park for more than 2 weeks
weeks..
Primary Road in Karawang City is closed for more than 2 weeks.

Workers of Industrial Parks••

Many employee will be absent because of the inundation of their houses.
Traffic condition becomes worse and induces the workers staying home
home..

Stakeholders are formulating BCP for strengthening transportation networks, alternative port
development power sub stations protection,development,protection backup of business resources
resources, environment of
stranded workers, etc. The Area BCM System is established and expanding its scope.
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How the Area BCM guide you?
Appliedpp
methodology
gy in the pilot
pareas will be summarized to bedisseminated for guiding any local economy to raise resilience todisasters.
JICA Study and Expert Panel of Japan and ASEAN
Area BCP Workshops in Pilot Areas
Seminars on Area BCM

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Where is the Area BCM going?
2015

HFA2 (the successor framework to the HFA)
Mainstreaming DRR in Development
Breaking away from the cycle of disaster and poverty
Realization of sustainable development by Disaster Risk Reduction

Highlighted
Resilience ofL
LocallEconomy,Increasing
Importanceof Private
SectorParticipation

Promotion ofcommon
understandingdd
and accurate
grasp of natural
disaster risk

Implementationof risk reduction
measures forf
sustainable
development

Rapid andeffective
response withhbetter
preparedness

Restoration andreconstruction
to a moredisasterresilient society

Establishment and Strengthening of Disaster Management Systems
Understandingdd
Disaster Risk

Prevention
Mitigation

PreparednessdResponse

Rehabilitation
h blReconstruction

Area BCM
Scalable Cross
SectorCoordination
Framework ofDisaster
Management forBusinessContinuity

DR2AD
Macro economic
model to prospect
DRR effectiveness

Intensifying Disasters, Increasing Catastrophes, Global Impacts

2005

The adoption of HFA

15

Thank you
Area Business Continuity Management

www jica go jp
www.jica.go.jp