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Orientation on
Business Continuity Plan

Objective
To help prepare the business sector in case of
disaster, calamity, and pandemic, and be able to
understand the importance of having a business
continuity plan when facing different challenges of
the time.

An aerial view shows damage caused by floods in Iligan City
Typhoon Sendong, December 19, 2011
The tragedy that struck the cities of Cagayan de Oro and Iligan.
One of the worst in Mindanao -2,000 killed
- Thousands injured
- P42.2 Billion damages

Worst affected area is Compostela Valley
- More than 60,000 has. of banana
plantations destroyed
- 735 dead
Typhoon Pablo, Dec. 4, 2012,
- 1,900 were killed
- P 36.9 Billion damage ( P26 B
–agri, P 7.5 B Infra )

-100,000 people displaced
-More than thousands were
injured
Zamboanga Crisis
Sept. 2013

Bohol Earthquake,
7.2 Magnitude
October 15, 2013
P2.25 Billion damages to buildings, infra
3.2 M people/671,103 families affected
thousands dead/injured/missing

Storm surge of 7
meters high
Typhoon Yolanda in Leyte and
Eastern Samar, Nov. 8, 2013
- 6,000 fatalities
- 2,000 missing
- 27,022 injured
- P35.55B damages

Totally destroyed homes and buildings

Ipil siege April 4, 1995
Dead =50 people
Half a billion looted
in 8 commercial
Banks; 200 shops,
Stores , cinemas set
afire during the
rampage

The problem is how to feed the number of displaced persons
that increased by the day.

people lining up for food and water,

Last time Taal Volcano erupted in early January 2020 affecting
more than 736,000 people in CALABARZON (Region IV-A), Central
Luzon (Region III) and National Capital Region (NCR) and leading to
an evacuation of more than 135,000 people, damage to
infrastructure and livelihoods, and disruption of essential services.

 The Philippines is in the direct path of seasonal
typhoons, storm surges, and landslides
 The country sits on the “ring of fire” where the
continental plates collide and thus experience
periodic earthquakes and volcanic eruptions.
 It has become the natural laboratory for various kinds of
disasters
 Now considered as the third most disaster prone country
in the world.

SMEs Are the Lifeblood in the Philippines
• Account for 99.6% of the businesses
• Employ well over 61.2% of the workforce
• Uniquely positioned to bring communities back from damage
SMEs Are Prone to Natural Disasters
-Natural disasters as emerging threats affecting trade and investment
(regional supply chains)
-SMEs are particularly vulnerable due to lack of disasters preemptive
knowledge and mechanisms
37
Philippine SMEs….

Safety of employees
Loss of people and skills
Loss of Cash Flow
Interruptions of lifeline systems
Loss of access to resources and materials
Supply Chain disruption
Damage to corporate image/brand/reputation

Asia-Pacific Disaster Scenario
Three quarters of the world’s natural disasters occur in the Asia-Pacific
region and these are increasing in frequency and ferocity.
SMEs make up 97% of private companies in the APEC region and employ
over 50% of the region’s workforce.
Most SMEs are unprepared for the impact of the disasters on their business
operations that lead to disruptions, financial losses, job losses and
interruptions to regional supply chains.
Only 13% of SMEs have Business Continuity Plans in place and fewer than
50% are aware of the concept.
Forty-seven (47%) of large businesses have BCPs and 75% are familiar with
the concept.

In November 2011, APEC Ministers called on economies
and officials to promote and facilitate the use of business
continuity plans (BCPs), especially for SMEs to better
prepare businesses and communities for natural disasters
and to mitigate their impacts.
 Series of trainings and sessions were conducted in
Singapore, Taiwan, Hanoi and Bangkok among
government officials.
.

What is a business continuity plan?
A BCP identifies the critical operational functions of an organization
and the potential impacts of a threat prior to its occurrence.
It specifies effective ways of responding and quick recovery
measures so that a business can continue to operate at acceptable
levels and avoid disruptions for a specified period of time (box 1).

What is a business continuity plan?
BCM is a risk management strategy that focuses on maintaining the
continuity of critical operations to ensure the supply of goods and
services, and thereby the organization’s survival.
Figure 1 shows the concept of business continuity and the recovery
curve of an organization’s level of service before, during, and after a
disaster. Developing a BCP helps an organization identify what
preparations must be made before a disaster strikes to secure its
employees, assets, information technology (IT) systems, and
information, as well as its reputation.

A business continuity plan (BCP)
identifies the potential effects of
disruptions to an organization’s
critical operations if a disaster
were to occur, and specifies
effective response actions and
quick recovery measures.

In the Great East Japan Earthquake (GEJE), BCPs served their purpose
to some extent, but certain weaknesses were identified.
While BCPs helped to keep critical operational functions going, and
then to rehabilitate general operations, most small- and medium-
sized enterprises had, unfortunately, not even prepared BCPs.
Since the private sector plays a major role in creating jobs and
supporting local economies, it should be required to prepare BCPs,
but with support from the government.

FINDINGS
BCPs in Japan
Great East Japan Earthquake (GEJE), On March 11th, 2011 a
Magnitude 9.0 earthquake struck off the northeast coast of
Japan, near the Tohoku region.
The force of the earthquake sent a tsunami rushing towards
the Tohoku coastline, a black wall of water which wiped
away entire towns and villages.

BCPs in Japan
The Central Disaster Management Council chaired by the prime minister
has carried out damage estimates for the Tokyo metropolitan area in the
event of a strong inland earthquake. A magnitude 7.3 earthquake with an
epicenter in the northern part of Tokyo Bayhas been forecasted and one
scenario assumes extensive damage, including a death toll of
approximately 11,000 people, the total collapse of 850,000 buildings, and a
maximum economic loss of ¥112 trillion.
After the GEJE, governments are currently revising this damage estimate to
verify if even worse figures are possible or probable.

BCPs in Japan
In 2005 the council established the Policy Framework for Tokyo Inland
Earthquakes to ensure the continuity of functions in the capital, and to
establish countermeasures for reducing the death toll by 50 percent and
economic losses by 40 percent. It also set strategic goals that included
increasing the earthquake-proof rating of houses and buildings to 90 percent,
increasing the fixed furniture rate to 60 percent, and increasing the BCP
adoption rate to 100 percent for large companies and 50 percent for medium-
sized companies within a 10-year period.
In addition, it published business continuity guidelines to help companies
develop their BCPs.
Forty-six percent of large companies and 21 percent of medium-sized
enterprises have developed BCPs in 2011.

Damage and recovery after the GEJE
The GEJE caused 656 private companies, which employed 10,757
workers, to go bankrupt within one year.
But only 79 companies of them, 12 percent, were located in the
Tohoku region while the others were located all over Japan.
The reason for bankruptcies among the latter group was indirect loss
or damage caused by disruptions in their supply chains.

The main reasons that BCPs did not function are as follows:
• The damage was much greater than predicted, because the
companies followed government scenarios that underestimated
reality.
• Not enough training was conducted. Workers who had not seen the
BCP documents could not take the necessary actions.

Practices at the GEJE
The case of a large distribution company.
Seven & i Holdings Co., Ltd. operates convenience stores, general merchandise
stores, department stores, and supermarkets. The company has revised its BCPs
seven times since the Kobe earthquake in 1995. A supermarket in Ishinomaki City,
one of the most devastated cities, started selling foods and other goods outside its
own buildings starting at 6 p.m. on March 11. On the next day, all 10 supermarkets
opened in the Tohoku Region. The decision to reopen in times of disaster was
delegated to the individual shops, which could assess the situation quickly.
Multiple logistics routes were secured and 400 workers were brought from other
areas to support the stores in the devastated areas.

The case of an SME.
The Suzuki Kogyo Co. is a waste management company with 67
employees in Sendai City, which suffered from the GEJE.
The company equipped itself with satellite phones and standby
generators, and conducted training and drills based on a BCP
formulated in 2008.
The emergency center was established at 3:30 p.m., 45 minutes
following the earthquake on March 11.
Two days later the company resumed the critical operation of
treating medical waste from dialysis. Other companies took over the
waste management operations.

How payment and settlement systems and
financial institutions responded to the GEJE
Financial services are a basic lifeline in a society, supporting many kinds of economic
activities.
The failure of payment and settlement systems could prevent customers from
making deposits, cash withdrawals, and payments, thereby intensifying public
anxiety in times of disaster. The financial sector was seriously affected by both the
physical damages and the indirect effects of the disaster. Nevertheless, even in the
aftermath of the earthquake, the nation’s payment and settlement systems and
financial institutions, including the Bank of Japan, continued to operate in a stable
manner and, on the whole, managed to function normally

LESSONS
The private sector in Japan has made substantial efforts to adopt BCPs, which proved to
be useful when put into action following the GEJE. At the same time, however, some
lessons were learned that could make corporate BCPs even stronger and more effective.
Until recently there had been an attitude of tolerance toward business disruptions caused by
disasters of a certain scale, as they were considered to constitute force majeure. Public
opinion has shifted since March 11. Now, even if the scale and intensity of a disaster
exceeds assumptions and predictions, disruptions are deemed to constitute negligence,
and top managers are expected to be able to take appropriate measures to ensure the
continuity of critical operations.

These drills and training must target specific departments in the company and should address
specific capacities and skills; generic training is of no use. The plan should list specific activities
and give detailed directions to be followed in emergencies and to facilitate recovery.
These should be explained in detail to those officials and employees who are expected to
implement them. Drills and training should be regular and ongoing, and some coordination
at the sectoral level is recommended.
Companies should:
Ensure BCP effectiveness through regular drills and continuous
education.

Private companies should formulate their BCPs to reflect the
results or outcomes they expect from implementation, rather than specific measures to
counter specific disasters. They should identify key services, and examine how long the
service will be disrupted and how they can shorten the disruption time.
Radically shift from a “disaster-based“ to a “consequence-based”
perspective in strategy development.

In addition to the company’s own operations, BCPs should address supply
chain issues that affect other companies and markets. To facilitate this, meetings should
be held regularly with companies in the same sector and with supply chain companies, first
to assess the potential risks and then to develop concerted measures to ensure business
continuity throughout the supply chain.
Focus more on supply chain disruption risk by knowing more about
the situations of stakeholders.

RECOMMENDATIONS FOR DEVELOPING
COUNTRIES
If well prepared for disasters, the private sector can play an important role in reducing local
and regional economic damage. BCPs are an effective tool for strengthening the private
sector’s disaster resilience.

Raise public awareness. Private companies and organizations do not always recognize
the importance and usefulness of BCPs. Efforts should be made to raise awareness about
BCPs and develop effective BCPs to achieve greater regional resilience. Practices and
lessons from disasters should be widely shared with private companies and organizations.
Start from a small disaster. Private companies could begin with a small hazard scenario
as the first step in formulating BCPs, and then add greater or different kinds of hazards.
For example, in Japan, since earthquakes are a very familiar hazard, most companies start
by preparing BCPs for earthquakes which are considered easier to produce. They then
proceed to develop BCPs for more complicated disasters, such as pandemics.

Mobilize government support. Governments may feel that providing support to BCPs
for the private sector is not their role. But securing livelihoods and the local economy is
certainly a relevant public sector concern. Governments should provide private companies
with the necessary information such as risk assessments and guidelines for producing BCPs.
Also, governments should collaborate with chambers of commerce and other industrial
associations that provide support to these companies.

What is Business Continuity Plan (BCP)?
A BCP is a roadmap that enables a business to:
- prepare for disasters
- operate under adverse conditions
- identify the critical operations, risks and impacts
- respond and set recovery measures
- maintain operation and avoid long period of disruption
A BCP forces a business to think through and identify specific
actions/measures to take to address key issues.

Operation level
Time
100%
Continuity
Recovery
Incident
Prevention & Mitigation
Minimum
operation level
Shorten disruption
time
Incident response
Source: ISO 22301 Business Continuity Management
Standard-Requirements by Adviser Nick Okabe

Benefits of BCP on Resilient SMEs
Keep income
flowing in their
communities
Keep people in jobs
Enable other
businesses to
survive by meeting
their contracts
Ensure access to
markets and
reduce impact on
other businesses
Keep supply chain
flowing
Reduce the strain
in the economy

Source: Status of the Private Sector in the Asia Pacific Region by Takahiro ONO, APEC Japan Expert

Business
expansion,
47%
Minimum cost
of adoption,
20%
Not time
consuming/
expensive, 18%
Helpful to the
enterprise, 10%
No Answer, 4%
PRE-CONDITIONS TO
ADOPTION OF BCP

70
 great need to push the current focus on SME
resilience away from disaster recovery towards
reducing conditions that generate vulnerability of
SMEs through an emphasis on adaptation planning
 need to shift formal support programmes for SMEs
from a reactive to a long-term approach to forming
strategies that promote flexibility within the system
and encourages learning for ensuring business
continuity.
Source: Understanding the Adaptive Capacity of Small-to-Medium Enterprises
(SMEs) in Australia to Climate Change and Variability by Dr Natasha
Kuruppu

71
 Raise public awareness of BCPs especially among
SMEs and fill up the gap
• Requirement（ Legal, Stakeholder, Customer, Bank )
• Government Campaign
• Incentives
 Remove obstacles to BCP development
• Guidebook / Guideline
• Funding Support (Consultants, Structural Measures )
• Train of Trainers
 Expand effective public support systems and
resources available to SMEs
• Maturity level of BCP diffusion

Step 2. Determine the disaster risk and scenario in
my company
Four words to define
1) HAZARD – source of danger
2) THREAT – someone or something that could cause trouble or harm
3) RISK – potential loss due to exposure to a threat that could cause
disruption to Business Operations
4) INJURY – loss sustained

HAZARD
How
Likely?
(1-5)
How
Severe?
(1-5)
Risk NOTES

Workshop 3: Our backup Suppliers
Supplier
Name
Resources
Supplied
Threats
They Face
How
Likely?
(1-5)
How
Severe?
(1-5)
Risk
Backup Supplier 1:
Company Name:
Address:
Phone: Fax: E-mail:
Contact Name: Account Number:
Materials/Service Provided:
Backup Supplier 2:
Company Name:
Address:
Phone: Fax: E-mail:
Contact Name: Account Number

Workshop 4: Our Back Buyers/Distributors
Distributor/Client
Name
Product Distributed Threats They Face How
Likely?
(1-5)
How
Severe?
(1-5)
Risk
Backup Distributor/Client 1:
Company Name:
Address:
Phone: Fax: E-mail:
Contact Name: Account Number:
Backup Distributor/Client 2:
Company Name:
Address:
Phone: Fax: E-mail:
Contact Name: Account Number

Business Impact Analysis
The process of analyzing the activity and the effect of business disruption upon
them
2 things pag usapan
1. Maximum tolerable period of disruption (MTPD)
-Activities on the period na disrupt..kailangan magiging unacceptable ang pag
hinto ng mga activities sa pag produce ng products and giving services
-2. recovery time objective (RTO) - if stop operation , what is the shortest time
frame para maibalik ang pag produce ng produkto ang pag bigay ng serbisyo sa
merkado

Workshop 5: Business Impact Analysis (BIA)
Disaster
Business
Functions
Impacted
Resources
Impacted
Recovery
Time
Objective
Operational
Impacts
Financial
Impacts

Emergency Communication Plan
Emergency Communications Plan
Name Role Phone & Address
Methods of communication (Cell phone, social media, person-to-person)
Method Person
Responsible
Notes

This is our backup location we will use if
our primary offices are compromised:
Backup Location:
Address:
Phone number:
Person Responsible for Contacting: Name:
Contact Info
Insert Map with backup location marked

Preventative Measures
Hazard Preventative Measures

Step 5. Testing my company plans
Look at the effectiveness of plans
1. Effective ba ang Evacuation Plan – if ever magkaroon emergency can personnel and
customer can evacuate safely?
2. Check Emergency Communication Plan – if ever gumagana kaya ang mga numbers or
telephones
3. Incident Command Protocol – if ever, the BC team can continue and meet in one place para
magampanan nila ang designated role sa BCP as a BCP team
Test and practice

Step 6. Improving my company plans
Need to see the effectiveness
Review and monitor ang BCP activities – before,
during and after the incident

Fail to Prepare,
Prepare to Fail

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