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A Supply Chain Management Guide to Business Continuity [Book]

No cover image. Read preview. The flexible design of the ICS allows its span of control to expand or contract as the scope of the situation changes. A clearly defined and documented plan of action for use at the time of an incident, typically covering the key personnel, resources, services and actions needed to implement the incident management process.

The combination of facilities, equipment, personnel, procedures, and communications operating within a common organizational structure, designed to aid in the management of resources during incidents. Has the authority to invoke the recovery plan. The response of an organization to a disaster or other significant event that may significantly impact the organization, its people, or its ability to function productively. An incident response may include evacuation of a facility, initiating a disaster recovery plan, performing damage assessment, and any other measures necessary to bring an organization to a more stable status.


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The use of technology for the storage, communication or processing of information. The technology typically includes computers, telecommunications, applications and other software. The information may include business data, voice, images, video, etc. Information technology is often used to support business processes through IT services. A contract to finance the cost of risk. Should a named risk event loss occur, the insurance contract will pay the holder the contractual amount.

A written agreement entered into between two federal agencies, or major organizational units within an agency, which specifies the goods to be furnished or tasks to be accomplished by one agency the servicing agency in support of the other the requesting agency. The process responsible for managing risks that could seriously impact IT services.

ITSCM ensures that the IT service provider can always provide minimum agreed service levels, by reducing the risk to an acceptable level and planning for the recovery of IT services. ITSCM should be designed to support business continuity management. System whereby dependencies for critical business processes are provided exactly when required, without requiring intermediate inventory.

Chance of something happening, whether defined, measured or estimated objectively or subjectively. It can use general descriptors such as rare, unlikely, likely, almost certain , frequencies or mathematical probabilities. It can be expressed qualitatively or quantitatively. Unrecoverable resources that are redirected or removed as a result of a business continuity event.

Such losses may be loss of life, revenue, market share, competitive stature, public image, facilities, or operational capability. A perspective on IT services which emphasizes the fact that they are managed. The term managed services is also used as a synonym for outsourced IT services. Set of interrelated or interacting elements of an organization to establish policies and objectives, and processes to achieve those objectives. An alternative method of working following a loss of IT systems.

As working practices rely more and more on computerized activities, the ability of an organization to fallback to manual alternatives lessens. However, temporary measures and methods of working can help mitigate the impact of the event for a short period. A workaround that requires manual intervention. Manual workaround is also used as the name of a recovery option in which the business process operates without the use of IT services. This is a temporary measure and is usually combined with another recovery option.

The limited set of agency-level Government functions that must be continued throughout, or resumed rapidly after, a disruption of normal activities. A short but complete description of the overall purpose and intentions of that organization. It states what is to be achieved but not how this should be done. Formalized and documented reciprocal arrangements between two or more organizations providing for unilateral, bilateral or multilateral assistance in specified circumstances.

Pre-arranged agreement developed between two or more entities to render assistance to the parties of the agreement. Natural process or phenomenon that may cause loss of life, injury or other health impacts, property damage, loss of livelihoods and services, social and economic disruption, or environmental damage. The term is used to describe actual hazard events as well as the latent hazard conditions that may give rise to future events. Natural hazard events can be characterized by their magnitude or intensity, speed of onset, duration, and area of extent.

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For example, earthquakes have short durations and usually affect a relatively small region, whereas droughts are slow to develop and fade away and often affect large regions. In some cases hazards may be coupled, as in the flood caused by a hurricane or the tsunami that is created by an earthquake.

The lowest of three levels of Planning and delivery Strategic, Tactical, Operational. The term Operational is also a synonym for Live. The highest-ranking official of an organization, or a successor or designee who has been selected by that official in orders of succession. Period of time after disruption that a service, system, process or business function is expected to be unusable or inaccessible. Activities implemented prior to an incident that may be used to support and enhance mitigation of, response to, and recovery from disruptions.

Measures that enable an organization to avoid, preclude, or limit the impact of a disruption. A category used to identify the relative importance of an incident, problem or change. Priority is based on impact and urgency, and is used to identify required times for actions to be taken. For example, the SLA may state that priority incidents must be resolved within 12 hours. A group of related initiatives managed in a coordinated way, so as to obtain a level of control and benefits that would not be possible from the individual management of the initiatives.

Programs may include elements of related work outside the scope of the discrete initiatives in the program.

It is also often called preparedness. Activities and programs designed to return conditions to a level that is acceptable to the entity. Point to which information used by an activity must be restored to enable the activity to operate on resumption. Actions necessary to restore data files of an information system and computational capability after a system failure. Estimated period of time required to restore a particular level of functionality after taking into account any uncertainties. Time goal for the restoration and recovery of functions or resources based on the acceptable down time and acceptable level of performance in case of a disruption of operations.

The sequence of recovery activities, or critical path, which must be followed to resume an acceptable level of operation following a business interruption. The timeline may range from minutes to weeks, depending upon the recovery requirements and methodology. The ability to prepare for and adapt to changing conditions and recover rapidly from operational disruptions. Resilience includes the ability to withstand and recover from deliberate attacks, accidents, or naturally occurring threats or incidents. A system for identifying available resources to enable timely access needed to prevent, mitigate, prepare for, respond to, maintain continuity during, or recover from an incident.

Documented collection of procedures and information that is developed, compiled, and maintained in readiness for use in an incident. This process commonly addresses the most critical business functions within BIA specified timeframes. A measurement of the expected benefit of an investment. In the simplest sense it is the net profit of an investment divided by the net worth of the assets invested. A possible event that could cause harm or loss, or affect the ability to achieve objectives. A risk is measured by the probability of a threat, the vulnerability of the asset to that threat, and the impact it would have if it occurred.

Disaster Risk UNISDR The potential disaster losses, in lives, health status, livelihoods, assets and services, which could occur to a particular community or a society over some specified future time period. Comment: The definition of disaster risk reflects the concept of disasters as the outcome of continuously present conditions of risk. Disaster risk comprises different types of potential losses which are often difficult to quantify. Nevertheless, with knowledge of the prevailing hazards and the patterns of population and socio-economic development, disaster risks can be assessed and mapped, in broad terms at least.

This includes loss from events related to technology and infrastructure, failure, business interruptions, staff related problems, and from external events such as regulatory changes. Total amount of risk that an organization is prepared to accept, tolerate, or be exposed to at any point in time. Process of identifying the risks to an organization, assessing the critical functions necessary for an organization to continue business operations, defining the controls in place to reduce organization exposure and evaluating the cost for such controls.

Risk analysis often involves an evaluation of the probabilities of a particular event. These categories include reputation, strategy, financial, investments, operational infrastructure, business, regulatory compliance, outsourcing, people, technology and knowledge. Structured development and application of management culture, policy, procedures and practices to the tasks of identifying, analyzing, evaluating, controlling and responding to risk.

A selective application of appropriate techniques and management principles to reduce either probability of an occurrence or its impact, or both. A common technique used by risk managers to address or mitigate potential exposures of the organization. A series of techniques describing the various means of addressing risk through insurance and similar products. An activity that identifies the root cause of an incident or problem.

A Supply Chain Management Guide to Business Continuity

RCA typically concentrates on IT infrastructure failures. A condition that results from the establishment and maintenance of protective measures that enable an enterprise to perform its mission or critical functions despite risks posed by threats to its use of information systems. Cybersecurity ISACA The protection of information assets by addressing threats to information processed, stored, and transported by internetworked information systems.

The management, operational, and technical controls i. A formal agreement between a service provider whether internal or external and their client whether internal or external , which covers the nature, quality, availability, scope and response of the service provider. The SLA should cover day- to-day situations and disaster situations, as the need for the service may vary in a disaster.

Any Configuration Item that can cause an Incident when it fails, and for which a Countermeasure has not been implemented. See Failure.