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Slide 1: A Report for Sample Company Business Impact Analysis (BIA) 16 December 2002 Engagement: XXXXXXXXX
Slide 2: Sample Company Business Impact Analysis (BIA) Table of Contents Introduction/Executive Overview.............................................................1 Objectives .................................................................................................................... 1 Scope........................................................................................................................... 1 Approach ..................................................................................................................... 2 Document Organization ............................................................................................... 2 Corporate Communications .....................................................................3 Engineering ...............................................................................................5 Facility Services ........................................................................................8 Finance ....................................................................................................11 Human Resources...................................................................................17 Safety and Risk.......................................................................................................... 21 Marketing.................................................................................................24 Customer Care .......................................................................................................... 27 Sales..........................................................................................................................29 Materials Management............................................................................33 Network Operations Center (NOC).........................................................36 Operations ...............................................................................................39 Plant Assignment and Dispatch (Provisioning)....................................45 Purchasing ..............................................................................................48 Regulatory Affairs ...................................................................................51 Executive Summary/Business Impact Analysis for SAMPLE ..............54 Cumulative Reported Financial Impacts .................................................................... 54 Cumulative Financial Impact (2001 Gross Revenue)................................................. 55 Cumulative Reported Financial Impacts .................................................................... 56 Operational Impact Summary .................................................................................... 56 Recovery Personnel Requirements ........................................................................... 57 Recovery Time Frames Summary ............................................................................. 58 Recovery Priority Recommendations......................................................................... 59 Work Backlog Processing .......................................................................................... 59 Critical Business Records .......................................................................................... 60 Regulatory Reporting ................................................................................................. 62 For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page i
Slide 3: Sample Company Business Impact Analysis (BIA) Recovery Complexity for Business Units ................................................................... 64 Special Requirements................................................................................................ 66 Reliance on Communications .................................................................................... 67 Unique Standalone Workstations............................................................................... 68 Conclusion ..............................................................................................69 Appendix .................................................................................................70 Appendix A—BIA Questions ...................................................................................... 71 List of Figures Figure 1.Financial Impact for Finance ........................................................................... 11 Figure 2.Financial Impact for Customer Care................................................................ 27 Figure 3.Financial Impact for Corporate Sales .............................................................. 30 Figure 4.Financial Impact for Operations ...................................................................... 39 Figure 5.Reported Financial Impacts for SAMPLE ........................................................ 54 Figure 6.Reported Impacts and 2001 Revenue for SAMPLE ........................................ 55 Figure 7.Reported Financial Impacts for SAMPLE ........................................................ 56 Figure 8.Average Operational Impacts for SAMPLE ..................................................... 57 Figure 9.Time to Complete Backlog Processing for SAMPLE ....................................... 59 Figure 10. Time Frame and Number of Processes for SAMPLE................................... 60 Figure 11. Recovery Complexity for SAMPLE............................................................... 64 Figure 12. Monthly Impact Profile for SAMPLE ............................................................. 66 Figure 13. Degree of Reliance Upon Communications Services................................... 67 List of Tables Table 1. Business Processes Identified by Communications .......................................... 3 Table 2. Critical Business Records Identified by Communications.................................. 3 Table 3. Regulatory Reporting Requirements for Communications ................................ 3 Table 4. Operational Impacts Identified by Communications .......................................... 4 Table 5. Number of Recovery Personnel by Day for Communications ........................... 4 Table 6. Business Processes Identified by Engineering.................................................. 5 Table 7. Critical Business Records Identified by Engineering ......................................... 5 Table 8. Regulatory Reporting Requirements for Engineering........................................ 5 Table 9. Operational Impacts Identified by Engineering.................................................. 6 Table 10. Number of Recovery Personnel by Day for Engineering................................ 6 Table 11. Business Processes Identified by SAMPLE Facility Services ........................ 8 Table 12. Critical Business Records Identified by Facility Services (Central District Only) .............................................................................................................. 8 Table 13. Regulatory Reporting Requirements for Facility Services .............................. 8 Table 14. Operational Impacts Identified by Facility Services ........................................ 9 Table 15. Number of Recovery Personnel by Day for Facility Services ......................... 9 For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page ii
Slide 4: Sample Company Business Impact Analysis (BIA) Table 16. Table 17. Table 18. Table 19. Table 20. Table 21. Table 22. Table 23. Table 24. Table 25. Table 26. Table 27. Table 28. Table 29. Table 30. Table 31. Table 32. Table 33. Table 34. Table 35. Table 36. Table 37. Table 38. Table 39. Table 40. Table 41. Table 42. Table 43. Table 44. Table 45. Table 46. Table 47. Table 48. Table 49. Table 50. Table 51. Table 52. Table 53. Table 54. Table 55. Table 56. Table 57. Table 58. Table 59. Table 60. Business Processes Identified by Finance................................................... 12 Critical Business Records Identified by Finance .......................................... 14 Regulatory Reporting Requirements for Finance ......................................... 14 Operational Impacts Identified by Finance ................................................... 15 Number of Recovery Personnel by Day for Finance .................................... 15 Business Processes Identified by SAMPLE Human Resources .................. 17 Critical Business Records Identified by SAMPLE Human Resources .......... 18 Regulatory Reporting Requirements for SAMPLE Human Resources......... 19 Operational Impacts Identified by SAMPLE Human Resources................... 20 Number of Recovery Personnel by Day for SAMPLE Human Resources.... 20 Business Processes Identified by SAMPLE Safety and Risk ....................... 21 Critical Business Records Identified by Safety and Risk .............................. 21 Regulatory Reporting Requirements for Safety and Risk............................. 21 Operational Impacts Identified by Safety and Risk....................................... 22 Number of Recovery Personnel by Day for Safety and Risk........................ 22 Business Processes Identified by SAMPLE Marketing ................................ 24 Critical Business Records Identified by Marketing ....................................... 25 Regulatory Reporting Requirements for Marketing ...................................... 25 Operational Impacts Identified by Marketing ................................................ 25 Number of Recovery Personnel by Day for Marketing ................................. 26 Business Processes identified by Customer Care........................................ 28 Critical Business Records Identified by Customer Care............................... 28 Regulatory Reporting Requirements for Customer Care.............................. 28 Operational Impacts Identified by Customer Care........................................ 28 Number of Recovery Personnel by Day for Customer Care......................... 29 Business Processes Identified by Sales....................................................... 30 Critical Business Records Identified by Sales .............................................. 30 Regulatory Reporting Requirements for Sales............................................. 30 Operational Impacts Identified by Sales....................................................... 31 Number of Recovery Personnel by Day for Sales ........................................ 31 Business Processes Identified by Materials Management ........................... 33 Critical Business Records Identified by Materials Management................... 33 Regulatory Reporting Requirements for Materials Management ................. 33 Operational Impacts Identified by Materials Management ........................... 34 Number of Recovery Personnel by Day for Materials Management............. 34 Business Processes Identified by the NOC.................................................. 36 Critical Business Records Identified by the NOC ......................................... 37 Regulatory Reporting Requirements for the NOC ........................................ 37 Operational Impacts Identified by the NOC.................................................. 37 Number of Recovery Personnel by Day for the NOC ................................... 38 Business Processes Identified by Operations .............................................. 40 Critical Business Records Identified by Operations...................................... 41 Regulatory Reporting Requirements for Operations .................................... 41 Operational Impacts Identified by Operations .............................................. 41 Total Number of Recovery Personnel by Day for SAMPLE Operations ....... 42 For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page iii
Slide 5: Sample Company Business Impact Analysis (BIA) Table 61. Table 62. Table 63. Table 64. Table 65. Table 66. Table 67. Table 68. Table 69. Table 70. Table 71. Table 72. Table 73. Table 74. Table 75. Table 76. Table 77. Table 78. Table 79. Table 80. Table 81. Table 82. Table 83. Table 84. Table 85. Table 86. Number of Recovery Personnel by Day for Operations at Pokipsie ............. 42 Number of Recovery Personnel by Day for Operations at Tucson............... 42 Number of Recovery Personnel by Day for Operations at Phoenix.............. 42 Number of Recovery Personnel by Day for Operations at Melvin ................ 42 Business Processes Identified by Provisioning ............................................ 45 Critical Business Records Identified by Provisioning.................................... 45 Regulatory Reporting Requirements for Provisioning .................................. 45 Operational Impacts Identified by Provisioning ............................................ 46 Number of Recovery Personnel by Day for Provisioning ............................. 46 Business Processes Identified by Purchasing.............................................. 48 Critical Business Records Identified by Purchasing ..................................... 48 Regulatory Reporting Requirements for Purchasing .................................... 49 Operational Impacts Identified by Purchasing.............................................. 49 Number of Recovery Personnel by Day for Purchasing ............................... 49 Business Processes Identified by SAMPLE Regulatory Affairs.................... 51 Critical Business Records Identified by Regulatory Affairs........................... 51 Regulatory Reporting Requirements for Regulatory Affairs ......................... 52 Operational Impacts Identified by Regulatory Affairs ................................... 52 Number of Recovery Personnel by Day for Regulatory Affairs .................... 52 Overall Personnel Requirements for SAMPLE............................................. 57 Recommended Recovery Priorities for SAMPLE ......................................... 59 Critical Business Records for SAMPLE........................................................ 60 Regulatory Reports for SAMPLE.................................................................. 62 Recovery Complexity for SAMPLE............................................................... 64 Special Resource Requirements for SAMPLE ............................................. 66 Standalone Workstation Requirements for SAMPLE ................................... 68 For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page iv
Slide 6: Sample Company Business Impact Analysis (BIA) Introduction/Executive Overview Objectives The purpose of the business impact analysis (BIA) was to help Sample Systems (SAMPLE) identify which business units, operations and processes are essential to the survival of the business. The BIA will facilitate the identification of how quickly essential business units and/or processes have to return to full operation following a disaster situation. It will delineate the business impact of disaster impact scenarios on the ability to deliver product or to support mission-critical services. The BIA will also facilitate the identification of the resources required to resume business operations to a survival level. Business impacts are identified based on a worst-case scenario that assumes that the physical infrastructure supporting each respective business unit has been destroyed and all records, equipment, etc. are not accessible within 30 days. Please note that this report does not address recovery assumptions, such as the availability of experienced personnel for recovery, because this type of assumption is typically included in a business continuity plan (BCP). Issues such as recovery concerns, new threats, or emerging trends in disaster recovery or business continuity, are outside the scope of the BIA, but are being provided in a separate Gartner “best practices” document. The objectives of the business impact analysis (BIA) are as follows: Estimate the financial impacts for each major SAMPLE business unit, assuming a worst-case scenario Estimate the intangible (operational) impacts for each major business unit, assuming a worst-case scenario Define the estimated number of personnel required for recovery operations Identify the organization’s business unit processes and the estimated recovery time frame for each major business unit. Scope The scope for the SAMPLE BIA includes the following business units and shared services: Corporate Communications Engineering Facility Services Finance (Including AP and Payroll) For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 1
Slide 7: Sample Company Business Impact Analysis (BIA) Human Resources (Including Benefits, Employee Training, Safety/Risk Management) Marketing (Including Customer Care, Sales) Materials Management Network Operations Center (NOC) Operations (Including Pokipsie, Melvin, Tucson, and Phoenix) Plant Assignment and Dispatch Purchasing Regulatory Affairs Approach Gartner conducted interviews with more than 50 key SAMPLE business personnel during August 2002. In addition, 15 SAMPLE business unit representatives were surveyed using an electronic BIA tool. The objective of these interviews and surveys was to identify processes, along with associated estimated recovery time frames, estimated financial impacts, operational impacts and estimated personnel required for recovery operations. The interview process utilized a series of standard questions developed for SAMPLE (see Appendix A). All BIA interviews were conducted by Gary Drake and Jason Sausser. Document Organization Specific information provided by each of the business units in alphabetical order is documented in the following sections of this document. The last section, Business Impact Analysis Summary, includes information that is most appropriately considered in the overall SAMPLE perspective to assist in the development of an appropriate recovery strategy, such as the recovery personnel requirements to help size an alternate recovery location. Note: Many of the findings reported in this report are recorded exactly as they were captured from surveys and interviews. Some statements made by SAMPLE employees have been re-worded for clarity. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 2
Slide 8: Sample Company Business Impact Analysis (BIA) Corporate Communications The following person was surveyed for Communications: Tom Johnson. Business Processes Table 1. Business Processes Identified by Communications Business Process Communications Description Provide effective communications to employees, customers, regulatory commissions and the State legislature about SAMPLE. Communications responds as required. Projects and assignments come up on an as-needed basis and vary according to scope and requirements Table 2. Critical Business Records Identified by Communications Business Unit Communications Record Name None identified Table 3. Regulatory Reporting Requirements for Communications Business Unit Communications Report None identified Frequency Recipients For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 3
Slide 9: Sample Company Business Impact Analysis (BIA) Table 4. Operational Impacts Identified by Communications Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 0 2 4 0 4 4 4 2 3 0 1 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 5. Day 1 2 Number of Recovery Personnel by Day for Communications Day 2 2 Day 3 2 Day 4 2 Day 5 4 Day 6 4 Day 7 4 Day 14 7 Day 21 7 Day 28 7 Findings Communications stated that it would be less than a day before an outage had a significant impact on SAMPLE business units. Communications reported that they are extremely vulnerable to a prolonged outage or disruption. Communications reported that it would be extremely difficult to recover from a prolonged outage or disruption. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 4
Slide 10: Sample Company Business Impact Analysis (BIA) Engineering The following people were either interviewed or surveyed for Engineering: Mickey Lolich, Denny McLain, Norm Cash, Jim Nortthrup, Mickey Stanley, Bill Freehan, and Al Kaline. Business Processes Table 6. Business Processes Identified by Engineering Description Service changes, disconnects, etc. Plans, layouts and specifications for new installs. Taking orders for service. Ordering services. Orders for operations. Drawings. Plans, drawings. Timekeeping. Trouble tickets. Maintain cable records for all companies (except Pokipsie). Critical Business Records Identified by Engineering Becomes Critical < 1 Day < 1 Day Alternate Source Paper Paper Other Other Media Type Business Process New order processing Design MARKS TFAX Jordash Visio AutoCAD TCS Remedy ACMP Table 7. Record Name ACMPs Cut Sheets Table 8. Regulatory Reporting Requirements for Engineering Report Frequency On Demand Other On Demand FCC FCC SAMPLE Management Recipient Type of Penalty Unknown Unknown Unknown Number of calls blocked during period of time Antenna Registrations Quarterly Event Reports For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 5
Slide 11: Sample Company Business Impact Analysis (BIA) Table 9. Operational Impacts Identified by Engineering Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 0 2 2 0 2 3 4 0 3 1 0 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 10. Number of Recovery Personnel by Day for Engineering Day 1 120 Day 2 120 Day 3 120 Day 4 120 Day 5 120 Day 6 120 Day 7 120 Day 14 120 Day 21 120 Day 28 120 Findings Engineering reported that it would be extremely difficult to recover from a significant disruption or outage if AutoCAD data were lost. Engineering reported that there is a significant amount of critical data stored on individual computer hard drives, because there is no available space on the common (shared server) drives. Engineering reported that they are only somewhat vulnerable to a prolonged disruption or outage. Engineering reported that they were instrumental in recovering the Central Data Center recently. Engineering reported that it would take at least one day to complete the backlog of work for each day of outage. Engineering reported that if the 31N6 system is down, there is no paper backup. Work could continue until the queue was empty. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 6
Slide 12: Sample Company Business Impact Analysis (BIA) Engineering reported that if their services were unavailable, it would be less than one day before a significant impact on SAMPLE occurred. Engineering reported that SAMPLE experiences many cable cuts during the construction season and that it could take up to three days to restore a 400-pair cable. Engineering reported that it costs $600 per hour for each voice channel out of service and that there are currently 2,600 channels throughout the Sample enterprise. Engineering reported that services revenues are $78M annually. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 7
Slide 13: Sample Company Business Impact Analysis (BIA) Facility Services The following person was surveyed for Facility Services: Dick McCauliff. Business Processes Table 11. Business Processes Identified by SAMPLE Facility Services Business Process Facility maintenance Description To maintain the structural, mechanical, electrical, and other related building components and finishes in a professional and workmanlike manner. To develop and manage service and construction contracts. To add/delete and process utility service payments Enterprisewide. To manage all real property acquisitions/sales and leases Enterprise-wide. To control and manage space utilization for office layouts. To provide computerized card reader/proximity access system and evening manned security guard services. Contract administration Utility services and payments Real property lease administration Space planning and management Security (Central District Only) Table 12. Critical Business Records Identified by Facility Services (Central District Only) Business Unit Facility Services Facility Services Facility Services Facility Services Record Name PCSC Security System Software Database Hard Copies of Security User Form Records Facility Drawings—both Mylar and Bluelines Facility Construction and Maintenance Project Records Table 13. Regulatory Reporting Requirements for Facility Services Business Unit Facility Services Report None identified Frequency Recipients For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 8
Slide 14: Sample Company Business Impact Analysis (BIA) Table 14. Operational Impacts Identified by Facility Services Operational impacts are rated on a scale of 0-4, where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 4 3 1 3 2 4 4 0 0 0 4 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 15. Number of Recovery Personnel by Day for Facility Services Day 1 7 Day 2 7 Day 3 8 Day 4 10 Day 5 10 Day 6 11 Day 7 12 Day 14 12 Day 21 12 Day 28 12 Findings Facility Services reported that ATU had an emergency plan that has been updated by Willie Horton of Safety and Risk Management. Facility Services performs periodic fire alarm detection and suppression system testing. Facility Services reported that while SAMPLE does not really have a Disaster Recovery plan, all emergency related issues are routed through the Pokipsie NOC, which maintains a callout list of all facilities team members. Facility Services reported it will take from 12 to more than 16 hours to process backlog for each day of downtime. Facility Services reported that they are vulnerable to a prolonged disruption or outage. Facility Services reported that it is somewhat easy to recover. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 9
Slide 15: Sample Company Business Impact Analysis (BIA) Facility Services stated that four days is the maximum outage before a significant impact on SAMPLE as a whole occurred. Facility Services reported that severe impact would occur during the months of December, January, and February, because colder months affect facility operations during power or utility outages. Impacts would be least severe during the months of June through October. Facility Services reported that it has extreme reliance on a standalone workstation. A seismic survey conducted in July of 2001 cited several items of concern regarding the Data Center located near the corner of 17th and G Streets in Pokipsie. A key item cited was the lack of structural bracing that would allow the building to withstand earthquake loads. The report also stated that many cable trays and hung equipment did not have diagonal braces. The Central Data Center was originally constructed in the 1940s and had additions constructed in 1963 and 1969. “Major cracking” in the 1969 addition was mentioned in the report. The conclusion of the seismic report was that the Central Data Center is probably well below current earthquake standards. The loss of the Central Data Center would be catastrophic to SAMPLE and its customers. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 10
Slide 16: Sample Company Business Impact Analysis (BIA) Finance For the purpose of this report, Billing and Collections, the Controller’s Office, Financial Planning, Disbursements, Cash Management, Accounts Payable and Payroll were all considered part of the Finance function. The following people were either interviewed or surveyed for Finance: Kevin A, Deborah C, Michael D, Nancy V, Laurie B, Jenny S and Joe T. Figure 1. Financial Impact for Finance $30,000,000 $20,000,000 $10,000,000 $0 1 2 3 4 5 Day Finance Reported Finance 2001 AR Source: Gartner, 2002 6 7 14 21 28 Findings Finance reported estimated total SAMPLE losses of $1M per day if all services were lost. Total SAMPLE receivable days were estimated at $128,526 per day, based on 2001 Financials. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 11
Slide 17: Sample Company Business Impact Analysis (BIA) Business Processes Table 16. Business Processes Identified by Finance Business Process Corporate budget Financial analysis Support business development process Support SAMPLE information system (business analysis software application) IRS reporting Finance/accounting Load Deville/CBP files to SAP Load Payroll files to SAP Record month-end journal entries in SAP Load Intranet revenue Load Apprise sales data Enter PSA data to SAP Enter NIBS data to SAP Enter R data to SAP Enter Erie data to SAP Load project information in PRS Enter STS data to SAP Load and reconcile PCC data in SAP TCS (time entry system) Description Management of process; analysis of variances between planned and actual results. Assist managers with financial analysis of business cases. Assist Managing Director, Business Development as required Provide support/assistance to the organization (training, maintenance, etc.). IRS year-end reports—1099s, etc. Provide financial / accounting services. Load files are received from IT, cleaned and uploaded into the SAP system. Load files are received from ADP, cleaned and uploaded into the SAP system. Account analysis and verifications are performed on SAP data as the basis of information for monthly journal entries. Load files are received from IT, cleaned and uploaded into the SAP system. Load files are received from IT, cleaned and uploaded into the SAP system. Reports are provided from the PSA system and manual journal entries are prepared to record revenue. Reports are provided from the NIBS system and manual journal entries are prepared to record revenue. Reports are provided from the R system and manual journal entries are prepared to record revenue. Reports are provided from the Erie system and manual journal entries are prepared to record revenue. Information from SAP is downloaded into PRS for project reporting purposes. Reports are provided from the STS system and manual journal entries are prepared to record revenue. Download and reconciliation of bank data from the Internet Poindexter system. Jane Doe—Supervisor; Minnie C—Processing pay records; June A—Processing pay records and distributing earnings statements; ADP—third-party payroll processor—calculates and prints paychecks and processes all direct deposits. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 12
Slide 18: Sample Company Business Impact Analysis (BIA) Business Process Pay vendors Description Bob T—Supervisor, Prints checks, quality control; Frank M— AP clerk; Susan S—AP clerk; Paula P—AP clerk; Tim AAP clerk and acting supervisor in Bob’s absence. Collect general ledger and CBP data and report to the IRS. Collect data from CBP and report to various cities and boroughs. Collect data from CBP and report to various cities and boroughs. Collect data from SAP asset files and report to various cities and boroughs. Download trial balance from SAP, prepare depreciation and other analysis to prepare returns. Report federal excise tax Report sales tax Report E911 Report property tax Income tax returns For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 13
Slide 19: Sample Company Business Impact Analysis (BIA) Table 17. Critical Business Records Identified by Finance Business Unit Finance Finance Finance Finance Finance Finance Finance Finance Finance/AP & Payroll Finance AIS Finance Finance Finance/AP & Payroll Finance Finance Finance Finance/AP & Payroll Finance Report federal excise tax Report sales tax Report E911 Report property tax Income tax returns Finance Record Name SAP data (F/S, CPR) Deville/ CBP Payroll files Month-end JEs PSA NIBS STS Historical financial information Time records (TMS) System information Intranet Apprise sales Employee records Rodolphi PRS PCC Vendor Invoices Great Lakes Excise Tax Sales Tax E911 Property Tax Income Tax Project Records Becomes Critical < Day 1 Day 7 Day 14 Day 7 Over Day 28 Over Day 28 Over Day 28 Day 14 Day 6 Day 14 Over Day 28 Over Day 28 Day 6 Over Day 28 Over Day 28 Over Day 28 Day 14 Over Day 28 Day 10 Day 30 Day 60 Over day 28 Over day 28 Day 14 Alternate Source Other Excel Paper Accrued estimate Paper Accrued estimate Paper Accrued estimate Paper Accrued estimate Paper Accrued estimate Paper Accrued estimate Excel/paper reports Paper None Paper Excel Paper Accrued estimate Paper Accrued estimate Other ADP—third-party processor Paper Accrued estimate Paper Accrued estimate Paper Accrued estimate Paper vendor reprint Paper Accrued estimate Paper Accrued estimate Paper Accrued estimate Paper Accrued estimate Paper Accrued estimate Paper Accrued estimate Paper Excel Table 18. Regulatory Reporting Requirements for Finance Report SEC quarterly and annual reporting Form M annual reports USF/ RCC reports Cost Allocation Manual Bank Debt Compliance Frequency Quarter end Year end Month end Year end Month end SEC RCA FCC/ AK Dept Rev. FCC—RCA Financial Institutions Recipient Type of Penalty Financial Financial Financial Financial Financial For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 14
Slide 20: Sample Company Business Impact Analysis (BIA) Table 19. Operational Impacts Identified by Finance Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 4 2 2 4 2 4 2 4 4 3 4 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 20. Number of Recovery Personnel by Day for Finance Day 1 13 Day 2 13 Day 3 18 Day 4 18 Day 5 22 Day 6 22 Day 7 22 Day 14 22 Day 21 28 Day 28 28 Findings Finance reported that it is difficult to recover. Finance reported that they are somewhat vulnerable to an outage. Finance reported that it would take six to 12 hours to complete the backlog of work for each day of outage. Finance reported that one week is the maximum length of outage before a significant impact SAMPLE as a whole occurred. Finance reported that severe operational impacts would occur during the month of December because of year-end payroll processing. Impacts are also significant during April, July and October due to quarter-end and January and February for year-end. Finance stated that SAMPLE must transmit payroll information to ADP (thirdparty processor) by Tuesday to avoid penalties that would be paid to a small For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 15
Slide 21: Sample Company Business Impact Analysis (BIA) group of temporary employees falling under a NAFTA Agreement. The financial impact of these penalties was reported to be negligible. Finance stated that while some payments (such as from some federal agencies) are made electronically and via credit card, most payments are received in the form of checks. Finance stated that a loss of communications would have a significant impact on business operations. Retention policies are followed and records are stored both on- and off-site. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 16
Slide 22: Sample Company Business Impact Analysis (BIA) Human Resources The following people were either surveyed or interviewed for Human Resources: Pierce Brosnan, Sean Connery, Roger Moore, Timothy Dalton and James Coburn. Business Processes Table 21. Business Processes Identified by SAMPLE Human Resources Business Process Hiring new employees Separating employees Training employees Benefits administration Description Advertise open positions, provided candidates to managers, ensure qualified candidates are hired and entered into payroll. Ensure that employees are properly removed from our active employment files when employees terminate. Plan training regimens, contract with vendors or develop and deliver training, record training completion. Design benefits; Select and manage vendors; Deliver benefits directly or through vendors; Develop and deploy benefits-related communications; Manage quality control directly or through vendors; Manage FMLA, and other leaves. Design compensation plans; Select and manage vendors; Coordinate compensation delivery through Payroll or vendors; Develop and deploy compensation-related communications; Manage quality control Select, install, and maintain manual and automated human resources information systems. Maintain electronic and hardcopy of personnel files. Before each payroll data can be transmitted, two processes must be executed by HR to ensure all benefits are correct. Various internal reports and external reports (state and federal regulatory) are required on a daily, weekly, bi-weekly, monthly, quarterly, and annual basis. Negotiate/maintain/administer Collective Bargaining Agreement (CBA) (Master Agreement/LOAs/MOAs); Process grievances and arbitration. Conduct EEO investigations and represent company position in external Agency complaints; Advise in interpretation and administration of corporate compliance program and company policies and procedures; advise on the liability to the company in the HR arena; advise on performance management, discipline and discharge. Compensating employees HR system administration Personnel records maintenance Benefit data preparation for payroll transmission Internal and external reporting Labor relations Employee relations For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 17
Slide 23: Sample Company Business Impact Analysis (BIA) Table 22. Critical Business Records Identified by SAMPLE Human Resources Business Unit Comp, Ben Comp, Ben Comp, Ben Record Name HRIS Data HRIS Personnel Files Plan Documentation Vendor Service Agreements Historical Records Vendor Contacts Compensation Surveys Analysis Tools Employee Relations Files ER Vendor Contracts Historical Records Job/Recruitment File Requisition Log Relocation Log Class Specifications Job Description Requisition Desktop Procedures Policies and Procedures Training Vendor Contacts Personnel Records When Required Day 5 Day 7 Day 7 Media Type Fixed disk Paper Fixed disk and paper Fixed disk and paper Fixed disk and paper Fixed disk Fixed disk Fixed disk Fixed disk and paper Fixed disk and paper Fixed disk and paper Paper Fixed disk Fixed disk Fixed disk and paper Fixed disk Paper Fixed disk and Paper Fixed disk and Paper Fixed Disk Fixed Disk and Paper Alternate Source Personnel files HRIS data Vendors, consultants, brokers Vendors, consultants, brokers None Online directory Repurchase Recreate None Vendors IBEW None None Paper files None N/ A N/ A None None Online Directory None Comp, Ben Day 7 Comp, Ben Comp, Ben, HRIS Comp, Ben, HRIS Comp, Ben, HRIS Employee Relations Employee Relations Employee Relations Employment Services Employment Services Employment Services Employment Services Human Resources Human Resources Human Resources Human Resources Human Resources HRIS After Day 28 Day 2 Over Day 28 Over Day 28 Day 3 After Day 28 Day 14 Day 1 Day 1 Day 5 Day 14 Day 1 Day 1 Day 2 Day 5 Day 14 Day 1 For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 18
Slide 24: Sample Company Business Impact Analysis (BIA) Business Unit HRIS and Employee Relations Record Name Collective Bargaining Agreement, All Sub-Agreements and Letters of Understanding Salary Step/Job Code listing Pension/Job Code listing Listing of what reports are due when When Required Day 1 Media Type Fixed disk and paper Alternate Source IBEW HRIS HRIS HRIS Day 5 Day 5 Day 5 Paper Paper Fixed disk Recreate Recreate Paper Table 23. Regulatory Reporting Requirements for SAMPLE Human Resources Report EEO1 Affirmative Actions Report 5500 Filing EEO reporting Plan and amendment filing IRS Data Confirmation Surveys Summary Annual Reports Relocation Expense Report FCC-395 Report VETS-100 PBGC filing Agency Complaint Response Frequency Year end Year end Year end On demand On demand On demand September Year end Annual Annual Year end On demand US DOL US DOL IRS DOL DOL IRS Employees IRS FCC DOL PBGC NABSCO, EEOC, NOAA, US DOL, SOA DOL Recipient Type of Penalty Product/ Service Disruption Product/ Service Disruption Financial Financial Financial Financial Financial Financial Financial Financial Financial Financial For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 19
Slide 25: Sample Company Business Impact Analysis (BIA) Table 24. Operational Impacts Identified by SAMPLE Human Resources Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other (Technical Training) Value 2 2 2 4 3 4 4 3 2 3 4 3 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 25. Number of Recovery Personnel by Day for SAMPLE Human Resources Day 1 15 Day 2 15 Day 3 15 Day 4 15 Day 5 15 Day 6 15 Day 7 15 Day 14 15 Day 21 15 Day 28 15 Findings Human Resources reported it will take four to eight hours to process backlog for each day of downtime. Human Resources reported it is somewhat vulnerable to a prolonged disruption or outage. HR reported it is difficult to recover from a significant disruption or outage. Human Resources stated that one week would be the maximum outage before a significant impact on SAMPLE as a whole occurred. Human Resources has no special standalone workstation requirement. Human Resources stated that a loss of communications would have a significant impact on business operations. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 20
Slide 26: Sample Company Business Impact Analysis (BIA) Human Resources reported that a total disruption in services would have a significant impact on ability to provide necessary staffing and training to the remainder of the organization. Safety and Risk The following person was surveyed for Safety and Risk: Ed Brinkman. Business Processes Table 26. Business Processes Identified by SAMPLE Safety and Risk Business Process Insurance Requirements Safety Standards Safety Practices Safety Training Administer Worker’s Compensation Program Accident Investigation Environmental Compliance Damage Claim Administration Description Identify insurance needs, alternative risk financing, place coverage. Establish and monitor safety performance at the department level. Evaluate need for changing safety practices, update as necessary. Establish safety training standards and frequency, set safety training objectives for insurance carrier and monitor results. Manage Workers’ Compensation claims Establish investigation process, collect results distribute as required and necessary. Maintain inventory data on fuel tank location/capacities, chemical inventory and compliance procedures. Report property, auto and general liability damage claims, resolve and approve claim settlements. Table 27. Critical Business Records Identified by Safety and Risk Business Unit Safety and Risk Record Name Damage Report Claims When Required Day 7 Media Type Paper Alternate Source Field Departments Table 28. Regulatory Reporting Requirements for Safety and Risk Report OSHA 300 SARA Title III Frequency Year End Annual OSHA State/Local Environmental Recipients Type of Penalty Financial Financial For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 21
Slide 27: Sample Company Business Impact Analysis (BIA) Table 29. Operational Impacts Identified by Safety and Risk Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 1 0 2 0 3 3 2 2 0 3 4 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 30. Number of Recovery Personnel by Day for Safety and Risk Day 1 1 Day 2 1 Day 3 1 Day 4 1 Day 5 1 Day 6 1 Day 7 1 Day 14 1 Day 21 1 Day 28 1 Findings Safety and Risk reported that it would take one to two hours to complete the backlog of insurance-related activity for each day of downtime. Safety and Risk reported that it would take from two to four hours to complete the backlog of Safety-related activity for each day of downtime. Safety and Risk reported that it would take more than two hours to complete the backlog of Claim Administration-related activity for each day of downtime. Safety and Risk reported that it is somewhat vulnerable to a prolonged disruption or outage. Safety and Risk reported that it is somewhat difficult to recover following a significant disruption or outage. Safety and Risk stated that the maximum outage before a significant impact on SAMPLE business units occurred is three days. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 22
Slide 28: Sample Company Business Impact Analysis (BIA) Safety and Risk reported that there are minimal monthly operational impacts. Safety and Risk noted that there are special requirements to include communications with departments, insurance carriers and outside reporting agencies. Safety and Risk stated that it has no special standalone workstation requirement. Safety and Risk stated they have back up insurance records in Finance, the broker and carriers. Safety and Risk stated that SAMPLE maintains basic business interruption insurance coverage, including earthquake and flood, up to $25 million. $25 million excess is available but excludes earthquake and flood. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 23
Slide 29: Sample Company Business Impact Analysis (BIA) Marketing The following people were either surveyed or interviewed for Marketing: Brenda, and Barbara. Business Processes Table 31. Business Processes Identified by SAMPLE Marketing Business Process Product development Description Identify customers and develop products to meet customers’ needs. Ability to generate reports comparing data from several customer databases. Support direct mail advertising and telemarketing with customer lists targeted at specific segments. Analyze data and track sales campaigns. Maintain database of customer directory listing to facilitate publication of eight Enterprise-wide white- and yellow-page directories and source data for Directory Assistance 411 database. Administer database, develop processes and generate reports used for compensation of internal sales organization. Perform analysis of financial results for marketing division, both expense and revenue. Coordinate market research needs and maintain repository of information. Define process and forms. Define process and structure, coordinate input and maintain on current basis. Support product managers as needed with data, analysis and research needed to roll out product and customer plans. Product deployment Publish SAMPLE directories and maintain 411 database Sales compensation reporting Financial reporting Market research Manage product development process Coordinate development of marketing plan Customer and product analysis For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 24
Slide 30: Sample Company Business Impact Analysis (BIA) Table 32. Critical Business Records Identified by Marketing Business Unit Product Development, Market Research and Infosource Infosource Product Development Marketing Marketing Marketing Marketing Record Name Historical customer billing records from all billing systems. Record of current billed services by customer. Directory Listings, Directory Subsystem and link to CBP (Deville) Sales Collateral (work with Deutchland Agency) All service order and billing systems Directory subsystem and linkage to CBP (Deville) AIS Sales Compensation Datamart Table 33. Regulatory Reporting Requirements for Marketing Business Unit Marketing None Report Frequency Recipients Table 34. Operational Impacts Identified by Marketing Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 4 4 3 2 2 3 4 1 3 1 1 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 25
Slide 31: Sample Company Business Impact Analysis (BIA) Table 35. Number of Recovery Personnel by Day for Marketing Day 1 4 Day 2 4 Day 3 4 Day 4 22 Day 5 22 Day 6 22 Day 7 22 Day 14 22 Day 21 22 Day 28 22 Findings Marketing reported that there would be significant impact to the company as a whole, if it were idled. The development of customer retention and win-back plans significantly impacts cash flow and customer retention. Although the initial role of marketing would be to identify key customers to ensure priority service restoration, they would need to quickly return to product development functions. Marketing is highly reliant on all billing systems, AIS, Sales Compensation Datamart and the Directory Subsystem. Marketing assumes that the billing systems are backed up nightly and the storage of these records is other than at 937 Quadrangle Ave. This is reported to be the only record of SAMPLE customers and their services. Marketing requires a list of customers, addresses and services in the first 24 hours. These are needed so that resources can support critical customer needs. Marketing reported that it suffered power loss, lost/corrupted data, loss of centralized computers, and the loss of local LAN servers during 2001. The workplace is significantly impacted during power outages and network failures. During the infrequent times that marketing has experienced power outages or network failures, employees have been unable to work. The work that marketing does is almost totally reliant on computer systems and applications. Marketing reported that it is very vulnerable to a prolonged disruption or outage. Marketing is highly reliant on all billing systems, AIS, Sales Compensation Datamart and the Directory Sub-system. Marketing reported that it is somewhat difficult to recover from a prolonged disruption or outage for information that is not backed up for individual PC’s and mainframe applications. Marketing reported that there would be monthly operational impacts for sales compensation reporting, which requires billing system records along with manual reports provided by sales personnel. Once records are obtained, it would take a week to recreate a monthly report. Monthly performance reporting would be impacted without billing records; this includes customer, products, revenue and sales compensation reports. All marketing processes (marketing plan, product development, and research) are highly reliant on e-mail and the company intranet for communication. Market research is highly dependent on customer billing information along with access to the Internet for research sites. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 26
Slide 32: Sample Company Business Impact Analysis (BIA) Customer and product analysis are highly reliant upon company proprietary data networks. Marketing estimated that once they have access to computers and the network applications, they should be functional within two weeks. Marketing estimated that once they have access to computers and the network applications, they should be functional within a couple weeks. Marketing reported that keeping phone lines working in SampleTown and maintaining customer service have to be the highest priorities. Marketing suggested that if a disaster should occur, the company should consider a plan to utilize use non-customer facing employees to assist operational areas. Customer Care The following people were either interviewed or surveyed for Customer Care: Bob J, Randy J and Rico Pi. Figure 2. Financial Impact for Customer Care $1,500,000 $1,000,000 $500,000 $0 1 2 3 4 5 Day Customer Care Reported Customer Care 2001 Gross Revenue Source: Gartner, 2002 6 7 14 21 28 Findings Customer Care reported estimated financial losses of $52,800 per day, based on 300 customer service representatives earning $22 per hour; average daily gross revenue for 2001 was $0. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 27
Slide 33: Sample Company Business Impact Analysis (BIA) Business Processes Table 36. Business Processes identified by Customer Care Business Process SAMPLE customer call center operations Description Provide ACD agents to respond to customer calls/requests for local, long distance and/or Internet service, account inquiries and Directory Assistance listings. Table 37. Critical Business Records Identified by Customer Care Record Name Cornbell Service order system, CBP billing system, JORDASH system, DA listings/records system. Alternate Source Paper Printouts When Required Day 1 Relative Importance Extreme Table 38. Regulatory Reporting Requirements for Customer Care Business Unit Customer Care Report None reported. Frequency Recipients Table 39. Operational Impacts Identified by Customer Care Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 0 0 0 0 0 0 4 0 0 0 0 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 28
Slide 34: Sample Company Business Impact Analysis (BIA) Table 40. Number of Recovery Personnel by Day for Customer Care Day 1 0 Day 2 0 Day 3 0 Day 4 0 Day 5 0 Day 6 0 Day 7 0 Day 14 0 Day 21 0 Day 28 0 Findings Customer Care estimated financial losses of $52,800 per day; average gross revenue for 2001 was $0. Customer Care reported it would take eight to 12 hours to process backlog for each day of downtime. Customer Care reported current records management activity as follows: duplicate records are maintained, records are stored off site (at a facility in Pokipsie), and retention periods for records have been formally defined. Customer Care reported that it is not vulnerable to a prolonged disruption or outage. Customer Care reported that it is somewhat difficult to recover after a significant disruption or outage. Customer Care reported that they currently have 200,000 customers and that 50,000 of these would seek an alternate source after day five of a prolonged disruption or outage. Customer Care estimated that only 10,000 of the 50,000 customers who sought an alternate source of service would return after service was restored to normal. Customer Care stated that four days is the maximum outage before a significant impact on SAMPLE occurred. Customer Care reported that severe operational impacts would occur during the months of June and September, because these represent the busiest/peak service months. Customer Care stated that it is extremely reliant upon communications services for business operations. Sales The following people were interviewed for Sales: Bobby Kennedy, John Hoover and Gordon Liddy. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 29
Slide 35: Sample Company Business Impact Analysis (BIA) Figure 3. Financial Impact for Corporate Sales $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 1 2 3 4 5 6 Day Sales Reported Estimated based on % of ACS 2001 Gross Revenue Source: Gartner, 2002 7 14 21 28 Findings Sales averaged estimated financial losses of $35,616 per day; estimated daily loss as a percentage of gross revenue for 2001 was $136,315. Business Processes Table 41. Business Processes Identified by Sales Business Process Billing Order tracking Customer service 911 Database Issue invoices to customers. Log orders for new service. Support sales agents and existing customers. Sales maintains 911 Database. Description Table 42. Critical Business Records Identified by Sales Business Unit Sales Record Name Customer Database When Required Over Day 28 Media Type Fixed Disk Alternate Source Sales personal PCs Table 43. Regulatory Reporting Requirements for Sales Business Unit Sales Report None required. Frequency Recipients For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 30
Slide 36: Sample Company Business Impact Analysis (BIA) Table 44. Operational Impacts Identified by Sales Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 2 4 2 2 2 4 3 1 1 0 0 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 45. Number of Recovery Personnel by Day for Sales Day 1 5 Day 2 9 Day 3 11 Day 4 15 Day 5 20 Day 6 20 Day 7 20 Day 14 30 Day 21 45 Day 28 50 Findings Sales estimated financial losses of $35,616 per day, beginning on day five following a severe disruption; average daily loss estimated as a percentage of gross revenue for 2001 was $136,315 per day (15 percent of gross daily revenue). Sales reported that data loss or corruption occurred during 2001, but that it had little impact on operations. Sales reported it will take eight to 12 hours to process backlog for each day of downtime. Sales reported that it is somewhat vulnerable to a prolonged disruption or outage. Sales reported that it is easy to recover. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 31
Slide 37: Sample Company Business Impact Analysis (BIA) Sales stated that four weeks is the maximum outage before a significant impact on SAMPLE as a whole occurred. Sales reported that there are no months where operational impacts would be more severe than for other months, but if an outage occurred at or near month end, it could have a severe impact. Sales personnel can work from home, if necessary. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 32
Slide 38: Sample Company Business Impact Analysis (BIA) Materials Management The following person was surveyed for Materials Management: Sophia Loren. Business Processes Table 46. Business Processes Identified by Materials Management Business Process Distribution—Distributing mail Distribution—Large copy jobs such as training manuals Distribution—Insertion operation to process billing Warehouse—Receiving stock and non-stock material Warehouse—Issuing stock warehouse Warehouse—Restocking shelves warehouse Warehouse—Shipping to field locations warehouse Warehouse Office—Stock ordering Warehouse Office—Cost coding freight invoices Warehouse Office—Processing repairs and returns Warehouse Office—Expediting orders Warehouse Office—SAP computer system maintenance Description The Distribution Lead oversees the daily operation; assignments are rotated weekly. The Distribution Lead oversees the daily operation; assignments are rotated weekly. The Distribution Lead oversees the daily operation; assignments are rotated weekly. Warehouse Foreman oversees daily operations. Foreman oversees daily operations. Foreman oversees daily operations. Foreman oversees daily operations. Warehouse Lead clerk oversees daily operations. Warehouse Lead clerk oversees daily operations. Warehouse Lead clerk oversees daily operations. Warehouse Lead clerk oversees daily operations. Warehouse Lead clerk oversees daily operations. Table 47. Critical Business Records Identified by Materials Management Record Name Warehouse Transactions Becomes Critical Day 4 Alternate Source Would keep paper records in interim Other Media Type Table 48. Regulatory Reporting Requirements for Materials Management Report None Reported Frequency Recipient Type of Penalty For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 33
Slide 39: Sample Company Business Impact Analysis (BIA) Table 49. Operational Impacts Identified by Materials Management Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 4 0 0 0 4 0 4 0 0 0 0 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 50. Number of Recovery Personnel by Day for Materials Management Day 1 0 Day 2 0 Day 3 0 Day 4 0 Day 5 0 Day 6 0 Day 7 0 Day 14 0 Day 21 0 Day 28 0 Findings Materials Management reported that they are vulnerable to a prolonged disruption or outage. Materials Management reported that it would be somewhat difficult to recover from a significant disruption or outage. Materials Management did not report how long it would take to complete the backlog of work for each day of outage. Materials Management reported that if they were unable to access SAP, there would be a significant impact after three days; however, the warehouse would be impacted immediately. Materials Management reported that the Distribution-Insertion operation to process billing would be severely impacted by a prolonged disruption or outage and that there is no alternate provider of the service. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 34
Slide 40: Sample Company Business Impact Analysis (BIA) Materials Management reported that data for the Warehouse-Issuing stock process is maintained on a Windows-based, desktop PC using SAP and is backed up. Materials Management reported the main thing that needs to be addressed for recovery purposes is that SAMPLE processes billing (printing and inserting) backwards from everyone else in Pokipsie. If SAMPLE loses either the printers or insertion machines, no one else can process SAMPLE billing and significant revenue loss will occur. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 35
Slide 41: Sample Company Business Impact Analysis (BIA) Network Operations Center (NOC) The following people were either interviewed or surveyed for the NOC: Rusty Staub and Randy Johnson. Business Processes Table 51. Business Processes Identified by the NOC Business Process Duty supervisor NOC special procedures BBSTP E911 Critter Sensaphones Voicemail ASM One Meg Modem EMS Pokipsie DMS Switches Scanner State of SampleTown Video Escalation procedure Skills worksheet Duty Supervisor book Network Operations Procedures (NOP) Org chart Maintain TFSAMPLE, MARKS records Enterprise-wide 911 reroute procedures Training committee IP test procedures Description Provides callout/contact information for all SAMPLE entities in the company. Special procedures for NOC. Broadband STP information. Provides E911 procedures and re-routes. Provides monitoring for SAMPLE sites outside Pokipsie. Provides information for Sensaphones Enterprise-wide. Provides information on Oryx and Octel voice mail systems. Provides monitoring for SAMPLE Wireless network. Provides access to 1 Meg Modem equipment Enterprisewide. Provides dial tone for all Pokipsie area customers. Provides monitoring of State of SampleTown SATS. Provides monitoring of State of SampleTown television feeds. Define calling tree for problem response. Update current skill level of SAMPLE technicians for each piece of equipment). Maintain SAMPLE and other information about other IXCs and LECs, key personal list. Maintain common operating procedures. Maintain organization charts and keep current. Maintain records used to rebuild circuits to an alternate location. Maintain procedures used to reroute 911 services. Internal group, reviews training needs. Maintain test procedures (currently under development). For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 36
Slide 42: Sample Company Business Impact Analysis (BIA) Table 52. Critical Business Records Identified by the NOC Record Name DMS Images NOC Logs Backup files for various systems Becomes Critical < 1 Day < 1 Day < 1 Day Alternate Source None None None Tape Other Tape Media Type Table 53. Regulatory Reporting Requirements for the NOC Report Site/equipment failures FAA Site Isolation Status Report BVR Other Other Month End Month End Frequency Recipient Management FAA & SAMPLE Reg Affairs SAMPLE Management SAMPLE Management Type of Penalty Product/Service Disruption Financial Product/Service Disruption Product/Service Disruption Table 54. Operational Impacts Identified by the NOC Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 2 4 2 0 4 3 3 0 0 2 3 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 37
Slide 43: Sample Company Business Impact Analysis (BIA) Table 55. Number of Recovery Personnel by Day for the NOC Day 1 71 Day 2 71 Day 3 71 Day 4 71 Day 5 71 Day 6 71 Day 7 71 Day 14 71 Day 21 71 Day 28 71 Findings The NOC reported that it is extremely difficult to recover from a significant disruption or outage. The NOC reported that they are extremely vulnerable to a prolonged disruption or outage. The NOC reported that it was not sure how long it would take to complete the backlog of work for each day of outage. The NOC reported that if their services were unavailable, it would be less than one day before a significant impact on SAMPLE occurred. The NOC reported that severe operational impacts would occur during the months of November through April, because of severe winter weather conditions. Impacts are also somewhat significant during September and October for the same reason. The NOC reported that while there is no formal records management procedure in place, they do have critical records identified, a retention period is defined, and records are duplicated and stored offsite. They also have a rotation cycle to off-site storage that is adequate for recovery. The NOC reported that they have approximately 170,000 customers and that all of them would seek an alternative source of service if an outage went beyond 28 days in length. The NOC reported that during 2002, it experienced power loss, severe weather, loss of voice communications, loss of data communications, lost or corrupted data, and the loss of local LAN servers. The NOC reported that the loss of Critter, Sensaphones, Scanner, and SampleTown Video, would cause significant impact during all but the summer months. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 38
Slide 44: Sample Company Business Impact Analysis (BIA) Operations The scope of our review of SAMPLE Operations included Pokipsie, Melvin, Tucson, and Phoenix. Operations at Melvin also included Melvin/Soldotna, Smallville, Irvine and Pomona, Wartville and Pinhead. The following people were either interviewed or surveyed for Operations: Duane Mays, Ron Smith, Frank James, Jesse James, Doc Holiday, Ike Clanton, Emerson Boozer, Mike Snell, Jim Green, Rich Floweree, Sam Montini, Harry Houdini, Steve Fouts, Stevie Nicks, Veronica Hammil, Steve Howe, Pete Rose, and Joe Jackson. Figure 4. Financial Impact for Operations $30,000,000 $20,000,000 $10,000,000 $0 1 2 3 4 5 Day 6 7 14 21 28 Operations Reported Fiscal 2001 Gross Revenues Source: Gartner, 2002 Findings Operations reported estimated financial losses of $1M per day. 2001 Annual Gross Revenue was $331.7M. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 39
Slide 45: Sample Company Business Impact Analysis (BIA) Business Processes Table 56. Business Processes Identified by Operations Business Process Assignment Centrex orders Circuit order processing Construction Directory Assistance Dispatch Engineering (ISP) Fleet management (vehicles) Installation Inventory control IP operations Maintain circuit layout records (CLRs) Maintain customer database Maintenance (both hardware and software) Maintenance (ISP) Network management (NOC) Operator services Process adds, moves and changes Provisioning (ISP) Repair TCS Testing Trouble ticketing Warehousing Wireless service orders Work order processing Description Customer requests service, dispatcher determines central office out of which the service will be run. Process orders for Centrex services. Performed using MARKS. Perform construction necessary to perform new installs or repairs. Provide directory assistance, 411 information. Dispatch installers and repairmen, trouble tickets. Design work for providing ISP services. Purchase and maintain company cars (manual process), billing for fleet (using ARI). Physically making connection for customer, may include construction, trenching, new equipment installation. Jordash used to keep track of inventory. Data network operations. Diagrams maintained using VISIO. Residence address terminal numbers and associated information. Most done internally, traps and swears in code, to find bugs, maintain dial tone for outside plant. Supporting and maintaining ISP services. Monitoring, response to alarms, node management. Respond to Dial “0” calls. Enter using Jordash system. Provisioning ISP services. Responding to trouble calls, splicing, etc. Record time spent on work orders. Customer phones in with problem, CSR performs initial diagnosis. Enter trouble ticket information using Remedy. Maintain stock of parts for installations and maintenance. Process orders for wireless services. Work order activity performed using Jordash. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 40
Slide 46: Sample Company Business Impact Analysis (BIA) Table 57. Critical Business Records Identified by Operations Record Name Customer Information ACMPs (Cable Records) Alternate Source Paper Paper When Required Day 1 Day 1 Relative Importance High Medium Table 58. Regulatory Reporting Requirements for Operations Report Outage over 500 customers for 15 minutes LEC side Dispatch within 72 hours, if connected by road system Competition—Rural Rule Frequency On Demand Recipient RCA Regulatory Commission Customers Type of Penalty Financial On Demand Financial On Demand RCA Financial Table 59. Operational Impacts Identified by Operations Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 3 4 4 3 4 4 4 3 4 4 4 4 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 41
Slide 47: Sample Company Business Impact Analysis (BIA) Table 60. Total Number of Recovery Personnel by Day for SAMPLE Operations Day 1 311 Day 2 311 Day 3 311 Day 4 311 Day 5 311 Day 6 311 Day 7 311 Day 14 311 Day 21 311 Day 28 311 Table 61. Number of Recovery Personnel by Day for Operations at Pokipsie Day 1 90 Day 2 90 Day 3 90 Day 4 90 Day 5 90 Day 6 90 Day 7 90 Day 14 90 Day 21 90 Day 28 90 Table 62. Number of Recovery Personnel by Day for Operations at Tucson Day 1 59 Day 2 59 Day 3 59 Day 4 59 Day 5 59 Day 6 59 Day 7 59 Day 14 59 Day 21 59 Day 28 59 Table 63. Number of Recovery Personnel by Day for Operations at Phoenix Day 1 39 Day 2 39 Day 3 39 Day 4 39 Day 5 39 Day 6 39 Day 7 39 Day 14 39 Day 21 39 Day 28 39 Table 64. Number of Recovery Personnel by Day for Operations at Melvin Day 1 52 Day 2 52 Day 3 52 Day 4 52 Day 5 52 Day 6 52 Day 7 52 Day 14 52 Day 21 52 Day 28 52 Findings Operations estimated financial losses of $1M per day; 2001 Annual Gross Revenue was $331.7M. Operations reported that they are not vulnerable to a prolonged disruption or outage. Operations reported that it is relatively easy to recover from a significant disruption or outage. Operations reported that it would take more than 16 hours to complete the backlog of work for each day of outage. Operations reported that it would be less than one day before a significant impact on SAMPLE occurred as a result of Operations being unavailable. Operations reported that severe operational impacts would occur during the winter months due to extreme weather. Impacts would also be significant during June through August, due to the tourist season. Payroll processing is critical and employees must be paid on each Tuesday following the two-week payroll cycle. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 42
Slide 48: Sample Company Business Impact Analysis (BIA) Operations stated that a loss of communications would have a significant impact on business operations, as well as emergency services. Tariffs call for same level of service for everyone, but SAMPLE wisely provides priority service to the FAA and Police (911) applications. Operations estimated that if a switch in one of the COs was destroyed, it could take 30-60 days to recover. It could take $3-5M to rebuild a main CO. Operations groups maintain hardcopies of records, including cable and circuit maps, which can be used in the event that computer systems are unavailable. Operations has an aging work force and is expecting several employees to retire within the next five years. Smallville Operations reported that they have a high risk of experiencing a prolonged disruption or outage. A cable in Atka was cut by a jack hammer by surveyors installing a monument marker. Tucson Operations reported that they experienced a major fiber cut on Van Horn Road that resulted in a significant outage. They also reported that lightning strikes affect remote connections at times. Tucson also reported 10 power outages in the past year, but service was maintained via UPS in all cases. Tucson reported that they could lose up to 640 customers if one of the “huts” went away; the largest one could affect up to 1,200 customers. The main Tucson switch supports 44,000 customers. Tucson reported that the top two most likely disasters that would result in a prolonged disruption or outage are fire and earthquakes. Tucson reported that they have a two-hour response time on the switch that supports the hospital. Tucson tests backup generators once a week (every Thursday in the main exchanges); UPS batteries are tested every three months. A power engineer at Tucson maintains the batter records for the entire state. Tucson maintains 54,000 access lines. Clients who experienced an outage caused by a 2,400 pair cable cut were restored to service within six to seven hours. Tucson reported that it costs $1,800 and five hours (plus two hours lag time) to respond to a trouble call in the bush. Tucson reported that they conduct safety meetings once a month to review potential disaster recovery scenarios. Within four years, every member of the Operations staff at Tucson will hit retirement age, creating a risk of critical knowledge loss. Wartville Operations reported they experienced a two-week power outage due to dead trees blowing over. The bulk of affected customers were restored to service within three days. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 43
Slide 49: Sample Company Business Impact Analysis (BIA) Wartville Operations believes that a volcano on Augustine Island may blow, causing significant service disruption. There are 7700 subscribers in the Wartville and Pinhead regions. Phoenix Operations is highly focused on customer service. All staff are being trained to be Cisco Certified Network Planners (CCNPs), in preparation for the conversion to IP telephony. Phoenix had a CO go down for two hours due to aging/deterioration of the UPS batteries. A voltage spike tripped the 100-amp breakers, and it took two hours to restore service. Phoenix has battery plants on preventative maintenance now. Phoenix experienced an outage caused by rockslide, but service was restored in four hours. Phoenix has a portable generator that can be transported where needed. Phoenix sees increased activity/telephone usage during the summer months, due to the cruise ship business (tourism). Melvin Operations experienced a windstorm that knocked primary power out for three or four weeks; however, Melvin/Sherman maintains a Diesel generator with 250 gallons of fuel. Melvin and North Melvin maintain natural gas fueled generators. Melvin experiences three primary power outages per winter, on average. Melvin has experienced ferrous ash-induced shorts of electrical circuits resulting from volcanic activity. Melvin sits on a fault line and experiences minor earthquakes every day. Melvin has also experienced flooding due to glacial melting. Switches are fully redundant and in secure facilities. Pomona experiences few power outages; their largest risk would come from earthquakes and tidal waves. The COs are located above the high tide marks for the 100-foot level. Pomona Island would not be able to operate if they lost communications. Their weak link is a satellite link. In an emergency, Coast Guard radio links would be used if both LD links were down. Pomona has the largest Coast Guard base in the United States. There are 14,000 subscribers and 10,000 access lines. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 44
Slide 50: Sample Company Business Impact Analysis (BIA) Plant Assignment and Dispatch (Provisioning) The following people were interviewed for Provisioning: Sparky Anderson, Pete Rose, Johnny Bench. Business Processes Table 65. Business Processes Identified by Provisioning Business Process Order entry Address research LMP provisioning Residential provisioning Centrex circuits Field or CO activity PBX Description Created in Cornbell, AHD, MARKS (interstate circuits). Establish legal address for customer working with the municipality or city boroughs. Assess NPAC. Residential provisioning. Provisioning of Centrex service and local or interstate circuits. Interfaces with Clicksoft calendar. Business, Key, or PBX service requests. Table 66. Critical Business Records Identified by Provisioning Business Unit Provisioning Record Name Jordash, Cornbell, MARKS, Clicksoft, Switchaccess Table 67. Regulatory Reporting Requirements for Provisioning Business Unit Provisioning Report None Frequency Recipients For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 45
Slide 51: Sample Company Business Impact Analysis (BIA) Table 68. Operational Impacts Identified by Provisioning Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 0 0 0 0 0 0 4 0 0 0 4 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 69. Number of Recovery Personnel by Day for Provisioning Day 1 0 Day 2 0 Day 3 0 Day 4 0 Day 5 0 Day 6 0 Day 7 0 Day 14 0 Day 21 0 Day 28 0 Findings Provisioning reported it will take more than 16 hours to process backlog for each day of downtime. Provisioning reported that it is vulnerable to a prolonged disruption or outage. Provisioning reported that it would be extremely difficult to recover from a significant disruption or outage. Provisioning stated that one day would be the maximum outage before a significant impact on SAMPLE occurred. Provisioning reported that severe operational impacts would occur to customer service and there would be increased liability if they were unable to update E911 information to PSAP. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 46
Slide 52: Sample Company Business Impact Analysis (BIA) Provisioning reported that it has need for large screen (21-inch) monitors, but cannot afford the estimated $80,000 cost to upgrade. Provisioning reported that a loss of communications would have a significant impact on business operations. Provisioning reported that there is a need to consolidate the multiple, disparate systems that are in use today. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 47
Slide 53: Sample Company Business Impact Analysis (BIA) Purchasing The following people were surveyed for Purchasing: Carlton Fisk and Mike Socia. Business Processes Table 70. Business Processes Identified by Purchasing Business Process Negotiate and purchase goods and services Maintain the contract system and records Assigned block(s) of manual purchase requisition, purchase order, and/or contract numbers to each buyer. Maintain a master log of purchase requisition, purchase order, and/or contract numbers and associated data assigned by individual buyers. Input manual data to the computerized system when computerized materials system(s) become available. Establish and maintain a list of vendors and contractors, points of contact, goods and services each can provide. Maintain and update vendor and contractor listing on an ongoing basis. Description Negotiate with vendors and place orders for goods and services. Update the Contract Manager system, file contracts. Buyer(s) will maintain a log of numbers assigned and the associated data, i.e., date(s), vendor/contractor names, goods or services requested or purchased, cost, etc. Purchasing’s administrative assistant will maintain the master log data. Buyers and administrative personnel will be responsible for input of manual data to a computerized system. Purchasing and technical personnel will be responsible for providing the data about vendors and contractors. Responsibility for maintenance and update of this type data needs to be determined. Table 71. Critical Business Records Identified by Purchasing Business Unit Purchasing Purchasing Department Purchasing Department Purchasing Department Purchasing Department Purchasing Department Record Name Vendor contact names and numbers Purchase Order Purchase Requisition Contract Vendor/ Contractor Master List Request for Quotation When Required Day 1 Day 2 Day 2 Day 2 Over Day 28 Day 2 Media Type Other Paper Paper Paper Tape Paper Alternate Source Search the Internet for vendors Seven years of archived paper records Seven years of archived paper records Archived records None Seven years of archived paper records For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 48
Slide 54: Sample Company Business Impact Analysis (BIA) Table 72. Regulatory Reporting Requirements for Purchasing Business Unit Purchasing Report None Frequency Recipients Table 73. Operational Impacts Identified by Purchasing Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 4 4 2 4 2 2 4 2 4 4 4 3 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 74. Number of Recovery Personnel by Day for Purchasing Day 1 12 Day 2 12 Day 3 12 Day 4 12 Day 5 12 Day 6 12 Day 7 12 Day 14 12 Day 21 12 Day 28 12 Findings Purchasing reported it will take one day to process backlog for each day of downtime. Purchasing reported it is somewhat difficult to recover following a significant disruption. Purchasing stated that one week is the maximum length of outage before a significant impact on SAMPLE business units occurred. Purchasing reported that operational impacts would be no more severe for any single month over any other. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 49
Slide 55: Sample Company Business Impact Analysis (BIA) Purchasing noted there is currently no recovery strategy in place for the list of vendors and contractors and their respective points of contact. Purchasing reported that data loss or corruption was experienced in April of 2002, which caused a 10-percent impairment to operations and took eight hours to recover. Purchasing reported they were somewhat vulnerable to an outage. In a “worst case” scenario, Purchasing could be idled for up to a week before significant impact to SAMPLE would occur. Purchasing reported that standard replacement office equipment would cost $28,060 for each day following a significant disruption. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 50
Slide 56: Sample Company Business Impact Analysis (BIA) Regulatory Affairs The following person was surveyed for Regulatory Affairs: Sandy Kofax. Business Processes Table 75. Business Processes Identified by SAMPLE Regulatory Affairs Business Process License administration Monitoring Regulatory response Legal support Tariff administration Regulatory interpretation Records maintenance Records maintenance Records maintenance Coordination of filings Outage reporting Outage reporting Description Maintain and administer FCC license files. Monitor state and federal regulatory activity. Provide response to FCC and RCA customer complaints. Support Legal Department as needed. Draft tariffs for submission to appropriate agency. Provide interpretation of tariffs, state and federal regulations to company. Maintain regulatory and tariff files. Maintain competitive tariffs. Maintain copies of special contracts filed with the RCA. Coordinate filings to the RCA and FCC on behalf of SAMPLE. Report network outages to both FCC and RCA. Report tower outage to the FAA/FCC within 30 minutes. Table 76. Critical Business Records Identified by Regulatory Affairs Business Unit Regulatory Affairs Record Name Local exchange tariffs When Required Over day 28 Media Type Other Alternate Source Electronic version on SAMPLE Intranet, filed versions with the Regulatory Commission of SampleTown, Federal Communications Commission FCC Regulatory Affairs License and antenna structure registrations for microwave, cellular, television and PCS licenses Over day 28 Other For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 51
Slide 57: Sample Company Business Impact Analysis (BIA) Table 77. Regulatory Reporting Requirements for Regulatory Affairs Report FAA tower outage reporting Outage reports— network notification Outage reports Other Frequency FAA Recipient Type of Penalty Financial—could also include license revocation Product/service disruption Product/service disruption On Demand On Demand FCC RCA Table 78. Operational Impacts Identified by Regulatory Affairs Operational impacts are rated on a scale of 0-4 where 0 = no impact and 4 = severe impact. The impact value is an indication of the severity of the impact to the company that would result if the business unit were unable to function. Operational Impact Cash Flow Competitive Advantage Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other Value 0 0 0 0 0 0 0 0 0 2 2 0 The number of recovery personnel by day represents the number of internal personnel resources that the business unit may require to support minimal essential operations following a major disruption. Table 79. Number of Recovery Personnel by Day for Regulatory Affairs Day 1 1 Day 2 1 Day 3 1 Day 4 1 Day 5 1 Day 6 1 Day 7 1 Day 14 2 Day 21 3 Day 28 5 For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 52
Slide 58: Sample Company Business Impact Analysis (BIA) Findings Regulatory Affairs reported that they have files dating back to the beginning of the SAMPLE company(ies). Many of these historical documents are available only in hard copy form and at the Regulatory Commission of SampleTown or Federal Communications Commission archives. A catastrophic event could destroy both copies. Regulatory Affairs reported that there are no monthly operational impacts. Regulatory Affairs reported no standalone workstation requirement. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 53
Slide 59: Sample Company Business Impact Analysis (BIA) Executive Summary/Business Impact Analysis for SAMPLE The BIA is designed to provide management with a report of the potential overall effects for each major SAMPLE business unit, if their services are not available for 30 days or more. Since the cost of providing redundancy and fault tolerance in the infrastructure can be quite high, it is important that management have a very clear vision and commitment of resources to accomplish the job. The intent of the following section is to provide a cumulative report of impact across all of the SAMPLE business units. This cumulative impact information can be applied toward justification and prioritization of infrastructure-related resources that would be required. Cumulative Reported Financial Impacts The following figure shows the cumulative financial impact reported by all the SAMPLE business units. Figure 5. Reported Financial Impacts for SAMPLE $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 1 2 3 4 5 Day Source: Gartner, 2002 6 7 14 21 28 Findings The reported cumulative financial impact ranges from $1M on the first day ($5,035,616 for the first week) to approximately $28,249,312 on Day 28. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 54
Slide 60: Sample Company Business Impact Analysis (BIA) Cumulative Financial Impact (2001 Gross Revenue) Figure 6 shows the reported impacts (see previous page) and 2001 gross revenue, with a range of $908,767 on the first day to approximately $25,445,479 on Day 28. Figure 6. Reported Impacts and 2001 Revenue for SAMPLE $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 1 2 3 4 5 6 7 14 21 28 Day Reported Totals 2001 Revenue Source: Gartner 2002 Based on survey results, the company’s major financial exposures would begin to increase dramatically within four to seven days following a major disaster. Financial impact for the corporation is estimated using a percentage of 2001 reported revenue and applied to this projected escalation. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 55
Slide 61: Sample Company Business Impact Analysis (BIA) Cumulative Reported Financial Impacts The following figure shows how the major financial exposures escalate over time for the business units. Figure 7. Reported Financial Impacts for SAMPLE Average Severity Over Time 0.80 0.70 Avg of Answers 0.60 0.50 0.40 0.30 0.20 0.10 0.00 Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 14 Day 21 Day 28 Over Day 28 Time Series and Exposure Type Availability of Funds Contractual Penalties/Fines Penalties for Late Payment to Vendors Cancelled Orders Due to Late Delivery Lost Sales Source: SAMPLE 2002 Based on survey results, the company’s major financial exposures would begin to increase dramatically within four to seven days following a major disaster. Financial impact for the corporation is estimated using a percentage of 2001 reported revenue and applied to this projected escalation. Operational Impact Summary Operational impacts are intangible and cannot be directly quantified; however, all business units were asked to rate 12 operational factors (shown below) on a scale from 0-4, where 0 indicates “no impact” and 4 indicates “severe impact.” For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 56
Slide 62: Sample Company Business Impact Analysis (BIA) Figure 8. Average Operational Impacts for SAMPLE Cash Flow Competitive Advantages Shareholder Confidence Financial Reporting Industry Image Employee Morale Customer Service Employee Resignations Vendor Relations Regulatory Increases in Liability Other 1.2 1.4 1.6 1.8 2 2.2 2.4 2.6 2.8 3 Source: Gartner 2002 Findings Customer service is clearly a priority for SAMPLE as shown above, and all of the business units were concerned about customer service impact during a disaster situation. A disaster’s effects on employee morale, financial reporting, employee resignations, regulatory reporting and shareholder confidence were also important concerns. Recovery Personnel Requirements Table 80 summarizes the overall recovery personnel requirements for SAMPLE, as reported by the business units. Table 80. Overall Personnel Requirements for SAMPLE Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 14 Day 21 Day 28 Personnel 560 564 572 596 605 606 607 618 640 647 Source: Gartner 2002 For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 57
Slide 63: Sample Company Business Impact Analysis (BIA) Findings According to survey respondents and interviewees, SAMPLE would need roughly 780 persons during the recovery period in the 30 days following a significant disruption or outage, just to maintain service. The total number of SAMPLE employees is approximately 1,168. Based on our experience, most emergency operations for communications services providers require a minimum of 25 percent of total personnel to implement a timely recovery from a major disaster on the first day. This number will typically grow to 40 percent by the end of the first week to support critical business operations after systems and workspace are operational. Based on information obtained in the interviews, we believe that many SAMPLE employees are capable of functioning out of their homes or personal vehicles, as long as they are able to get to where the work is needed. Most employees that we interviewed indicated that they have their own tools and could locate spare parts at various locations, if needed. Recovery Time Frames Summary In general, there are service recovery time frames specified by Tariff, for the various SAMPLE service locations. Based on the interviews, we believe that reasonable recovery time frames are generally shorter for all business units and services, because of SAMPLE’ emphasis on customer service, as previously shown by the operational impact summary. Availability of emergency services such as Police 911, FAA installations and hospitals, is a critical first priority for all SAMPLE business units. Physical security is essential during a disaster to assist in securing the site, so Facilities and Safety/Risk Management must be available on short notice for that reason. Facilities and Marketing are also critical to potentially find alternate office space and communicate with the media during a disaster. SAMPLE IT Operations, especially the information systems/technology and infrastructure recovery, needs to be available quickly to provide technology support to the other business units, especially customer support for telephone re-routing and alternate/replacement computer systems. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 58
Slide 64: Sample Company Business Impact Analysis (BIA) Recovery Priority Recommendations Based on the interviews, we recommend the following recovery priorities. Table 81. Recommended Recovery Priorities for SAMPLE Priority 1 Process Employee issues, physical safety, temporary shelter, benefits administration, etc. (SAMPLE cannot operate without its employees; their safety must be the first priority, or nothing else will matter.) Infrastructure to support customer service telephones Repair, assignment, testing, dispatch functions Engineering Provisioning Monitor/assess network/circuit/service health Procure temporary resources, emergency services, equipment, facilities, etc. Business Unit Human Resources 2 3 4 5 6 7 Customer Care Operations Engineering Plant Assignment and Dispatch NOC Purchasing Work Backlog Processing Figure 9 shows the length of time to complete backlog processing for all of the reported business processes for each affiliate company and shared service, assuming that workspace and computer systems are available. Figure 9. Time to Complete Backlog Processing for SAMPLE 0–2 Hours 3% Over 16 Hours 20% 2–4 Hours 3% 4–8 Hours 12% 8–12 Hours 14% Not Sure 20% 12–16 Hours 4% Didn't Answer 24% Total =100% Source: Gartner 2002 For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 59
Slide 65: Sample Company Business Impact Analysis (BIA) Figure 10. Time Frame and Number of Processes for SAMPLE 30 25 20 15 10 5 0 Hours to Complete Backlog Number of Business Processes in Time Frame 0–2 Hours 4 2–4 Hours 3 4–6 Hours 14 8–12 Hours 6 12–16 Hours 5 Over 16 Hours 23 Not Sure 23 Others 27 Source: Gartner 2002 Findings Backlog processing is used to define how long it will take to update computer systems and documentation to current status. All business processes, with exception of “Others” shown above, can complete backlog processing within three days, assuming that workspace, computer systems and infrastructure are available. It is important to understand how transaction backlogs will be handled by the business units. A slower recovery capability may require a reduction in the Recovery Time Objective (RTO). Critical Business Records The following is a list of the critical business records reported by the business units and shared services. Table 82. Critical Business Records for SAMPLE Business Unit Comp, Ben, HRIS Comp, Ben, HRIS Comp, Ben, HRIS Comp, Ben, HRIS Comp, Ben, HRIS Personnel Files HRIS data Compensation surveys Analysis tools Vendor contacts Critical Records For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 60
Slide 66: Sample Company Business Impact Analysis (BIA) Business Unit Comp, Ben, HRIS Corporate Communications Customer Care Customer Care Customer Care Customer Care Facility Services Facility Services Facility Services Facility Services Facility Services Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance/ AP & Payroll Finance/ AP & Payroll Finance/ AP & Payroll Human Resources Human Resources Human Resources Marketing Materials/Operations Materials/Operations Network Operations Center (NOC)—110/ 642 Network Operations Center (NOC)—110/ 642 None Critical Records Benefits and leave files Cornbell Service order system, CBP billing system, JORDASH system, DA Listings/ records system. None PCSC Security System Software Database Hard copies of Security User Form records Facility drawings, both Mylar and Bluelines Facility Construction and Maintenance Project records SAP data Deville/ CBP Payroll files Month-end JEs Infranet Apprise sales PSA NIBS Rodolphi Great Lakes PRS STS PCC Historical financial information AIS system information Time records Vendor Invoices Employee Records Job Description Requisition Training Vendor Contacts None Distribution—None Warehouse transactions DMS Images NOC logs For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 61
Slide 67: Sample Company Business Impact Analysis (BIA) Business Unit Network Operations Center (NOC)—110/ 642 Operations Plant Assignment and Dispatch Purchasing Purchasing Purchasing Purchasing Purchasing Purchasing Regulatory Affairs Safety/ Risk Mgt Sales None None Critical Records Backup files for various systems Vendor contact names and numbers Purchase order Request for quotation Purchase requisition Contract Vendor/Contractor master list Local exchange tariffs None Customer database Findings Critical business record requirements should be reviewed to ensure that all business units could successfully implement a Business Continuity Plan (BCP). Each business unit should determine whether their critical records should be copied (or imaged) and available at off-site storage or obtained from the public record facility. Note that this procedure should be documented in each business unit’s BCP. Some critical business records, such as customer address information, can be recovered from the switch. Each affected business unit should document all critical business records in its BCP. Regulatory Reporting The following is a list of the regulatory reports by the business units and shared services. Table 83. Regulatory Reports for SAMPLE Business Unit Comp, Ben, HRIS Comp, Ben, HRIS Comp, Ben, HRIS Comp, Ben, HRIS Corporate Comm Customer Care Facility Services Finance Report 5500 Filing EEO reporting Plan and amendment filing PBGC filing None reported None reported None reported SEC quarterly and annual SEC Quarter end IRS DOL DOL PBGC Recipient When Required Year end On demand On demand Year end For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 62
Slide 68: Sample Company Business Impact Analysis (BIA) Business Unit reporting Finance Finance Finance Human Resources Human Resources Marketing Materials Management NOC NOC NOC NOC Operations Report Form M annual reports USF/ RCC reports CAM EEO1 Affirmative Actions Report None reported. None reported Site/ equipment failures FAA Site Isolation Status Report BVR Outage over 500 customers for 15 minutes LEC side Dispatch within 72 hours, if connected by road system None reported None reported FAA tower outage reporting Outage reports—network notification Outage reports—network notification OSHA 300 None reported FAA FCC RCA OSHA RCA Recipient When Required Year end Month end Year end Year end Year end FCC/ AK Dept Rev. FCC—RCA US DOL US DOL Management FAA & SAMPLE Reg Affairs SAMPLE Management SAMPLE Management RCA Regulatory Commission Customers Other Other Month end Month end On demand Operations On demand Plant Assignment and Dispatch Purchasing Regulatory Affairs Regulatory Affairs Regulatory Affairs Safety/ Risk Mgt Sales Other On demand On demand Year end Findings In the event of a disaster, the FCC and the RCA must be advised of the problem, and the notification procedure should be part of SAMPLE’s BCP. Although it may not be strictly required by a regulatory agency, it is a best practice for each affected business unit to include a notification procedure as part of its BCP. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 63
Slide 69: Sample Company Business Impact Analysis (BIA) Recovery Complexity for Business Units The following graph shows the recovery complexity reported by the business units and shared services. Figure 11. Recovery Complexity for SAMPLE Business Units With Extreme Complexity Difficult to Recover 19% Somewhat Recoverable 48% Easily Recoverable 14% Extremely Difficult to Recover 19% Source: Gartner, 2002 Total =100% Table 84. Recovery Complexity for SAMPLE Easily Recoverable Sales Facilities Somewhat Difficult to Recover Customer Care Marketing Materials Management Operations Purchasing Safety and Risk Difficult to Recover AP and Payroll Finance Human Resources Regulatory Affairs Extremely Difficult to Recover Corporate Communications Engineering NOC Provisioning Findings Communications reported that it would be extremely difficult to recover from a prolonged outage or disruption. Customer Care reported that it is somewhat difficult to recover after a significant disruption or outage. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 64
Slide 70: Sample Company Business Impact Analysis (BIA) Engineering reported that it would be extremely difficult to recover from a significant disruption or outage if AutoCAD data was lost. Facility Services reported that it is somewhat easy to recover. Finance reported that it is difficult to recover. AP and Payroll reported that it is difficult to recover. Human Resources reported that it is difficult to recover from a significant disruption or outage. Safety and Risk reported that it is somewhat difficult to recover following a significant disruption or outage. Marketing reported that it is somewhat difficult to recover from a prolonged disruption or outage for information that is not backed up for individual PCs and mainframe applications. Customer Care reported that it is somewhat difficult to recover after a significant disruption or outage. Sales reported that it is easy to recover. Materials Management reported that it would be somewhat difficult to recover from a significant disruption or outage. The NOC reported that it is extremely difficult to recover from a significant disruption or outage. Operations reported that it is relatively easy to recover from a significant disruption or outage. Operations estimated that if a switch in one of the CO’s was destroyed, it could take 30 to 60 days to recover. It could take $3-5M to rebuild a main CO. Provisioning reported that it is extremely difficult to recover from a significant disruption or outage. Purchasing reported that it is somewhat difficult to recover following a significant disruption. Sales reported that it is easy to recover. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 65
Slide 71: Sample Company Business Impact Analysis (BIA) The following figure shows the monthly impact profile reported by the business units. Figure 12. Monthly Impact Profile for SAMPLE Number of Processes with High Severity 16 Count of Processes 14 12 10 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Time Series Source: Gartner, 2002 Findings November, December, January, February, March and April processes are higher than average because SAMPLE reported that an outage during these months would have higher impact due to extreme weather. Based on Gartner’s experience, the company’s BCPs must support the monthly impact profile. Special Requirements The table below lists the special or one-of-a-kind recovery supply requirements reported by the business units and shared services. Table 85. Special Resource Requirements for SAMPLE Business Unit AP Resource Description MICR Printers Comment Est. $5000 ea. Findings Each business unit should review all special requirements. If appropriate, supplies should either be documented as available off-site (such as check stock for Payroll), or a procedure for an emergency purchase should be included in the BCP. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 66
Slide 72: Sample Company Business Impact Analysis (BIA) Reliance on Communications One of the factors reviewed during the interview process (see Appendix A, question 12) was the reliance on communications by each business unit, with a rating of 0-4 where 0 indicated “No impact” and 4 indicated “Severe impact.” Several business units reported a “Severe impact” on the loss of communications, which is especially important for business units that provide customer service. Figure 13. Degree of Reliance Upon Communications Services 80% 70% 60% 50% 40% 30% 20% 10% 0% High Reliance Low Reliance Didn't Answer Source: Gartner, 2002 Findings More than 70 percent of SAMPLE business units reported a high reliance upon communications systems. There was a consistent high-level emphasis by all business units on customer service, which is directly supported by communications, especially the telephones in Customer Care. It is a best practice to have a communications team defined as one of the “support” teams (like HR, Safety, etc.) to ensure that communications arrangements have been implemented as part of the BCP. It was reported that while radios were once installed in telephone company trucks belonging to the Municipality of Pokipsie, they were not included in the sale of ATU to SAMPLE. It was also reported that the SAMPLE NOC does not have a backup for voice communications. The use of radios as a possible backup means of communicating in an emergency should be evaluated. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 67
Slide 73: Sample Company Business Impact Analysis (BIA) Unique Standalone Workstations Table 86 lists the unique standalone workstation requirements reported by the SAMPLE business units. Table 86. Standalone Workstation Requirements for SAMPLE Business Unit Facility Services Description of Critical Information Structural, mechanical, electrical Processes Facility maintenance Findings Each business unit should review all unique standalone workstation requirements. If appropriate, a procedure for an emergency purchase should be included in the BCP. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 68
Slide 74: Sample Company Business Impact Analysis (BIA) Conclusion Gartner found that all SAMPLE business units are heavily dependent on the existing infrastructure, including communications resources. The telephone systems, the network, and critical applications that depend on the network should be considered by all SAMPLE business units during future disaster recovery and business continuity planning efforts. Given that the various SAMPLE operations groups are relatively diverse, geographically dispersed and somewhat independent in the way they operate, it will be necessary for SAMPLE management to provide clear vision, leadership, and a commitment of resources to ensure recovery and continuity of operations for each business unit. Successful future recovery efforts will depend on planning and coordination activities that must take place well in advance of actual disaster situations. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 69
Slide 75: Sample Company Business Impact Analysis (BIA) Appendix For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 70
Slide 76: Sample Company Business Impact Analysis (BIA) Appendix A—BIA Questions 1. Business processes—What are the business processes for your business unit? Recovery time frames for business unit or process? 2. Work backlog—For each process above, how long will it take (in hours) to handle the backlog for each day of downtime? Concurrent or sequential backlog processing? 3. Critical record management—Identify critical business records by record name, alternate source (when required), media type. 4. Regulatory reporting—Does business unit have any regulatory reporting requirements? List report name, recipient, frequency, variance, type of penalty (amount, if any). 5. Restoration complexity—Define restoration complexity as easily recoverable, somewhat recoverable, difficult to recover, extremely difficult to recover. 6. Outage tolerance—Under the worst-case scenario, how long (hours or days) could your business unit be completely idled before it would have a significant impact on SAMPLE as a whole, business units, business partners, regulatory compliance? 7. Monthly impact profile—For each month, define the severity of outage where 0 = no impact, 4 = severe impact. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec What type of impact for each of the above: financial, operational and other? 8. Operational impact factors—For the following operational impacts, define the severity of impact where 0 = no impact, 4 = severe impact. Cash flow, competitive advantage, shareholder confidence, financial reporting, industry image, employee morale, customer service, employee resignations, vendor relations, regulatory, increases in liability, other. 9. Cumulative estimated financial impacts by day—Estimate the financial impact on your business unit under the worst-cast scenario by days/weeks as follows: Day 1 2 3 4 5 6 7 14 21 28 10. Special requirements—Identify any special or one-of-a-kind supply requirements with name of resource (forms, etc.), supplier, days to acquire, quantity. 11. Number of people required by day—Identify the number of people required by day for entire business unit recovery. Day 1 2 3 4 5 6 7 14 21 28 For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 71
Slide 77: Sample Company Business Impact Analysis (BIA) 12. Reliance on communications—Identify reliance on loss of communications, such as telephones, e-mail, etc., where 0 = no impact, 4 = severe impact. 13. Unique standalone workstations—Identify unique standalone workstations or similar requirements (e.g., wire transfer, etc.). Define name/type of workstation, quantity, description of critical process. 14. Other issues and concerns—Identify any other issues or concerns about recovering your business unit that have not been discussed. For internal use of Sample Company only. © 2002 Gartner, Inc. and/or Gartner Holdings Ireland. All Rights Reserved. 16 December 2002—Page 72