From James Joyces Stephen Hero to After The Race - Blending Narrator

From James Joyce's Stephen Hero to "After The Race" - Blending Narrator and Character James Joyce's fragment of a novel, Stephen Hero, leaves the reader little room to interpret the text for themselves. The work lacks the narrative distance that Joyce achieves in his later works. Dubliners, a work Joyce was writing concurrently, seemingly employs a drastically different voice. A voice which leaves the reader room to make judgments of their own. Yet it is curious that Joyce could produce these two works at the same time, one that controls the reader so directly, telling not showing , while the other, Dubliners, seems to give the reader the power of final interpretation over the characters it portrays. By changing voice from a narrator who tells the reader to a narrator who shows the reader in Dubliners, Joyce has seemingly relinquished considerable control over his vision of Dublin. However, Joyce's change of narrator yields him alternative forms of authorial sovereignty. In fact, Joyce guides the reader in a much more powerful way in Dubliners; without the reader's knowledge. Through quick shifts in point of view and interjections that seem to be the voice of a character, yet are not directly linked to it, Joyce controls the stories in Dubliners more subtly and with more effect than the bold declarations in Stephen Hero ever do. In her essay "'Oh She's A Nice Lady!'": A Rereading of "A Mother" Jane E. Miller addresses the issue of judgment in the story. Although told in an aloof and anonymous third-person, the narrativeis always shifting, almost imperceptibly, from an objective stance to less neutral observations which, because of their perspective or particular choice of words, appear to be those of Mrs. Kearney. (Miller,... ...f him in the narration. These interjections in "After the Race" are not the complete rupture of objectivity that they are in Stephen Hero. Still, the effect is much the same. They channel the reader rather than tell the reader how to judge. They offer the reader a guide to the reading of "After the Race" in much the same way a legend acts for a map. This is not to say that phrases like this operate in every story of Dubliners as they do here. But in the story "After the Race" they give the reader "important directions for reading" much like the narrative language does in "A Mother". In addition, these phrases seem to be a much more polished version of the blunt preaching Joyce does in Stephen Hero. They operate on the reader subtly, blending the voice of character and narrator to produce a guide to the reading, not a usurpation of, as in Stephen Hero, the text.

Discuss the increasing importance of HRM in today’s businesses Essay

With the emergence of a highly dynamic global economic system, and with new competitors constantly arriving on the scene, businesses are constantly finding ways to increase efficiency and effectiveness to stay viable to meet present and future work demands. The Human Resource Management (â€Å"HRM†) function exercised effectively in many businesses has overtime proven to have significant impacts on business results, thus becoming increasingly influential in the formulation of business strategies. This paper seeks to discuss the increasing importance of HRM in today’s businesses, with a focus on the four key roles identified by Dave Ulrich (1993) that Human Resource (â€Å"HR†) managers of today should play to rise up to impending challenges, in response to the purpose of this assignment. This paper will also attempt to define and interpret existing HRM concepts and theories and to highlight their differences and respective roles in the shaping of today’s businesses. It will also draw some examples of good strategic HRM practices in some of today’s most successful global companies. In today’s businesses all around the world, the fundamental attributions for a business to thrive in an ever-changing and demanding society have drastically undergone an overhaul in recent years to suit and adapt to change. With vast advancements in technology and better infrastructure in place, businesses are able to operate more efficiently in today’s society than before. However, the most essential ingredient in all successful businesses is its people, or what is termed today as ‘human asset’. Good staff are the heart and blood of businesses, driving them to achieve strategic objectives and goals. With such realisation, the HRM function in a business has been identified as a key role in the sustenance of business success and how it can be better positioned to gain a competitive stance through the effective management of its people. To attempt to precisely define HRM will result in more confusion and contradiction, particularly due to the case of its constant comparison with Personnel Management (â€Å"PM†). Worthy to note, Noon (1994:23) states that though HRM is comparatively new to many countries, in the USA the HRM term has been used over fifty years as an alternative name for PM and that the two terms are synonymous. Pre 1980s, PM was largely viewed as the human face of management. Torrington and Hall (1991) puts forth that: Thus it can be seen that PM is more work-force-centred, directed primarily at the business’s employees; sourcing and training them, arranging for remuneration, defining management expectations, tending to employee’s work-related needs, dealing with their problems and seeking to modify management action, which tend to produce unhappy employees and unwelcomed responses. Such is the ‘hard’ approach of managing people, viewing an organization’s employees as a cost, which needs to be tightly budgeted. People under the PM system are viewed as resources in the same way as any other business resources, and thus, indisputable never totally identified with the management interests. Thus surfaces a â€Å"gap† between human resource and business strategies, with the management and employees mediating the needs of each to the other. Tichy, Fombrun and Devanna (1982) state that: It was during the 1980s that HRM took on a new meaning as it grew and broadened as it focused on strategic and business concerns according to Tichy et. al. (1984) and Freedman (1991). It was identified with a strategic approach, bridging the link of managing of people to the achievement of business objectives. HRM was becoming more influential across regions like South Africa and Australasia and soon, it found itself being integrated into the local business cultures. HRM took upon the role of strategically managing the utilization of human resources at its optimum level. It strived for a seamless link between business policies and HR policies, and looked upon employees as resources distinct from the other resources, striving for a more humanistic approach. Drawing on such ideas, Alan Price (2004) defines HRM in the new age as: As such, HRM is viewed as a more resource-centred approach directed primarily at managing the need for human capital. This could be attributed to the ‘soft’ approach of HRM, which view its employees as a core asset. Human capital is thus defined not only to include employees of the business, but also to encompass the management as a whole unit whose interests can only be enhanced through the inclination of effective and integrated overall management of all the business’ processes and units. Henry and Pettigrew support this belief that the strategic character of HRM is distinctive. HRM is said to be based on a management and business-oriented philosophy. This is perhaps the most significant point differentiating HRM from traditional personnel management in today’s organizations. With more upcoming challenges ahead in an unpredictable future working environment, businesses are shifting their paradigm to adopt the HRM approach for its flexibility and proven means of producing results in the long run. If HRM is going to rise to such challenges, Dave Ulrich (1993) identified a four-pronged approach that managers can undertake to make the transition successfully. They are to play the roles of: * Administrative expert Ulrich asserts that HR needs to add value by acting as a partner with line management. He notes â€Å"HR professionals add value to a business when they use their expertise to link internal organization and management practices to external business requirements.† He reckons that HR managers must be effective through their management so as to create value within the organization. * Employee champion Ulrich reckons that a good HR manager is one who is able to relate and meet the needs of employees, at the same time be their voice in the organization so as to provide assurance and seeking of new resources for their betterment. Jack Welch, CEO of General Electric (2001) formulated the â€Å"Boundaryless† concept in the company where he took ideas to the bottom line of his thriving organization. He successfully removed barriers within the organization functions, encouraged employees to voice out any new ideas they had and assigned managers who were committed to the sharing of these ideas with the board and realizing them. As a result, employees were not only rewarded and recognized, but gained much credit for contributing to the company, thus boosting levels of employee confidence and commitment. * Change Agent Ulrich points out that HR managers must be able to manage change, simultaneously acting as a catalyst for change. In the ever-changing global economy, change is inevitable in organizations where staying cost-effective to gain competitive advantage is of priority. Change is seen as a means of psyching the business up to possible uncertainties in the present and future environment. HR managers thus must be able to lead functional change and exert influence over the organization by being observant and responsive towards change to ensure that the business stays viable. They need to constantly monitor the organization to determine the need for change and implementing it successfully alongside organization objectives and values. Ulrich further states that the distinction between those who succeed and fail is â€Å"the ability to respond to the pace of change†. Bill Hewlett and David Packard who founded Hewlett Packard said of managing change and growth: * Strategic partner Ulrich states that HR managers should shoulder the role of being a strategic business partner in the translation of business objectives into action. They must thus be able to develop new ideas and contribute to the making of business decisions within the organization on top of effective people management. HRM is thus seen as part of an integrated and coherent function in the business process. Ulrich highlights the increasingly complex and paradoxical roles the HR professionals must perform to better understand HRM functions and to add value in the organization by helping line managers align strategies and processes with the business needs of the organization. Legge (1989) also provides that that HRM concentrates more on what is done to managers than what is done by manager to the employees. He also reinforces that there is a more proactive role for line managers and for top management to manage culture. Thus is the focus on the true effectiveness and value of the HRM function and if streamlining its processes and redefining HR manager relationships with line managers would define new competencies for HR managers. But is definitely sufficient to say that the role of HR is dramatically changing as how Ulrich (1993), Schuler (1990) and Walker (1992) have recognized it to be. The HR function has systematically gained prominence. Senior HR professionals have made the shift from just being just ‘another functioning role in the organization’ to being key members of the senior management team. Noble (1994) captures this transition by stating, â€Å"competition has taken human resources from the backwater to the boardroom.† Since then, several formal theoretical models of Human Resource Strategy have started to appear as early as 1984, which served as analytical views to better comprehend the development of HRM and are loosely regarded as representatives for the profession. Among them are: * Fombrun, Tichy and Devanna’s Matching Model It seeks to internally unify activities with the HR function and business strategy. It aims to achieve a ‘match’ or ‘fit’ between the two functions. It has its focus on work systems and job designs, making HRM seem to evolve in a social vacuum. * The Harvard Model Produced by Beer, Spector, Lawrence, Quinn Mills and Walton (1984), it provides a broad yet casual depiction of the determinants and consequences of the implementation of HR policies. In this model, situational factors together with stakeholder’s interests are taken into account to influence the formulation of HR policies and outcomes. It concentrates on high commitment as the ideal state of the work force. The Stakeholder theory in this context sets out to prove the varying degrees of influence and impact that stakeholders can have on the conduct and progress of the organization. The main aim is to commit and coordinate the interests of an organization’s stakeholders while directing the organization’s primary activities. * The Warwick Model An extension of the Harvard Model by Hendry and Pettigrew (1990), it emphasizes the importance of external and internal environmental impacts on HRM and is more oriented to the process of change. * Guest’s Model Guest (1989) adapted the Harvard Model by basing his analysis on the four HR outcomes, and developing these into four policy goals: commitment, flexibility strategic integration and quality. This prescriptive model seeks to see these goals as a coherent package that needs to be achieved for desired organization outcomes. * The Storey Model John Storey (1993) stated that â€Å"the ability to take, and implement a strategic view of the whole range of the personnel practices in relation to business activity as a whole† is the basic distinction between traditional personnel management and HRM. Storey’s theoretical model is based on conceptions on how organizations have been transformed from predominantly personnel/IR practices to HRM practices. These influential HRM Models serve as a means of developing strategies and formulation of policies to support current business infrastructure and provides a framework of current concept, assumptions and theories of HRM practices in the real world today. Ulrich (1993) asserts that HR needs to add value by acting as a partner with line management. He notes â€Å"HR professionals add value to a business when they use their expertise to link internal organization and management practices to external business requirements.† To assess HRM outcomes and to define its processes in this new day and age is subjected to numerous debates as to the use of the ideal method in the effective management of people. HRM is evolving in tune to the gradual yet subtle phasing out of traditional PM in most modern organizations today. It can thus be concluded aptly that a successful organization is nothing without good staff, emphasizing once again, the importance of good HRM practices in today’s businesses and the integral role it plays in the with regards to the management of an organization’s core asset – Its people.    REFERENCES Price, Alan. (2004), Human Resource Management in a Business Context, 2nd Edition, Thomson Learning. Stone, J. Raymond. (2002), human Resource Management, 4th Edition, John Wiley & Sons Australia, Ltd. Torrington, Derek. and Hall, Laura. (1998), Human Resource Management, 4th Edition, Prentice Hall Europe. Torrington, Derek. and Hall, Laura. (1991), Personnel Management: A New Approach, 2nd Edition, Prentice Hall. Ulrich, Dave. and Smallwood, Norm. (2003), Why the Bottom Line Isn’t!, John Wiley & Sons, Inc. Welch, Jack. with Byrne A, John. (2001), JACK: What I’ve learned leading a great company and great people, Headline Book Publishing Great Britain. MGW2430 Human Resource Management Averil Chan Si Wan (19603363)

Sociocultural Theory Of Second Language Acquisition

The sociocultural theory of second language acquisition has provided me with the strongest reasons for reconsidering my previous views on second language learning. Vygotsky proposed a sociocultural theory that is very influential within the field of second language learning. The focus was on the idea that all learning is primarily social. The connections between people and the sociocultural context in which they interact with one another are crucial. Through interaction in shared experiences new knowledge is obtained. This perspective emphasizes the social nature of learning and examines the complex and dynamic social interaction involved in the process of learning a second language. According to Vygotsky the cognitive and social processes in acquiring a second language are inseparable. Social interaction has a vital role in the process of cognitive development. Individuals start out in society and culture and only become individualized when they separate themselves from what is taki ng place. Learning takes place in sociocultural contexts and behavior is learned by reacting to other people. Information is gained first socially and then becomes internalized. Vygotsky thought that learning took place on two different levels. Learning took place on the first level by interacting with others and then on the second level information is internalized into the individual’s mental structure. He talks about two different functions inter-mental and intra-mental. IntermentalShow MoreRelatedSociocultural Theory And Second Language Learning902 Words   |  4 PagesSociocultural Theory and Second Language Learning â€Å"Language is the most pervasive and powerful cultural artefact that humans possess to mediate their connection to the world, to each other, and to themselves† [Lantolf Thorne 2006:201]. 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Socially Integrated Retirement Community - 1485 Words

Socially Integrated Retirement Community CHAPTER 1 INTRODUCTION Life expectancy is steadily increasing, but cities are no longer safe nor friendly neighbors a certainty. Alternative housing for the aged is a practical lifestyle solution that developers are now ready to provide. The fading joint family system in India and other innumerable factors have given rise to west-inspired phenomena of old age homes. Surprising cost of living and scanty return on savings have almost pushed these senior citizens on roads. Such an act has triggered the security net of the helpless, which has almost vanished in many states in India with Kerala topping the list. Elders have started walking out of their own home in search of a journey that promises peace,†¦show more content†¦They want to live with dignity and, above all, want to be secure. Townships and residential colonies exclusively for senior citizens are now coming up in the state where they can relocate and spend the sunset of their lives without bothering about paying electricity bills, cooking and getting prompt medical care. It is this combination of physical and emotional satisfaction that today‘s retirement homes strive to provide. From an era where old-age homes were synonymous with charitable institutions for the indigent and orphaned elderly, we moved some years ago to the far more refined paid homes, where amenities were good and services like on-site medical check-ups and transport arrangements were provided. Now, retirement homes are set to enter a third phase of evolution. Socially Integrated Retirement Community 1.1 BACKGROUND – SENIOR CITIZENS IN INDIA Retirement communities are being pitched as a â€â€"lifestyle‘ choice for senior citizens who want to retain their independence. India‘s rising income levels, life expectancy and nuclear families are yielding a well-deserved bonanza for its senior citizens—retirement homes. This explains why more and more elderly individuals and couples are opting to move into retirement homes. Their growing popularity is because they offer a relatively stress-free existence, freedom from household chores, modern amenities, a safe environment and prompt help in case of medical emergencies. Although a relatively new concept in India,

Disparity in Health Care Between Blacks and Whites in the US

In 1964 Congress passed the Civil Rights Act in which Title VI specifically forbade the distribution of federal funds to organizations that practiced discrimination. Enforcement of Title VI was a major priority within the Johnson administration as they implemented the Medicare program (Reynolds, 1997). Despite a mandate of equal treatment, significant patterns of segregated health care utilization have remained to the present. In an analysis of Medicare beneficiaries, Bach and colleagues found that their was a small proportion of physicians – 22% - who provided the majority of visits - 80% - by black patients (Bach, Pham, Schrag, Tate, Hargraves, 2004). This may represent a pattern of racial concordance, patients choosing providers of their own race, but the physicians seeing the majority of black patients did not the same resources available as those seeing the majority of white patients. 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Business Continuity Plan as a Part of Risk Management Free Essays

Celem niniejszej pracy jest zaprezentowanie roli i znaczenia Planu Ciaglosci Funkcjonowania Przedsiebiorstwa w calosciowym procesie zarzadzania ryzykiem w firmie oraz przedstawienie przykladowej tresci takiego planu. Rozdzial pierwszy zawiera ogolne wprowadzenie do zagadnienia zarzadzania ryzykiem. Przedstawia on definicje ryzyka w sensie, w jakim jest ono rozumiane w niniejszej pracy. We will write a custom essay sample on Business Continuity Plan as a Part of Risk Management or any similar topic only for you Order Now Ponadto, znajduje sie w nim opis wielorakich zagroSen, ktore sa zwiazane z funkcjonowaniem przedsiebiorstwa, a takSe lista metod sluSacych do pomiaru ryzyka oraz opis przykladowych postaw, jakie sa przybierane wobec zagroSen. W rozdziale drugim zaprezentowano pojecie Zarzadzania Ciagloscia Funkcjonowania Przedsiebiorstwa. Znajduje sie tu charakterystyka ewolucji tego zagadnienia oraz wyjasnienie, dlaczego Plan Ciaglosci Funkcjonowania Przedsiebiorstwa jest dokumentem o ogromnym znaczeniu dla firmy i jej interesariuszy. Ponadto, w rozdziale tym poddano dyskusji pewne szeroko rozpowszechnione mity dotyczace Zarzadzania Ciagloscia Fukncjonowania Przedsiebiorstwa. Ta czesc pracy konczy sie opisem Analizy Wplywu na Przedsiebiorstwo jako glownego narzedzia, ktorym posluguje sie opisywany typ zarzadzania. W rozdziale trzecim przedstawiono rezultaty dokonanej przez autorke analizy roSnych Planow Ciaglosci Funkcjonowania Przedsiebiorstwa i ich szablonow. To studium bylo podstawa do zaprezentowania przykladowej struktury Planu oraz opisu najczesciej spotykanych w nim bledow. Ostatni rozdzial zawiera takSe charakterystyke faz wprowadzania i testowania Planu, ktore sa rownie waSne jak etap jego przygotowania. Wspolczesne przedsiebiorstwa nie moga sobie pozwolic na postawe reaktywna wobec realnych zagroSen, gdyS wydarzenia bedace w stanie zaklocic ich funkcjonowanie sa liczne i moga zaistniec zarowno w wewnetrznym, jak i zawnetrznym srodowisku firmy. Profesjonalnie przygotowany i skrupulatnie 5 aktualniany Plan Ciaglosci Funkcjonowania Przedsiebiorstwa cechuje postawe proaktywna. Jest nie tylko ogromnie pomocny w przezwycieSaniu trudnosci, ale dla interesariuszy firmy stanowi takSe dowod jej wiarygodnosci. MoSna wiec oczekiwac, Se coraz wiecej przedsiebiorstw bedzie sie staralo zdobyc ten nieoceniony atut. 6 ABSTRACT The aim of this thesis is to present the role and significance of a Business Continuity Plan (BCP) in the holistic process of a company’s Risk Management, and to provide a characteristic of exemplary BCP contents. The first chapter contains a general introduction into Risk Management. It delivers the definition of risk as it is understood in the context of the present thesis. Moreover, there is a description of multiple risks which are relevant to a company’s activity, as well as a list of the risk measurement methods and an account of exemplary attitudes towards threats. The second chapter presents the question of Business Continuity Management (BCM). It characterizes the evolution of this concept and explains the reasons why the BCP is a document of utmost importance to the company and its stakeholders. What is more, certain wide-spread myths concerning BCM are also disputed there. This part of the thesis ends with a description of Business Impact Analysis as the main tool of Business Continuity Management. The third chapter provides the results of the author’s analysis of various Business Continuity Plans and their templates. That study has been the basis for the presentation of an exemplary structure of a Business Continuity Plan, as well as for the description of the most frequent mistakes which occur in BCPs. The last chapter also contains a characterization of implementation and testing phases which are as significant as the preparation of a Business Continuity Plan. Modern companies cannot afford a reactive stance towards possible threats as the dangers which may disrupt their functioning are multiple and come both from the inner and outer environment. A professionally prepared and carefully updated Business Continuity Plan characterizes a proactive attitude. Not only does it significantly help to overcome difficulties, but it is also a convincing proof of the firm’s reliability to all its stakeholders. Therefore, it may be expected that more and more companies will attempt to acquire this invaluable asset. 7 INTRODUCTION The present thesis is the result of the author’s interest in various aspects of Risk Management, especially in the procedures which are applied by companies in case their functioning is faced with a serious threat. The most effective method used by business units is called Business Continuity Management (BCM) and focuses on the preparation and implementation of a Business Continuity Plan (BCP). The aim of this thesis is to present the role and significance of a Business Continuity Plan in the holistic process of a company’s Risk Management, and to characterize the contents of an exemplary Plan. The first chapter contains a general introduction into Risk Management and includes, inter alia, a description of multiple threats which are relevant to the company’s activity and a list of risk measurement methods. The second chapter discusses the concept of Business Continuity Management, explains the importance of Business Continuity Plan and characterizes the steps which lead to the development and implementation of this document. In the third chapter, there is a description of the contents which should be included in a Business Continuity Plan. That presentation is based on the author’s analysis of various BCPs and their templates. The exemplary materials enclosed in appendices have been provided by Punk, Ziegel Company, Business Link, London Borough and Wallsal Council. All the translations which are enclosed in the present thesis have been made by the author. The references have been edited in accordance with the traditional Footnote/Endnote System. 8 CHAPTER 1 RISK MANAGEMENT This chapter contains an introduction into the nature and types of risk, as well as a description of the methods by which risk is assessed and managed. All these issues are inseparably connected with the concept of Business Continuity Plan, which aims at making provisions for the whole spectrum of present and future threats that may put a company’s proper activity into danger. When a company decides to prepare and implement such a plan, it has to carry out a complex and accurate analysis of all the factors which may influence its operation, so that even the least expected dangers are taken into consideration. The first phase of drafting a BCP requires the recognition of existing and prospective risks, evaluation of their possible impacts and assumption of particular attitudes towards them. These vital steps are covered by Risk Management, which helps to organize the findings and solutions in a logical way. The proactive nature and principles of this comprehensive process will be presented and explained in the following chapter. 1. 1. The Definition of Risk Risk and uncertainty are inseparable parts of every aspect of life. As Jan Mikolaj writes, â€Å"risk is connected with human activity, while uncertainty applies to the environment. †1 When these terms are used in the scientific context, they must be precisely defined. Some of the authors of economic and financial literature do not stress the difference between them. For example, Allan Willet states that â€Å"risk is objective uncertainty of the occurrence of an undesirable event. †2 In his opinion, â€Å"risk changes in accordance with uncertainty, not with probability level. †3 Similarly, Joseph Sinkey defines risk as â€Å"uncertainty connected with some occurrence or profit 1 2 Jan Mikolaj, Risk Management, (RVS FSI ZU, Zilina 2001), p. 17. Allan Willet, The Economic Theory of Risk Insurance, (Philadelphia 1951), p. . 9 in the future. †4 Frank Reilly thinks that â€Å"risk is the uncertainty that the investment may not bring the expected return. †5 However, the prevailing trend in modern professional literature is to differentiate between them. According to the Dictionary of Economic and Financial Terminology by Bernard and Colli, risk is â€Å"the probability of incurring losses by a business unit as a consequence of making a certain economic decision by this unit. The probability results from the uncertainty of the future. 6 The same source states further that â€Å"the concept of uncertainty is used in the situation when calculus of probability cannot be applied, whereas the term risk concerns recurrent events which possibility of occurrence can be calculated using the calculus of possibility. †7 Similar classification is introduced by Frank Knight. In his opinion, risk is a â€Å"measurable uncertainty,†8 while â€Å"immeasurable uncertainty†9 is uncertainty sense stricto. According to Irving Pfeffer, â€Å"risk is the combination of hazard and is measurable by probability mathematics, whereas uncertainty is measured by the level of confidence. Risk is a state of the world while uncertainty is a state of mind. †10 To summarize, risk means â€Å"a condition in which there exists a possibility of deviation from an outcome that is expected or hoped for. †11 Risk â€Å"can be expressed as a probability, ranging from 0 to 100 percent. †12 What is important, although not often mentioned in professional literature, there is not only the negative aspect of risk, but also the positive one. Thus, it is a possibility of loss as well as gain. 3 4 ibid. Joseph Sinkey, Commercial Bank Financial Management, (New York: Macmillan Publishing Co. 1992), p. 391. 5 Frank Reilly, Investments, The Dryden Press, (London: Intenational Edition, Collins, 1988), p. 463 6 Bernard and Colli, Slownik ekonomiczny i finansowy, (Wydawnictwo â€Å"KsiaSnica†, 1995), p. 156. 7 ibid. , p. 157. 8 Frank Knight, Risk, Uncertainty and Profit, (Boston: University of Boston Press, 1921), p. 233. 9 ibid. 10 Irving Pfeffer, Insurance and Eco nomic Theory, (Illinois: Irvin Inc. Homewood, 1956), p. 42. 11 Reto Gallati, Risk Management and Capital Adequacy, (New York: Mc Graw Hill, 2003), p. 7. 12 ibid. , p. 8. 10 1. 2. Risk in Business Activity The volume and diversity of risk obviously depend on a company’s type and branch of economy, but risk as such is a phenomenon which accompanies in its versatile forms any kind and field of business activity. It may come from the external environment of a company as well as from the internal one. For some entrepreneurs, risk is a necessary evil, whereas for others it is an additional motivation, if not the main one. Whatever the point of view is, if a given business activity is to succeed, it is essential to recognize what are the kinds of possible risk, asses their possible impact and acknowledge ways of reacting towards them. Such identification will considerably help in developing a suitable attitude, which allows minimizing a potential loss and maximizing a gain. 1. 2. 1. Types of Risk Types of risk which threaten a company’s activity are complex and numerous. Classifications of risk provided by professional literature differ with regard to the assumed criteria. The following comprehensive categorization is based mainly on the division presented in the book Risk Management in Emerging Markets. How to Survive and Prosper by Carl Olsson13: †¢ business risk (also called strategic risk) concerns potential results of inappropriate strategies, inadequate allocation of resources and changes in economic or competitive environment; †¢ market risk is associated with potential results of changes in market prices. It can be divided into: – interest rate risk, –foreign exchange risk, – commodity price risk, Carl Olsson, Risk Management in Emerging Markets. How to Survive and Prosper, (London, Pearson Education United, 2002), pp. 35-36. 13 11 shares price risk; †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ credit risk means that a debtor may not pay in due time; industry risk regards operating in a particular industry; liquidity risk applies to inability to pay debts because of the lack of available funds; operational risk means potential results of actions by people, processes, and infrastr ucture; accounting risk concerns a possibility of financial accounts not being in accordance with the reality; reputation risk regards the results of changes in a company’s reputation; country risk is associated with effects which the mother ountry’s and foreign countries’ economic policies may have over the company; sovereign risk applies to lending money to the government or a party guaranteed by the government; political risk means results of changes in political environment; legal/regulatory risk is associated with the consequences of non-compliance with legal or regulatory requirements; environmental/ecological risk applies to the changes in natural environment which affect a company; systemic risk concerns small events which may produce much larges results than expected; technological risk is associated with the consequences of bringing new technology products to the market and introducing new IT systems; natural risk concerns natural and space disasters. All these risks usually appear simultaneously and their effects are synergic. Therefore, none of them should be ignored when considering the company’s situation. After realizing the large number and complex nature of different types of risk involved in all aspects of business activity, a logical step is to try to estimate their potential impact and results. 12 1. 2. 2. Methods of Risk Evaluation An assessment of a particular risk, both internally- and externally-driven, allows taking an appropriate attitude towards it. As Andrzej Stanislaw Barczak writes, such a measurement involves both subjective and objective elements. 14 The subjective component consists in assuming a priori particular stipulations of a given evaluation tactic, as well as interpreting obtained results in a specific way. The objective constituent derives from the common agreement of the business circle on the methods widely applied to the assessment of risk. Two main types of risk measurement tactics are quantitative risk assessment and qualitative risk assessment. 1. 2. 2. 1. Quantitative Risk Assessment The main conception of quantitative risk assessment is to determine the cost of a given unwelcome occurrence, i. e. o calculate how big the loss would be if an adverse event happened. As it is pointed out in The Security Risk Management Guide, â€Å"it is important to quantify the real possibility of a risk and how much damage, in monetary terms, the threat may cause in order to be able to know how much can be spent to protect against the potential consequence of the threat. †15 This method involves: †¢ evaluation of assets (determining the overall value of a company’s assets, the immediate financial impact of losing the asset and the indirect value of losing the asset); †¢ measurement of the Single Loss Expectancy (SLE), which means â€Å"the total amount of revenue that is lost from a single occurrence of the risk. 16 It is calculated by â€Å"multiplying the asset value by the exposure factor (EF). The 14 Andrzej Stanislaw Barczak, Ryzyko – kategoria obiektywna czy subiektywna? , (Poznan: WSB, 2000), s. 30. 15 Microsoft, The Security Risk Management Guide, (Microsoft Corporation, 2004), p. 19. 16 ibid. , p. 18. 13 exposure factor represents the percentage of loss that a realized threat could have on a certain asset. †17 †¢ assessment of the Annual Rate of Occurrence (ARO), which is â€Å"the number of times that one can reasonably expect the risk to occur du ring one year. †18 This step is very difficult; it bases on historical data and previous experiences, and requires consultation with experts. calculation of the Annual Loss Expectancy (ALE), which stands for â€Å"the total amount of money that an organization will lose in one year if nothing is done to mitigate the risk. †19 This figure is established by multiplying the SLE and the ARO. †¢ valuation of the Cost of Controls (ROSI), i. e. establishing â€Å"accurate estimates on how much acquiring, testing, deploying, operating, and maintaining each control would cost. â€Å"20 It is estimated by using the following equation: (ALE before control) – (ALE after control) – (annual cost of control) = ROSI Although quantitative risk analysis provides clearly defined goals and results, all of the involved calculations are based on subjective estimates, which may prove inaccurate. Moreover, the whole process can be long and costly. 1. 2. 2. 2. Qualitative R isk Assessment In opposition to the quantitative method, qualitative risk assessment does not â€Å"assign hard financial values to assets, expected losses, and cost of controls†21 but instead, 17 18 ibid. , p. 19. ibid. , p. 19. 19 ibid. , p. 19. 20 ibid. , p. 19. 21 ibid. , p. 20. 14 â€Å"calculates relative values. †22 It involves distribution of questionnaires among people in the company who have relevant skills and knowledge, and workshops. The questionnaires are designed to discover what assets and controls are already deployed, and the information gathered can be very helpful during the workshops that follow. In the workshops participants identify assets and estimate their relative values. Next they try to figure out what threats each asset may be facing, and then they try to imagine what types of vulnerabilities those threats might exploit in the future. The information security experts and the system administrators typically come up with controls to mitigate the risks for the group to consider and the approximate cost of each control. Finally, the results are presented to management for consideration during a cost-benefit analysis. 23 This tactic does not require a lot of time and it is not a big burden for the people involved. What is more, the results of the implemented solutions are quickly visible. However, the estimated figures are often perceived as too vague. These two presented approaches are often used together in order to obtain the most comprehensive information about a potential threat. Although scientific methods of risk assessment are helpful in estimating the possible impact which particular occurrences may have on the company’s activity, it is essential to remember that none of the methods can be perceived as 100% trustworthy and absolutely infallible. However, even if it is impossible to predict all threats and provide for all undesirable events, the significance of risk evaluation tactics combined with human knowledge, experience, imagination and intuition cannot be questioned. 1. 3. Risk Management in Business Activity The fact that the phenomenon called risk is measurable and its occurrence may be predicted means that it is also possible to take preventive measures and proactive attitude towards it. As Reto Gallati stresses, â€Å"the term Risk Management is a recent creation, but the actual practice of risk management is as old as civilization itself. †24 In everyday life, people face risk in a varying degree all the time and they manage it in a natural way so as to minimize undesired impact and render possible profits. 22 23 ibid. , p. 20. ibid. , p. 20. 15 Certain individuals even enjoy plunging into extraordinarily dangerous situations in order to check how they will cope in difficult moments. However, Andrew Holmes notices that â€Å"at the individual level, if a person takes a risk and fails to manage it properly, the damage is limited to him, and maybe his near relatives,†25 while â€Å"the management of risk for organizations is not as simple. †26 As it was presented in the part 1. 2. 1, the company is a subject to various and multiple threats. Holmes stresses that â€Å"ultimately, all risks have a financial impact. †27 The complexity of the required actions aimed at coping with the risk means that â€Å"within the modern corporation, risk management must encapsulate managing strategic, business, operational, and technical risks, rather than those associated with pure finance such as credit, interest rate, and currency risk. †28 Nowadays, Risk Management is not an extra feature added to a company’s basic activity, but â€Å"an essential skill of all modern corporations. †29 All usiness units should realize its great importance , because it is essential not only for their success but simply survival. According to Holmes, a company’s attitude towards the risk depends on its risk sophistication, which can be divided into five stages30: †¢ at the lowest level of sophistication (reactive stance), risks are dealt with only when they turn into live issues or when crisis strikes. There is no effort to recognize and measure possible risks in advance. †¢ At a slightly more sophisticated stage, a company understands the importance of risk management and takes the trouble to identify and manage threats more actively. It tends to seek out the best practice and views adverse events in a wide context. At the next level, there are organizations which acknowledge the need to manage risks throughout the organization and usually develop some form of 24 25 Reto Gallati, Risk Management and Capital Adequacy, (New York: McGraw Hill, 2003), p 11. Andrew Holmes, Risk Management (Oxford: Capstone Publishing, 2002 ), p. 2. 26 ibid. 27 ibid. 28 ibid. 29 ibid. 30 ibid. , p. 8. 16 risk management framework to ensure consistency of approach. †¢ At the following stage, a company understands the link between risk and reward. It is aware that for every risk there is an associated opportunity which can be exploited. Such a business unit is often a market leader and is willing to take risks to achieve its strategic objectives. At the ultimate level of risk sophistication, there are organizations which integrate risk management with the goal of enhancing shareholder value. Thus, they shift the responsibility for risk management away from the traditional areas of audit and compliance to everyone within the organization. Of course, the active process of Risk Management requires commitment and focus as it means following a deliberate set of actions which are designed to identify, quantify, manage and then monitor the events or actions that could lead to financial loss. Often, there is too little data about a given risk, and therefore, this kind of management may involve a large degree of judgment and assumptions concerning the future. 1 Yet, all the effort is worthwhile as â€Å"successful organizations tend to be excellent risk managers, not only because they understand the risks they face, but also because of how they manage them. Conversely, those organizations that are poor at risk management spend no time scanning the risk horizon, instead leaving their futures to fate. This invariably means shocks, falling market share, takeovers and missed opportunities. †32 As Holmes reflects, â€Å"risk management is both an art and a science, and being successful depends on how well the two are kept in balance. †33 1. 3. 1. Methods of Risk Management John Holliwell, the managing director of Smith Williamson Consultancy, once said, â€Å"There is nothing wrong with risk. It is the lifeblood of business and the test of entrepreneurs and managers. What matters is how you handle risk and the culture in 31 32 ibid. ibid. 17 which you operate. ’’34 A similar thought is expressed by Clifford Tijok, â€Å"Entrepreneurial behaviour demonstrated in real life entails, i. a. , the ability to enter into calculated risk, so that return-driven opportunities can be pursued and the ability to identify the relevant risks associated with these opportunities and the decision on appropriate behaviour to address these risks. †35 When a company decides on its risk management techniques, it usually analyses the following features: Table 1. Factors influencing the type of risk management framework required by the organization36ors the type of risk managementframework required by an organizatio FACTORS INFLUENCING RISK MANAGEMENT REQUIREMENT DIMENSIONS TO CONSIDER Strategy risk appetite of owners/risk managers industry geographical coverage aggressive or conservative risk taking or risk averse sunrise or sunset industry; primary, manufacturing, service sector local, national, regional or global is the company critically dependent on critical success factors one or two factors which require close management? volatility is the environment likely to change significantly or unpredictability? monopoly, few or limited number of osition in industry players, or free market with many players and no barriers to entry is the area of operations highly controlled by regulatory environment legislation and/or regulatory bodies? are regulators intrusive or hands off? 33 34 ibid. ibid. , p. 2. 35 Clifford Tijok, Risk Management in Finance, (Lehrverangstaltung, 2005), p. 8. 36 Carl Olsson, Risk Management in Emerging Markets†¦ pp. 110-111. 18 is deregulation occurring or the level of regulation increasing? management style centralized or decentralized adequate or inadequate people and resources technology resources, financial position – adequate funds available, highly or lowly geared. tatus/ownership Organizational culture Public or privately owned Is the culture strong or weak? are they simple and predictable or nature of risks faced complex/ unpredictable? is the size of risks manageable or is catastrophic risk a cause for concern? Such an analysis leads to adopting one of the main risk management techniques, as presented by Cliff Tijok37: †¢ †¢ †¢ risk limitation – a company establishes its range of tolerance towards a given risk and constantly monitors whether the limits are not breached; risk avoidance – a company chooses the least risky option or none of them; risk transfer – a company reduces or completely transfers specific risks by hedging against a risk (i. e. , obtaining insurance) or diversification. Whatever the approach is, managing risks â€Å"takes a degree of courage and requires the organization to take responsibility for its actions. †38 It is a continuous process, which is â€Å"based on a distinct philosophy and follows a well-defined sequence of steps. †39 After the application of the methods and rules provided by risk management, the obtained data are organized in a clear and logical way. This is the basis which allows the company to go one level up and prepare action schedules that will be used in case a recognized danger occurs. An essential part of such planning is encompassed by Business Continuity Management and will be discussed in the next chapter. 37 38 Cliff Tijok, Risk Management†¦ pp. 12-13. Andrew Holmes, Risk Management†¦ p. 2. 39 Reto Gallati, Risk Management†¦ p. 11. 19 CHAPTER 2 BUSINESS CONTINUITY MANAGEMENT This chapter provides information on what is Business Continuity Management, when it appeared in the history of manag ement, what purposes it serves and how it should be organized and introduced into a company’s activity. Moreover, it contains a description of the steps which lead to the preparation of a Business Continuity Plan and of the implementation process that follows. Business Continuity Management forms an integral part of Risk Management. It met with particularly deep interest in the 1990s as the result of the frenzy which concerned the year 2000. At that time, there were many anticipated business continuity problems, implicated by the date change in computer systems. Business Continuity Management became even a bigger focus of attention in 2001, after the terrorist attack in New York. As Michael Gallagher observes, that huge calamity â€Å"increased awareness of business interruption issues, resulted in a better understanding of critical processes and vulnerabilities and improved co-operation and collaboration between public and private sectors on emergency management questions. †40 Lyndon Bird adds that â€Å"‘business today has far more economic interdependency between regions than ever before. There are often global consequences when risk becomes reality. 41 Yet, at the same time â€Å"there is a growing awareness of what business continuity really is about and why it is so important to both businesses and individuals. †42 8 2. 1. The Concept of Business Continuity Management Business Continuity Manage ment (also called BCM) is defined by the Business Continuity Institute as â€Å"a holistic management process which identifies potential Michael Gallagher, Business Continuity Management, (Edinburgh: Pearson Education Limited, 2003), p. 7 41 Lyndon Byrd, â€Å"Business Continuity Management in a shrinking world,† Business Continuity Risk Management (a supplement distributed in The Times), July 26 2006, p. 2 40 20 mpacts that threaten an organization and provides a framework for building resilience and the capability for an effective response that safeguards the interests of its key stakeholders, reputation, brand and value creating activities. † Its main purpose is to enable the company’s regular functioning, even though everyday operations are disrupted. As Lorraine Lane observes, â€Å"organizations must be capable of withstanding the shocks that can so easily distract management from their primary purpose of meeting and beating their ‘normal’ o perational goals. †43 BCM appears as the solution that is exactly needed to guarantee such stability to the business. Obviously, BCM looks different in various companies as each organization is a unique system of multiple factors and interdependencies. Dr David Smith explains that â€Å"because of its all-embracing nature, the way BCM is carried out will inevitably be dependent upon, and must reflect, the nature, scale and complexity of an organization’s risk profile, risk appetite and the environment in which it operates. †44 Gallagher supports this view by stating that â€Å"the plan must fit comfortably with the culture and management style of the organization. For example, the type of plan that suits a financial institution would be totally inappropriate in a radio or television broadcasting organization. †45 It is also very important to acknowledge that the company’s BCM must be continuously revised and tested, in order to stay valid and fulfill its tasks. As Dr Smith emphasizes, â€Å"BCM is, by necessity, a dynamic, proactive and ongoing process. It must be kept up-to-date and fit-for-purpose to be effective. 46 Maintaining the validity of proper plans and policies is actually more difficult than establishing them, but this is what constitutes the point of developing BCM by a business. On the following page, there is an approximate structure of steps involved in Business Continuity Management, which is focused on planning. 42 43 ibid. â€Å"Corporate resilience: the new regime,† Business Continuity Risk Management,†¦, p. 11 44 David Smith, â€Å"Business continuity and crisis management,† Management Quarterly, July 2003, p. 27 45 Michael Gallagher, Business Continuity Management,†¦, p. 43 46 ibid. 21 Scheme 2. 1. Procedures involved in Business Continuity Management47 INPUTS 1. 2. 3. 4. 5. 6. scope definition desired objectives policies and standards inventory – information, technology, people management commitment finance ANALYSIS ASSET ASSESSMENT BUSINESS IMPACT ANALYSIS TECHNICAL REQUIREMENTS 1. analyze BIA and Asset Assessment 2. list technical strategies based on the analysis of each asset and business process in scope 3. document drawbacks and advantages of each listed strategy 1. identify and quantify asset needs 2. document ownership 3. assign weight based on importance 4. assess exposure 5. identify access control and other preventive measures 1. rate processes based on criticality 2. identify dependencies 3. identify custodian 4. identify threats and consequences 5. identify safeguards needed/possible 6. list critical resource requirement 7. quantify acceptable owntime and and losses DEVELOPMENT 1. 2. 3. define continuity goals and chosen strategy in the form of a plan acquire resources needed for preparing and implementing the continuity plan test the plan RESULTS 1. 2. 3. 4. preventive control Business Continuity Plan continuity team training plan for team 47 Padmavathy Ramesh, Business Con tinuity Planning, (Tata Consultancy services, 2002), p. 28 22 2. 1. 1 The Evolution of BCM As Halls observes, â€Å"Business Continuity Management is a relatively modern idea. Its first mentions can be found in the 1980s, although it was only in the very late 1990s that it became a more widespread as a business discipline. 48 In fact, Business Continuity Management is â€Å"the outcome of a process that started in the early 1970s as computer Disaster Recovery Planning (DRP) and then moved through an era where the emphasis was on business continuity planning rather than on management. †49 In that time, computer managers were responsible for DRP. Soon, they realized that â€Å"the concentration of systems and data in itself created new risks; computer operations management introduced formal procedures governing issues such as backup and recovery, access restrictions, physical security, resilience measures such as alternative power supply, and change control. †50 In 1970 s, if a big problem appeared, the tolerated downtime was not measured in hours, but days. Therefore, â€Å"the cost of back-up computers sitting idle in an alternative location waiting for a disaster to happen was prohibitive. However, for some companies, data safety was a priority; no matter at what cost it would be obtained. As Gallagher points out, â€Å"organizations such as banks were in a more vulnerable position and invested considerable resources in installing and testing computers at alternative sites. Back-up tapes or disks were increasingly stored at protected locations well away from the computer centre. †51 Later, in the 1980s, commercial recovery sites offering services started to appear, often on a shared basis. â€Å"This was the start of the sophisticated recovery centers that operate today,†52 notes Gallagher. However, they all concerned mainly IT: â€Å"The disaster recovery plans documented the actions required to safeguard and restore computer op erations. These covered computer processing, computer applications, telecommunications services and data after a disruptive event. The objectives were to 48 49 Michael Halls, â€Å"What is Business Continuity Management? † †¦ Michael Gallagher, Business Continuity Management,†¦, p. 6 50 ibid. 51 ibid. 52 ibid. 23 prevent or at least minimize the impact that such an event would have on the business. †53 Such plans were far from being perfect as â€Å"they were more concerned with, for example, restoring a company’s financial systems to an operational state than with worrying about whether there would be accommodation available to allow the staff of the finance department actually to use the systems. 54 Not much attention was paid to implementing BCL into every aspect of the company’s activity. In 1990s, a significant change in the IT environment took place and the movement from DRP to Business Continuity Planning became considerably quicker. Gallagher confi rms that â€Å"throughout this decade, and into the 2000s, there were significant changes in the IT approach to DRP/BCP and in what constituted acceptable downtime. The emphasis moved from being mainly on IT to an approach that considered all aspects of an organization’s business and relationships. †55 It is only then that â€Å"BCP has become BCM with the emphasis on management – not just planning. This encompasses the emphasis on risk management and the measures to be taken to reduce risk. BCM is no longer regarded as a project – it is now a program, emphasizing that it is a continuous process rather than a task with a defined enddate. †56 The next step is to make managers of all companies aware of the importance of BCM as â€Å"the increased recognition of BCM means that a greater budget allocation may be available to it. More significantly, the message preached by business continuity practitioners for years that business continuity principles should be an integrated part of the business planning process may be heard. † 57 2. 1. 2 The Significance of BCM Thanks to proper Business Continuity Management, a company has a professional plan which allows acting as quickly and efficiently as possible in case a dangerous 53 54 ibid. ibid. 55 ibid. 56 ibid. 57 ibid. 24 event happens, because â€Å"BCM not only aims to provide continuity in customer service at a minimum acceptable level, it also aims to limit the impact on the financial position of an organization by ensuring that its critical functions continue to operate during a crisis and that the remainder are recovered in a controlled manner. †58 Therefore, when a BCP is applied, there are no chaotic, haphazard attempts to minimize the losses as clear and logical procedures have been devised earlier and communicated to the staff. As Mel Gosling notices, â€Å"decisions made in the first few hours of an event that causes serious disruption to an organization’s operations are critical, and actions undertaken in the first few days will have a significant financial impact†59 and â€Å"a company that has an effective and well-tested Business Continuity Plan is more likely to take the right decisions in the first few hours and to subsequently undertake the best actions to limit the impact on its financial position. It has a better chance of incurring significantly less additional expenditure at the time of a disruption. †60 Moreover, â€Å"one of the benefits that implementing business continuity management brings to a firm, which is not immediately apparent, is an understanding of what the business does and what is important to it. †61 In this way, a company can analyze its allocation of resources and improve it, as well as â€Å"find out what is critical and of value, and what can be outsourced or left undone. †62 Besides, certain companies, e. g. , financial institutions, are legally obliged to develop BCM and maintain an effective business continuity plan. It is also becoming increasingly common that businesses require from their suppliers to be presented with their BCM plans. This facilitates the process of assessing the supplier’s infallibility and constitutes an element of developing a sound business relationship. Mel Gosling, â€Å"Why invest in business continuity,† 1 February 2007, . 59 ibid. 60 ibid. 61 ibid. 62 ibid. 62 ibid. 58 25 The investment into Business Continuity Management is beneficial not only in the matter of a business being prepared for multiple diverse crises. It also adds significantly to the company’s reputation and brand image by â€Å"demonstrating effective and efficient governance to the media, markets and stakeholders. 63 Moreover, it enhances the competitive advantage of the business, because to some investors and customers it may be a vital factor in deciding to which company they should entrust their capital. Osborne explains it as follows, â€Å"To a firm’s shareholders it ’s part of investor relations – you are showing your commitment to keeping their investment safe. To a firm’s staff it is labour relations – you are showing your willingness to protect the livelihood of your staff. †64 Furthermore, he stresses that â€Å"it’s customer relations too – you’re demonstrating your commitment to providing a service for them even in the most extreme of circumstances. †65 Last but not least, devising professional plans and keeping them updated increases the company’s credibility in the eyes of nsurers and auditors because they are becoming increasingly aware of the importance of BCM. As Osborne observes, â€Å"Five years ago, auditors simply would have said to their clients, do you have a plan in place? A couple of years ago, they would have wanted to inspect it, to see if every contingency was covered and how practical it appeared to be. Nowadays, they will ask how it worked in practice. When it was last tested and what were the results? †66 What is more, â€Å"insurers like to see evidence that all reasonable steps have been taken to understand the past accident record and that actions have been put in place to prevent them from happening again. 67 This is confirmed by Gosling, who states that â€Å"insurance companies themselves are now starting to realize the opportunities that business continuity provides for loss reduction, and it is becoming increasingly common for a condition of insurance cover to be the existence of a business 63 64 David Smith, â€Å"Business continuity and crisis management,† †¦ p. 27 Ask the panel of business continuity experts,† †¦ 65 ibid. 66 ibid. 67 â€Å"Pro-active Risk Management: Avoiding catastrophe. † Business Continuity Risk Management,†¦, p. 14 26 continuity plan. †68 All in all, devising and implementing an effective BCM plans brings versatile advantages to a company, while th e failure to do so â€Å"means taking an unnecessary risk with an organization’s future and profitability. †69 2. 1. 4 Continuity Culture in a Company A vital step in forming Business Continuity Management in a company is to instill a proper attitude in the staff. Michael Gallagher believes that â€Å"it is about creating a continuity culture in the organization. This can be at least as important as producing the actual plans. †70 He also states that â€Å"for BCM to work, it must be driven from the top. â€Å"71 Therefore, senior managers must understand that BCM is â€Å"not just another expense but also a significant resource,’ 72 as Mike Osborne assures. However, the amount of data that has to be taken into consideration while developing preventive measures is overwhelming. Lane points out that â€Å"while responsibility for corporate resilience sits firmly with the executive board, the skills and experience required to combat the growing list of disruptive threats exists throughout the organization. 73 Thus, in large companies, it is a wise move to appoint a full-time Business Continuity Manager, whose tasks are to accumulate the relevant knowledge from all departments and co-ordinate proper procedures, as well as devise professional plans and keep them updated. Smaller businesses may use the services offered by consulting companies. The staff’s awareness of specific procedures ready to be applied in case of any foreseeable disaster enhances their efficiency and identification with the company. Instructing them of the specific plans encourages them to pay bigger attention to the safety issues, which significantly contributes to the BCM process. 68 69 Mel Gosling, â€Å"Why invest in business continuity,† †¦ ibid. 70 Michael Gallagher, Business Continuity Management,†¦, p. XI 71 ibid. 72 â€Å"Ask the panel of business continuity experts,† Business Continuity Risk Management,†¦, p. 12 73 David Smith, â€Å"Business continuity and crisis management† †¦ p. 27 27 Gallagher explains that â€Å"if the business continuity culture is sufficiently developed, the continuity considerations will be a natural part of the development of the plans. †74 2. 2 BCM and the Company’s Size For the definite majority of large corporations, BCM is a regular part of their activity but, as Gallagher states, â€Å"there is a feeling that it is not a matter of concern to the smaller business. 75 This happens because â€Å"a lot of the emphasis in the business continuity press, and in business continuity material generally, relates to large organizations and to the financial services industry. † 76 While â€Å"for the largest corporations and those with enormous sums of money at stake, the complexity of planning is breathtaking,†77 â€Å"small and medium-sized enterprises tend to get ignored when talking about business continuity planning. The planning is more prosaic. The challenges are fewer. And most importantly, their budgets are smaller. †78 Another problem is the fact that â€Å"smaller companies are typically less aware of the correct procedures than larger firms where systems have been developed. 79 The managers of small and medium-sized businesses simply tend to think that their company’s size is a kind of safeguard against a disaster, or that potential recovery will be quick and simple, so â€Å"the process of developing a plan is perceived as too complicated, involving excessive costs and management time. †80 However, Mike Osborne emphasizes that â€Å"the issue for small to medium sized businesses is that they often do not have the inherent resilience that say, a UK multinational has. †81 He warns the managers against an illusive safety feeling as â€Å"smaller firms often trade from a single location and do not benefit from vast armies of support staff and Michael Gallagher, Business Continuity Management,†¦, p. 88 Michael Gallagher, Business Continuity Management,†¦, p. 28 76 ibid. 7 Michael Halls, â€Å"What is Business Continuity Management? † Business Continuity Risk Management,†¦, p. 3 78 Michael Halls, â€Å"Small is still beautiful (but riskier too),† Business Continuity Risk Management,†¦, p. 10 79 ibid. 80 â€Å"It’s never too late to plan for the future,† Business Continuity Risk Management,†¦, p. 15 75 74 28 specialists who can react to and recover from an incident. If they are hit by a disaster, the impact is greater then it would be the case in a larger organization. †82 This view is supported by Gallagher, who states, â€Å"Sm all businesses should remember that their biggest threats do not come from high profile incidents such as earthquakes or terrorist bombs. It is the dozens of relatively minor issues such as prolonged power outages or computer network failures that may cause the problems. The vast majority of problems are caused by people or process failures. †83 He points out that â€Å"this is where the effort and investment should be concentrated. Because of size, the process is simpler and the cost will be proportionally less than for larger organizations. The consequences of not having a plan are, however, likely to be disastrous. †84 Therefore, as Michael Halls stresses, â€Å"Business Continuity Management is a must for companies of all sizes. A small firm that loses its data will go out of business just as surely as a larger one. †85 2. 3 BCM in Relation to Insurance Some managers wonder why they should engage themselves into Business Continuity Management while their company is insured. To them, devising a BCM plan seems to be an unnecessary waste of time and money, because they think that risks are looked after by the insurers and thus, there is no need to worry. But these are absolutely false conclusions. As Mark Baylis emphasizes, â€Å"insuring the risk is not the answer, because it is better for the business that the problem does not happen at all. † 86 This view is supported by Gallagher, who states that â€Å"insurance is simply a necessary part of the total business protection and recovery plan – but it is only a part. 87 Although it is true that insurance provides financial aid in case a disaster strikes, the money may 81 82 ibid. ibid. 83 Michael Gallagher, Business Continuity Management,†¦, p. 28 84 ibid. 85 Michael Halls, â€Å"Small is still beautiful (but riskier too),† †¦ 86 Mark Baylis, â€Å"Weak links in the supply chain,† Business Continuity Risk Management,†¦, p. 11 87 Michael Gallagher, Business Continuity Management,†¦, p. 33 29 arrive after quite a long period. Moreover, â€Å"insurance for loss of profits, or for increased cost of working, will cover only a defined period – which in practice may prove to be inadequate. †88 Besides, â€Å"proving loss of profits can be very difficult. The outcome may be based on historical performance and may not take account of recent market developments. †89 It is also very important to notice that insurance will not â€Å"keep customers supplied or guarantee that market share will be recovered,†90 nor will it â€Å"protect the organization’s reputation and image. †91 Last but not least, as it was mentioned in the previous paragraph, there may be a situation when the insurer refuses to provide a cover unless the company devises a BCM, because nowadays businesses are required to act more actively in protecting themselves from various possible risks. Therefore, it is vital for a firm to have efficient Business Continuity Management in order to obtain insurance on favourable terms. To sum up, managers must remember that â€Å"insurance is reactive – while it has its place, the whole protection process must be more proactive and BCM is the key. †92 2. 4 Business Impact Analysis Business Impact Analysis (also known as BIA) is the most important tool of Business Continuity Management. Gallagher defines it as â€Å"a management-level analysis that identifies the impacts of losing company resources. It measures the effect of resource loss and escalating losses over time in order to provide senior management with reliable data upon which to base decisions on risk mitigation and continuity planning. †93 The BIA process â€Å"identifies and ranks the business processes, 88 89 ibid. , p. 34 ibid. 90 ibid. 91 ibid. 92 ibid. 93 ibid. , p. 146 30 criticalities and dependencies. 94 It is closely related to risk analysis, which was discussed in the previous chapter, therefore, it may base on the materials that have already been gathered during the gener al Risk Management process in the company. The method by which BIA is carried out â€Å"depends on the nature of the organization – size, structure, local or international, etc. †95 Generally, in order to maximize the efficiency of a BIA processes, standardized questionnaires should be used. They should contain questions which are formed in such a way as to provide information that concerns the following issues: †¢ †¢ the nature of given problems; the impact of the problems, which should be presented from different perspectives, e. g. the company’s reputation, costs involved, loss of future business, etc. †¢ †¢ †¢ the influence that may be caused by the problems at different times of the day, week, month and year; the kind of resilience that may be currently provided in a quick and easy way; the recovery from the addressed problems (time needed for recovery, priorities for resumption, duration of backlog, additional costs, insurance cove r); †¢ †¢ the available workarounds and the way they operate; the continuity and recovery requirements, e. g. , accommodation, computer systems, etc. 96 After the questionnaires have been filled in, the Business Continuity Manager prepares a comprehensive report which presents the company’s Business Impact Analysis. The report is composed of the following parts: 1. Introduction 2. Executive Summary 3. Background to Study 94 95 ibd. , p. 47 ibid. 96 cf. Michael Gallagher, Business Continuity Management,†¦, p. 57 31 4. Current State Assessment 5. Threats and Vulnerabilities 6. Critical Business Functions/Operations 7. Business Impacts – Operational and Financial 8. Potential Strategies 9. Recommendations 10. Conclusion 11. Appendices97 Thanks to the logical and substantial structure, the report fully represents the current standing of the company, clearly indicates its weak points and realistically describes possible procedures. Business Continuity Management is an extremely important process, which not only enables the assumption of proper attitudes towards multiple threats that endanger a firm’s functioning, but it also significantly deepens the understanding of the business and improves the staff’s morale. Proper implementation of BCM in a company leads to the creation of a Business Continuity Plan, which will be discussed in detail in the following chapter. 32 CHAPTER 3 BUSINESS CONTINUITY PLAN In the previous chapters, the importance of Business Continuity Management was explained and it was stated that devising a Business Continuity Plan is one of the main tasks of this type of management. This chapter provides information on how to construct, implement and test a Business Continuity Plan. Moreover, it contains a description of the most frequent mistakes that appear while drafting a BCP and advises how to avoid them. The exemplary plans and templates on which the analysis is based are attached as Appendices B, C, D, E and F at the end of the present thesis. 3. 1 The Structure of an Exemplary Business Continuity Plan Business Continuity Plans vary in length and are divided into different parts, which mostly depends on the size and type of a company. However, certain sections are vital and thus common for all the plans. They should be organized in such a way as to enable quick access to the required information. These crucial parts will be successively discussed herein. 3. 1. 1 Front Page and Introduction On the front page of a Business Continuity Plan, there should be written the name of the company, the issue date and a distinct lettering stating BUSINESS CONTINUITY PLAN. Moreover, if the Plan is confidential, it should be indicated on the front page as well. Optional elements inserted here may include contact details for feedback, references, the revision date, etc. These components are followed by an introduction, which consists of a distribution list (copy number, name and location) and a table of contents. 97 cf. Michael Gallagher, Business Continuity Management,†¦, p. 57 33 3. 1. 2 Aim This section should contain the description of the purpose for which the Plan has been created. It usually gives examples of possible disasters and explains the objectives which the plan is intended to meet in case of a calamity. What is more, a company which wishes to convey an especially powerful message concerning its reliability may include in this part a summary of the extensive works and professional researches which have been involved in the development of the Plan. 3. 1. 3 Critical Functions Checklist Critical Functions are these activities without which the company would not be able to perform. In order to prepare a Critical Functions Checklist, the following steps should be completed: †¢ †¢ †¢ †¢ †¢ the identification of Critical Functions, e. g. , sales and distribution; the description of the Functions in terms of the impact which may be caused by their interruption in the first 24 h, 48 h, one week and two weeks; the prioritization of the Functions; the ascription of a reasonable timeframe within which the recovery is possible; the determination of resources which will be necessary in the recovery process, such as: a) the staff – the required number of people, their knowledge and skills; b) alternative location – e. g. the staff working at home or provisional premises; together with necessary equipment like computers, cars; c) data – information and documents, e. g. , insurance certificate, service, customers and suppliers details ; d) communications – all ways in which customers, suppliers, the staff and media can be contacted in case of disaster. 34 Such a Checklist allows ensuring that â€Å"critical tasks are completed on time and according to a pre-agreed priority schedule. It may also be used to provide a handover document between different shifts in the recovery process. †98 3. 1. 4 Risk Analysis Table This part should contain a table comprising a list of dangers which may interrupt and threaten the activity of the company. The matrix presented below may be used to ascribe values to the particular risks with regard to the likelihood of their occurrence and their potential impact. Table 3. 1. 4 Risk Matrix LIKELIHOOD NEGLIGIBLE CATASTROPHIC RARE UNLIKELY POSSIBLE PROBABLE M M M L L H H M L L VH VH H M L VH VH H M L VH VH H M L IMPACT SIGNIFICANT MODERATE MINOR INSIGNIFICANT Legend: L – low, M- medium, H – high, VH – very high Moreover, there may be also attached a list of possible losses, endangered people and equipment, as well as the actions which had to be taken in case a particular risk occurs. 98 Appendix D, p. 77. 35 3. 1. 4 Emergency Response Checklist Such a Checklist greatly facilitates the performance of people involved in fighting a potential adverse event. It also acts a concise register of actions that were taken after the disaster happened. It should be later analyzed, developed and improved. It is preferable that tasks to be completed are organized in the form of a table, together with a column in which the date of termination will be written down. The actions may be listed as follows: †¢ during the first 24 h a) to establish the Actions and Expenses Log, which is a more detailed and comprehensive version of the Emergency Response Checklist; b) to contact emergency services; c) to identify and approximately assess the damage which has been incurred by the staff, equipment, buildings, data, etc. d) to determine the critical functions which have been interrupted; e) to decide on the steps that need to be taken within the recovery process, which is based on the Critical Function Checklist; f) to contact the staff, customers, suppliers, insurers, relevant authorities and other stakeholders in order to assure them that the situation is under control; g) to issue a special PR statement to the media. †¢ daily within the recovery period a) to update the Actions and Expenses Log; b) to provide valid information to the staff, customers, suppliers, insurers, relevant authorities and other stakeholders, as well as the media; †¢ after the recovery period a) to interview the staff with respect to their welfare needs; b) to analyze the Emergency Response Checklist and Actions and Expenses Log in order to introduce possible improvements into the Business Continuity Plan. 36 As it can be seen, the response to the crisis should focus on its effects, not on the causes. The reasons of the adverse event should be identified as quickly as possible, but a comprehensive analysis of them must not be performed before the main steps of the recovery process have been taken. 3. 1. 5 Roles and Responsibilities This section should contain information and contact details regarding the people who are responsible for the shape and content of the Business Continuity Plan (e. g. , Business Continuity Manager, the BCM Team). Moreover, there may be included a list of duties which are ascribed to the particular staff members in case an adverse event happens. Last but not least, it is necessary to indicate the names and contact details of the co-ordinators of the recovery process, help-line numbers (possibly, with pre-recorded messages) and location of meeting rooms and the Business Recovery Command Centre, together with maps. 3. 1. 6 Contact List In this part, there should be listed the following contact details: †¢ staff members (divided in respect to the departments) and their next of kin a) name, b) address, c) work telephone number, d) home telephone number, e) mobile telephone number, f) e-mail address; †¢ key suppliers a) name, b) provided goods, c) address, d) telephone/fax number, 37 e) e-mail address; †¢ key customers a) name, b) service/good used, c) address, d) telephone/fax number, e) e-mail address; †¢ mergency services (ambulance, fire service, flood line, hospitals, police) a) address, b) telephone number; †¢ utilities (water, telecommunication, gas and electricity companies) a) name, b) telephone number, c) e-mail address; †¢ insurers and banks a) name, b) address, c) telephone/fax number, d) e-mail address; †¢ authorities a) name b) address c) telephone/fax number; †¢ media a) name, b How to cite Business Continuity Plan as a Part of Risk Management, Essay examples

Control Freak free essay sample

Virgos are analytical, observant, and precise. We strive to be perfectionist, so we have to be on top of everything and every detail. Whenever I do anything I do my best to make sure it’s perfect, whether it’s something I’m passionate about or something I’m forced to do. I like for things to be perceived in a certain way, I like for my efforts to be praised, and in order to get that it has to be perfect, if not near. A lot of people assume being a control freak is a bad thing, but in my opinion it’s not. I know what I want, and most times how I want it done. I’m not always lost or confused on a lot of things because I’ve probably thought about it in my head before and know what most possible outcomes are. What I’ve learned is that the only people who dislike control freaks are people who are control freaks themselves, or have control issues on some type of level. We will write a custom essay sample on Control Freak or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page People who don’t really like responsibility, and are untamed tend to like control freaks because they keep them in line, and on point. They direct them and help them stay on track. An example of someone who could be a control freak is a Sergeant in the Army. When you’re a sergeant you have to dictate and tell people what to do. You have to make sure people follow a certain set of guidelines and rules, while following them yourself. Having that type of power over people will sometimes go to your head and make you a compulsive control freak. You want things done a certain way, at a certain time, in a certain place, with no exceptions. Another Example of someone who takes being a control freak overboard, or obsessive is  the â€Å"controller. These people obsessively try to dictate how you’re supposed to be and feel. They have an opinion about everything. They’ll control you by invalidating your emotions if those don’t fit into their rulebook. People with low  self-esteem who see themselves as â€Å"victims† attract controllers. Whether spouting unsolicited advice on how you can lose weight  or using anger  to put you in your place, their comments can range from irritating to abusive. What’s most infuriating about these people is that they usually don’t see themselves as controllingonly right. When it comes to myself and being controlling, it was never because I had a desire to control someone. When I was younger I watched over my younger brothers, I had a responsibility. I was left in charge, and having two younger kids to watch over, I had to take on the role of a father. So I was a mini dictator, I had to tell them what to do, and how. I had to make sure everything in the house was straightened, and not broken, and I sometimes had to discipline them. After years of doing this I developed a controlling personality. I don’t see myself as overly controlling, just subtly controlling. I don’t try to control every aspect of people’s lives. The only thing I’m really particular about is details in something I’m doing such as my work, art, appearance. When it comes to relationships and me being controlling, it doesn’t affect them. It doesn’t affect them because I’m not over the top controlling, I just tell them things to help improve them in some type of way. I actually like somewhat controlling people in relationships. The way I see it, it’s a challenge. They’re not easy, and submissive. I love dominance in a person; it gives me a sense of security when someone shows dominance. To me it’s like they care enough to give direction and guidance. Not all control freaks have a need to obsess and be in control of everything that is happening, some of us were put into a position of power that lead to being a control freak. And in our mind, it isn’t being controlling. We’re just particular about things, we know what we want in life. What’s so bad about that?