Fundamentals of Risk Management

Business continuity
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Figure 18.1 on page 209 provides a practical example of DRP and BCP. This ex-
ample is based on a broadcasting organization that suffers a major disruption at
its main broadcasting facility at point A on the timeline. The disaster recovery plan 
will ensure that broadcasting resumes within a short space of time, but this may only 
be an emergency broadcast. The emergency broadcast starts from point B on the 
timeline. Note Figure 18.1 does not include the cost of repairing or restoring the 
facility that has been damaged.
After a short period of emergency broadcasts, the organization will be able
to commence full broadcasting of its normal service from an alternative location.
For example, the broadcaster may move the London broadcast facilities to studios
in Manchester. In order to do this, however, the Manchester capability will be lost. 
Therefore, Figure 18.1 shows that the level of service is much improved at point C, 
which is the move to Manchester, but because the Manchester broadcast facility has 
been lost, the level of service is not up to the previous level.
There will be an increased cost of operation from the time of the incident. There 
will be a cost associated with implementing the disaster recovery plan and further 
costs associated with emergency broadcasting and then the move to Manchester. 
During the period of broadcasting from Manchester, increased costs will be involved 
by way of temporary accommodation for staff and increased technical facilities. 
Eventually, from point D on the timeline, the facilities in London have been repaired 
and full recovery has been achieved.
Figure 18.1 represents a typical set of circumstances for an organization that
suffers a major incident. The impaired level of service will continue for some time 
and increased cost of operation will be involved. Insurance may be available for the 
increased cost of operation, provided that it does not exceed the indemnity period 
(duration of the disruption) quoted in the insurance policy. It is unlikely that insurance 
cover will be available to cover any losses associated with a reduced level of service 
from the time the incident occurs until the point of full recovery, unless specific types 
of costs or losses are identified and insured.
stockpiles of essential supplies should be established. Telecommunications infrastructure may 
be unable to cope with the greatly increased demand.
During a pandemic, employees are likely to become infected from their families, their 
children or contacts outside the workplace. Social contacts in the workplace then spread 
infection through the workforce. Lower-contact work environment practices that minimize the 
risk of infection spread include a well-informed workforce, fewer face-to-face meetings, 
rigorous hygiene and frequent biological cleaning of common area surfaces. Ultimately it
may be necessary to close offices to prevent the spread of a virulent virus.
Staff who recover from a case of pandemic influenza are unlikely to catch it again and are no 
longer infectious to others. Recovered and vaccinated staff can return to work. As the pandemic 
subsides, resuming operations rapidly and efficiently could become a competitive issue.

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