BCM in the Challenging Time

Bhakorn VanuptikulExecutive Vice President

Bangkok Bank Public Company Limited

Agenda

• Risks are changing and increasing• Past Crisis in Thailand• Lessons Learned• Challenges you are facing in BCM

Risks are changing and increasing

We are living in the higher risk environments. Global warming and its consequences

Terrorism/Political Conflict

Financial Crisis and Currency Flow

Deeply relying on digital infrastructures

Social Media: Opportunity or Threat

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Global Warming

Extreme Weather Conditions

Super storms.

Extremely weathers and seasons.

Severe floods and coastal erosions threaten low lying cities around the world.

All these could cause extensive damages and lost of lives.

At the minimum, these can interrupt global food production and supply chains.

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Terrorism/Political Conflict

Local and international terrorisms are on the rise since the 1990s.

Local or Political conflicts can escalate to civil wars.

New arm races/Regional Conflict.

These conflicts can interrupt your supply chains.

It is very difficult to protect or separate your organization from this kind of conflicts.

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Financial Crisis and Currency Flow

Global Financial Health are still out of balance with too much liquidity in the market.

Investment Funds move around the globe too much too fast and can have severe impact of local currencies.

Financial crisis can have severe impact on any organization, big or small.

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Deeply rely on digital infrastructures

Individual and organized cyber attacks on digital infrastructures are on the rise.

From basic identity theft, to DOS or to infiltrate national security infrastructures.

At the minimum, your internal and external communication can be interrupted or intercepted or modified.

Your or your supply chains’ trade secrets, computer control manufacturing processes as well as data centers can be compromised.

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Social Media: Opportunity or Threat

Social Media: Opportunity or Threat

Social Media: Opportunity or Threat

• A viral video can ruin your company’s reputation in just a few days.

• People don’t even think about the validity of the information they see on the Social Network.

• It is hard to control the reputation damages on the internet.

Past Crisis in Thailand

• Political Crisis of April 2009• Political Crisis of May 2010• Great Flood of August to November 2011• Political Crisis of November 2013-2014

Political Crisis of April 2009

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Political Crisis of April 2009

Damages:• Only 2 deaths.• Minimal impact to economy.• Few ATMs were torched or damaged.

But it was the beginning of the larger conflicts in 2010 and it is still going on.

ภาพPolitical Crisis of April 2010Operation Center

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Command Center for the Crisis

ภาพจาก สาขาท่ีถูกเผา

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ภาพPolitical Crisis of April 2010Operation Center

Political Crisis of May 2010

Damages:• 91 deaths.• Several Buildings including several Provincial

Offices, Department Stores and Shopping Centers as well as bank branches and ATM were torched and burnt.

But it was to continue to the present.

Great Flood of August to November 2011

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Great Flood of August to November 2011

• Financial Impacts:– US$ 45 Billions in damages and losses to properties,

industrial plants, goods and services.• Impacts to Population:

– 5 Million Peoples or 1.9 Million Households were effected.– 728 deaths, mostly from drowning or electrocution.

Great Flood of August to November 2011

Political Crisis, November 2013-2014

Millions of People came out to protest the Taksin’s Regime on November 11 2013 and more on following December 9.

Political Crisis, November 2013-2014

Political Crisis, November 2013-2014

• It is still far from the end, not the peak of conflict yet.• Lost of lives from random act of violent.• Lost of opportunities in foreign direct investments

and other trades.• Thailand’s economy will be stand still and the effect

could be felt until next year at the earliest.

Lessons Learned from previous crisis

• Natural or Man-made Disasters are dynamic, monitor the situations closely but most importantly, anticipate the potential impacts.

• Disasters have no man-made boundary but could span across a border or jurisdiction can cause problems in search and rescue operation as well as other forms of assistant.

• For organizations that depend on global supply chains, don’t rely on just one source of supply or supplies from one area.

Lessons Learned from previous crisis

• Develop Disaster Scenarios to anticipate what impacts your organization will face.

• Focus on how to reduce these impacts, as much as it is sensible.

• Some disasters may run over a period of time and you can prepare yourself, the earlier the better.

• Wide area disasters can render your backup sites invalid. Look for other possible solutions.

• It is always a hard balance to achieve in communication, external as well as internal, too much or too little.

• Communication should be precise, easy to understand, direct to the right audiences.

Lessons Learned from previous crisis

• Give the highest priority to the safety of your staff and customers.

• Don’t forget to think about their families during the disaster too.

• Re-assess your plan, find vulnerabilities that may be associated with the type of disaster you are facing but be flexible.

• The most difficult to deal with in any crisis is the emotions of the people involved.

• Be self reliant, in time of wide area crisis, assistant from outside party may not exist.

Challenges you are facing

• BCM is a job that no one appreciates until you need it.

• In a real crisis, it is hard to be objective all the time. Some crisis can be very emotional.

• If your organization never face any crisis:– No real experience – Complacency

• But if your organization face a major crisis– Battle Fatigue, stress related sickness.– Loosing team members though external recruitment or internal

relocation.

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Challenges you are facing

• In the complex risk environments, it is hard to have all the knowledge needed to handle all types of crisis

• You have to be diligent to keep up with the news around the world

• It is essential to understand your organization’s weakness as well as critical components to the survival– Critical Functions– Critical Staff– Critical Supplies– Critical Infrastructure

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Thank You&

Good Luck to you all