Stephanie Balaouras and I published a report last week on the current state of crisis communications, and one thing is clear: most companies are not ready to invoke their crisis communications plan.
We analyzed data from our recent 2012 Forrester/Disaster Recovery Journal (DRJ) joint online study, which surveyed 115 business continuity decision-makers about their organizations’ crisis communications strategies. The results were disconcerting. Despite roughly half of organizations having invoked their business continuity plan in the past five years, only 15% said their crisis communication efforts were very effective.
Recent events such as Hurricane Sandy and the Sandy Hook school shooting illustrate the damaging, and often tragic, impact crises can have on organizations and the broader community. In fact, Hurricane Sandy was the second costliest in US history. Yet, most organizations are not prepared to manage an effective response to such a crisis. We found that crisis communication programs routinely underperform because:
Take a second to think back to the year 2009. The US was in the thick of the financial crisis; companies were slashing budgets, and the unemployment rate was in double-digits. And do you remember a little thing called the “swine flu”? The World Health Organization (WHO) deemed the H1N1 strain of the swine flu influenza a global pandemic in June 2009. These were just some of the events top of mind for much of the nation and the broader global community three years ago.
2009 was also the year that the annual Forrester And Disaster Recovery Journal (DRJ) Survey focused on the role of risk management in business technology (BT) resiliency and crisis communications programs. Needless to say, the survey was fairly timely. Forrester found risk management was becoming a more common practice for business continuity teams, but that there was still more room for further collaboration with their risk management counterparts.
Fast forward three years, and the 2012 Forrester/DRJ survey is again focusing on the role of risk management in BT resiliency and crisis communications (you can take the 2012 survey by clicking here). A lot has changed since 2009 with a number of new events, technologies, and organizational challenges currently plaguing business continuity and risk management professionals.
As a follow-up to my blog post yesterday, there’s another area that’s worth noting in the resurgence of interest in BC preparedness, and that’s standards. For a long time, we’ve had a multitude of both industry and government standards on BCM management including Australian Standards BCP Guidelines, Singapore Standard for Business Continuity / Disaster Recovery Service Providers (which became much of the foundation for ISO 24762 IT Disaster Recovery), FFIEC BCP Handbook, NIST Contingency Planning Guide, NFPA 1600, BS 25999 (which will become much of the foundation for the soon to be released ISO 22301), ISO 27031, etc. There are also standards in other domains that touch on BC, security standards like ISO 27001/27002.
And when you come down to it, several of the broad risk management standards like ISO 31000 are applicable. At the end of the day, the same risk management disciplines underpin BC, DR, security and enterprise risk management. You conduct a BIA, risk assessment, then either accept, transfer or mitigate the risk, develop contingency plans, and make sure to keep the plans up to date and tested.
In my most recent research into various BCM software vendors and BC consultancies, as well as input from Forrester clients, BS 25999 seems to be the standard with the most interest and adoption. In the US at least, part of this I attribute to the fact that BS 25999 is now one of the recognized standards for US Department of Homeland Security’s Voluntary Private Sector Preparedness Accreditation and Certification Program. The other standards are NFPA 1600 and ASIS SPC.1-2009. I’ve heard very few Forrester clients mention the latter as their standard.
During the last 12 to 18 months, there have been a number of notable natural catastrophes and weather related events. Devastating earthquakes hit Haiti, Chile, China, New Zealand, and Japan. Monsoon floods killed thousands in Pakistan, and a series of floods forced the evacuation of thousands from Queensland. And of course, there was the completely unusual, when for example, ash from the erupting Eyjafjallajökull volcano in Iceland forced the shutdown of much of Western Europe’s airspace. These high profile events, together with greater awareness and increased regulation, have renewed interest in improving business continuity and disaster recovery preparedness. Last quarter, I published a report on this trend: Business Continuity And Disaster Recovery Are Top IT Priorities For 2010 And 2011.