BCM in the Challenging Time

Bhakorn Vanuptikul

Executive 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

Global Warming

• Extreme Weather Conditions

• Super storms.

• Extremely weathers and seasons.

• Severe floods.

• Impacts:

• Loss of Lives.

• Interrupted Global Food Supply Chains.

• Indirectly bring out new diseases.

Terrorism/Political Conflict

• International Conflicts are on the rise:

• 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.

• Impacts:

• Lost of lives.

• Interrupted supply chains.

Financial Crisis and Currency Flow

• Global Financial out of balance with too much

liquidity.

• Investment Funds move around the globe too much

too fast and can have severe impact of local

currencies.

• Impacts:

• Financial hardships/Cash flow problems.

• Currency volatiles.

Deeply rely on digital infrastructures

• Cyber attacks on digital infrastructures are on the rise:

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

• Internal and external communication can be interrupted or intercepted or modified.

• Impacts:

• Your Trade Secrets, Processes and Data are at risk.

• Increase cost on prevention and protection.

Social Media: Opportunity or Threat

Social Media: Opportunity or Threat

Social Media: Opportunity or Threat

• Opportunity or Threat:

• It can be both at the same time.

• No boundary, no cultural barrier and values.

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

• Impacts:

• Reputations.

• Loss or revenues and/or fines.

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- May 2014

Political Crisis of April 2009

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.

Political Crisis of April 2010

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.

Great Flood of August to November 2011

Great Flood of August to November 2011

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.

Political Crisis, November 2013- May 2014

Political Crisis, November 2013-May 2014

Political Crisis, November 2013-May 2014

• 6 Months of political protest had severe impact on business atmosphere.

• Lost of 91 lives from random act of violent.

• Lost of opportunities foreign trades and investment.

• It lead to the military coup on May 22nd

• The situation is normalized for now.

Lessons Learned from previous crisis

• Natural or Man-made Disasters are dynamic, monitoring and anticipating the impacts are very critical.

• Disasters have no man-made boundary but can cause problems in any 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.

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

• 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 customers, staff and their families during the disasters.

• 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

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

• Look out to 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

Challenges you are facing

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

• If your organization never face any crisis:– No practical experience in dealing with problems.– It will be hard to keep people focus of learning and testing. – Complacency.

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

internal relocation.– Over confident.

A Paradox you have to live by

A Pessimist see the Difficulty in every Opportunity.

An Optimist see the Opportunity in every Difficulty.

Winston Churchill

But a BC Manager must be both.

Thank You

&

Good Luck to you all