Term Paper: Contingency Planning in Action

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Kennelly, & Lamont, 2014). In layman’s language, a contingency plan can be termed

as a “Plan B.” Since it is designed and only implemented when the original plan or

routine faces interruption. A contingency plan in its essence is a tool for helping

entities get back to their original plan in the wake of disruption. In the field of

business management, it is a field of risk management that aims at recovery from

disasters, management of risks and ultimately continuity of business operations

(Moyle, Kennelly, & Lamont, 2014) The purpose of this paper is to discuss a

comprehensive contingency plan for Elite Shoe Collection. The paper will start by

giving an overview of Elite Shoe Collection, what it does and its vision and thereby

illuminate on the importance of a contingency to the company. The second part of

the paper will involve the development of the actual contingency plan for Elite Shoe

Collection. 1 THE THIRD PART WILL OUTLINE THE PROCEDURES,

POLICIES, AND RESOURCES THAT WILL BE NEEDED FOR THE

CONTINGENCY PLANNING. The last section will describe the processes and

infrastructure that will be required to implement the final contingency plan.

Overview Elite Shoe Collection is an online shop that was started in 2009 and has

been in operation ever since. It specializes in the sale of shoes and footwear from a

broad and vibrant range of designs, colors, and sizes to cater for all occasions

ranging from the official interview designs to the casual sandals for cruising in the

beach. The company holds its headquarters in California but conducts most of its

sale operation online through its official website as well as social media platforms. As

earlier noted, the company specializes in the sale of shores and footwear for all

family and occasion needs. The company visions itself becoming the leading online

shoe providers across Europe.

The company, as earlier stated, runs most of its business online. It, however, has a

team of 40 employees who aid and ensure a smooth running of operations in

different departments and uses a distributed systems structure in its operations. Its

headquarters located in Los Angeles, California but has several warehouses in the

various cities of California such as San Francisco, San Diego, and Oakland to aid in

the delivery of purchases made. Therefore, denotes a high level of synchronization

and departments and operations within the business.

Worth noting is that the system is run on a real-time basis. What this means is that

operations made from one end of the system reflect on the other end. Despite the

expenses involved in the implementation of such systems, the advantages that they

bring to Elite Shoe Collection cannot be overstated. One of the main advantages that

the company enjoys from the system is reduced redundancy of data (He & Da Xu,

2014). This translates to efficiency in operations since it reduces incidences of

pointless repetition of processes.

Another form of business technology that Elite Shoe Collection uses is the Entity

Resource Planning system (ERP). An ERP software system is a software system that

allows Elite Shoe Collection to manage and coordinate operations between and

among the various applications integrated into the system at multiple points of the

system (Pak & Schragenheim, 2016). The ERP system also automates some of the

office processes that are related to human resource and technology (Pak &

Schragenheim, 2016). Therefore, helps the business cut on cost as the expenses that

would have been incurred concerning salaries and wages were these processes

managed by humans are now averted. The ERP system helps in the collection,

analysis, management and storage of data on the various business operations that

the company engages in (Pak & Schragenheim, 2016). These activities include client

purchase orders made online, supplier deliveries at the warehouses, purchase

deliveries that are pending, customer deliveries made, etc. The ERP system also aids

in the management of employee welfare in the HR department. In summary, the

ERP system makes it easy to trace and account for any operations made within Elite

Shoe Collection efficiently and effectively.

The business world is an uncertain place filled with an abundance of uncertainties

(Moyle, Kennelly, & Lamont, 2014). Every business faces a wide range of

uncertainties that may be detrimental to its operations and ultimate achievement of

goals. Being a business is not exempted from this fact. For instance, Elite Shoe

Company faces the following threats and uncertainties within its domain of

operations:

· Competitors- In any field of business, competition is always constant. Elite shoe

Company identified and exploited the niche of online sale of shoes in 2009, but ever

since, new companies have mushroomed all over the internet, trying to copy what

Elite Shoe Company does. This poses a threat regarding increased competition as

some of these companies offer products at prices lower than the market price.

2 · LOSE OF EMPLOYEES. With the rise of trade unions and the influence they

have on businesses, most employees are now demanding a pay rise and

improvement of compensations packages. Some of the employees at Elite Shoe

Company have portrayed these traits by making demands that if honored may dent

the financial muscle of the company. This exposes the company to the risk of losing

its experienced employees.

3 · LOSS OF SUPPLIERS. Suppliers are a sensitive element to the success of any

business. 3 THEY WILL ALWAYS CHASE GREENER PASTURES. THIS

INTERPRETS THAT IN THE CASE OF EMERGENCE OF MORE PROFIT-

MAKING VENTURE FOR THE SUPPLIERS, THEY WOULD

AUTOMATICALLY SHIFT TOWARDS THIS MARKET. Our company will,

therefore, have to yield to the suppliers’ demands or lose our esteemed suppliers

with whom we have forged healthy relationships over the years.

· Loss of Data – No matter the degree of data security any business implements, data

loss will always be a threat. The distributed system used by Elite Shoe Company

relies on external infrastructure such as the internet to facilitate and coordinate the

functions of various warehouses. A breakdown in the internet connection poses a

risk of data loss.

· Unauthorized access of confidential – as earlier noted, our distributed system relies

on external connections to coordinate different facets of the system. This exposes the

system to malicious attacks such as IP spoofing thereby posing the threat of access to

confidential business data by unauthorized people.

· Catastrophes – Natural disasters orchestrated by Moher nature, such as

earthquakes and floods may result in damage to various parts of our system such as

warehouses. Other catastrophic events such as fires may also result in damage to

property thereby posing the risk of operation interruption.

Other threats that Elite Shoe Company faces include violation of company laws and

policies as well as laws put in place by the government and labor unions, by our

employees.

As Moyle et al. observed, all businesses need to have a “Plan B” to ensure continuity

of its operations in the cases of occurrences of unforeseen events that may hinder its

operations. 3 THIS “PLAN B” INVOLVES THE DEVELOPMENT OF A

CONTINGENCY PLAN. Elite Shoe Collection, therefore, needs design a

contingency plan to avert the threats as mentioned above.

The Contingency plan Business Impact Analysis The Business Impact Analysis aims

to offer the contingency planning team at Elite Shoe Collection a supply of

information regarding the business’s systems and the various threat it faces. 4 IT

IS THE FIRST PHASE OF THE CONTINGENCY PLANNING PROCESS.

This step is the most crucial step of the contingency planning process as it gives a

compass to the whole contingency planning processes and efforts (Podaras, Antlová

& Motejlek, 2016). This is based on the fact that it comprehensively identifies and

outlines the various scenarios that may occur in the case where the identified threats

occur (Podaras, Antlová & Motejlek, 2016). The Business Impact Analysis phase

entails the following;

· Identification of threats · Examination of the various units of the business ·

Probability of occurrence of the threats · Valuation of potential damage ·

Classification of the secondary plan Assumptions The following contingency plan

designed for Elite Shoe Collection is projected based on the below mentioned

assumptions;

· The incident that leads to the disaster is contained in the information processing

unit of the business, the warehouses and the communication systems and

infrastructure that support the operations of the business · The plan is an accurate

reflection of the various uncertainties Elite Shoe Collection faces · The plan, upon its

need will have all the resources it needs for implementation Implementation The

operations manager in collaboration with all system administrators at Elite Shoe

Collection is responsible for the development of the company’s business contingency

plan. The support and development department on the other hand is responsible for

the implementation of the plan and ensuring recovery from the disaster.

Maintenance As part of the contingency plan, a periodic maintenance system will be

implemented to increase the success of the contingency plan. Maintenance will

involve revision of the contingency plan document from time to time to

accommodate new developments such as new threats identified. It will also include

testing of the contingency plan through activities such as fire drills and trainings of

employees on how to respond to disasters. 5 THE CONTINGENCY PLANNING

AND MANAGEMENT TEAM WILL BE IN CHARGE OF MAINTENANCE

OF THE CONTINGENCY PLAN.

Testing Just like any other undertaking in business, testing of the contingency plan is

key for its success (Moyle, Kennelly & Lamont, 2014). 3 FRACTIONAL TESTS

OF COMPONENTS OF THE CONTINGENCY AND RECOVERY PLAN

WILL BE MADE AND PERFORMED ON A REGULAR BASIS. The complete

rehearsals of the entire contingency plan will be done yearly.

5 ORGANIZATION OF THE DISASTER MANAGEMENT TEAM THE

DEPARTMENT RESPONSIBLE FOR THE IMPLEMENTATION OF THE

CONTINGENCY PLAN IS THE CONTINGENCY PLANNING AND

MANAGEMENT TEAM. In the occurrence of an event that hinders the execution

of operations of Elite Shoe Collection, the Contingency Planning and Management

team will be in charge of responding to the event by implementing this contingency

plan.

The Business contingency team For the adequate performance of this contingency

plan, two organs of the organization will need to work in collaboration; 6 THE

CONTINGENCY PLANNING AND MANAGEMENT TEAM AND THE

FUNCTIONAL AREA RECOVERY TEAM. In the occurrence of an event that

hinders operation, the Contingency Planning and Management team will provide the

overall requirements and outline of execution of the contingency plan while the

Functional Area Recovery team will provide the necessary resources, infrastructure,

and support for the implementation of the plan.

The Business contingency team which will now be made up of the Contingency

Planning and Management team and the Functional Area Recovery team will include

the following facets to aid in the implementation of the plan.

3 · INFORMATION SECURITY OFFICER.

· DIRECTOR, OPERATIONS, AND SYSTEMS.

· DIRECTOR, TELECOMMUNICATIONS SYSTEMS.

· DIRECTOR, PHYSICAL PLANT · DIRECTOR OF INSURANCE AND

LEGAL AFFAIRS.

2 · DIRECTOR, ELITE SHOE COLLECTION NEWS OFFICE · DIRECTOR,

DISTRIBUTED COMPUTING AND NETWORK SERVICES.

· Safety Office · Manager, Audit Division · Emergency Response Team Response to a

Disaster This unit describes the various responses to a disaster that will be needed in

the implementation of the contingency plan.

3 · DETECT AND CONTAIN THE PROBLEM CONDITION.

· Notify the team responsible for recovery.

3 · INITIATE THE ORGANIZATION’S CONTINGENCY PLAN.

· Activate the chosen unit of the contingency plan · Broadcast Public Information.in

regard to the response · Deliver support services to aid in recovery Strategy to

recover from the disaster The recovery strategy discussed below is in regard to

specific disasters that have the potential of hindering the operations of Elite Shoe

Collection The recovery strategy is designed in three segments;

1. Emergency- incident response This phase marks the first response to the disaster

event. It is at this phase that the existing emergency protocols will be initiated to

protect life and property. 3 SECURITY IN THE AREA AFFECTED BY THE

INCIDENCE WILL BE ESTABLISHED THROUGH THE HELP OF LOCAL

SERVICES. The Contingency Planning and Management personnel will be notified

who will take over the situation. All recovery backups will be initiated at this phase.

In case the magnitude of disaster is deemed minimal, the recovery efforts will be

done in small scale without having to close down operations.

2. Backup phase This phase will begin with notification of the Functional Area

Recovery team in charge of the provision of recovery infrastructure. The primary

objective of the form is to record the current state of operations before the

interruption. This will assist in the recovery process as it will enable restoration of

operations back to the state before interruptions. This will entail initiation of the

automated backup protocol of the ERP system.

3. Recovery phase The time needed to recover back from a disaster is highly

dependent on the magnitude of damage inflicted by the disaster. The recovery time

will therefore range from several days to months depending on the magnitude of the

tragedy.

6 POLICY ELITE SHOE COLLECTION HAS DESIGNATED TO ADOPT

THE BCP CODES ESTABLISHED IN NIST SP 800-34 "CONTINUITY

PLANNING GUIDE FOR FEDERAL INFORMATION SYSTEMS," 3 AS A

CERTIFIED POLICY FOR THIS DOMAIN. THE SUBSECTIONS BELOW

HIGHLIGHT PLANNING STANDARDS THAT COMPRISE ELITE SHOE

COLLECTION POLICY.

· CP-1 CONTINGENCY PLANNING PROCEDURES: ALL ELITE SHOE

COLLECTION BUSINESS SYSTEMS MUST DEVELOP, ADOPT AN

OFFICIAL, DOCUMENTED CONTINGENCY PLANNING PROCEDURE

THAT CONCERNS SCOPE, PURPOSE, ROLES, MANAGEMENT

COMMITMENT AND RESPONSIBILITY.

· CP-2 CONTINGENCY PLAN: ALL ELITE SHOE COLLECTION

BUSINESS SYSTEMS MUST DEVELOP A CONTINUITY PLAN FOR THE

COMPANY INFORMATION ASSETS.

· CP-3 CONTINUITY TRAINING: ALL ELITE SHOE COLLECTION

BUSINESS SYSTEMS OUGHT TO TRAIN EMPLOYEES IN THEIR

CONTINUITY RESPONSIBILITIES REGARDING INFORMATION.

· CP-4 CONTINUITY PLAN TESTING AND EXERCISES: ALL ELITE

SHOE COLLECTION BUSINESS SYSTEMS SHOULD TEST THE

CONTINUITY PLAN FOR THE DATA ASSET YEARLY TO DETERMINE

THE PLAN’S EFFICIENCY.

· CP-5 ALTERNATE PROCESSING SITE: ALL ELITE SHOE COLLECTION

BUSINESS SYSTEMS MUST COME UP WITH A SUBSTITUTE

PROCESSING SPOT OF COMPRISING NECESSARY AGREEMENTS TO

ALLOW THE RESUMPTION OF DATA ASSET OPERATIONS FOR VITAL

MISSION AND BUSINESS FUNCTION.

· CP-6 TELECOMMUNICATION SERVICES: ALL ELITE SHOE

COLLECTION BUSINESS SYSTEMS MUST DEPLOY ALTERNATIVE

TELECOMMUNICATION SERVICES INCLUDING NECESSARY

AGREEMENTS TO ALLOW THE RESUMPTION OF INFORMATION

ASSET OPERATIONS FOR ESSENTIAL MISSIONS AND BUSINESS.

· CP-7 INFORMATION SYSTEMS BACK-UP: ALL ELITE SHOE

COLLECTION BUSINESS SYSTEMS OUGHT TO CONDUCT BACKUP FOR

USER-LEVEL AND SYSTEM-LEVEL.

· CP-8 INFORMATION SYSTEM RECOVERY AND RECONSTITUTION:

ALL ELITE SHOE COLLECTION BUSINESS SYSTEMS OUGHT TO

PROVIDE FOR THE RECOVERY AND RECONSTITUTION OF THE DATA

ASSET TO A KNOWN STATE AFTER A DISRUPTION.

HYPOTHETICAL SCENARIO THIS SECTION BASES ITS

RECOMMENDATIONS ON DATA DENIAL INCIDENCE AND FOLLOWS

THE FOLLOWING STEPS:

· DISASTER DETECTION · NOTIFICATION OF THE DISASTER. ALL

PERSONNEL WITHIN ELITE SHOE COLLECTION ARE INFORMED OF

THE EXISTENCE OF THE DISASTER.

INITIATION OF A CONTINUITY PLAN; THE BCMT WILL START

OPERATION ON THE DISASTER ADHERING TO THE FOLLOWING

STEPS:

· ACTIVATION OF DESIGNATED SITE · DISSEMINATION OF PUBLIC

INFORMATION. DISCUSSIONS AND MEETINGS ARE CONDUCTED

TOGETHER WITH THE PERSONNEL DEPARTMENT WITH AN AIM OF

PLANNING THE RECOVERY PROCESS.

· DISASTER RECOVERY PROCESS. RECOVERY EFFORTS ARE

LOUNGED TO SUPPORT THE CRITICAL APPLICATION WITHIN TWO

HOURS.

Ethical concerns Ethical concerns refer to situations within an organization and its

processes that require the organization, or the people involved to think and choose

between potential alternatives guided by the evaluation of right and wrong (Crane &

Matten, 2016). This evaluation is based on ethical and moral principles where the

right alternative is ethical while the wrong alternative is unethical. Elite shoe

collection, therefore, should strive to incorporate ethics and morals in its

contingency planning and implementation of contingency procedures and protocol.

References Crane, A., & Matten, D. (2016). Business ethics: Managing corporate

citizenship and sustainability in the age of globalization. Oxford University Press.

He, W., & Da Xu, L. (2014). Integration of distributed enterprise applications: A

survey. IEEE Transactions on Industrial Informatics, 10(1), 35-42.

Moyle, B., Kennelly, M., & Lamont, M. (2014). Risk management and contigency

planning in events: Participants’ reactions to the cancellation of “Ironman New

Zealand 2012.” International Journal Od Event Management Research, 8(1), 94

–106. https://doi.org/10.1.1.837.2073 Podaras, A., Antlová, K., & Motejlek, J.

(2016). Information management tools for implementing an effective enterprise

business continuity strategy.

Ptak, C. A., & Schragenheim, E. (2016). ERP: tools, techniques, and applications for

integrating the supply chain. Crc Press.

Citations (6/6) 1 Another student's paper

2 Another student's paper

3 Another student's paper

4 Another student's paper

5 Another student's paper

6 Another student's paper

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