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Part ll: The Critical Importance of Business Continuity Planning for TreasuryJune 13th, 2017
Ed Saavedra | Senior Implementation Consultant | KyribaBob Stark| Vice President, Product Strategy| Kyriba
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1) What is Business Continuity?
2) Business Continuity scenarios
3) Business Continuity Plans in practice
4) Evaluating technology to support BCP
5) Questions and Answers
Today’s Discussion
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Who manages Treasury’s Business Continuity Planning at your organization?
a) Treasury
b) Finance
c) CIO and/or IT
d) Collaboration of multiple teams
e) I have no idea
Polling Question
What Is Business Continuity?
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Business Continuity Planning (BCP) is a collaborative, organization-wide exercise, often led by CIO / CTO / CISO
Treasury’s BCP must take into account unique requirements
1)Treasury must have seat at the planning table
2)Treasury must understand BCP vocabulary and structure
Business Continuity
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Business Continuity Plans have multiple components, executed over initial days of an emergency condition
Business Continuity Defined
Emergency Response Action Plan (ERAP)
0 - 72 hours
Disaster Recovery Plan (DRP)3 - 30 days
Business Continuity Plan
Business Continuity & Continuance (BCC)
30+ days
Business Continuity – Scenario Planning
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Business Continuity
Loss Conditions Scenarios
1) Loss of personnel Treasury team wins the lottery and tenders resignation from a beach
2) Loss of facilities Company offices unusable
3) Loss of services Company offices lose key services such as power or internet
4) Loss of access Unable to reach company offices if there is a snowstorm
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Business Continuity
Loss Conditions
Goal Perform treasury from other alternate locations
What does atreasury system offer?
• Datacenters for Cloud TMS reside in different locations than company offices
• Same workflows can be run anywhere in the world by authorized users
• Treasury system can be accessed via mobile device and/or low speed web connection
• Additional security can be implemented for access outside of company office
Business Continuity Plans in Practice
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Do you have a Business Continuity Plan for Treasury in place? If so, when was the last time it was tested?
a) No plan in place
b) Tested within last 1-3 months
c) Tested within last 4-6 months
d) Tested within last 7-12 months
e) Plan in place, but not tested
Polling Question
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Business Continuity: Employee Cross Training
Basic knowledge of essential daily tasks Cash Positioning / Wires / FX / Investment / Borrowing etc.
Performed frequently Ideally once per week
Schedule to actually perform tasks
Incorporate into KPI’s
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Business Continuity: Procedure Documentation
Detailed process instructions for all essential tasks Include screen shots -> New employee level of detail
Contingency plans (Manual cash position / Call in wires etc.)
Accessible during event Hard copy at home / Save on desktop
Update / review frequently Update as appropriate / review quarterly
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Business Continuity: Working Remotely
Do it! Only way to properly test your plan
Other considerations How will “Event” be communicated/initiated? (Messaging system / Email / Text etc.)
What device(s) will be used? (Laptop / BCP laptop kept at home / Company Phone / Personal)
Critical contact information documented (Employees / Counterparties / Automated Services)
Evaluating Technology to Support BCP
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Evaluating Technology to Support Business Continuity
Loss Conditions
Goal Perform treasury from other alternate locations
What does atreasury system offer?
• Datacenters for Cloud TMS reside in different locations than company offices
• Same workflows can be run anywhere in the world by authorized users
• Treasury system can be accessed via mobile device and/or low speed web connection
• Additional security can be implemented for access outside of company office
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Treasury system providers plan to avoid service disruptions
Datacenter locations are in low risk areas
One datacenter will backup another, with full replication– “Full replication” = data, bank connections, ERP interfaces, login protocols, etc.
Evaluating Technology to Support Business Continuity
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Two key metrics in disaster recovery:
– Recovery Time Objective (RTO): how much time is lost
– Recovery Point Objective (RPO): how much data is lost
Evaluating Technology to Support Business Continuity
* Treasury’s RTO/RPO will be very different than rest of organization
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When evaluating treasury technology, consider:
SLA – especially RTO/RPO/availability metrics
SOC2 Type II report (read it!)
What exactly is replicated – data, interfaces, security, URL?
Locations of primary and backup datacenters
In the cloud - Fully virtualized w/ no additional plug-ins
Security – flexibility based on where software is accessed
Costs to manage internally
Evaluating Technology to Support Business Continuity
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In Conclusion
Business Continuity challenges
Collaborating with teams that don’t understand treasury’s requirements
Planning for all ‘treasury’ loss conditions
When processes are manual, difficult to replicate processes and reporting
ROI will be much easier as CIO has already done this many times
Questions?
@treasurybob
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Additional Resources
AFP Treasury in Practice Guide: Business Continuity Planning -Why Treasury Needs a Plan B eBook: Making the business case for supply chain financeGet PDF at: info.kyriba.com/AFP-TIP-Guide-KDC
eBook: 7 Competitive Advantages of a Modern Treasurer
Get PDF at: info.kyriba.com/AFP-TIP-Guide-KDC
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Thank You for Attending
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