In Hindsight

In Hindsight: A compendium of Business Continuity case studies

EDITED BY ROBERT A CLARK
Copyright Date: 2014
Published by: IT Governance Publishing
Pages: 350
https://www.jstor.org/stable/j.ctt7zsx8f
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  • Book Info
    In Hindsight
    Book Description:

    What causes disasters?In this book, the authors analyse the causes of some of the major disasters from the last thirty years and explain what could have been done better, before and after the event. Unlike many titles on business continuity and disaster recovery,In Hindsight: A compendium ofBusiness Continuity case studiesdoes not build up from the theory of business continuity planning. Instead, it takes apart real events and reveals the themes that contributed to each disaster.

    Plan for the worstUsing these incidents as case studies, the authors demonstrate the potentially devastating results for organisations that have not planned for the worst. Crucially, the book proposes measures that could have helped to minimise the risks and consequences.

    Learn from other people's mistakesBy showing the potential repercussions of a badly thought-out disaster management and business continuity plan, this book helps you avoid making similar mistakes, reduce risks and enable faster recovery when things do go wrong.

    Start planning for the unthinkable today

    eISBN: 978-1-84928-592-6
    Subjects: Technology

Table of Contents

  1. Front Matter
    (pp. 2-5)
  2. ABOUT THE EDITOR
    (pp. 6-7)
  3. CONTRIBUTORS
    (pp. 8-8)
  4. FOREWORD
    (pp. 9-10)
    MARTIN CADDICK

    It has to be admitted that most books about business continuity are dull. They shouldn’t be, because the context is the stuff of news headlines. Not only do disasters excite interest, but even the process of business continuity planning – and understanding what really matters to your business – is hardly tedious.

    This book is an exception to the rule. It takes a series of case studies, familiar to us from news reports, and digs deeper into what went wrong. Where other books bore us with methodology and process, this book catches our interest; and in doing so, it brings out why...

  5. PREFACE
    (pp. 11-13)
    PHILLIP WOOD
  6. LIST OF FIGURES
    (pp. 14-14)
  7. Table of Contents
    (pp. 15-23)
  8. CHAPTER 1: INTRODUCTION – ROBERT CLARK
    (pp. 24-34)

    In September 2010, I started out on one of the most enjoyable journeys I have ever undertaken. It was not to some strange, far off and exotic land but a return to somewhere I had not been to since my teenage years – a return to the world of academia. Two years later I graduated from Buckinghamshire New University with a Master of Science degree in Business Continuity, Security and Emergency Management. Attaining a m aster’s degree was the fulfilment of a promise made many years before not only to myself but to my mother Vera as well. I am very...

  9. CHAPTER 2: THE MV ‘FULL CITY’ INCIDENT – NORWAY’S WORST EVER OIL SPILL – JON SIGURD JACOBSEN
    (pp. 35-49)

    The MVFull Citywas a Panama registered bulk carrier with a gross tonnage of 15,873 tonnes. It was capable of taking a cargo weighing around 11,000 tonnes creating a deadweight tonnage of 26,758 tonnes. Built at Hakodate, Japan, it was completed in 1995, Chinese crewed and Chinese owned by the Roc Maritime Inc. It has twice made headline news. In 2011, it was attacked by Somali pirates in the Arabian Sea although it was swiftly rescued by a combined United States, Turkish and Indian naval force.

    This case study, however, examines the earlier headline news event involving the same...

  10. CHAPTER 3: BARINGS BANK COLLAPSE – OWEN GREGORY
    (pp. 50-58)

    This study analyses the collapse of Barings Bank and will demonstrate both the failure of internal controls and the problems initiated by deregulation within the financial industry. The infamous failure of the bank in 1995 was by no means the first time it had courted disaster.

    In 1762 Francis Baring established a merchant bank in Mincing Lane, in the City of London, trading in cochineal, copper and diamonds. Barings Bank also became an ‘acceptance house’, guaranteeing the supplier would be paid by the buyer through the provision of Bills of Exchange.

    After surviving near financial disaster in 1774 and 1787...

  11. CHAPTER 4: NORTHGATE INFORMATION SOLUTIONS, A VICTIM OF THE BUNCEFIELD OIL DEPOT DISASTER – ROBERT CLARK
    (pp. 59-75)

    In December 2005, the Maylands Industrial Estate at Buncefield near Hemel Hempstead in the UK housed some 630 businesses employing over 16,000 people. Located on the estate and positioned next to the Hertfordshire Oil Storage Limited (HOSL) was Northgate Information Solutions’ head office. It processed the payroll systems that paid approximately one in every three UK employees. It also provided other IT services to clients including local authorities, the British Labour Party and commercial organisations such as Tesco and Manchester United Football Club. Any failure of service delivery to its clients was considered unacceptable.

    The fifth largest oil storage depot...

  12. CHAPTER 5: THE LOVE PARADE: DUSSELDORF 2010 – TONY DUNCAN
    (pp. 76-96)

    The Love Parade was a free-to-attend music festival that originated in Berlin in 1989, where it was held annually until 2003. In 2007, the Love Parade was moved to the Ruhr, approximately 330 miles west of the German capital, and hosted by the city of Essen, attracting a crowd of 500,000. The following year it moved to the Ruhr city of Dortmund where an even larger crowd of around 1.6 million attended. In 2009, the Love Parade was planned to be held in Bochum but was cancelled over safety fears.

    In 2010 the event was held in a disused railway...

  13. CHAPTER 6: HERALD OF FREE ENTERPRISE – CARL DAKIN
    (pp. 97-107)

    Roll on/Roll off ships (Ro-Ro) are widely used across the globe. Despite their success and popularity the Ro-Ro concept has its critics, some of whom point to tragic accidents that they have been involved with such as theEstoniashipwreck in 1994 and the subject of this chapter, the capsizing of theHerald of Free Enterprisesome seven years earlier.

    ‘The World Cas ualty Statistics for 1994 published by Lloyd’s Register of Shipping show that passenger/Ro-Ro cargo loss rate per thousand ships was 2.3 – the same as the average figure for all ships.’ –(Global Security, 2014).

    Despite only sampling...

  14. CHAPTER 7: THE AZTEC CHEMICAL EXPLOSION, THE BIGGEST BLAZE IN CHESHIRE FOR 35 YEARS – ROBERT CLARK
    (pp. 108-118)

    During the time I spent working in Italy, I came across a business continuity strategy which was new to me, as its successful execution was dependent upon what I can only describe as ‘divine intervention’. It is not a strategy for the fainthearted, nor is it to be found in the pages of the Business Continuity Institute’s Good Practice Guidelines.

    When I was working in Crewe in the summer of 2007, although I did not realise it at the time, I may have witnessed a case of this ‘divine intervention’ in action. This chapter examines the consequences of an explosion...

  15. CHAPTER 8: PIPER ALPHA AND ALEXANDER L. KIELLAND: A COMPARISON OF TWO NORTH SEA TRAGEDIES – CARL DAKIN AND JON SIGURD JACOBSEN
    (pp. 119-135)

    The oil industry is a multi-trillion dollar business and the world’s reliance upon its products grows year-on-year. But working in the oil industry, particularly off shore, is not without its risks as the following table chronicles:

    This case study considers the worst two of these accidents, the Piper Alpha (PA) and the Alexander L. Kielland (ALK) disasters. Although caused by human error and structural failure respectively, a combined total of 290 oil workers lost their lives. Analysis of a purposive sample of available publications on the PA and ALK disasters has been performed which identifies some of the critical elements...

  16. CHAPTER 9: BHOPAL: THE WORLD’S WORST INDUSTRIAL DISASTER – OWEN GREGORY
    (pp. 136-147)

    The chemical release in 1984 in the Indian city of Bhopal is arguably the worst industrial disaster ever. Fatality estimates vary dramatically from the Madhya Pradesh State Government’s estimate of 3,000 to Greenpeace’s 8,000. In fact, Greenpeace claim that as many as 20,000 have suffered premature deaths since the disaster, a statistic supported by the US Government’s National Center for Biotechnology Information.

    Following independence from Great Britain in 1947, the Indian Government attempted to increase wealth in the country. They planned to swiftly move away from a primarily agrarian economy by encouraging industrial development. The rapid development plan required collaboration...

  17. CHAPTER 10: THE DEVASTATING EFFECT OF THE SARS PANDEMIC ON THE TOURIST INDUSTRY – CATHERINE FEENEY
    (pp. 148-164)

    Recent Business Continuity Institute surveys have demonstrated that pandemic is a threat taken very seriously across all sectors. The UK Government considers pandemic a ‘Tier 1’ threat to the country’s economy and security, alongside terrorism, war and cyber threats. With the position of global watchdog against health threats, the World Health Organisation (WHO) advises us that we can expect more pandemics in the future. Unfortunately, the WHO is unable to tell us when they might strike, what form they might take, and what effect they might have on both humans and animals. History has taught us, however, that pandemics can...

  18. CHAPTER 11: TOYOTA VEHICLE RECALL – TONY DUNCAN
    (pp. 165-182)

    Product recalls can happen to almost any company regardless of who they are and in which industry sectors they operate. It is a threat that companies need to consider from a business continuity perspective. Over the years some big names have been forced to withdraw products from the marketplace, which has invariably been a costly experience and has sometimes caused damage to the company’s reputation. The list is extensive and includes the likes of:

    Johnson and Johnson (Tylenol drug found to be sabotaged and laced with cyanide)

    Perrier (Perrier water tainted within benzene)

    Dell (Sony-supplied batteries used in Dell laptops...

  19. CHAPTER 12: THE GLOUCESTERSHIRE FLOODING, 2007 – CARL DAKIN
    (pp. 183-198)

    In 2007 the United Kingdom experienced some of the worst flooding in recent history. Following a very dry month of April, the summer was one of the wettest on record with heavy rain falling throughout June and July. Gloucestershire was seriously affected and on 20 July two months’ rainfall inundated the area in just 14 h.

    One of the vital industries that suffered serious impact from the flood was water services, including the provision of potable tap water plus the treatment of waste water and sewerage. Over 300,000 consumers serviced by the Mythe Water Treatment Works, owned by Severn Trent...

  20. CHAPTER 13: CLOSING THE EUROPEAN AIRSPACE: EYJAFJALLAJÖKULL AND THE VOLCANIC ASH CLOUD – ROBERT CLARK
    (pp. 199-217)

    The effects of the volcanic ash cloud that covered much of Europe in April and May 2010 were far reaching and swathes of its airspace were declared ‘no fly zones’. This resulted in possibly one of the most disruptive events to have occurred in recent history for both businesses and travellers alike. The actual size of the eruption of the Icelandic volcano Eyjafjallajökull was considered by volcanologists to be relatively small, but the ensuing chaos across Europe was created by an amalgamation of the prevailing weather conditions and the absence of an aviation risk assessment model designed to address the...

  21. CHAPTER 14: THE ÅSTA TRAIN ACCIDENT, NORWAY, JANUARY 2000 – JON SIGURD JACOBSEN
    (pp. 218-226)

    The history books show that train crashes are nothing new and were regular events in the 19th century when the railways were in their infancy. Even now in the 21st century, accidents around the globe still abound. This case study looks at a head on collision shortly after the arrival of the new millennium, which resulted in one of Norway’s worst rail disasters.

    Norway’s first railway was comm issioned in 1854 and it ran from Oslo to Eidsvoll, a distance of 68 km. The main part of the country’s railway system was built in the period 1854 to 1920. During...

  22. CHAPTER 15: A TALE OF THREE CITIES: THE BOMBING OF MADRID (2004), LONDON (2005) AND GLASGOW (2007) – NEIL SWINYARD-JORDAN, TONY DUNCAN AND ROBERT CLARK
    (pp. 227-262)

    This case study examines and compares three terrorist attacks on European transport targets – the Madrid Railway Network (2004), the London Underground and bus network (2005), and Glasgow Airport (2007). It considers the comparative effects of the attacks, the respective reactions and the resultant economic impacts.

    Terrorism is just one of the many threats that organisations need to consider as a part of their risk assessment process. As of 2011, over 6,000 armed and militant groups had been identified world-wide, an increase of 200% on 1988, which supports the argument that the threat is growing. The START Program has recorded around...

  23. CHAPTER 16: HURRICANE KATRINA – OWEN GREGORY AND NEIL SWINYARD-JORDAN
    (pp. 263-283)

    The annual American hurricane season officially runs from 1 June to the end of November. In recent years forecasting has been much improved via the National Hurricane Center (NHC). A broader range of scientific and statistical information has been collected annually, refining the evolving forecasting model. It contains data from 1954 onward and not only facilitates longer-range forecasting but a greater degree of accuracy over the intensity of the storms.

    As early as May 2005 scientists from the National Oceanic and Atmospheric Administration (NOAA) suggested that the 2005 hurricane season would be active with, a 70% chance of above-normal activity....

  24. CHAPTER 17: ARRIVA MALTA: BUSINESS CONTINUITY WITHIN A CHANGE MANAGEMENT PROGRAMME – ROBERT CLARK
    (pp. 284-299)

    Malta is a former British colony which lies in the centre of the Mediterranean Sea. Located less than 100 km to the south of the Italian island of Sicily, the Maltese archipelago is made up of a small group of islands, three of which are inhabited – Malta, Gozo and Comino. Malta is the largest of the islands and is approximately 27 by 19 km, giving it a land mass of 316 km² . Its 2012 GDP was in excess of US$8 billion. With a combined population of over 400,000, Malta is the most densely populated member state of the European...

  25. CHAPTER 18: THE DEVIL IS IN THE DETAIL – ROBERT CLARK
    (pp. 300-311)

    It is reasonable to assume that most organisations gravitate towards ‘big ticket’ threats when preparing their BCM arrangements. All the same, the reality is that even the little things that often might go unheralded in the media can also cause us grief if left unattended. Rather than a full blown case study, this chapter is a cornucopia of little, seemingly unimportant items which could still have a big impact on your business continuity’s effectiveness.

    I was invited to review the business continuity arrangements for a Netherlands-based company whose operation was contained in a single multi-story building. On discovering the cafeteria...

  26. CHAPTER 19: CONCLUDING THOUGHTS – ROBERT CLARK
    (pp. 312-317)

    In Hindsighthas dexterously reflected on a series of disasters from a business continuity perspective. Some had positive outcomes while others did not. Five of the companies featured were unprepared and never recovered from the catastrophes they faced, while a sixth only survived because it was ‘unbelievably lucky’. Some of the incidents were very high profile and had global consequences. Others were localised affairs but, to the companies affected, they were still major catastrophes that threatened their very survival.

    The causes of the disasters are varied. However, a theme of poor management practices and ill-preparedness often featured with the occasional...

  27. GLOSSARY
    (pp. 318-324)
  28. WORKS CITED
    (pp. 325-346)
  29. ITG RESOURCES
    (pp. 347-350)