Author: Li Zhihong, Consultant, Industry Services Group, Quality, Environmental Safety Department, (Finance) Plastics Industry Technology Development Center. Since the outbreak of COVID-19 in 2019, more than 109,678,891 cases have been recorded globally, and the epidemic continues to escalate worldwide. To effectively control the infection rate, countries around the world have implemented social control policies (e.g., lockdowns, slowing down regional business activities, travel restrictions, quarantine measures, etc.) to prevent the COVID-19 outbreak from spiraling out of control. However, these controls have also led to changes in international supply chains, weakened global consumer market demand, and significant impacts on the supply chains of industries such as tourism and catering, textiles, and automotive parts. We are facing the threat of operational or business disruptions; government agencies and organizations worldwide are actively promoting operational continuity plans and implementing management systems based on the ISO 22301 Operational Continuity Management System standard to mitigate the impact of disruptive events (including information security, communications, fire safety, power distribution, disease vectors, equipment and facilities, supply chain disruptions, etc.). The ISO 22301 series of standards includes the detailed guidance document ISO 22313, which provides practical information on how to prepare for and recover from disruptions, such as: 10 Steps to a Business Continuity Plan: 1. Determine the purpose, scope, and implementation team of your business continuity plan. 2. Determine priority operational items and the estimated recovery time. 3. What do you need to restore critical activities? 4. Risk assessment – understand your disaster situation. 5. Don't forget pre-disaster prevention and post-disaster mitigation. 6. Disaster emergency response. 7. Business continuity strategies for early resumption of operations. 8. Financial preparation. 9. Practice to make the plan effective. 10. Continuous review and improvement. To effectively support business continuity, firstly, companies must ensure that their management teams and team leaders are clear about the company's priority activities, key products and services, personnel, skills, and minimum operational staffing. This information should be provided in "Operational Continuity Reports," such as operational continuity strategies, operational impact analyses, and operational continuity plans. The 2011 Great East Japan Earthquake and the Thai floods, two natural disasters, caused operational disruptions for many companies, severely impacting supply chains. Even companies not directly harmed by these disasters were significantly affected by supply chain disruptions. Infographic: ISO 22301 Business Continuity Management System Article: For example, TDK, a major Japanese hard drive manufacturer, placed great emphasis on the concept and implementation of business continuity due to the Great East Japan Earthquake and the Thai floods in 2011. When the pandemic spread, TDK launched remote work and work style reforms, demonstrating a highly proactive response. Only about 10% of TDK's headquarters employees were in the office, but its business did not stop. It is understood that under the impact of the pandemic, TDK activated its emergency mode as follows: 1. Business Development: Utilizing digital tools to communicate accurate company operational information externally and maintaining customer trust through video conferencing; maximizing order capacity even with insufficient sales personnel; and coordinating with customers to extend delivery times. 2. Production and Operations: Adjust production volume affected by employees working remotely or being unable to work; for severely impacted industries, production or services may be partially suspended, while simultaneously planning online employee training, improving operational facilities, and conducting R&D to ensure a rapid resumption of operations after the pandemic and promote industrial upgrading. 3. Develop a business continuity plan, appoint a plan manager, and provide relevant training to employees. 4. Develop alternative mechanisms for decision-making authority, key technologies, and personnel. 5. Develop solutions for remote work, remote backup, and alternative supply chains. 6. Develop solutions that meet the needs of key customers. 7. Actively secure material sources and logistics channels to facilitate goods delivery or emergency orders. 8. Build up employee capacity: Conduct employee training or allow employees to participate in relevant government-provided training courses to enhance their professional skills and drive industrial upgrading. 9. Digitalization: Reduce production lines, adjust capacity, and utilize technology to develop digital operations. 10. Banks should coordinate interest rate deferrals or extensions and make good use of government relief measures or related resources. The pandemic continues unabated. Although governments and the World Health Organization are making efforts to contain it, it is unclear how long it will take to stop its spread or control and eradicate it. However, economic activity cannot be suspended, and business operations are a fundamental need to support economic activity. Perhaps by planning and implementing the ISO 22301:2019 Operating Continuity Management System, and using systematic management practices to effectively manage various crises and minimize damage, it is an indispensable new lifestyle movement in the pandemic era in the face of unpredictable disasters and risks. Source: PECB Group Inc. https://www.ithome.com.tw/news/135918 https://mic.iii.org.tw/AISP/ReportS.aspx?id=CDOC20200611002 SME Continuity Operations Handbook: Pandemic Operating Plan Guidelines
