Disaster Advances Vol. 13 (7) July (2020) Business Continuity and Resiliency Planning in Disaster Prone Area of Sabah, Malaysia Lehan Nur Fadzlina Aini M.1, Razak Khamarrul Azahari1,2 and Kamarudin Khairul Hisyam1,2* 1. Razak Faculty of Technology and Informatics, Universiti Teknologi Malaysia (UTM) Kuala Lumpur, Jalan Sultan Yahya Petra, Kuala Lumpur 54100, MALAYSIA 2. Disaster Preparedness and Prevention Centre (DPPC), Malaysia-Japan International Institute of Technology, Universiti Teknologi Malaysia (UTM) Kuala Lumpur, Jalan Sultan Yahya Petra, Kuala Lumpur 54100, MALAYSIA *[email protected] Abstract development such as natural disaster event2. However, the High frequency, magnitude and intensity of natural increasing numbers of natural disaster slow down the disasters in Malaysia have driven many governmental development of economic in developing countries in Asia and non-governmental initiatives to mitigate the including Malaysia. disaster risk, yet it is very difficult to reduce its impact. Malaysia lies in a stable region spared from severe natural Even more challenging, an increasing trend of natural disasters such as earthquake, typhoon but commonly faces disasters has significantly impacted the business monsoonal flooding, tsunamis, drought, landslides and haze. community and its continuity. Few international efforts Population in Malaysia is highly exposed to these natural have been developed and implemented but lacking of disasters such in December 2014. Malaysia faced the worst local content and largely focused on the impact monsoonal flood which affected over half million people towards global and multi-national Corporations. across the States and caused extensive damage to the Besides, impacts of disaster on business are normally infrastructures3. represented by certain figures based on approximation from existing datasets, expert judgement or interviews Malaysia has experienced 51 natural disaster events in the with vulnerable business owners. last two decades (1998-August 2018). In that time period, 281 people died, over 3 million people were affected and disasters caused nearly US$2 billion (MYR8 billion) in Business Continuity Plan (BCP) and its associated damages4. All of the natural disasters impact to the countries recovery program have been widely developed, but a is depending on the communities’ preparedness to reduce the comprehensive (BCP) in Malaysia is still elusive, even economic losses and rejuvenate process of the businesses to so for multi hazard, multi sectoral and local the normal after the disaster strikes5. complexity. This study presents findings of BCP practices among the local Small and Medium Disaster Risk Reduction (DRR) is the concept and practice Enterprises (SMEs) in disaster prone area of of reducing disaster risks through systematic efforts to 6 Kundasang, Sabah. analyse and reduce the causal factors of disasters . In Malaysia, the National Security Council (NSC) is the Keywords: Business continuity plan, Business impact, principal policy making and coordinating body for disaster Small and Medium Enterprises, Multi-Hazard and Disaster management which has prepared NSC Directive No. 20 as Risk Assessment, Malaysia. "Policy and Mechanism on National Disaster and Relief Management" in 1997. Introduction In line with Eleventh’s Malaysia Plan (2016-2020), under Malaysia and natural disasters: In year 2018, economic one of the six thrust, pursuing the green growth and losses stated around $131.7 billion U.S dollars (MYR500 strengthens disaster resilience, Malaysia is committed to billion) across the world. Asia suffered the most with highest reducing disaster losses and infrastructure’s damages. impact accounted on disaster events, death tolls and people 1 Malaysia has been adopting several strategies including the affected . Asia pacific has borne the brunt of this alarming integration of DRR and climate change adaptation into land trend in which natural disasters are now more likely to affect use planning system, disaster planning and prevention, the region as well as expose it to the populations within the poverty reduction and national legislation7. region. This is mainly due to the Asia’s large and varied landmass including multiple river basins, flood plains and Malaysia has also provided a national platform and action other zones at high risk from natural hazards and high plan towards implementing the priority areas for the Hyogo population densities in disaster-prone regions. Framework for Action (HFA), 2005-2015 so called as The Melaka Declaration on DRR in Malaysia8. A post 2015 Likewise, the economic development has been rapidly framework, known as The Sendai Framework for DRR growing in many countries of the region. Average Gross 2015-2030 (SFDRR) is one significant priority to observe Domestic Product (GDP) growth in this region continues to the growth of disaster risk through the recovery, improve while there is always a risk to hinder the rehabilitation and reconstruction phases that need to be 25 Disaster Advances Vol. 13 (7) July (2020) prepared ahead of a disaster. It is called as the Build Back minimum losses. Other than that, BCP is also strengthening Better (BBB)9. This brief presents a concept of resilient the organisation preparedness for future incident that could recovery: what it is; why it is important and what measures negatively affect their operations. communities, countries and regions can adopt to ensure that efficient and effective recovery leads to sustainable Review of literature indicated many benefits of BCP development. including cost reduction due to disruptions and better potential for unacceptable risks to be insured for any Therefore, there is an urgent need in implementation of liabilities5,10,25. For small and medium businesses, BCP is comprehensive disaster recovery in Malaysia including potentially life-saving9. In some cases, the concept has been helping the businesses players, supply chain and associated put in place for testing and effective BCP can save lives and stakeholders9. The initiative was name as Business minimise bigger revenue and income losses, hence promote Continuity Planning (BCP) and it is a subset to disaster better recovery for business. recovery plan, often focusing on recovering IT assets. The inclusivity of all private and public sectors promoted Business Continuity and Resilience Planning: through BCP has shown the significance of spatial and non- Occurrences of disaster can cause business disruptions spatial based analysis in determining the impact of multi- anytime and anywhere. With or without data, business hazard on businesses. Periodic updating of element-at-risk operators are still facing difficulties to predict how much in a systematic database is crucial particularly in developing damage a disaster can affect their business activities in term countries where urbanization rate is high and the capacity of of their daily operations as well as their economic losses10. the country for disaster risk management is still low level11. To reduce the impact or to rejuvenate the business operations Furthermore, businesses are increasingly subject to in shortest time as possible, it becomes compulsory for disruptions. It is almost impossible to predict their nature, organisations in disaster-prone areas to establish Business time and extent. The implementation of BCP for businesses Continuity Plan (BCP). Preparation is the best defence area especially Small and Medium Sized Enterprises against these disasters. Figure 1 shows the BCP chart (SME’s) in disaster prone areas in Malaysia is poorly treated concept diagram. and is becoming a subject of research. Based on figure 1, BCP is the process whereby the business Therefore, this study will investigate the local practices operator or company is creating the prevention and recovery among SMEs operators mostly linked to nature-based systems specifically to deal with potential threats of a tourism in relation to business continuity and resiliency disaster. BCP resulted in formulation of a detailed plan for planning and findings from this research might provide some how an organisation or business entity could face disasters new insights related to local BCP practices among SMEs in without jeopardising their operations/ productions or with disaster-prone area of Kundasang, Sabah. Figure 1: BCP Concept Diagram10 26 Disaster Advances Vol. 13 (7) July (2020) Key Elements of BCP productivity employees during disruption period. At the Review of literature25 indicated a list of key elements of same time, organisation needs to protect business data and BCP: constantly share information with their customers about the situation so they are not left uninformed. Establishing A clearly defined BCP team: In the event of emergencies, emergency remote operation and/or offsite backups with information regarding context number and key personnel in specific standard operation procedures (SOP) might be a charge becomes crucial. Establishment of BCP team with wise option when dealing with the worst-case scenario that membership across different departments within the could happen. business entity will encourage larger participation to disaster response at their own section/department and cross Continuous operations: In order to maintain the department. organisation’s vital function and performance during disruption period, BCP team need to identify backup plan Members of BCP team should continue their training, particularly for business data that need to be secured but still exposure and