Executive Summary
In May 2023, our client “BPER Banca” faced a terrible situation with the flooding of more than 20 rivers in the Emilia Romagna region. The event posed a significant threat to the bank’s operations and the communities it serves. However, through proactive business continuity measures and the strategic use of advanced tools, BPER Banca not only navigated the crisis, but emerged as a beacon of resilience and adaptability. By quickly activating their continuity protocols and leveraging technology, they successfully mitigated negative impacts, ensuring minimal service disruption and maintaining their commitment to business continuity objectives.
This case study highlights the critical importance of preparation, agility and innovation in managing unforeseen challenges, ultimately highlighting BPER Banca’s unwavering dedication to serving its clients and safeguarding their interests, even in the face of adversity.
Introduction
In May 2023, relentless rains besieged the Po Valley, increasing the risk of flooding in Emilia Romagna. BPER Banca, aware of the potential disruption to its operations, mobilized quickly to safeguard business continuity. The main objective was to ensure the uninterrupted provision of banking services amid the imminent threat of natural disaster, thereby preserving customer confidence and financial stability.
Challenges
The crisis management team encountered multifaceted challenges during the crisis response.
Acting quickly in emergencies where twin units were not available presented significant obstacles, requiring agile decision-making and adaptation. The asynchronous floods of 22 rivers added complexity, with the landscape constantly evolving. As a result, the preventive closure of branches was necessary, even though some remained unharmed, allowing for a quick reopening.
As a result of the intense rains, numerous landslides occurred, which not only made travel difficult, but also compromised telecommunications infrastructure, making communications management more challenging. Furthermore, landslides created additional complications by isolating certain areas and leading to the activation of alternative measures to ensure ATM functionality, such as the use of 4G-enabled devices.
Finally, the absence of supplier mapping has made it more difficult to mitigate supplier-related risks; however, through consistent communication with key suppliers, the crisis management team managed this aspect admirably.
These challenges highlighted the imperative of flexibility and resourcefulness in overcoming unforeseen obstacles and maintaining service continuity amid dynamic circumstances.
Actions taken
BPER Banca’s war room, strengthened by its robust testing regime and vast experience, quickly sprung into action. The business continuity team began a pre-assessment phase leveraging the Orbit Open Platform (Orbit) to anticipate possible impacts. Through Orbit, critical business processes and backup resources are identified to ensure operational resilience. This phase was critical to direct attention to key processes and initiate backup plans.
In particular, the team focused on 20 critical Business Impact Assessments (BIAs), assessing whether there were unique units or twin units with recovery solutions. Leveraging the comprehensive mapping previously carried out at Orbit, twin units were quickly identified for activation.
Subsequently, BPER Banca used Everbridge’s geolocation capabilities to visualize critical resources previously identified in Orbit. This facilitated the compilation of a contact list comprising 226 colleagues, ensuring that interested parties were informed of the impending situation. Everbridge’s Emergency Mass Notification capabilities, aligned with Orbit insights, enabled targeted communication tailored to recipient types, increasing effectiveness.
This coordinated approach, leveraging Orbit’s capabilities in conjunction with Everbridge’s functionalities, underlined BPER Banca’s proactive stance in crisis management, ensuring readiness and responsiveness in the face of adversity.
Results
Despite the challenges, BPER Banca successfully maintained operational continuity, with only minimal branch closures occurring simultaneously. Proactive measures, including reallocating resources to secure branches and ongoing communication with stakeholders, mitigated service disruptions. The bank’s robust disaster recovery protocols ensured uninterrupted cash flow, albeit redirected from unaffected regions. Furthermore, the rapid post-flood response, offering personalized financial assistance to affected customers, underlined the bank’s commitment to business continuity and customer well-being.
Lessons learned
The crisis has highlighted the importance of comprehensive assessment and contingency planning to mitigate disruptions to business operations. The absence of supplier mapping highlighted the importance of supplier resilience to ensure overall business continuity. Furthermore, experience has emphasized the need for flexible contingency measures and enhanced interdepartmental collaboration to effectively address unforeseen challenges.
Conclusion
BPER Banca’s proactive crisis management approach during the 2023 Emilia Romagna floods exemplifies the paramount importance of business continuity planning in mitigating risks and preserving operational resilience. By leveraging technology, strategic planning and collaborative efforts, the bank not only navigated the crisis but also emerged stronger, reaffirming its commitment to maintaining uninterrupted service delivery and fostering customer confidence in the midst of adversity . Demonstrating remarkable resilience, BPER Banca managed simultaneous branch closures, reaching a peak of 2 to 5, ensuring continuity of services. Despite the challenges, the situation remained manageable, eliminating the need for a formal crisis declaration as control prevailed. The Bank’s proactive stance was recognized, which led the European Central Bank to mobilize to confirm stability. Furthermore, the post-flood phase saw effective management, with the Bank offering specific financing tools/plans to help the affected population. BPER Banca’s competent crisis management, combined with its proactive response and dedication to customer well-being, demonstrates its unwavering commitment to business continuity and community support.
References
Information provided by Marco Gatti, Business Continuity Manager at BPER Banca
