The importance of BCM to address El Ni?o effects

In response to an article published yesterday on The Edge Markets.

As the world continues to grapple with the impact of climate change, the El Nino effect has been felt in various parts of the world, causing drought, water shortages, forest fires, and other environmental disasters that affect industries and the economy as a whole. To address this issue, it is essential to have a proactive approach and prepare for the possible impacts of El Nino.

As a leading organization in disaster recovery and business continuity, the Disaster Recovery Institute Malaysia (DRIM) advocates for early preparation to avoid extreme panic if El Nino becomes so impactful, especially given the ongoing geopolitical, financial, and other crises around the world. Being prepared for the effects of El Nino and other similar disasters is critical for corporates, organizations, and even countries.

The impact of El Nino is expected to affect various industries, including agriculture, manufacturing, and tourism. In agriculture, the prolonged dry spell caused by El Nino can lead to reduced crop yields, affecting food security and the economy as a whole. Similarly, the manufacturing industry may experience disruptions in the supply chain due to the shortage of raw materials, while the tourism industry may suffer from reduced visitor numbers due to unfavorable weather conditions.

A recent study has shown that there is already a risk where big ships are unable to berth at some ports in certain parts of the world due to waters becoming more shallow. While this risk may not seem feasible, it is essential to discuss it on a larger level and develop alternatives to manage it effectively. Each industry has different needs to understand the risks and prepare for the impending weather conditions.

It is critical that the government collaborates with the private sector to draw out a nationwide standard for crisis management and business continuity planning. DRIM aims to encourage industries to adopt best practices and be better prepared for the impact of El Nino and other similar disasters. The standard will provide guidelines on risk assessment, business impact analysis, emergency response, and recovery planning, among other aspects of crisis management.

The initiative should involve collaboration with industry associations, government agencies, and other stakeholders to ensure that the standard reflects the needs and realities of different industries. The standard will also be subject to regular review and update to ensure that it remains relevant and effective.

In conclusion, the El Nino effect has a significant impact on various industries and the economy as a whole. Early preparation is crucial to avoid extreme panic, and having a robust crisis management and business continuity plan in place can help organizations respond effectively to the challenges posed by El Nino.

Written by: Navaneetharaj (Raj) Rajan , Head of Program Development at DRI Malaysia