VTech Holdings Limited
36
VTECH SUSTAINABILITY ACTIVITIES
Step 1: Identification of Potential
Event of Disruption
The management teams responsible
for BCM of each key business function
conduct a thorough risk evaluation to
review the potential external and internal
event of disruption of the key aspects
on economic, natural environment,
political, infrastructure, personnel,
process, and technology at each stage
of the key business operations.
Step 2: Assessment of Identified
Risks
After identifying the potential event
of disruption, the management team
responsible for BCM will go through
a detailed evaluation to determine our
resilience level of each identified event
by considering its risk level. We have
developed a risk assessment matrix to
determine the risk level by assessing
the likelihood of occurrence (probability)
and the significance of the impact
to our operation (severity) of each
identified event. Other special factors,
where relevant, such as the affected
area of the production chain in our
plant facilities will also be considered.
Based on the evaluation result of
the risk assessment, the responsible
management team will determine how
the possible risks could be mitigated,
and identify the potential opportunities
for further improvement.
Step 3: Establish Measures and
Controls
After studying the background of the
higher risk events of disruption, the
management team responsible for
BCM identifies the root cause of each
event so as to establish measures to
manage the impact brought by the
occurrence of the events of disruption
to an acceptable level. In addition, the
recovery action plan and procedures
are formulated for resuming the
operations in emergency scenarios
within an acceptable time frame.
Step 4: Monitor and Review the
Effectiveness of BCP
To ensure the effectiveness of the
BCP, each business function conducts
BCP drill tests on a regular basis.
The management team responsible
for BCM and the department
representatives also review the results
of the regular internal audit and external
audit on the BCP and identify if there
are any new events of disruption which
are not covered by the current BCP. We
will update the BCP after analysing all
the findings to address any additional
potential risks with preventive actions
and recovery plan for our continuous
improvement.
BCM framework of VTech
Step 1:
Identification
of Potential
Event of
Disruption
Step 4:
Monitor and
Review the
Effectiveness
of BCP
Step 2:
Assessment
of Identified
Risks
Step 3:
Establish
Measures
and Controls
