Introduction To Virgin Rail Group

Published Date: 02 Nov 2017

Beth Reade

Fire and Leadership Studies

Assessment 2

Simon Cable

FV3101

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Business Continuity Plan

Business Continuity Plan

Index

Introduction to Virgin Rail Group

Virgin Trains is one of the largest transport companies in the UK; It operates a long distance passenger service on the West Coast Main Line, which is the country’s most significant rail in terms of population served, connecting the major cities between Greater London, the West Midlands, North West England, North Wales and Scotland.

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The West Coast Main Line

Virgin Trains is owned as a partnership; 49% are owned by Stagecoach Group Plc and 51% is owned by Virgin Management, who combined run as Virgin Rail Group.

Stagecoach Group PLC is an international transport group, which is currently the largest operator of light rail services and the second largest transport group in the UK. The group was founded in 1980 by chairman, Sir Brian Souter. The group has operations currently in the UK and North America.

Virgin Group Ltd is a British multinational branded company, founded by Richard Branson, its core business areas are travel, entertainment and lifestyle. It consists of more than 400 companies worldwide, each company under the Virgin brand is run as a separate entity, this ensures that if one company was to go into administration it wouldn’t affect the other companies.

The Virgin Group has developed and diversified their brand through innovation and perseverance. Virgin Rail became the first UK train company to sell tickets online, they also a brand new high speed tilting train ‘Red Revolution’, the first ever to run successfully, breaking speed records. An important feature of the company’s growth is their ability to capture traffic from airline, in 2004, Virgin had 1/3 of the air/rail market between Manchester and London, and by 2010 the share had grown to more than 80% of the market.

Virgin Rail has over 4,000 staff in the UK and they believe that their success and growth as a company is down to investing in their staff. Training is one of their major priorities, to ensure the creation of successful employees with energy, drive, motivation and imagination. Virgin has their own ‘Train’s Talent Academy’, where staff practise safety critical training, major incident scenarios in the emergency response suite; and delivering excellent customer service in the training carriages.

Virgin Rail must comply with specific legal framework to run competently, The ORR (Office of Rail Regulation) is the national health and safety authority for Britain’s railways and it is their role as the regulators to control health and safety and ensure that the industry delivers a safe, effective and efficient system.

Network Rail is the private sector monopoly owner and operator of the national rail infrastructure, considered as a national asset of importance, National Rail is accountable to the public interest through regulation, it operates under the provisions of a licence enforced by The ORR, which contains legislation that it must work within.

Current railway regulatory legislation in place that Network Rail and Virgin Rail must comply with:

The Railways Act 1993 (RA93) > The Railways Act 2005

Health and Safety at work etc Act 1974 (HSWA)

The Railway and Other Guided Transport Systems (Safety) Regulations 2006 (ROGS)

The Level Crossings Act 1983

The Railways (Interoperability) Regulations 2011

The Competition Act 1998

The Freedom of Information Act 2000

The Enterprise Act 2002

The Health and Safety (Enforcing Authority for Railways and other guided Transport Systems) Regulations 2006 (EARR 2006)

Railways (Access and Management) Regulations 2005

Railways (Licensing of Railway Undertakings) Regulations 2005

The Railway Safety Levy Regulations 2006

The Railways and Transport Safety Act 2003 (RATS)

The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995 (RIDDOR)

The Transport Act 2000

BS25 999

Greater London Authority Act 1999.

Regulatory Enforcement and Sanctions Act 2008 

 Equality Act 2010

This legal framework is critical for the safety of the workers as well as the passengers, if either company is under breach with any of these provisions they could be at risk of enforcement action from the ORR.

Business Continuity Plan

Scope

This policy applies to the provisions of all Virgin Rail Group, including its support functions.

Overview

This plan has been developed to ensure that an orderly and effective response to any incident that significantly disrupts business operations is run. It is to be used to facilitate continuity to the Virgin Rail Group and includes recovery actions of infrastructure in the event of a disaster.

Objectives

The objectives of this plan are:

To ensure that maximum possible service levels are maintained

To ensure that Virgin Rail Group recovers from interruptions as quickly as possible

To minimise the likelihood and impact (risk) of interruptions to business as usual

Principles

The principles behind this plan are:

Disaster Recovery is a critical part of Business Continuity

Risks are assessed by means of probability and business impact

Business continuity plans must be reasonable, practical and achievable

The plan is not able to prepare the business for every possibility. Diminishing returns affect the benefits of planning for extreme cases.

Critical Deliverables and Dependencies

Virgin Rail provides a service to the public, this service for many people is a critical part of their lives; commuting to work, visiting friends and family in different parts of the country. If the service were to be disrupted or stand to a halt for even a short period of time it would have a large impact on the company. In the event of a disruption Virgin Rail has a coding strategy in place which categorises the level of risk, therefore allowing the crisis management team to take the appropriate port of call to rectify the situation.

Coding of Initiation

Code Green - No action required- business as usual.

Code Amber - Developing situation -

1. Business Continuity Plan to be invoked IMMEDIATELY

2. Crisis Planning Team must be advised IMMEDIATELY

3. Emergency Services must be called upon if appropriate

4. Situation must be monitored and recorded at all times

5. Precautions must be taken in order for business to return to usual

6. Affected areas must be evacuated dependant on severity of crisis.

7. Affected area must be cordoned off and become a RESTRICTED AREA until told otherwise by higher authority.

Code Red - Situation defined as ‘Emergency’

1. Business Continuity Plan to be invoked IMMEDIATELY

2. Crisis Planning Team must be advised IMMEDIATELY

3. Emergency Services must be called IMMEDIATELY

4. Situation must be monitored and recorded at all times

5. Precautions must be taken at ALL TIMES

6. Affected areas must be evacuated immediately.

7. Affected area must be cordoned off and become a RESTRICTED AREA until told otherwise by higher authority.

Code Black - Worst possible scenario, situation defined as ‘Catastrophic Emergency’

1. Business Continuity Plan to be invoked IMMEDIATELY

2. Crisis Planning Team must be advised IMMEDIATELY

3. ALL Emergency Services must be called IMMEDIATELY

4. Situation must be monitored and recorded at all times

5. Precautions must be taken at ALL TIMES

6. ALL AREAS EVACUATED IMMEDIATELY

7. COMPANY SHUT DOWN, CORDENED OFF and RESTRICTED AREA until told otherwise by CEO.

8. Loss of life and major destruction to site expected.

Each disruption (page11) has been assessed and defined at each code level and categorised by number for prioritising risk. Interruptions with larger amounts of threats are highly prioritised; however each interruption should be treated as appropriate when coded, no matter how ‘small’ the interruption seems to allow it to return to green - business as usual.

Risk Matrix and Business Impact Analysis

The longer the duration of the disruption the more critical impact on the business, code Green (Acceptable) is not used in the business impact analysis as all disruptions that occur however minor will have a negative impact on the business and require a code to be set that requires action. In practice, the amount of risk is usually categorised into a small number of levels because neither the probability nor harm severity can typically be estimated with accuracy and precision.

Risk Rating = Likelihood x Severity

Catastrophic(5)

5

10

15

20

25

Significant (4)

4

8

12

16

20

Moderate

(3)

3

6

9

12

15

Low

(2)

2

4

6

8

10

Negligible

(1)

1

2

3

4

5

Severity

Likelihood

Improbable

(1)

Remote

(2)

Occasional

(3)

Probable

(4)

Frequent

(5)

Risk Rating Score

Severity of Rating/Score/Action

Catastrophic 20-25 (Stop)

Devastating 15-16 (Urgent Action)

Critical 12 (Urgent Action)

Major 4 – 10 (Monitor)

Controllable 1-3 (No Action)

Once the risk rating has been determined using the risk matrix and score chart, the business impact analysis can be determined using the severity of rating name (catastrophic, devastating, critical, major, controllable) scored into the business impact analysis matrix, the longer the duration of the disruption the higher the impact. Once the business impact analysis has been scored, a code can be designated using the score chart.

Risk Matrix – Business Impact Analysis

Controllable

Major

Critical

Devastating

Catastrophic

>5 days

5

10

15

20

25

2- 5 days

4

8

12

16

20

24- 48 hours

3

6

9

12

15

2 – 24 hours

2

4

6

8

10

<2 hours

1

2

3

4

5

0 hours

0

0

0

0

0

Business Impact Analysis Score

Catastrophic 15-25 = Code Black.

Devastating 15-20 = Code Red/Black dependant on severity.

Critical 8 - 12 = Code Red.

Major 1 – 8 = Code Amber.

0 = Code not in effect, run as code green.

progression onto

Code Black = Loss of Life, staff, business reputation, infrastructure, sales and income, increased expenses, negative cash flow, regulatory fines, financial liabilities and contractual obligations and fines.

Code Red = Possible loss of life, staff, infrastructure, business reputation scorned, increased expenses (overtime labour, outsourcing, expenditure cuts) negative cash flow, loss of sales and income, possible regulatory fines.

Code Amber = increased expenses, negative cash flow through delayed sales and possible customer dissatisfaction

Code Green= Business as usual - no impact on business.

progression onto Impact on business

Cumulative Pounds Loss Ranges (Tangible)

Code Loss Range

0 None

1 - 4 > £0 <£10,000

5 - 8 >£10,000 <£25,000

8 - 12 >£25,000 <£50,000

15 - 20 >£50,000 <£100,000

15-25 >£100,000

progression onto

Priority Scale

5 (High)

Terrorist Attack

Derailment

Train Crash/Collision

Fire

4

Power Lines

Extreme weather conditions

3

Suicide

2

Staff Absences

Internet Crash/system failure

1 (Low)

Each disruption can alter to a different priority level dependant on the severity of the incident; however assumptions from past experiences (London Underground Bombings 2005, Grayrigg Derailment 2007 and Kings Cross Fire 1987) put Terrorist Attack, Derailment, Train crash/ collision and Fire at the top of the priority scale.

Terrorist Attack (Priority Level: 5)

Threats

People/Property/ Information & Communication /Vehicles.

Green

Business as usual.

Amber

Terrorist threats to trains, stations, staff.

Red

Attack on trains, stations or platforms, injured staff or passengers.

Black

Successful terrorist attack causing severe catastrophe, loss of multiple trains, stations, staff, passengers (Equivalent to the London Underground Bombings 2005).

Business Impact Analysis

(potential damage or loss)

Means to Recover

People: loss of staff and passengers.

Virgin Rail will have to compensate families, hire and train new staff; offer counselling to staff that went through the traumatic event.

Property: loss of stations/platforms and railway.

Virgin Rail will have to buy/delegate with network rail to replace damaged railway, shut down affected stations until in working state.

Information & Communication: loss of contact methods with other stations, internet, online booking system.

Virgin Rail should have backup server in place to maintain services such as online booking system, however a new system may require putting in dependant on the severity of the damage which may take a few weeks cutting into the company’s profits due to being non operational.

Vehicles: loss of trains.

Virgin Rail will have to replace or in the meantime use other trains, which will cut into the profits of the company as it will mean trains are not being used elsewhere.

Recovery Time Objective

>12 hours <48 hours

Maximum Tolerable Period of Disruption

<1 week

Minimum Level of Service

Derailment (Priority Level: 5)

Threats

People/Property/ Information & Communication /Vehicles.

Green

Business as usual.

Amber

Rail/Train/Level crossing safety concerns reported.

Red

Derailment of single carriage, injured staff or passengers.

Black

Derailment of train, large loss of life. (Equivalent to Grayrigg derailment 2007).

Business Impact Analysis

(potential damage or loss)

Means to Recover

People: loss of staff and passengers.

Virgin Rain will have to compensate families, hire and train new staff; offer counselling to staff that went through the traumatic event.

Property: loss of stations/platforms and railway.

Virgin Rail will have to get emergency services to clear damage away, buy/delegate with network rail to replace damaged railway, shut down affected stations/areas until in working state.

Information & Communication: loss of contact methods with other stations.

This could have a dangerous effect if main stations are unaware of the derailment if in a rural area; therefore backup comms should be in place prior to event.

Vehicles: loss of trains.

Virgin Rail will have to replace or in the meantime use other trains, which will cut into the profits of the company as it will mean trains are not being used elsewhere.

Recovery Time Objective

Maximum Tolerable Period of Disruption

Staff Absences (Inc Sick, leave & Strike) (Priority Level: 2)

Threats

Business as usual.

Green

Business as usual.

Amber

0 – 24% of staff absent (sick, leave or strike)

Red

25 – 39% of staff absent (sick, leave or strike)

Black

40% + of staff absent (sick, leave or strike)

Business Impact Analysis

(potential damage or loss)

Means to Recover

Business as usual: satisfactory level of business not maintained during staff absences due to shortage of staff/lack of cover/lack of training; meaning passengers are not getting the level of service they expect, potentially harming Virgin Rails’ reputation.

Virgin Rail should ensure relief staffs are trained for purpose before strikes, if not ensure that after the strike relief staff are trained for purpose.

Recovery Time Objective

Maximum Tolerable Period of Disruption

Train Crash/Collision (Priority Level: 5)

Threats

People/Property/Information & Communication/Vehicles.

Green

Business as usual.

Amber

Rail/Train/Level crossing safety concerns reported.

Red

Train crash/collision (many scenarios Inc car/bike/train/passenger), injured staff or passengers.

Black

Multiple crash/collision- large loss of life.

Business Impact Analysis

(potential damage or loss)

Means to Recover

People: loss of staff and passengers.

Virgin Rail will have to compensate families, hire and train new staff; offer counselling to staff that went through the traumatic event.

Property: loss of stations/platforms and railway.

Virgin Rail will have to get emergency services to clear damage away, buy/delegate with network rail to replace damaged railway, shut down affected stations/areas until in working state.

Information & Communication: loss of contact methods with other stations.

This could have a dangerous effect if main stations are unaware of the derailment if in a rural area; therefore backup comms should be in place prior to event.

Vehicles: loss of trains.

Virgin Rail will have to replace or in the meantime use other trains, which will cut into the profits of the company as it will mean trains are not being used elsewhere.

Recovery Time Objective

Maximum Tolerable Period of Disruption

Power Lines (Priority Level: 4)

Threats

People/Property/Information & Communication/Vehicles.

Green

Business as usual.

Amber

Safety concerns reported regarding power lines.

Red

Incident regarding power lines, injured staff or passengers.

Black

Loss of life due to power lines incident.

Business Impact Analysis

(potential damage or loss)

Means to Recover

People: loss of/injured staff and passengers.

Virgin Rail will have to compensate families, hire and train new staff; offer counselling to staff that went through the traumatic event.

Property: loss of/damage to stations/platforms/power lines and railway.

Virgin Rail will have to get emergency services to clear damage away, buy/delegate with network rail to replace any damaged railway and power lines, shut down affected stations/areas until in working state.

Information & Communication: loss of contact methods with other stations.

This could have a dangerous effect if main stations are unaware of the incident; therefore backup comms should be in place prior to event if not a new system must be put in place as soon as possible.

Vehicles: loss of trains.

Virgin Rail will have to replace or in the meantime use other trains, which will cut into the profits of the company as it will mean trains are not being used elsewhere.

Recovery Time Objective

Maximum Tolerable Period of Disruption

Internet Crash/System Failure/Cyber Attacks (Priority Level: 2)

Threats

People/Information & Communication.

Green

Business as usual.

Amber

Unable to report if trains were late.

Red

Black

Business Impact Analysis

(potential damage or loss)

Means to Recover

People: loss of/injured staff and passengers.

Virgin Rail will have to compensate families, hire and train new staff; offer counselling to staff that went through the traumatic event.

Information & Communication: loss of contact methods with other stations.

This could have a dangerous effect if main stations are unaware of the incident; therefore backup comms should be in place prior to event if not a new system must be put in place as soon as possible.

Recovery Time Objective

Maximum Tolerable Period of Disruption

Suicide (Priority Level 3)

Threats

People/Property/Vehicles.

Green

Business as usual.

Amber

Reports of person/s threatening to jump onto railway.

Red

Person/s jumped onto railway/committed suicide.

Black

Person/s jumped onto railway/committed suicide causing train to crash.

Business Impact Analysis

(potential damage or loss)

Means to Recover

People: loss of/injured staff and passengers.

Virgin Rail will have to compensate families, hire and train new staff; offer counselling to staff that went through the traumatic event.

Recovery Time Objective

Maximum Tolerable Period of Disruption

Fire (Priority Level: 5)

Threats

People/Property/Information & Communication /Vehicles.

Green

Business as usual.

Amber

Fire found/ reported at station/ platform/ train carriage.

Red

Large uncontrollable fire found/reported at station/ platform/ train carriage.

Black

Large uncontrollable fire causing loss of life. (Equivalent to Kings Cross Fire 1987)

Business Impact Analysis

(potential damage or loss)

Means to Recover

Recovery Time Objective

Maximum Tolerable Period of Disruption

Extreme Weather Conditions/Natural Disasters (Priority Level: 4)

Threats

People/Property/Information & Communication /Vehicles.

Green

Business as usual.

Amber

Weather reports extreme conditions to appear.

Red

Extreme weather conditions interrupt business as usual/ trains must be delayed/ cancelled.

Black

Extreme weather conditions cause large interference/ crash causing loss of life.

Business Impact Analysis

(potential damage or loss)

Means to Recover

Recovery Time Objective

Maximum Tolerable Period of Disruption

Crisis Planning Team

Richard Branson

CEO

Brian Souter

(Joint owner)

Martin Griffiths

Patrick McCall

Ross Paterson

JP Moorhead

(Head of public relations)

John Armitt

Network Rail

Chris Gibb

(Chief Operating Officer)

Tony Collins

(Chief Executive Officer)

Graham Leech

(Executive Director)

Recovery

Relocation

Replacement

Damage repair

Assess the situation

Business Continuity

Contacting staff and customers

Deal with the media

Recovery of any critical deliverables

Incident Response

First port of call dealing with emergency

How is the plan monitored?

Strategies to maintain dependencies

People

documenting how things are done.

Multi Skilled workforce

Succession Planning

Use of 3rd Parties

Premises Strategies

Remote working

Alternative premises

Technology Strategies

External provision

Infrastructure resilient through backup systems

Remote Access

Information Strategies

Hard copy formats

Electric copy formats

To ensure that the business continuity plan will be successful it is important that it is being constantly updated if any circumstances are to change. The plan will be sent out to each station and put through to employees firstly via a team briefing; this will give staff the chance to ask any questions, and to ensure that they understand their own role and particular responsibilities during the activation of the continuity plan. It is recognised that reviewing past occurrences is the most pro active way to learn for the future and continuously improve; therefore the plan will be revised when appropriate. The plan will be distributed to members of the business continuity team and management. A master copy of the document should be maintained at all sights. An electronic copy of the plan will also be stored on a secure accessible website that would allow team member access if company servers are down.