Simulation & Analysis: COOP on Steroids...

All of the planning tools that have automated the process of developing BCCM and COOP documentation have addressed only a small piece of the total mosaic for operational risk management. There is however a new "kid" on the block that is worth keeping your eye on. This is because they have created the tools for doing critical simulation and analysis of the impact of significant business disruptions to our critical infrastructures.

FortiusOne’s target market encompasses both the public and private sector. The former includes federal, state, local and international segments, with primary emphasis on Homeland Security, National Defense, Intelligence and Emergency Management for critical infrastructure vulnerability assessments and consequence management. FortiusOne’s private sector market addresses risk analysis for the Banking/Financial Services, Transportation, Energy, Telecommunications, Insurance and general Supply Chain segments with primary emphasis on business continuity planning, business optimization and disaster recovery. Market size exceeds $40B and is upward trending in both public and private sectors. Recent events and consequences related to hurricane Katrina, terrorist threats and attacks, and corporate management/mis-management events have created intense interest in FortiusOnes’s products and services. The Company’s revenue model for both public and private sectors includes fixed price product pricing for basic assessments with additional high valued consultation for detailed analysis of specific client defined scenarios.

While we have all the confidence that there is a market for tools like these, the largest challenge still remains. Human Factors.

All of the scenario planning and simulation is important to create new contingency procedures or the application of new methods for mitigating the impact of such scenarios. However, the human factors are and will remain unknown until you actually exercise and effectively test that scenario. Only testing will tell you what people did or didn't do or why they reacted the way they did. The psychological and physiological unknowns are what throw the planners and simulation operators for a loop every time.

We hope that FortiusOne also gives their clients the insight they require to create the most realistic and optimal tests to determine what the real outcomes will look like before and after a natural disaster or terrorist event.

operational risk