BUSINESS CONTINUTITY

MANAGEMENT STRATEGY

ACTION PLAN 2023

 Executive Summary:

Mabalacat City, the newest city in Pampanga, it faces predominant risks of strong typhoons, floods,
and earthquakes. The city has a population of 293,244 based on the PSA 2020 cesnsus, it experienced
developmental changes since becoming a city, witnessing the emergence of MSMEs in various sectors.

In the face of disaster experiences, especially strong typhoons impacting utilities and transportation,
the LGU implemented recovery programs. Planning for worst-case scenarios is crucial for strategic
responses. A risk assessment outlines potential impacts, with a strong typhoon rated at 6 on a scale of 1 to
10.

A specific disaster scenario details a super typhoon entering in October 2023, prompting
preparatory activities such as activating a command center and mobilizing incident management clusters
for response.

The Business Continuity Management (BCM) strategy action plan focuses on reinforcing
infrastructure, promoting awareness, and facilitating recovery programs. Making the Climate and Disaster
Risk Assessment (CDRA) inclusive for MSMEs involves awareness, data access, risk assessment tools,
financial support, capacity building, networking, government policies, public-private partnerships,
monitoring and evaluation, community engagement, technology adoption, incentives for sustainability,
legal protection, and a feedback mechanism.

The proposed interventions encompass reinforcing substations, promoting MSME awareness,

preparing emergency resources, updating CDRA maps, and speeding up recovery through rehabilitation
programs. Making CDRA MSME inclusive involves crucial elements such as awareness, data access, risk
assessment tools, financial support, capacity building, networking, government policies, public-private
partnerships, monitoring and evaluation, community engagement, technology adoption, incentives for
sustainability.
HYDROMETEOROLOGICAL HAZARD MAP MABALACAT CITY

Profile of Target
Area
Mabalacat City,
the newest city in the
province of Pampanga,
has a total population
of 293,244 based on
the 2020 census with
an annual average
growth of 3.35% (2015-
2020). The city has
predominant risks
which are strong
typhoons, floods, and
earthquakes.
LOCATION OF MSMEs IN MABALACAT CITY
 Developmental changes in Mabalacat elevated through the years after it became an official city in the province.
MSMEs gradually appeared in numerous ways. There are businesses in multiple parts of the city including McArthur
Highway, Tipco, Kabuhayan, Mawaque Road, and Camachiles Road. Various MSMEs in the said areas are classified as
Realty, Food Services, Manufacturing, Trading, Construction, Commerce/Ecommerce, Salons, and Sari-sari Stores.

In disaster experiences of the city and its MSMEs, strong typhoons evidently affected the businesses in terms of
Utilities, Telecommunication, and Transportation due to the fumbled electric posts and Acacia trees along McArthur
Highway. Hence, the LGU formulated recovery programs to resolve the damages and mitigate the impact of future strong
typhoons.

Predominant Risk of the Area

Planning and fore sighting for the worst case scenarios of the predominant risks of the area are advantageous for
the LGU to classify the challenges and recover with strategic responses. If the worst could have solutions, the less
challenging scenarios are technically solved.

Risk Transport Lifeline Utilities Industrial Area Likelihood Impact Rating

Infrastructure

Strong Typhoon -Road is -Power -Some 3 6

(Signal 4 or 5) inaccessible due to Interruption. employees might 2 (Possible)
fumbled trees and -Loss of network not report to (Unlikely)
electric posts. connection. work.

-Contaminated -Temporary
water from closure of
utilities schools.
 Earthquake -Damaged roads -Power -Damage to 1 5
(Magnitude interruption properties (Rare) 5
7.2) - loss of network -injuries or death (Catastrop
connection hic)
-Contaminated
water from
utilities

Flood -Road closure can -Power -Temporary 1 4 4

(Warning Red) cause delay of Interruption. closure of (Rare) (Major)
deliveries. schools and work
-Water offices.
Contamination. -Can cause
health issues
(leptospirosis,
food/water
poison).

Disaster Scenario

Super Typhoon enter PAR on October 16 to 17, 2023, Possible landfall on October 20, 2023 at Aurora
affecting nearby province and municipality due to its wide coverage (1000) kilometres, Typhoon category is 4 to
5 and with a maximum sustained winds of 235 km.

Preparatory Activities:
 Prepare Respond Monitor/Report
Activate Command Center by Mobilize Monitor/Report
October 15, 2023
Cluster 1 (listo), Cluster 2 and Monitor Alerts and Coordinated with
-issue directives Cluster 3 cluster 1, 2 and 3
- convene LDRRMC Gather report
-Prepare administrative and logical
support

Disaster: Strong Typhoon Disaster Scenario

Timeframe: Before and After landing Scenario: Strong Typhoon Signal No. 5
Before:
5 days before The course of typhoon and the time of landing is predicted
and announced
3 days before Disaster Operation Center is activated
1 day before Emergency Response teams on standby but not engaged.
12 Hours Before Some Business’s stop operation and workers are sent home.
6 Hours before Public Transportation is stopped and Power supply is partly
suspended
After:
6 hours after Disaster situation to the infrastructure and lifeline utilities are
surveyed. Recovery plan is made and announced.
Individual and Area Business Impact Analysis

Strong Typhoon category 4 to 5

2 Major Roads unpassable (Mac Arhur

Hiway and Mabalacat Magalang Road, Individual BIA
50+ electricity lines damage and 30
Electric Poles fallen

Estimated 300+ deaths and 3000 Estimated PHP 200-300 million amount of
injured Business Resources are damaged.

30% of MSME’s have stopped for 1 month

Increasing crimes such as

looting, robberies and 1500 Number of 200 Number of MSME’s have
thievery. Employees lay off closed/Stop operation

AREA BIA
Economic Loss/decline, Decreased productivity, increased
unemployment, Strain on government resources for recovery
efforts and above all loss of lives.
Area BCM Objectives

Disaster: Strong Typhoon category 4 to 5

The objective of an Area Business Continuity Plan is to ensure that local

businesses and essential services can withstand and recover quickly from
disasters or major disruptions. By minimizing immediate impacts, the plan aims
to reduce interruptions to local operations and support the swift restoration of
key business functions and public services. It also facilitates resource sharing and
collaboration among businesses, local government, and emergency services,
bolstering overall community resilience. Protecting lives, assets, and
infrastructure is a core priority, as is maintaining the continuity of essential
services critical to public safety, health, and welfare. These objectives help guide
effective strategies and partnerships to support economic stability and public
service reliability across the affected area.
 Area Business Continuity Strategies and Action Plan

Strong Typhoon
Risk in Infrastructure Time Category of Proposed Intervention Stakeholders Specific Program / Project
Support System Objective Strategy (DRRM Plan CDP
/Ordinance)

Power will Mitigation To develop measures in PELCO II -Upgrading of metering

resume in 5 reinforcement of CEO, facilities, -Replacement of
Power outage for 7 days substations Mabalacat insulators on transmission
days liens. . Clearing of distribution
and sub-transmission lines.
-Assist in the restoration
process
Mitigation To promote awareness and CDRRMO/LGU Information Education
enables MSME’s to and MSME’s Campaign for MSME’s
formulate its own BCP BLS with AED CPR training
Mitigation To prepare an emergency LGU and Procurement of Resque
generator and fuel Business Equipment and Supplies
Association Promote use of clean energy

Preparedness To promote the update LGU, NOAH, Mabalacat City, 2026

CDRA Map Business
Associations,
NGAs, CDPC
Recovery Speed up recovery from CDRRMO/LGU Promote resilient recovery
disaster losses through and MSME’s activities both private and
rehabilitation and recovery public sector.
programs that are aligned to
sustainable development
Making the CDRA MSME Inclusive

Making climate and disaster risk assessment inclusive for Micro, Small, and Medium-sized Enterprises (MSMEs) is crucial
for their resilience and sustainability. Here are steps to achieve this:

• Awareness and Education: Provide MSMEs with information and training on climate and disaster risks. This can be
done through workshops, webinars, and educational materials tailored to their needs.
• Access to Data: Ensure that MSMEs have access to relevant climate and disaster risk data. Collaborate with local
meteorological agencies and disaster management authorities to provide real-time information.
• Risk Assessment Tools: Develop user-friendly risk assessment tools and templates that MSMEs can easily
understand and use. These tools should help them assess their vulnerability and exposure to climate and disaster
risks.
• Financial Support: Facilitate access to financial resources for risk mitigation measures. This can include grants,
low-interest loans, or insurance options specifically designed for MSMEs to invest in resilience.
• Capacity Building: Enhance the capacity of MSMEs to develop and implement risk reduction strategies. This can
involve training in disaster preparedness, business continuity planning, and eco-friendly practices.
• Networking and Collaboration: Encourage MSMEs to collaborate and share best practices within their communities
or industry sectors. Building networks can help them access resources and knowledge more effectively.
• Government Policies: Advocate for policies that promote MSME resilience, such as tax incentives for risk reduction
investments and streamlined permitting processes for eco-friendly practices.
• Public-Private Partnerships: Foster partnerships between MSMEs, government agencies, non-governmental
organizations (NGOs), and larger corporations to share resources and expertise.
• Monitoring and Evaluation: Establish a system to monitor the effectiveness of risk reduction measures and
continuously improve the support provided to MSMEs.
• Community Engagement: Involve MSMEs in local disaster risk reduction and climate adaptation planning to ensure
their unique needs and concerns are considered.
• Technology Adoption: Promote the use of technology for risk assessment and early warning systems. Mobile apps
and online platforms can help MSMEs access information and respond quickly to threats.
• Incentives for Sustainability: Offer incentives for MSMEs that adopt sustainable practices, as this can also
contribute to climate resilience.
• Legal Protection: Develop legal frameworks that protect MSMEs from unfair practices related to climate and
disaster risks, such as price gouging on essential goods during emergencies.
 • Feedback Mechanism: Establish a feedback mechanism for MSMEs to express their concerns and suggestions,
ensuring that their voices are heard in the decision-making process.

By implementing these steps, governments, organizations, and communities can work together to make climate and
disaster risk assessment more inclusive and supportive of MSMEs. This, in turn, will contribute to their long-term viability
and the overall resilience of the local economy.

Policy Year Leading Body Main Objectives Relevance To MSME Climate

Resilience
Relevant policies and framework for MSME Climate resilience

Development of MSME sector

Magna Carta for Pass in 1991 DTI • Encourage the establishment, growth and development of Despite no specific mention of
Small Amendment MSMEs climate risk, the created
enterprises in 1997 and and promote countryside industrialization,by defining legal frameworks and
( R.A. 6977) 2008 Institutional support system for MSMEs support systems for MSMEs
can be an important enabler
• Create SME Development Council (later amended as the
of climate resilience
MSMED Council ) which coordinates and reviews national
efforts to support MSMEs
• Require all lending institutions to allocate minimum 8% of their
total loan portfolio to MSMEs
Barangay Micro 2002 DTI • Provide support to rural micro enterprises through incentives and No specific mention of climate
Business benefit schemes and increase formalisation of informal sector risk, but special
Enterprise considerations for micro
Act ( RA 9178 ) businesses’ needs can help
them become more resilient.
Go Negosyo Act 2002 DTI • Reduce regional inequalities ,including increased access to public No specific mention of climate
(RA 10644) services risk,but Negosyo centers
partnership with LGUs, local
• Create Negosyo centres, business support centres at national,
chambers of commerce and
provincial , city , municipal levels
others can offer a space where
• Establish a start- up funds for MSMEs support to MSMEs in climate
resilience can be delivered
 (e.g. training).

MSME 2011-2026 DTI • Support “more globally competitive MSMEs that are regionally Mention of business resilience
Development 2017-2022 integrated,resilient, sustainable and innovative “( 2017-2022) in shared community disaster
Plan risks and business continuity
• Recognise impacts of climate change and disaster recovery as one
risk and encourages MSMEs
of the main challenges MSMEs face (MSMED Council, 2018)
to adopt BCP (2017-2022), an
• Mention the possibility of establishing special financing facilities update from 2011-2016 MSMED
(2017-2022) which does not mention DRRM
or business continuity or
resilience (Ballesteros and
Domingo , 2015).
Project repeal: 2016- DTI and Anti Red • Review existing policies and regularity systems No specific mention of climate
The Philippines’ present Tape Authority formulate policy recommendations to create resilience but aims to break
Anti-Red Tape (ARTA) an environment for ease of doing business down business barriers and
Challenge (DAP, 2022). remove contradictory laws

Disaster risk reduction and management

Disaster Risk 2010 Department of • Strengthen the national and LGU institutional capacity for A holistic,comprehensive,Integrated,and
n and national defense DRRM and to build local community disaster resilience , proactive”
Management Act (DND) as secretariat including to ciimate change risk approach to climate disasters is
1) and DILG, DSWD,DOST,
• Establish the National DRRM Council in charge of creating the highlighted.
and NEDA as vice One representative of the private sector
National DRRM Plan
chairs can be
• Integrate DRR into broader development processes selected in each Local DRRM Council
• Mandate LGUs to develop local DRRM plans (OECD 2020) (LANDBANK 2019)
National Disaster 2011 National DRRM • Build safer, adaptive and disaster-resilient filipino communities Connection between disaster prevention,
d Council (with Office towards sustainable development” by taking a comprehensive, all mitigation,preparedness and CCA is
Management of Civil Defense as the Sec). hazards, multi-sectoral, inter-agency and community -based approachhighlighted
ork
• Mainstream DRR national, regional, provincial Physical Framework(GOV.PH,n.d.)
(NDRRMF)
Plans CDP, CLUP.
• Promote DRR and CCA- sensitive management, disaster-
resilient infrastructure, community based, local awareness
raising, drills and exercise, contingency planning, networking (OECD
,2020).
 National Disaster 2011- National Risk • Mainstream DRR and CCA in development processes Private-public partnership is highlighted as
d 2028 Reduction ( policies,budget, etc.) in light of National DRRM Framework non-monetary resource for enhanced
Management Plan Management Council and DRRM Act. community
8 (with OCD as
• Promotes community-level capacity building efforts,disaster-resilientdisaster resilience which helps MSMEs
secretariat)
infrastructure, community-based vulnerability and risk assessments
(OECD, 2022)
Climate change and green growth
Climate Change Act (RA 9729 ) 2009 Climate Change • Establish CCC as an independent and DTI and representatives from the
Commission (CCC) autonomous body business sector
responsible for policy-making body and climateparticipate in the CCC Advisory board
change PIA’s role in disseminating information
actions and program (CCC , 2011) on CC,
• Create National Framework strategy on Climate Local vulnerability and risks is
recognized;
Change ( CC ) to be reviewed every three years,
Need for co-ordination with various
as well as National CC Action Plan
sectors ,
• Require LGUs to develop Local CC Action Plansincluding
( corporate sectors is
OECD,2020 ) highlighted
National Framework Strategy on 2010- CCC • Build community adaptive capacity, increase the Strategies to facilitate the private
Climate Change 2010-2022 2022 climate sector’s
adaptation and mitigation , and recognize
resilience natural ecosystem and optimize mitigation
opportunities ( CCC,2011 ) private
• Enhance vulnerability and adaptation assessmentssector as an important means of
implementation
• Enhance monitoring, forecasting and warning
system
• Mainstream climate and DRR-based planning and
promote variuos tools for DRRM (OECD ,2022 )
(CCC, 2010 )
National Climate Change Action 2011- CCC • Specify national and local implementation The Plan encourage private-sector
Plan 2011-2028 2028 mechanism participation
Coherent with the framework for mitigation. It refers to MSME business
continuity and resilience, and includes
• Define strategic priorities along thematic outcomes
climate-related programmes in eco-towns,
• Identify sectors of concern : food,water,ecosystemCC-adaptive
and environment stability ,human security, housing and land-use, climate-smart
sustainable energy, knowledge and capacity industries and
development services ( Ballesteros and Domingo, 2015 )
• Cross-cutting priorities: gender and development,
technology transfer, education, capacity
building,(CCC ,2011)(OECD,2020).
Green Jobs Act (RA 10771 ) 2016 Department of • Mandate DOLE to co-ordinate with other government Dole together with PSA maintains a
Labor and Employment agencies ( including DTI,DENR,DOST,DOT) to database of
develop National Green green careers,professions and skills, list of
Jobs Human Resource Development Plan emerging business enterprises that
generate and sustain green jobs. While not
• Provide incentives to encourage business
directly related to
enterprises to
MSMEs, such database couldinform MSME
generate and sustain green jobs, as certified by the
climate resilience activities.
Climate Change Commission.
• Incentives to develop green jobs that also contribute
to social justice and sustainable development
NOTE: Micro ,Small, Medium enterprises (MSMEs), Small and Medium enterprises (SMEs), Department of Trade and Industry (DTI), Micro,
Small and Medium
Enterprises Developmet (MSMEDs) Council, Local Government Unit (LGUs) , Department of the Interior and Local Government (DILG),
Departent of Social Welfare and Development (DSWD), Philippine Information Agency (PIA), Department of Labour and Employment (DOLE),
Philippine Statistics Authority (PSA).
Source: CCC (2011) National Climate Change Action Plan 2011-2028, http://climate.emb.gov.ph/wp-content/uploads/2016/06/NCCAP-1.pdf;
GOV.PH (2018).
Department of Labour and Employment , http://dole12.org/greenjobsact/2018/08/08/philippine-green-jobs-act-aprroved/.

Prepared by:

Mr. Jeffrey S. Santos

Mr. Jeremy Bryant de Leon
Ms. Erica Candelaria
Mr. Albero Concepcion