Exclusion Zones

Syndication has the option of an associated exclusion zone. This is the distance around the client site, within which the recovery supplier will not resell the client's resources to another potential customer.

As an example, ICM may contract with a subscriber not to sell the same syndicated workplace to anyone within 250 metres of their buildings (sites). It is important at this point to clarify that we are talking about not selling a new client the same seat as an existing subscriber whose zone includes their risk site; several client sites can be within that 250m zone, but not be sold the same seat within a sufficiently large recovery centre.

This is an important concept when producing risk declarations. ICM clients may negotiate exclusion zones based on their own assessment of shared service risk.

What our customers have to say

The move to Old Street went like clockwork and employees knew exactly what to do. The support we received from ICM was second to none, and the interruption to our day to day business was negligible.

- Colin Lawrence, IT Manager, Cathedral Capital

Exclusion Zones and Contention

Outside the contracted exclusion zones there is the possibility that clients may compete for syndicated services in the event of multiple invocations. This is an area where ICM's implementation has moved away slightly from the BCI recommended VSRD model.

Originally, the VSRD looked only at how many other clients were within the range bands. This could be a sizeable number, particularly in city centres.

ICM believes that the real issue is competition. That is, if all other clients with seat claims in these bands invoked at the same time, the site would be beyond its capacity. As already stated, this concern was specifically raised by financial service firms in the wake of the July 7 London bombings.

As a simple example, if five clients were all within 250m but everyone had 50 seats, then a 250 seat centre would be large enough in overall capacity. However, if six clients within 250m of each other all have 50 seats each and all invoke simultaneously, then you have contention.

ICM believes contention is a more effective measure of syndication risk than the original client site count alone.  ICM’s VSRDs thus indicate whether any contention exists up to 1km at the time of printing; the situation clearly changes regularly as customers seat requirements change.

ICM's risk management systems act to avoid any contention within contracted zones.

With exclusion zones measured in metres, being extremely accurate on the locations of client sites and recovery centres is critical. ICM discovered that postcodes were not accurate enough to determine the necessary exclusion zones and contention figures, so an Ordnance Survey grid system was adopted. An internet link on the VSRD takes the client to an online map which accurately pinpoints their relevant client risk site.