[BCM] [TVL] [C10] Types of Risks

Sustaining Digital Travel: Business Continuity Management for Traveloka

Chapter 10

Identifying Risks Concerning BCM

As a leading online travel platform in Southeast Asia, Traveloka operates in a dynamic digital ecosystem where uninterrupted service is critical to maintaining customer trust and operational efficiency.

Business Continuity Management (BCM), aligned with ISO 22301:2019, is essential for Traveloka to identify, assess, and mitigate risks that could disrupt its operations.

This article explores the key risks Traveloka faces concerning business continuity management (BCM) and how they can be addressed within an ISO 22301 framework.

Cybersecurity Threats and Data Breaches

As a digital-first company handling large volumes of customer data, financial transactions, and booking details, Traveloka is a prime target for cyber threats. Risks include:

• Ransomware attacks that could lock critical systems.
• Phishing and social engineering leading to unauthorised access.
• Data breaches that expose sensitive customer and payment information.

BCM Approach (ISO 22301)

• Implementing robust incident response and cybersecurity measures.
• Conducting regular penetration testing and security audits.
• Establishing a cyber resilience strategy, including backup and recovery plans.

Cloud and IT Infrastructure Failures

Traveloka relies on cloud-based infrastructure to support its booking system, payment gateways, and customer services. Downtime or service outages due to cloud failures, data center disruptions, or software bugs can significantly impact business continuity.

BCM Approach (ISO 22301)

• Implementing redundancy measures across multiple cloud providers.
• Establishing disaster recovery strategies with clearly defined RTO (Recovery Time Objective) and RPO (Recovery Point Objective).
• Ensuring automated failover and load balancing for critical applications.

Third-Party and Supply Chain Risks

Traveloka depends on airlines, hotels, payment processors, and technology vendors for its services. Any disruption in these partnerships—such as vendor insolvency, API failures, or regulatory compliance issues—can severely impact customer bookings and service delivery.

BCM Approach (ISO 22301)

• Supplier risk assessments require critical partners' business continuity plans (BCM Plan).
• Establishing alternative suppliers and redundancy plans.
• Ensuring contractual obligations include BCM compliance standards.

Regulatory and Compliance Risks

Traveloka must comply with various data protection laws (e.g., PDPA, GDPR), financial regulations, and travel industry standards as it operates across multiple countries. Failure to meet regulatory requirements can lead to legal penalties, operational shutdowns, or reputational damage.

BCM Approach (ISO 22301)

• Integrating regulatory risk assessments into BCM planning.
• Developing compliance monitoring systems to track regulatory changes.
• Ensuring legal and compliance teams are involved in continuity planning.

Pandemics and Public Health Crises

The COVID-19 pandemic demonstrated how a global health crisis can halt travel operations, disrupt supply chains, and cause massive financial losses. Future pandemics or health-related disruptions could once again impact Traveloka’s business model.

BCM Approach (ISO 22301)

• Establishing pandemic response plans with scalable remote work capabilities.
• Maintaining flexible refund and cancellation policies to ensure customer trust.
• Implementing automated health risk monitoring for impacted regions.

Natural Disasters and Infrastructure Disruptions

Southeast Asia is prone to earthquakes, typhoons, and flooding, which can disrupt data centers, travel infrastructure, and customer service operations.

BCM Approach (ISO 22301)

• Developing geographically dispersed data centers to avoid single points of failure.
• Establishing emergency communication protocols for staff and customers.
• Conducting regular business impact analyses (BIA) to evaluate disaster response effectiveness.

Reputational Risks and Social Media Crises

Negative customer experiences, fraudulent bookings, or viral complaints on social media can damage Traveloka’s reputation and erode customer trust.

BCM Approach (ISO 22301)

• Establishing crisis communication plans with rapid response teams.
• Monitoring social media for real-time risk assessment.
• Training customer service teams on handling high-impact complaints efficiently.

Summing Up …

A comprehensive BCM strategy aligned with ISO 22301 is crucial for Traveloka to maintain business resilience in a fast-evolving digital landscape.

By proactively addressing cybersecurity threats, IT failures, third-party dependencies, regulatory challenges, and external crises, Traveloka can ensure service continuity, regulatory compliance, and customer confidence.

As BCM becomes increasingly critical in digital travel, Traveloka must continuously update and test its BCM Plan to adapt to emerging risks and safeguard its competitive edge.