What Is Business Continuity Plan In Business Management

Published: 2021-05-13
Views: 391
Author: Editorial
Published in: Business

A business continuity plan (BCP) is a document that outlines how a company will keep running in the event of an unplanned service interruption.

It's more elaborate than a disaster recovery plan, as it includes contingencies for assets, business partners, business processes, human resources,– all aspects of the company that could be impacted.

Top Business Continuity Threats

Every brand will face different primary threats to business as usual, depending on its specific industry and level of risk.

That's why conducting risk assessments before putting together a business continuity plan can be so beneficial.

While you should prepare for any eventuality, the following threats are the most common business disruptors to be aware of.

1. Pandemics on a global scale

Pandemics can wreak havoc on your business plans from a variety of angles. Due to citizens being forced to stay at home and work as much as possible, there has been an increase in demand for certain items, as well as a decrease in supply due to manufacturer shutdowns or supply chain disruptions.

If you're worried about a global pandemic, one of the most important plans to make is how your employees will communicate with one another and conduct necessary business offsite.

It's also critical to have supply options in the event that your supply chain is disrupted.

2. Power outages

A loss of communication lines, power, or water shutoffs can cause major disruptions in day-to-day operations, resulting in the potential loss of physical assets, productivity, and service.

3. Natural disasters

Natural disasters include weather-related events such as tornadoes, hurricanes, and tsunamis, as well as natural phenomena such as earthquakes, wildfires, and volcanic eruptions.

Some of these disasters are difficult to predict and can strike in a matter of seconds.

They have the ability to destroy physical architecture and anything inside them, as well as temporarily put on hold supply chains in the areas affected.

4. Information security

Any computer-based attack on a technical asset is referred to as a cyberattack.

Ransomware attacks, data theft, SQL injections, and distributed denial of service (DDoS) attacks are all examples of cyberattacks. Until the problem is resolved, your technical infrastructure will have limited functionality.

In the worst-case scenario, you could lose access to all of your business data if you don't have a data backup.

What is included in a Business Continuity Plan?

Business continuity plans are intricate and differ from one company to the next. You'll want to customize your strategy to meet the needs of your company. Here are some examples of what a BCP might contain:

• Plans for risk mitigation
• A list of tasks that must be completed in order for operations to continue to run smoothly
• An explanation of where to go in the event of an emergency.
• Coordination with emergency services in the area
• Data backups and site backup information
• Management personnel's contact information.
• Protocols for maintenance should be planned

Benefits of a Business Continuity plan

Every business should have a business continuity plan in place. Threats, disruptions, and disasters can result in a loss of revenue and increased costs, affecting profitability.

Businesses can't always rely on insurance to cover all of the costs associated with an incident because insurance doesn't always cover everything.

A proactive strategy can also benefit a company in the following three ways:

• The company will feel better prepared to deal with the unexpected.
• After the disaster, the company will have a plan in place to continue providing acceptable service.
• The company's corporate reputation, image, and revenue stream will be better preserved.

Components of a Business Continuity Plan

If you own a small business, you are well aware of how easily disasters can strike. Having a business continuity plan in place is critical, whether these disasters are caused by mother nature or human error.

Some of the most important elements to include in this type of plan are listed below.

1. Careful planning is required

In a disaster situation, trying to think three steps ahead is a lot easier said than done.

Rather than attempting to figure out what needs to be done as a disaster unfolds, you should have a meticulous plan in place well ahead of time.

After a disaster, it's critical to figure out what your recovery priorities are.

Is it more important for you to focus on re-establishing customer relationships, regulatory implications, or revenue first? The rest of your continuity plan should start to fall into place once you have the answer to this question.

2. Making Your Team Clearly Defined

In the event of a disaster, the first thing your employees will want to know is who is in charge.

Putting together a business continuity team is a great way to get a handle on this crucial question before a disaster strikes.

Having the right team in place can make a big difference when dealing with localized or even larger-scale disasters. To keep the continuity plan up to date, the teams you put in place should plan and test throughout the year.

3. Communication in a Crisis

It's critical to have an effective means of communicating with your employees during a disaster.

Having a toolkit with a full range of communication channels, such as telecom, intranet, and email, can be extremely beneficial.

If you have this toolkit in place, you will be able to communicate with members of your team in a variety of ways if disaster strikes.

4. Thorough Testing

Testing the elements you have in place on a regular basis is important for any type of plan. When disaster strikes, having an out-of-date plan usually leads to more confusion.

Reviewing, testing, and updating your plan a few times a year should be a top priority for you. This allows you to identify any potential flaws in the plan and correct them before they cause serious problems.

5. Employee Security is Crucial

In a disaster situation, nothing is more important than keeping those around you safe.

Reaching out to Emergency Management organizations like FEMA is a great way to get emergency response training for yourself and your team.

When your team is faced with a disaster, tailoring the training to your specific business and location can be extremely beneficial.

Working with professionals to develop an adequate business continuity plan is preferable to leaving important matters like this to chance