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Business Continuity and Crisis Management Consultants

Business Continuity Program Roles & Responsibilities

July 6, 2021 By //  by  Bryan Strawser

Have questions about your business continuity program? You’re not alone.

When we talk to businesses about their business continuity program and business continuity plans, we get asked everything from “What is one?” —at the most basic level, many businesses also don’t understand that a business continuity plan, or BCP, is fundamentally different from a disaster recovery plan; the former is focused on keeping your business running through a disruption and the latter on resuming and recovering technology applications and infrastructure after a major technology disruption occurs—to questions on a more granular level, like:

• What are the important roles in a business continuity program and plan?
• What do those roles and responsibilities mean?
• How do these roles interrelate?
• How do we ensure we place the right people in each role?

As risk management and business continuity planning experts, Bryghtpath helps companies cut through all this confusion and get clear about the path to business continuity planning success.

About Bryan Strawser

Bryan Strawser is Founder, Principal, and Chief Executive at Bryghtpath LLC, a strategic advisory firm he founded in 2014. He has more than twenty-five years of experience in the areas of, business continuity, disaster recovery, crisis management, enterprise risk, intelligence, and crisis communications.

At Bryghtpath, Bryan leads a team of experts that offer strategic counsel and support to the world’s leading brands, public sector agencies, and nonprofit organizations to strategically navigate uncertainty and disruption.

Learn more about Bryan at this link .

PO Box 131416 Saint Paul, MN 55113 USA

[email protected]

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Program Roles & Responsibilities in a Business Continuity Management System

BUSINESS CONTINUITY ROLES AND RESPONSIBILITIES

Nearly every business continuity standard and regulation require clearly articulated roles and responsibilities. This includes ISO 22301, the Business Continuity Institute’s Good Practice Guidelines, Disaster Recovery Institute, FFIEC requirements on business continuity, and NFPA 1600.

For example, ISO 22301’s requirements say the following about business continuity and IT disaster recovery program roles and responsibilities:

• “To achieve its business continuity objectives, the organization shall determine who will be responsible, what will be done, what resources will be required, when it will be completed, and how the results will be evaluated” (Clause 6.2)
• “The organization shall determine the necessary competence of person(s) doing work under its control that affects its performance; ensure that these persons are competent on the basis of appropriate education, training, and experience; where applicable, take actions to acquire the necessary competence, and evaluate the effectiveness of the actions taken; and retain appropriate documented information as evidence of competence.” (Clause 7.2)

BENEFITS OF DEFINING BUSINESS CONTINUITY PROGRAM ROLES AND RESPONSIBILITIES

Beyond aligning to ISO 22301, and other industry-approved business continuity standards, there are four main benefits to defining roles and responsibilities, including:

• Ensuring the right individuals are in the right roles to maximize business continuity performance;
• Assisting organizational leaders with assigning the best individuals to each role;
• Ensuring that all  business continuity planning  participants understand what is expected of them;
• Helping to clearly identify any gaps in knowledge, skills, and abilities for individuals assigned to business continuity roles and responsibilities.

Often, when roles and responsibilities are not defined effectively, the wrong individuals (typically with the wrong skills, experiences, and credentials) are engaged in a specific task – usually resulting in poor performance or missed expectations.  For example, we see this when department-level managers assign a newer employee or an administrative assistant to develop a response and recovery plan for the department.  Many times, these individuals may not have the depth of knowledge about department operations or the authority to engage the right individuals to effectively plan for response and recovery.  Conversely, programs that attempt to have senior-level individuals complete a recovery plan for one of their several business units, typically struggle to capture the right level of detail. Both of these issues can result in an ineffective or incomplete plan.

DETERMINING BUSINESS CONTINUITY PROGRAM ROLES AND RESPONSIBILITIES

Although roles vary from organization to organization, some are common among business continuity programs.  The following tables highlight some of the common roles for managing the program.

  WHO SHOULD BE ON MY BUSINESS CONTINUITY STEERING COMMITTEE?

Steering Committee participation often varies based on the organization. Typical Steering Committee members include the COO, CFO, CIO, general counsel, and internal auditors. However, regardless of title, participants on the Steering Committee should be able to:

• Provide strategic input for the program
• Have a pulse on the business – he or she understands the organization’s strategic goals and can see when a change in the business can affect the program
• Assist in validating the scope, products/services, key findings, and strategies for his or her business area
• Ensure direct-reports and subordinates perform required business continuity activities
• Possess strong leadership and verbal communication skills
• Sees the value in having business continuity capabilities for their respective areas.

RESPONSE TEAM ROLES AND RESPONSIBILITIES

Business Continuity response team structures vary widely, but the following roles are common on most business continuity teams:

  STRENGTHENING THE PARTICIPATION LEVEL OF YOUR BUSINESS CONTINUITY PROGRAM

A simple process can help you define roles and responsibilities for your program.

DEFINE THE ROLE

Start by being clear about what you need from each role in the program. Make a list of all the roles in the program and then for each role, start a bulleted list of the role-specific requirements. This list should contain anything from time commitment to knowledge of the business to responsibilities for updating plans. But keep it focused on the most important things. We find most roles can be described in five to ten requirements.

Once the role is clearly defined, then it’s a question of finding the right person to fill it.

BRAINSTORM CANDIDATES

At Castellan, we talk about “GWC” when it comes time to clarify roles and responsibilities (we learned of this three-letter acronym from the book Traction by Gino Wickman, who described a business operating model called the Entrepreneurial Operating System). The person assigned to each role should be able to respond positively to the following questions:

• Do they Get it (understand the role and responsibilities)?
• Do they Want it (are they motivated to take on the responsibility)?
• Do they have the Capacity to perform it (ability and time to perform the responsibilities)?

Once the candidates are clearly defined, then it’s a question of deciding which candidate is the best fit.

SELECT THE BEST FIT

This is a gut feeling type of question – does the person understand what the role is about and how it all comes together to help the organization? Do they see why it’s important? For some people, it just doesn’t click.

Does the person honestly want to do the job? Or are they just going through the motions because they’ve been ‘assigned’ it. We often feel the need to ‘motivate’ or ‘energize’ people in their roles – and that’s one of the warning signs that the person just doesn’t want to participate or do the work. In those cases, you should stop banging your head against the wall and find someone who actually wants it.

Capacity encompasses the skills, resources and time needed to perform the role well. Use the role definition created above to ask yourself if a person has the mental capacity for the role, the skills and the time available to perform it. While Get it and Want it are mandatory, those who don’t fully have the Capacity for the role should still be considered if you believe they can develop the capacity with coaching or training in the next six months.

• When GWC is missing

If you’ve been assigned people that you believe don’t have GWC for the role – this section is for you! First – you must believe that you do not have to tolerate GWC issues in your program. Until you believe that, nothing will change. Even if it takes a year or more to fix – please know that you CAN have a program filled with people who Get it, Want it and have the Capacity to do the work! When that happens – EVERYTHING gets easier.

So how should a program manager address “GWC” problems? The first step is always to talk to the person one-on-one. During the conversation, you can ask them if they “get it, want it and have the capacity” for their role. 90% of the time, they know this is a problem and they’ll tell you all about it! 10% of the time, you’ll need to help them see your concerns. In either case, the first step is to talk to the person and get on the same page that the GWC is a problem. The second step is to ask them what we should do about it. Often, they can find or suggest someone who is a better GWC fit and you can move the program forward quickly. Sometimes though, you just can’t find the right GWC fit. In these cases, you must add it to an issue list as a long-term problem to be monitored and addressed. In some cases, particularly for people with limited capacity, you can put in place workarounds that still allow the program to accomplish its goals. However, if no solutions can be found, present the issue to the steering committee to get their help in problem-solving. Using clear roles and the GWC tool, over time, you can have a team comprised of the right people to help achieve the right level of resiliency. Additional considerations for determining business continuity team participation can be found in the chart below.

A QUICK RECAP

Documenting and communicating roles and responsibilities effectively has two key benefits for an organization:

• The organization will have “ the right people in the right seats “. This will help to ensure that the program continues to grow and develop by having competent individuals who are engaged in driving the program forward.
• Individuals filling each role will clearly understand their given responsibilities and expectations. This will help ensure that program actions are completed, the program is maintained, and, holistically, individuals are seeking to reduce gaps and improve organizational resilience.

Castellan has helped to develop business continuity and IT disaster recovery programs for organizations of all sizes in nearly every industry. Over the 15 years that Castellan has been developing world-class programs,  one of the six core elements  that we have identified as a key driver of program success is Participation.  

If you want to accelerate management’s support for business continuity – you need to check our free guide to building executive support: the  Executive Support Amplifier .  It provides the 5 easy steps to build support without having to ‘sell’ anyone!

If you’re ready to get hands-on help to quickly get results, please book a strategy session with a member of my team today to:

• Discuss your program goals
• Explore your current challenges
• Discuss how to achieve your goals

For more on integrated risk management, download our e-book, Conquering the New World of Risk with Intgrated Risk Management.

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Business Continuity Roles and Responsibilities

Published on November 20, 2023

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Everything you need to know about business continuity, straight to your inbox.

The formation of a business continuity team is a strategic step any organisation can take that could significantly enhance the effectiveness of their business continuity plan. BC team plays a pivotal role in ensuring swift and efficient responses to crises, managing emergencies, and developing business continuity strategies.

It's best to gain a comprehensive understanding of the various activities involved in business continuity management, along with the key roles essential for handling these challenging tasks.

As these roles and responsibilities are assigned with careful consideration, organisations can significantly improve their readiness and capability to succeed in achieving their objectives in the event of unforeseen disruptions.

An Overview of Business Continuity Roles and Responsibilities

Common roles within a business continuity team can be broadly categorised into direct and supporting roles.

Direct Roles Within a Business Continuity Team

The direct roles are primarily focused on the planning, implementation, testing, and management of business continuity and crisis response. They are actively involved in the core activities of business continuity management .

• Business Continuity Manager/Operational Resilience Manager: This role involves overseeing the development and implementation of business continuity plans. A business continuity manager ensures operational resilience by preparing for, responding to, and recovering from disruptions. They focus on minimising impact on operations, customer service, and reputation.
• Business Impact Analysis (BIA) Coordinator: This role involves coordinating the business impact analysis process within an organisation. The BIA Coordinator identifies critical business functions, assesses the potential impact of disruptions, and helps in determining the necessary steps to maintain business continuity and minimise risks.
• Business Continuity Strategy Development Specialist: A specialist in this area focuses on developing strategies to ensure business continuity. They analyse risks and potential impacts, design comprehensive continuity plans, and work on integrating these strategies into the organisation's overall operational framework.
• Business Continuity Consultant: A consultant works with organisations to develop and refine their business continuity strategies. They offer expert advice, assess risks, and provide solutions to ensure the organisation is prepared for unexpected disruptions.
• Business Continuity Specialist: Specialists are responsible for specific tasks within the business continuity framework. They may focus on analysing risks, implementing continuity plans, training staff, or maintaining and updating plans as business needs and environments change.
• Business Continuity Test Manager: This role focuses on testing and validating business continuity plans. The test manager organises simulations and drills to ensure plans are effective and staff are prepared. They also analyse test results to identify areas for improvement.
• Business Continuity Officer: BC officers typically have a hands-on role in implementing and maintaining business continuity plans. They work closely with different departments to ensure continuity strategies are integrated into daily operations and that staff are aware of and trained in these procedures.
• Crisis and Incident Manager: This role involves managing the organisation's response to crises and incidents. They coordinate efforts to address and mitigate the impact of unexpected events, ensuring a swift and effective response to minimise disruptions to business operations.
• Crisis Response Support Worker: Support workers assist in the implementation of crisis response plans. They provide logistical and administrative support, ensure resources are available and deployed effectively, and assist in communication efforts during a crisis.
• Crisis Intervention Specialist: Specialists in crisis intervention provide immediate support and strategic guidance during crises. They are skilled in de-escalating situations, providing counselling, and implementing strategies to navigate through critical incidents effectively.
• Crisis Recovery Worker: Focused on post-crisis recovery, these workers assist in restoring normal operations and services following a crisis. They work on rehabilitation efforts and support the transition back to regular business activities.
• IT Disaster Recovery Manager: This role is crucial in ensuring that IT systems can be quickly restored after a disruption. They develop, maintain, and oversee disaster recovery plans for IT infrastructure, ensuring minimal downtime and data loss in the event of a disaster.
• IT Recovery Technician: Technicians are hands-on professionals who implement disaster recovery plans for IT systems. They perform tasks like data restoration, system repairs, and other technical activities necessary to recover IT operations after a disruption.
• Backup and Recovery Engineer: Engineers in this role design and maintain systems for data backup and recovery. They ensure that data is securely backed up, easily retrievable, and protected against loss due to system failures or other disasters.

Supporting Roles to a Business Continuity Team

The supporting roles, while not directly involved in the creation or execution of business continuity plans, provide essential support and resources that enable the business continuity team to function effectively. They ensure that the business continuity plans are comprehensive, compliant, and well-integrated into the broader organisational framework.

• Risk Management Analyst: This role involves identifying, analysing, and managing risks that could impact the organisation. The Risk Management Analyst evaluates potential threats, suggests mitigation strategies, and works to minimise the likelihood and impact of adverse events on the organisation's operations.
• Legal and Compliance Advisor/Officer: In the context of business continuity, this role ensures that all continuity plans and actions comply with legal requirements and industry standards. They provide advice on legal and regulatory aspects, help in drafting policies and procedures, and ensure the organisation's continuity strategies are legally sound and compliant.
• Supply Chain Officer/Coordinator: This role is crucial in managing and ensuring the resilience of the supply chain during disruptions. They identify potential supply chain risks, develop contingency plans, and coordinate with suppliers to ensure the continuity of goods and services essential for the organisation's operations. Their work supports the broader objectives of the business continuity team by maintaining the flow of resources and materials, which is essential for operational sustainability during crises.
• Human Resources: In the context of BC, HR plays a critical role in ensuring staff are prepared for and can respond to disruptions. They are involved in training employees on business continuity plans, managing communication during a crisis , and supporting staff welfare during and after incidents.

Key Roles and Responsibilities Within a BC Team

As you can see above, several roles are crucial for ensuring organisational resilience and effective response to disruptions. However, the most pivotal ones are Business Continuity and Operational Resilience Manager, Business Impact Analysis (BIA) Coordinator, Business Continuity Strategy Development Specialist, Crisis and Incident Manager, and IT Disaster Recovery Manager.

Each of these roles plays a critical part in ensuring the organisation's resilience and ability to sustain operations during and after a crisis. Their collaborative efforts contribute significantly to the overall preparedness and operational robustness of the company.

Business Continuity Manager/Operational Resilience Manager

The Business Continuity Manager or Operational Resilience Manager is at the helm of business continuity efforts. Their principal duty is orchestrating the development and execution of comprehensive business continuity plans. This role demands a strategic mindset and a proactive approach to foresee potential disruptions and devise robust response strategies. They must ensure the organisation remains agile and resilient, capable of withstanding and rapidly recovering from adverse events. This role also involves collaborating across departments, fostering a culture of resilience, and ensuring that business continuity is ingrained in every facet of the organisation's operations.

Also read: The Role of a Resilience Manager

Business Impact Analysis (BIA) Coordinator

The BIA Coordinator's role is pivotal in identifying and evaluating the critical elements of the business. They conduct thorough analyses to determine how various disruptions could affect these vital components, be it operational, financial, or reputational impacts. Their work is instrumental in prioritising resources and efforts, guiding the organisation in focusing on protecting and maintaining essential functions during a crisis. They must possess keen analytical skills and a comprehensive understanding of the organisation's operations to accurately assess and report on potential risks and their impacts.

Business Continuity Strategy Development Specialist

A specialist in Business Continuity Strategy Development is tasked with crafting strategies that are both resilient and adaptable. Their role involves a detailed analysis of potential risks and the formulation of strategic plans that address these risks. They need to balance risk management with operational efficiency, ensuring that continuity plans are practical, feasible, and integrated seamlessly into the organisation's daily operations. Their expertise is crucial in bridging the gap between theoretical planning and practical, actionable strategies that can be deployed in times of crisis.

Crisis and Incident Manager

The Crisis and Incident Manager is responsible for leading the organisation's response during emergencies. This role requires exceptional leadership and decision-making skills, as they are the focal point in coordinating the response to crises and orchestrating various teams and resources under high-pressure situations. They need to communicate effectively, maintain clarity and control during chaotic situations, ensure that the response is swift and effective, and minimise the impact on the organisation's operations. Their ability to think on their feet and adapt to rapidly changing situations is crucial in mitigating the effects of unexpected incidents .

Also read: Crisis Management Team: Function, Roles & Responsibilities

IT Disaster Recovery Manager

In our digitally-driven world, the IT Disaster Recovery Manager's role is increasingly critical. They are charged with ensuring the resilience and rapid recovery of IT systems in the event of a disruption. This involves developing and maintaining comprehensive disaster recovery plans that cover data backup, system restoration, and contingency measures to minimise downtime and data loss. Their role is crucial in maintaining the continuity of digital operations, a vital aspect of modern businesses. They must stay abreast of technological advancements and potential vulnerabilities, ensuring the organisation's IT infrastructure is robust, secure, and capable of withstanding and recovering from digital disruptions.

Best Practices for Building a Business Continuity Team

1. Prioritise leadership: Select a senior leader to spearhead the business continuity efforts. This individual should possess the necessary expertise, experience, and authority for critical decision-making during crises.

2. Embrace cross-functional teams: Construct teams that bring together diverse skill sets and perspectives. This approach breaks down silos and ensures a more comprehensive handling of business continuity challenges.

3. Define roles clearly: Assign specific tasks and responsibilities to each team member, avoiding role overlap and covering all aspects of the business continuity plan.

4. Invest in training and education: Regularly update your team's skills and knowledge through ongoing training. This ensures they remain adept and adaptable in crises.

5. Implement succession planning: Equip all team members with the training needed to fill different roles if necessary. This ensures continuity in operations, even if key personnel are unavailable during a crisis.

6. Establish communication protocols: Set up clear communication channels for efficient coordination and incident reporting during disruptions.

7. Maintain comprehensive documentation: Keep detailed records of roles, responsibilities, and procedures, and ensure they are accessible to key personnel for quick reference and guidance.

8. Create a feedback loop: Implement a mechanism for continuous feedback on the business continuity plan. This allows for iterative improvements and keeps the plan up-to-date with best practices.

Choosing the Right Person for the Right Business Continuity Roles

In effective business continuity planning , setting well-defined and clear roles and responsibilities is crucial. However, simply assigning teams isn't enough to adequately respond to disruptive events.

It's essential to carefully select your team members, ensuring that the roles within your business continuity team align with the capabilities and expertise of your personnel. This careful selection guarantees that each team member is equipped to handle the responsibilities of their assigned role effectively.

The insights provided here about business continuity roles and responsibilities serve as a valuable guide. We hope this can assist you in making informed decisions when appointing individuals to specific roles, ensuring your team is not only well-structured but also capable of navigating through disruptions successfully.

Written by Aimee Quinn

Resilience Manager at Continuity2

With an Honours degree in Risk Management from Glasgow Caledonian University and 6+ years in Business Risk and Resilience, Aimee looks after the design and implementation of Business Continuity Management Systems (BCMS) across all clients. From carrying out successful software deployments to achieving ISO 22301, Aimee helps make companies more resilient and their lives easier in the long run.

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A guide to business continuity management

In today’s business market, you’re threatened by possible disruptions that can affect your daily operations including your ability to deliver products and offer services. These disruptions may include pandemics, cyber-attacks, or natural disasters.

However, there are certain structures that you can put in place to make sure you remain continuously operating if such disruptions ever occur. In order to do this, you need business continuity management (BCM). In this article, you’ll learn the concept of BCM and the insights it offers with respect to product management.

What is business continuity management?

BCM is a structure that is set by an organization ahead of time to ensure that its daily operations continue to run in case any unforeseen incidents occur such as cyber-attack, pandemics, supply chain disruptions, or natural disasters. BCM involves a team of personnel in charge of developing strategies, plans, and actions to identify, assess, and curb possible risks to business operations. The key objective of BCM is to ensure that the organization continues to run critical activities, deliver products and services, and maintain performance during and after a disruption.

Significance of BCM in product management

BCM is very significant in product management as it ensures the ongoing functionality of an organization’s operations, during any unforeseen incidents. BCM helps to curb risks associated with technological failure, supply chain disruptions, and other unexpected incidents.

For example, in March 2023, the Camden County Police Department was hit with a ransomware attack that disrupted its daily operations and ongoing investigation. Files were encrypted, with the attackers demanding hundreds of thousands of dollars to decrypt the files. Because there was an efficient BCM in place, the Camden County Police Department was able to recover 80 – 85 percent of its files in less than a month.

Role of business continuity management in maintaining product operations

You can overcome an unforeseen crisis without affecting your capacity to deliver products and services by adopting BCM. For example, the Suez Canal blockage in 2021 caused a major disruption in global trade and supply distributions. While other shipping organizations without an adequate BCP were queued to pass through the canal, Danish shipping company Maersk was able to come up with different shipping routes and suppliers. Shipments were rerouted and production plans were changed to reduce the effect of the disruption which could have caused delays.

Key components of a BCM plan

BCM consists of several key components to ensure you can continue your vital operations during disruptions. These components altogether contribute to the ability of the organization to bounce back:

Risk assessment

Risk assessment is effectively finding, analyzing, and evaluating numerous potential risks and vulnerabilities that could affect operations. It’s an essential component of BCM since it acts as the first step in identifying and addressing possible threats to an organization’s continuity. A thorough risk assessment may help organizations understand the possibility of various crisis situations such as supply chain disruption, cyber attacks, pandemics, and natural disasters.

Organizations can carry out risk assessment with the following steps:

• Identify risks
• Evaluate the risks
• Develop control strategies
• Record your results
• Review assessment

There are different risk assessment tools or frameworks that can be used in BCM processes. These tools can be used collectively or individually depending on your needs. Some of these tools are the bowtie model, risk matrix, failure tree analysis, what-if analysis, and failure modes and effects analysis (FMEA).

Business impact analysis (BIA)

As a strategic component of the BCM framework, business impact analysis assists in conducting a thorough evaluation of operations to figure out the possible impact of disruptions. It involves assessing the operational, financial, and reputational implications of any incident. BIA establishes recovery time objectives (RTO) and recovery point objectives (RPO) for every key business activity to assist organizations in continuing regular operations and minimizing the impact of a disruption.

Strategy development

The strategy development phase is when the insights gathered from risk assessments and BIA are converted into practical plans for maintaining and quickly restoring key business operations during a disruption. The major goal is to create a recovery roadmap that ensures an organized and efficient approach to business continuity by directing how the organization responds to various incidents. This includes communication protocols, IT system recovery, resource allocation, and alternative work sites.

Steps to implement business continuity management

To help you get started with implementing BCM within your organization, keep the following steps in mind.

1. Top management commitment and support

Acquiring endorsement and active support from senior management is essential for implementing BCM in product management. This commitment and support aid in allocating resources including funding, technology, and personnel required for the development and management of the BCM programs.

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2. Risk assessment and BIA

A thorough risk assessment helps to identify possible disruptions and vulnerabilities that might affect product development and delivery. Simultaneously, BIA enables a clear examination of various product management activities including the financial, operational, and reputational outcomes of unexpected incidents. Understanding these risks and their implications allows the product management team to focus resources and efforts on the most crucial areas.

3. BCM policies and procedures development

Organizations can outline policies and procedures on how the product management team should operate during an unexpected incident including the roles and specific steps to be taken. BCM policies and procedures for product management should include rules covering areas such as technology recovery, communication protocol, and supply chain.

4. Awareness initiative

Awareness helps to ensure that the product management team understands the importance of BCM and its role in guaranteeing continuity during a disruption in product operations. With awareness activities, the product management team can recognize potential threats, understand their roles in implementing the BCM plan, and work together to protect product operations.

5. Conduct regular testing

The efficiency of the BCM plan can be evaluated by simulating various disruptive events to guarantee that it can be carried out smoothly during real-life emergencies. These exercises enable product management teams to identify weaknesses, validate response mechanisms, and optimize continuity strategies.

Best practices for maintaining and updating BCM plans

While creating your BCM plan is an important first step, your work doesn’t stop there. You still need to actively maintain and update your plans to ensure that they continue to work in the future.

Engaging with key stakeholders

Regular engagements with department heads, staff, and external partners ensures that the plan accurately represents actual organizational procedures and potential hazards. For the BCM plan to be effective, the team must collaborate with the stakeholders of the organization during the review process to exchange ideas or perspectives.

Frequent technology updates

You should always assess and implement technological improvements regularly to keep IT systems, data recovery procedures, and communication tools up-to-date and effective during disruptions. This strategy aligns the BCM plan with the most recent technological resources, increasing the organization’s resilience in case of sudden disruptions.

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Continuous risk assessment

Reassessing possible risks regularly ensures that the plan is still in line with current and developing threats, allowing organizations to address new difficulties ahead of time. If you incorporate continuous risk assessments you better adjust your BCM strategies to the changing business environment, improving overall readiness and resilience.

Post-incident reviews

Analyzing the outcomes of previous incidents provides significant insights into the plan’s performance and highlights areas for improvement. You can refine your BCM plans by incorporating lessons learned from these evaluations, which will improve response capabilities and resolve any weaknesses or gaps discovered during actual incidents.

Final thoughts

Business continuity management has an important role in every organization. To maintain its operations during disruptions, you must establish, implement, and constantly improve your business continuity management practices. You can effectively secure your operations from disruptions by understanding essential components such as risk assessment, business impact analysis (BIA), and strategy development.

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What is Business Continuity Management? A Comprehensive Guide

• Written by: Rinaily Bonifacio
• Last updated: 22 March 2024

In this article, we will discuss the different components of a BCM framework and the strategies an organization can use to protect itself from potential disruptions.

Table of contents

What is business continuity management?

Bcm framework: the building blocks of resilience, the role of communication and managing business continuity, resilience and reputation management, consider establishing a business continuity management program today., frequently asked questions.

Business continuity management refers to an organization's proactive planning and preparation to uphold business operations or promptly recover after a disaster, such as fire, flood, or cyber-attack. It also entails identifying potential risks.

Business leaders aim to anticipate and handle potential crises by developing preventive measures. They will then verify the effectiveness of these procedures through testing and regularly evaluate the process to ensure its relevance and validity.

Policies and Strategies

Continuity management encompasses responding to natural disasters or cyber attacks and creating, testing, and implementing policies and procedures in the event of an incident.

The policy should clearly outline the program's scope, key stakeholders, and management structure while emphasizing the importance of business continuity and governance during this phase.

One aspect of creating and modifying a business continuity plan checklist is determining who is accountable for it, while another is identifying the team in charge of its execution. Proper governance helps clarify what can be a chaotic situation for everyone involved.

Defining the scope is important as it explains what business continuity entails for the organization.

Does the plan cover maintaining the functionality of applications, availability of products and services, accessibility of data, or safety of physical locations and people? To ensure clarity, businesses should specify which aspects of the company are included in the plan, such as revenue-generating components, external-facing areas, or any other subset of the organization.

During this phase, it's important to assign roles and responsibilities.

The roles required for managing disruption can either be based on job function or tailored to the specific type of disruption. In all cases, it is important to communicate and receive support for the policies, governance, scope, and roles.

Business Impact Assessment

The impact assessment is a process that helps you identify the data your company holds, where it's stored, how it's collected, and how it's accessed. It also determines which data are the most critical and how much downtime is acceptable if that data or apps become unavailable.

Although companies strive for 100% uptime by implementing redundant systems and storage capacities, there may still be instances where this goal is not achievable. During this stage, it is essential to determine the recovery time objective, which is the maximum duration needed for restoring applications to a functional state in the event of a sudden service interruption.

Additionally, companies need to be aware of their recovery point objective. This refers to the maximum amount of time that data can be lost before it would become detrimental to the business and its customers. Another way to think of it is as the level of acceptable data loss.

Risk Assessment

To ensure enterprise safety, it is essential to identify potential threats such as bad actors, internal players, competitors, market conditions, political matters (both domestic and international), and natural occurrences. Creating a risk assessment is crucial in developing a plan for addressing these threats.

The process of risk assessment aims to identify various potential risks that may affect the organization.

The first step is to identify potential threats, which can have a wide range of effects. This involves:

• The impact of personnel loss
• Changes in consumer or customer preferences
• Internal agility and preparedness to react to security incidents by creating a plan.
• Financial volatility

Companies that operate under regulation should consider the possibility of non-compliance, as it could lead to severe financial penalties and fines, greater scrutiny from regulatory agencies, and the loss of reputation, certification, or credibility.

It is essential to describe and provide details for every risk. The organization should evaluate each risk's likelihood and possible impact in the following step. Probability and potential are essential factors to consider during the risk assessment process.

After identifying and ranking the risks, the organization should determine its risk tolerance. They need to focus on urgent and critical matters that need addressing. This stage involves finding potential solutions, evaluating them, and determining their cost. The organization should prioritize which risks to address based on their probability and cost.

The risks that have been ranked must be assessed to determine which ones will be tackled initially. It is important to note that this is not a one-time event and should be revisited regularly to accommodate any new risks that may emerge due to technological changes, geopolitical factors, and competition.

Validation and Testing

It is important to regularly monitor, measure, and test potential risks and their impacts. After implementing plans to mitigate these risks, they should also be evaluated to confirm their effectiveness and cohesiveness.

Incident Identification

To ensure business continuity, it is crucial to define what qualifies as an incident clearly. This definition should be included in policy documents and the specific actions or factors that can activate the incident alert. Once activated, the business continuity plan should be implemented, and the team should be prepared to respond accordingly.

Disaster recovery

Can you explain the distinction between business continuity and disaster recovery? Business continuity refers to the overall framework for operations and policy-making, while disaster recovery is concerned explicitly with responding to incidents.

Disaster recovery aims to identify and address risks to respond to specific incidents. It involves deploying teams and taking action to mitigate the effects of a disaster but is not the same as broader planning.

After an incident, a key task is to hold a debriefing to evaluate the response and make necessary plan revisions.

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Effective communication plays a crucial role in managing business continuity. This includes crisis communication, which involves establishing clear and transparent channels for communication with customers, consumers, employees, senior management, and stakeholders.

Consistency in communication strategies is critical before, during, and after any incident. All messaging should be accurate, consistent, and delivered with a unified corporate voice.

Related:  The Power of Internal Communication in a Modern Business World

In crisis management, multiple levels of communication are necessary. This includes developing tools to track progress, identify critical needs, and address issues. Although different groups may require different types of communication, the information provided should be consistent across all sources.

Not having a business continuity plan poses significant risks. If a company fails to prepare, it will not be equipped to handle urgent problems.

These risks can make a company unprepared and cause additional problems, such as:

• Cloud-based servers, systems, and applications may experience downtime, and even a few minutes of downtime can lead to significant revenue loss.
• Frequent or prolonged periods of downtime can damage the trust and loyalty of customers and negatively impact a business's reputation and brand identity. This can result in a loss of customer retention.
• Financial services, healthcare, and energy industries can face regulatory compliance risks. Severe consequences may arise if the systems and data are not operational and accessible.

Properly managing business continuity involves ensuring data protection and integrity. If data is lost, the consequences can be catastrophic.

A systematic approach to business continuity planning should be a part of the organizational culture. This approach can help businesses to recover critical activities more quickly.

Business Continuity Management (BCM) is an essential strategy for organizations looking to ensure the continuity of their operations in the face of disruptions. By proactively identifying risks, assembling a cross-functional BCM team, and regularly reviewing and updating your plans, you can keep your organization operational—no matter what comes your way. With the proper BCM framework and strategies in place, you can safeguard your organization's future success

What's the difference between Business Continuity Management (BCM) and Disaster Recovery (DR)?

While BCM and DR are geared toward helping organizations recover from disruptions, they're not quite the same. BCM is a broader approach that focuses on ensuring the continuity of critical business functions. In contrast, DR is a subset of BCM that deals with recovering IT systems and infrastructure.

Why is Business Continuity Management (BCM) important?

In today's fast-paced, interconnected world, disruptions can strike at any time—and the consequences can be severe. A well-designed BCM plan can help your organization minimize the impact of disruptions, protect your reputation, and ensure long-term success.

How often should I review and update my Business Continuity Management (BCM) plan?

There's no one-size-fits-all answer to this question, as the frequency of reviews and updates will depend on your organization's unique circumstances. However, as a rule of thumb, reviewing your plan at least annually or whenever significant changes occur in your organization or the business environment is a good idea.

Written by:

Rinaily Bonifacio

Rinaily is a renowned expert in the field of human resources with years of industry experience. With a passion for writing high-quality HR content, Rinaily brings a unique perspective to the challenges and opportunities of the modern workplace. As an experienced HR professional and content writer, She has contributed to leading publications in the field of HR.

Please note that the information on our website is intended for general informational purposes and not as binding advice. The information on our website cannot be considered a substitute for legal and binding advice for any specific situation. While we strive to provide up-to-date and accurate information, we do not guarantee the accuracy, completeness and timeliness of the information on our website for any purpose. We are not liable for any damage or loss arising from the use of the information on our website.

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The Bottom Line

What is a business continuity plan (bcp), and how does it work.

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What Is a Business Continuity Plan (BCP)? 

A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster.

Key Takeaways

• Business continuity plans (BCPs) are prevention and recovery systems for potential threats, such as natural disasters or cyber-attacks.
• BCP is designed to protect personnel and assets and make sure they can function quickly when disaster strikes.
• BCPs should be tested to ensure there are no weaknesses, which can be identified and corrected.

Understanding Business Continuity Plans (BCPs)

BCP involves defining any and all risks that can affect the company's operations, making it an important part of the organization's risk management strategy. Risks may include natural disasters—fire, flood, or weather-related events—and cyber-attacks . Once the risks are identified, the plan should also include:

• Determining how those risks will affect operations
• Implementing safeguards and procedures to mitigate the risks
• Testing procedures to ensure they work
• Reviewing the process to make sure that it is up to date

BCPs are an important part of any business. Threats and disruptions mean a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition. It is generally conceived in advance and involves input from key stakeholders and personnel.

Business impact analysis, recovery, organization, and training are all steps corporations need to follow when creating a Business Continuity Plan.

Benefits of a Business Continuity Plan

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic. Business continuity planning is typically meant to help a company continue operating in the event of major disasters such as fires. BCPs are different from a disaster recovery plan, which focuses on the recovery of a company's information technology system after a crisis.

Consider a finance company based in a major city. It may put a BCP in place by taking steps including backing up its computer and client files offsite. If something were to happen to the company's corporate office, its satellite offices would still have access to important information.

An important point to note is that BCP may not be as effective if a large portion of the population is affected, as in the case of a disease outbreak. Nonetheless, BCPs can improve risk management—preventing disruptions from spreading. They can also help mitigate downtime of networks or technology, saving the company money.

How To Create a Business Continuity Plan

There are several steps many companies must follow to develop a solid BCP. They include:

• Business Impact Analysis : Here, the business will identify functions and related resources that are time-sensitive. (More on this below.)
• Recovery : In this portion, the business must identify and implement steps to recover critical business functions.
• Organization : A continuity team must be created. This team will devise a plan to manage the disruption.
• Training : The continuity team must be trained and tested. Members of the team should also complete exercises that go over the plan and strategies.

Companies may also find it useful to come up with a checklist that includes key details such as emergency contact information, a list of resources the continuity team may need, where backup data and other required information are housed or stored, and other important personnel.

Along with testing the continuity team, the company should also test the BCP itself. It should be tested several times to ensure it can be applied to many different risk scenarios . This will help identify any weaknesses in the plan which can then be corrected.

In order for a business continuity plan to be successful, all employees—even those who aren't on the continuity team—must be aware of the plan.

Business Continuity Impact Analysis

An important part of developing a BCP is a business continuity impact analysis. It identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis. The worksheet should be completed by business function and process managers who are well acquainted with the business. These worksheets will summarize the following:

• The impacts—both financial and operational—that stem from the loss of individual business functions and process
• Identifying when the loss of a function or process would result in the identified business impacts

Completing the analysis can help companies identify and prioritize the processes that have the most impact on the business's financial and operational functions. The point at which they must be recovered is generally known as the “recovery time objective.”

Business Continuity Plan vs. Disaster Recovery Plan

BCPs and disaster recovery plans are similar in nature, the latter focuses on technology and information technology (IT) infrastructure. BCPs are more encompassing—focusing on the entire organization, such as customer service and supply chain. 

BCPs focus on reducing overall costs or losses, while disaster recovery plans look only at technology downtimes and related costs. Disaster recovery plans tend to involve only IT personnel—which create and manage the policy. However, BCPs tend to have more personnel trained on the potential processes. 

Why Is Business Continuity Plan (BCP) Important?

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic and business continuity plans (BCPs) are an important part of any business. BCP is typically meant to help a company continue operating in the event of threats and disruptions. This could result in a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition.

What Should a Business Continuity Plan (BCP) Include?

Business continuity plans involve identifying any and all risks that can affect the company's operations. The plan should also determine how those risks will affect operations and implement safeguards and procedures to mitigate the risks. There should also be testing procedures to ensure these safeguards and procedures work. Finally, there should be a review process to make sure that the plan is up to date.

What Is Business Continuity Impact Analysis?

An important part of developing a BCP is a business continuity impact analysis which identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis.

These worksheets summarize the impacts—both financial and operational—that stem from the loss of individual business functions and processes. They also identify when the loss of a function or process would result in the identified business impacts.

Business continuity plans (BCPs) are created to help speed up the recovery of an organization filling a threat or disaster. The plan puts in place mechanisms and functions to allow personnel and assets to minimize company downtime. BCPs cover all organizational risks should a disaster happen, such as flood or fire.  

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An Introduction to Business Continuity Management

An introduction to business continuity management and why it is so important.

By the Mind Tools Content Team

First there was contingency planning. Then there was disaster recovery. Today, the emphasis and terminology for how organizations guard against unforeseen disruptions to their business has shifted again, to ‘business continuity management’. Here we examine what this is, and why it matters.

What is Business Continuity Management?

According to the Business Continuity Institute (BCI), Business Continuity Management (BCM) is:

“A holistic management process that identifies potential impacts that threaten an organization, and provides a framework for building resilience, with the capability for an effective response that safeguards the interests of its key stakeholders, reputation, brand and value-creating activities.” [1]

BCM is a much broader concept than the previously favored approach of Disaster Recovery , which has tended to focus on responding to major setbacks and restoring IT systems.

Why Does BCM Matter?

Almost 20% of businesses experience a major disruption every year.[2] UK research has shown that for organizations with no form of tested Disaster Recovery or Business Continuity Plan, if disaster strikes:

• 12% fail after five years
• 40% fail after 18 months
• 40% go out of business
• only 8% survive in the long-term[3]

While some organizations rely heavily on insurance to see them through a major incident, it is important to realize that this is not a fail-safe strategy. In fact, it is estimated that when a major incident does occur, for every £1 of insured costs, uninsured costs of up to £36 can also be incurred by intangible losses, such as management time, and adverse publicity. This is sometimes referred to as ‘the loss iceberg’, because the greatest threats or costs to the organization are hidden. [4]

These statistics send out a very clear message: BCM is essential, not optional, for organizations that want to safeguard their long-term survival.

The good news is that once in place, an effective Business Continuity Plan can reduce losses by up to 90%, should an incident occur.[5]

Who Needs BCM?

The terrible events of 11 September 2001 provided a stark reminder to organizations, large and small, about the importance of comprehensive Business Continuity provision.

In New York, global financial firm Merrill Lynch, with four large downtown offices, found that after the disaster it had 9,000 staff without any office space to work in.[6] Despite being several thousand miles from the scene, 58% of UK organizations were also affected by the disaster, with one in eight experiencing serious disruption.[7]

Even though the majority of incidents that organizations face will be far less dramatic, it is advisable for all organizations to turn their attention to BCM if they haven’t already done so.

What Should BCM Cover?

BCM should assess the risks, and plan for recovery, for every conceivable disruption an organization might have to cope with. Generally these threats can be broken down into:

• natural disasters – e.g. fire or flood
• technical problems – e.g. systems failure or power failure
• human error or incompetence
• acts of malice – e.g. terrorism, arson, computer viruses
• economic disasters – e.g. a stock market crash

Without proper BCM, such disruptions can result in:

• loss of contracts
• loss of reputation
• human resources problems
• higher insurance premiums

The ultimate worst-case scenario, of course, is that the organization will fail altogether.

What is the BCM Process?

You will find an in-depth eight-stage plan for BCM in our article 8 Steps to Business Continuity Management, but as an overview, BCM should cover the following five steps:

• analyze your organization
• assess the risks
• develop a strategy
• develop a Business Continuity Plan
• rehearse the Plan

One aspect of BCM that merits special attention is media management. The organization that fails to communicate well with its customers, suppliers, employees or the public in a crisis risks damaging its reputation amongst these groups. This in turn can impact on profits.

Worryingly, a recent Business Continuity Institute survey revealed that only 16% of companies have a Business Continuity strategy with provision for protecting their reputation.[8]

Simple measures such as providing key staff with media training, and preparing public statements in advance of any crisis can help to avert a PR disaster.

Who Needs to Know About BCM?

For BCM to work well, it should be supported and endorsed from board level down. Internal and external stakeholders should understand what the organization’s Business Continuity Plan is, what it aims to achieve, and what is expected of everyone if an incident occurs. If only a few people in the organization know what to do during an incident, and they happen to be unavailable, the organization will immediately struggle to cope.

Keeping Your Plan Up to Date

As an organization changes, its BCP should be updated. Typical examples where changes would be necessary are when an organization expands, relocates staff, moves to new premises, or adopts new IT systems or applications. For bigger changes, such as mergers or acquisitions, a complete overhaul of BCM processes is usually necessary. It is important to test and rehearse any Plan regularly, and always when considerable changes are made.

BCM is about understanding your organization and establishing what is vital for its survival. Even a seemingly minor incident can escalate into a crisis situation if it is not anticipated, recognized and dealt with appropriately. BCM costs organizations relatively little in comparison to the potential costs of dealing with a disaster without a Continuity Plan in place.

[1] Honor, D. (2006). Continuity Central: Defining Business Continuity [online] . Available here . [Accessed 14 August 2023.]

[2][7] Expecting the Unexpected: Business Continuity in an Uncertain World [onlne]. Available here . [Accessed 14 August 2023.]

[3][4] Power, P. (2004). Preparing for a Crisis [online]. Available here . [Accessed 14 August 2023.]

[5] Naef, W.E. (2003).'Business Continuity Planning – a Safety Net for Business', Infocon Magazine 1(1). Available here .

[6] Scalet, S.D. (2002). IT Executives From Three Wall Street Companies - Lehman Brothers, Merrill Lynch and American Express - Look Back on 9/11 and Take Stock of Where They Are Now [online]. Available here . [Accessed 14 August 2023.]

[7] London Prepared (2004). Businesses Continuity Advice [online]. Available here . [Accessed 14 August 2023.]

[8] BCI. (2009). Business Continuity Research [online]. Available here . [Accessed 14 August 2023.]

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A Complete Guide to Business Continuity Management

Organisations may be exposed to the risk of unexpected disruption to their business operations such as natural disaster, fire, flood, supply chain disruption, cyber attack, employee strike and pandemic. Such events can severely impact revenue, profitability and even survival.

To protect your organisation and ensure that business operations continue to function when such events occur, you must establish a business continuity management system (BCM).

By the end of this article, you will be equipped with knowledge on:

• What is business continuity management?

• What are the 3 main areas of business continuity management?

• What is the difference between a business continuity plan (BCP) and BCM?

• What are the key elements of business continuity management?

• What are the steps in business continuity management?

What is business continuity management?

Business Continuity Management (BCM) is the management process that oversees and implement strategies to address the risk of unexpected disruptions. It covers emergency response, risk management, planning, business continuity plan (BCP), training, testing and improvements.

What are the 3 main areas of business continuity management?

There are three main areas in the processes of business continuity management:

1. Establishment

2. Implementation

3. Continuous improvement

These processes and their interactions are needed for an effective and comprehensive business continuity management that will help your organisation identify potential threats and recover from any form of disruptions or threats to your business functions. These three areas will be covered in greater detail under the steps in BCM.

What is the difference between BCP and BCM?

BCP is a plan that your organisation can develop to perform the necessary actions to recover from unexpected disruptions and resume normal operations again.

BCM is the management process to oversee and implement strategies to address the risk of unexpected disruptions or crises and minimise the impact on business operations. Disruptions can include floods, fires, workers strikes, supply chain cut-off, pandemic, computer system hacked, etc.

What are the key elements of business continuity management?

BCM is a holistic management process that integrates various elements, namely Business Continuity Plan (BCP), Emergency Response, Crisis Management, Disaster Recovery, Risk Management, Business Impact Analysis, Resilience and Reputation Management.

1.   BUSINESS CONTINUITY PLAN (BCP)

BCP is an integral part of BCM that focuses on resuming operations during an unplanned disruption until it returns to normal again. The plan outlines the strategies and actions required by the organisation, which is more comprehensive than a disaster recovery plan. It contains contingency plans for every aspect of your business operations that may be affected, such as financial services, human resources, productions, inventory management, distributions, external suppliers and business partners etc. The BCP must detail the roles and responsibilities of various key stakeholders and be shared with top management for their agreement and sign-off.

2.   EMERGENCY RESPONSE

This is often seen as one of the critical elements in BCM that require the most resources and management’s attention. It requires very urgent intervention to mobilise people and various resources to bring an incident under control quickly. An emergency can include natural disasters, pandemics or major accidents etc. The response usually focuses heavily on the protection and safety of lives, the company’s assets, health and the environment.

3.   CRISIS MANAGEMENT

This is a process to manage a response to a crisis or major event affecting your business operations in order to stabilise and effectively control the situation and recover your operations in the quickest time possible. Crisis can be attributed to impending changes related to the country’s social, political, economic, environmental or security situation. It often causes uncertainty and threats to the organisation’s goals.

4.   DISASTER RECOVERY

A key component of BCM is disaster recovery. It includes the activation of the recovery team to carry out the necessary actions in handling a specific disruption when an incident happens. For example, when there is an IT disruption to the organisation’s network servers or cyber attacks, the disaster recovery plan will include workarounds or the use of backup systems to recover critical IT assets or systems so that your business operations can continue until they are restored. An essential aspect of disaster recovery is reviewing and assessing the recovery time objective after the incident to address any shortcomings and revise the plan for future implementation.

5. BUSINESS IMPACT ANALYSIS

This analysis is conducted to help your company identifies potential threats and possible risks that your organisation is exposed to and analyse the impact of the disruption if it happens. It is an essential element of BCM as it supports the business continuity process.   It involves reviewing all critical activities   within your business functions and the recovery point objective and time frame required to minimise the impact of a disruption.

6.  RISK MANAGEMENT

Another key component of BCM is the creation of Risk Management to identify the broad array of potential risks to your organisation, covering resources (human, property, equipment and facilities), financial assets, operations, regulatory compliance, information security etc. The probability or likelihood of each risk occurring and their potential impact and severity have to be evaluated, assessed, ranked and measured against your organisation’s risk tolerance to prioritise which risks to address or mitigate first relative to the others.

7. RESILIENCE AND REPUTATION MANAGEMENT

BCM is a very fundamental and significant aspect of business operations in any organisation. BCM is itself a risk to the organisation if it is not managed effectively or adequately. Your organisation needs to be prepared for any unexpected disruptions or incidents so that it can protect or resume its operations and continue to function and recover from the adversity. Having an effective BCM process in place can help companies meet regulatory compliance and manage and protect their reputation and build organisational resilience, thereby protecting the brand and enhancing their competitive advantage.

What are the steps in business continuity management?

Establishment

Establish a BCM system by first creating a team to manage the various processes. Your top management must show commitment and support to the team by providing the necessary resources and training competent people with defined responsibilities.

Carry out a risk assessment of your organisation. You will need to identify and evaluate the risks or possible disruptions your organisation is exposed to and determine the severity and likelihood of different threat scenarios.

Perform a business impact analysis (BIA). This is to assess the potential impact to the different functions within your business operations in the event of a disruption and the maximum time required to resume operations or recover from it.

Implementation

After the management team has been formed, with risk assessment and business impact analysis performed, the next phase is the implementation, which will utilise the results and findings from your risk assessment and business impact analysis.

Develop strategies and create a BCP and implement these recovery strategies across your organisation. These strategies and plans must be detailed, comprehensive, realistic and effective so that every stakeholder involved can understand and be guided on their roles and responsibilities. Do include the actions to be taken in the event a disruption strikes.

Continuous improvement

The final phase is continuous improvement.

Carry out regular testing of your BCP to ensure that the entire organisation is thoroughly trained and prepared for any disruption to your operations. This is typically performed through annual simulation exercises to ensure all stakeholders are fully aware of their respective actions in response to various scenarios or disruptions that can affect the business operations.

 Step 6:

Periodically review your business continuity plan to make improvements to the existing BCP. Through the tabletop exercises in step five, your organisation can identify new threats, fine-tune and adjust in accordance with any changes in the business process so that your existing plans will continuously improve, adapt and update to accurately and effectively respond to new different scenarios.

Business Continuity Management plays a very critical role in every organisation. For your company to continue its business operations when disruptions occur, you will need to establish, implement and continuously improve your business continuity management processes.

ISO 22301 is the international standard that helps organisations craft business continuity plans to protect them and help them recover from disruption when an incident occurs. It also helps companies identify potential threats to their businesses and build the capacity to deal with unforeseen events with an adequate response.

Stendard can help your organisation by providing business continuity management consulting services with experienced consultants. If you have any questions regarding business continuity, please feel free to drop us an inquiry.

At Stendard, we believe that quality is everyone’s business because it takes a team to consistently deliver and uphold excellent standards that build confidence with customers, partners and the community. We are a competent group of experts who can provide consultancy support and advice on using technological platforms for your company through this journey.

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Understanding Program Roles Responsibilities in a Business Continuity Management System

July 22, 2023

Business continuity management systems (BCMS) are essential for organizations to ensure the continuation of critical operations in the event of an unplanned disruption. A BCMS is a comprehensive approach that combines methods, procedures, processes and rules to help organizations identify potential disruptions and create plans to address them.

It is important for organizations to understand the roles and responsibilities associated with a BCMS program in order to ensure its success.A 2020 study by Marsh & McLennan found that 88% of organizations surveyed had a risk management function in place, while 12% had none, indicating that risk management is widely recognized as an essential component of organizational success.

The first step in understanding program roles and responsibilities is to identify who will be responsible for managing the BCMS. This role should be assigned to someone with experience in business continuity planning and management.

The person responsible for managing the BCMS should have appropriate education on risk assessment, emergency response planning, incident management, crisis communication, and recovery strategies.

The next step is to determine who will be responsible for developing the BCMS plan . This role may involve creating policies and procedures related to business continuity planning , as well as developing plans for responding to various types of disruptions. It is important that this person has experience in developing plans that are tailored to the organization’s specific needs.

Once the plan has been developed, it is important that it be tested regularly in order to ensure its effectiveness. Testing should include simulations of various types of disruptions , such as natural disasters or cyber-attacks.

The results of these tests should be used to update the plan as needed. Also external vendors and other stakeholders must be involved during these simulations

Finally, it is important that all employees understand their roles and responsibilities when it comes to implementing a BCMS program within their organization. All employees should be aware of what they need to do if a disruption occurs, including how they can assist with recovery efforts and how they can help prevent future disruptions from occurring.

A business continuity management system (BCMS) is needed to ensure the continuity of operations during an emergency or disruptive event. A BCMS is composed of various programs, each with its own roles and responsibilities.

In this blog post, we’ll take a look at all aspects related to program roles and their duties when it comes to creating an effective BCM plan . From identifying key players within the structure to knowing who should be contacted during times of crisis or emergency event.

Roles and responsibilities within the BCMS.

Program roles in bcms.

The most important role within a BCMS is that of the Program Manager, who oversees all aspects of the system. The Program Manager works closely with senior executives to develop strategies for maintaining business operations during disruptions .

The Program Manager must also coordinate with other departments or divisions to ensure their roles and responsibilities are met. Other essential roles include Risk Assessor, Crisis Response Team Leader, Incident Response Coordinator, and Security Analyst. Each member has specific tasks they must perform as part of their role within the BCMS.

Responsibilities in BCMS

The main responsibility of the Program Manager is to create and implement policies and procedures that will help maintain operational continuity during disruptive events. This includes developing plans for responding to emergencies and disasters, as well as identifying risks that could affect the organization’s operations.

The Program Manager must also ensure that all members of the team are trained on how to respond to different types of emergencies or crises.

The Risk Assessor is responsible for evaluating potential threats to the organization’s operations. This includes identifying any gaps in security measures or weaknesses in infrastructure that could be exploited by attackers or natural disasters . He/she needs to have appropriate documented information for the incident.

The Crisis Response Team Leader leads a team of individuals charged with responding to emergencies or disasters; this includes coordinating activities such as evacuation plans, rescue operations, and communication strategies .

The Incident Response Coordinator oversees all activities related to responding to incidents; this includes ensuring proper resources are available and deployed when necessary.

Finally, the Security Analyst evaluates potential threats from external sources such as hackers or malicious actors; this includes assessing vulnerabilities in systems or networks and developing countermeasures for mitigating risk if needed.

Nearly every governing law requires clear roles or responsibilities to be defined. These include requirements from ISO 2301 Business Continuity Institute Good Practice Guidelines Disaster Relief Institute, FFIEC for Business Continuity, and NFPA 1600. In the ISO 22301 standard, a specific role of the IT disaster recovery program.

Business Continuity Management – Delegating Roles & Responsibilities

Business continuity is constantly undergoing iteration to improve enterprise resilience. The adoption of such strategic measures requires continuous monitoring which extends to all phases of the product life cycle and beyond.

Business continuity management began as a project management strategy focusing on the deployment of the BCM lifecycle within the organization. After implementation, business continuity management becomes increasingly embedded in an enterprise’s operations by employing a programmatic management model.

Business Continuity Program Roles and Responsibilities

A key element of creating good business continuity is identifying key responsibilities. Does everyone understand what roles are meant and how can they differ ? Although we usually provide suggestions on roles and roles, each business will have its unique approach in relation to the structure of its organisation, corporate culture and business continuity objectives .

Against this background, the company is usually evaluated for organizational structures that are currently in place and the assigned tasks. The roles that you have been broken up into three categories and taken by different teams:

Strategic roles : These are the senior-level staff who are responsible for setting the overall strategy and objectives. They also serve as a liaison between departments, such as Finance and IT.

Operational roles : This includes mid-level staff who are responsible for day-to-day operations, such as scheduling and monitoring tasks.

Technical roles : At this level, staff members are more specialized and focus on activities such as developing backups, testing systems and providing support when needed.

They are owners of recovery plan and work according to industry standards and organizational goals during a crisis situation.

Business Continuity Manager

The local Business Continuity Manager (BCM) must prepare and document arrangements to transfer activities into the Business Continuity Centre. Business Continuity Managers have to ensure that Business Continuity Plan is active.

The business continuity manager (BCM) serves as a central point of contact when the BCP is triggered. The Continuity Management Officer is responsible for supporting the Crisis Management Committee (CMC) as well as the different Recovery Teams. The reorganization is necessary to keep in touch with the different departments as well as the recovery team.

Human Resources

Even after elaborate preparation and efforts, crises have extreme stress and emotional impact on everyone involved. The Human Resources Division provides HR staff with priority in meeting the needs of the employee.

Recovery Teams

In all critical departments, there is a recovery team (RT) which has a recovery team lead. Together the Recovery Team members should be capable of performing and monitoring the essential operations within the department.

Whenever the recovery team leader participates in a testing process, based on the system or business process, that takes place at Disaster Recovery Centre or Business Continuous Centre (BCC).

Business Continuity Team Members

Teams execute daily BCP plans under the direction of the Business continuity program manager . They need to have necessary competence and skills on BCM.

Business Continuity Steering Committee Members

It typically assembles six to eight people on the business continuity board to assess the success and development of the business continuity program, its objectives and maturity and make forward steps towards achieving yearly objectives.

Business Continuity Plan Owners

Business unit leaders are responsible for building each business unit’s business continuity plan with guidance from their program managers.

Crisis Management Team

CMTs have the responsibility of managing crisis events that have caused activated BCP and transfer activity into the business centre.

Response team roles and responsibilities

Business continuity teams have varying structures but they are common to many business continuity teams:

Emergency Response Team – This team is responsible for coordinating and implementing the business continuity plans during an emergency event.

Crisis Communication Team – This team is responsible for communicating with stakeholders in the event of a crisis. They are also responsible for ensuring that accurate information about the situation is disseminated to the public. Mostly the leadership teams and senior management.

Damage Control Team – This team is responsible for assessing and mitigating physical damage to any facilities or assets related to the business in case of an emergency.

Support Services Team – This team is responsible for providing support services such as counseling, medical assistance, transportation, lodging, etc., to those affected by the emergency.

Recovery & Continuity Team – This team is responsible for restoring business processes operations to their normal state after the emergency has passed and implementing measures that prevent or reduce future risks or threats.

Understanding program roles and responsibilities within a business continuity management system are essential for any organization looking to ensure its operations stay up and running no matter what happens outside its walls.

In familiarizing yourself with each individual role you can better prepare your company for any potential disruption it may face—whether from natural disasters, man-made crises, or cyber-attacks—so you can keep your focus on what matters most: keeping your business running smoothly.

Chris Ekai is a Risk Management expert with over 10 years of experience in the field. He has a Master’s(MSc) degree in Risk Management from University of Portsmouth and is a CPA and Finance professional. He currently works as a Content Manager at Risk Publishing, writing about Enterprise Risk Management, Business Continuity Management and Project Management.

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The Backbone of Resilient Organizations: Demystifying Business Continuity

What is business continuity.

No matter what business you’re in, unexpected disruptions can happen. Outages, natural disasters, supply chain failures, cyber incidents, equipment failures, and other physical and technical issues can all disrupt your ability to function and thrive.

To ensure your business is ready for unexpected events, you need to know what to do when things go wrong—and this is where business continuity comes in. Read on to learn more about business continuity, including disaster recovery, and what to include in your business continuity plan. Also, find out about business continuity management and business continuity solutions.

What is business continuity and why is it important?

Business continuity is an organization’s readiness to continue functioning during times of disruption. Business continuity is important because it reduces the potential impact of a disruption on customers, employees, and partners.

Having a business continuity plan (BCP)—which includes the analysis, technology, documentation, training, key team members, and procedures involved in resolving potential crisis situations—is vital for ensuring business continuity. A BCP includes goals focused on minimizing the potential impact of a crisis on a company’s financials and reputation—and maintaining industry, regional, and global compliance standards and regulations.

What’s the difference between business continuity and disaster recovery?

While business continuity and disaster recovery are often used interchangeably, they’re not the same thing.

Disaster recovery is a key part of a business continuity plan and is focused specifically on systems, data, and IT infrastructures. It includes technology, strategies, and processes for saving, restoring, and recovering data and protecting against cyber threats.

For a BCP to be successful in reducing downtime, mitigating risks, and remediating issues like data loss and corruption, disaster recovery measures are crucial. While both involve processes, people, and technology, business continuity offers a much wider scope to encompass the steps necessary for maintaining operations across every part of a business.

What should be included in a business continuity plan?

There are three components of a business continuity plan to consider:

• Resilience—developing business functions and infrastructures to be prepared for an unexpected situation.
• Recovery—setting up backup and recovery solutions for your applications, systems, and networks; determining what systems should be prioritized in the event of a disaster; and choosing a third-party vendor for additional help and resources if necessary.
• Contingency—creating steps for what to do if a disruption occurs. This includes setting up a chain of command with key people and defining their responsibilities when it comes to communication, technology, third-party contracting, and coordinating temporary spaces. Keep these in mind at every step in the planning process to help ensure your BCP covers the full scope of your business.

With these three key components in mind, take the following steps to start building your business continuity plan:

• Run a business impact analysis (BIA), which examines your current business functions, processes, and technology. An analysis will uncover potential vulnerabilities, risks, and threats you might encounter. Doing so helps identify areas of improvement and what to prioritize. After an analysis, you may consider making additional technology investments as well.
• Outline and assign responsibilities for who will delegate, act, and support in the event of a crisis. These individuals will execute any necessary steps, be points of contact, gather resources, and guide efforts to minimize downtime for affected business functions.
• Determine alternative forms of communication in case your standard means of communication are impacted by an outage or downtime.
• Prepare backup equipment in case of damage or outages to prevent business-critical functions from stopping.
• Understand and follow business continuity standards, which are legal and regulatory requirements determined for an industry. These are helpful when determining what steps you need to take in scenarios such as a breach or data loss. Creating a plan isn’t the last step—to make business continuity an important part of your organization, you also need business continuity management.

What is business continuity management?

Business continuity management includes the processes you put in place to set up and maintain your business continuity plan. It should include the following:

• Creating policies that define the scope, objectives, and principles of business continuity. These should always keep the customer in mind to ensure you’ve documented what business-critical functions may impact customers and who is involved in customer service communication in the event of an outage or disruption.
• Assembling business continuity teams throughout your organization who can communicate and enforce policies and procedures that are put in place. These employees will take part in ongoing reviews and tests to make sure everything and everyone is properly prepared for an incident.
• Supporting a culture of business continuity by educating your entire organization about risks, policies, and documentation available. Offering ongoing training is an important way to increase awareness and gather data to see if there are any gaps or areas in need of improvement.
• Maintaining up-to-date compliance standards and best practices to make sure your processes, workflows, and employees all work within the correct industry standards as they relate to data. If a business doesn’t keep up and an unexpected disruption occurs, there’s the risk of increased financial damages, legal costs, and fines.

Keeping track of all the continuously developing parts of a business continuity plan can be daunting for a growing organization. To reduce the time and effort involved, many businesses invest in business continuity solutions.

What kind of business continuity solutions should I consider?

The business continuity solutions you choose should be based on your organization’s needs. Depending on the industry you’re in, the size of your company, and your business-critical functions, you’ll find a range of software and resources available. These options include:

• Cloud-based storage solutions, which provide a secure, remote location to back up and run workflows and applications, as well as store data. If there’s a breach or error causing data loss, you can access what you need from the cloud.
• Backup and recovery tools for making copies of the data, applications, and systems within your IT infrastructure. If anything is deleted, corrupted, or shut down during a disruption, you can restore them and minimize downtime. These solutions offer different options for running backups, including automatically on a schedule, instantly, or as needed.
• Virtualization tools that replicate environments and workspaces. If there’s an outage or device issues, employees can still access their applications and run processes as normal, reducing downtime that may affect services.
• Contracts with third-party providers, such as disaster-recovery-as-a-service (DRaaS) and backup-as-a-service. Based on your agreement, a provider can run data backups, host your IT infrastructure, and offer support in the event of a disaster. These services are typically offered with a subscription or a pay-as-you-use model and include support from IT and cybersecurity experts.
• Unified communication tools to support collaboration across your entire organization. With one platform for connecting frontline workers, customer service agents, and other key members of your continuity teams, it’s easier to keep everyone up to date on disruptions and manage shifts and schedules to make sure the right people are available.

Business continuity should be a priority for any growing business looking to ensure the safety and security of their employees, technology, and data. To support the planning process, there are several solutions available to make business continuity planning easier. Though you can’t predict or prevent every disruption, with the right tools, a solid plan, and an educated team, business continuity can save you time, money, and resources across your organization.

Learn more • Developing your business continuity plan • Business continuity and disaster recovery

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Business Continuity Manager

Job summary:.

The Business Continuity Manager will collaborate with department directors and the executive team to develop and implement plans to anticipate, address, and mitigate the effects of various business interruptions.

Supervisory Responsibilities:

Duties/responsibilities:.

• Develops and maintains a business recovery plan and procedure; reviews, revises, and expands existing plans and protocols.
• Conducts risk assessments for various departments and functions, analyzing potential business impact of unpredictable business interruptions such as natural disasters, security breach, legal claims, and market disruptions.
• Collaborates with IT staff to develop and implement best practices to protect and restore data and systems in the event of natural disasters, viruses, and hackers.
• Identifies and implements recovery operations and methods to allow the company to function at limited or partial capacity in the event that part or all of the infrastructure is damaged or destroyed.
• Creates and facilitates practice drills for plan execution.
• Develops and provides staff training on risk management and disaster recovery.
• Works with health, safety, and security staff and local, state, and federal agencies to align the organizations emergency management plan with established best practices and community standards.
• Performs other related duties as assigned.

Required Skills/Abilities:

• Thorough understanding of risk management.
• Excellent strategic, problem solving, and analytical skills.
• Ability to think through hypothetical situations and concepts and to identify risks and weaknesses in various business processes.
• Ability to collaborate with others to develop an emergency plan.
• Excellent communication skills.
• Proficient with Microsoft Office Suite or related software.

Education and Experience:

• Bachelors degree in Business Administration, Finance, or similar field required; Masters degree preferred.
• Minimum of five years of management experience with at least two years in a risk management position required.

Physical Requirements:

• Prolonged periods sitting at a desk and working on a computer.
• Must be able to lift up to 15 pounds at times.

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Implementing and Managing Your Business Continuity Management Program

Are you appointed to be part of the bcm team or better to manage the bcm program, be it full-time or part-time, it is good to have an understanding on what aspect of the knowledge, the skill set and the challenges that is needed to do a good job, table of contents, starting your bcm journey ....

Congratulations - you are either appointed to manage or already as part of the team implementing and maintaining the Business Continuity Management (BCM) Program.  Be it full-time or part time, it is good to have an understanding on what aspect of the knowledge, the skill set and the challenges that is needed to do a good job? So asked yourself  " What is My BCM Role? "

If you are looking for specific business continuity management (BCM) training courses with professional certification from BCM Institute, proceed to scroll down to the section " What Type of Training Can I Attend? "

Before we start, it is useful to confirmed your understanding of business continuity management and  crisis management.  It is worth reading   " Crisis Management and Business Continuity Management: Why Is It Often Confused? "  If the differences is clear, let's start the discussion on your assigned BCM roles and responsibilities.

Can We Speak the Same Language?

One of the critical step for the BCM journey is to “speak the same lingo.”  Hence, it is important that an organization establish its definition of a “ disaster ” when embarking of business continuity planning (BCP) and the many terms that is used during the implementation and management of this BCM program.  In our context, the alignment and correct understanding of each BCM terminology is critical.

What is A Disaster?

In short, it denies an organization access to people, process and infrastructure.

• What Are the Key Terminology You Need to Know for Business Continuity Management (BCM)?  Starting with " Six Key Terms Synonymous to "Disruption" You Need to Know for BCM? "
• What Exactly is Business Continuity Management?
• What Are the Key Terminology You Need to Know?  Look for the terms found in " BCMPedia: Business Continuity Management Wikipedia"?

Where Do I Start?

If you are embarking on your BCM journey and is starting from a "blank page", what should be the steps that you should be  undertaking.  

• Do you have an existing BCM framework and policy?
• Do you know who should be members of your BCM team?

How Do I Start?

  If you are truly a BCM newbie, you  should start by gathering information from articles, case studies and analyzes of recent crises affecting organizations both inside and outside of your industry. The key is to identify best-practice recommendations and any common pitfalls.

What Type of Training Can I Attend?

Globally at your home location, there are related courses specific to business continuity management.  If you find it useful, you may want to take a look at the BCM Institute's series of specialized BCM courses.  The quick question is do I have the necessary skillset and know-how to do this job? what do I "not know"?  How Do I Start My BCM Learning Journey ?

The institute has competency-based training leading to professional certification.  You may want to review the following BCM courses to determine the relevance to your roles and prior knowledge?

• [Course Code: BCM-400] Meanwhile, if you have decided to complete your BCM-5000 course in stages and have already completed our intermediate course (BCM-300), you will be asking yourself how you can " Complete Your Final Installment of Advanced Level BCM (400 Level) Training Course ."

Course Content Links to BCM Institute Website With Pricing

B CM-200: Business Continuity Management System Planner  [ Course Description ]  [ Pricing ] Course is an E-Learning Module.

B CM-300: B usiness Continuity Management System Implementer   [ Course Description ]  [ Pricing ]  [ FAQ ]

B CM-400: B usiness Continuity Management System Manager   [ Course Description ] [ Pricing ]  [ FAQ ]

• B CM-5000: B usiness Continuity Management System Expert Implementer   [ Course Description ] [ Pricing ]   [ FAQ ]

Note: For the latest course schedule, go to the respective [ Course Description ] and click [ Course Schedule ]

What is the Competency Needed to Manage a BCM Program?

Here are some of the related courses to be considered.   Take stock by reviewing " What is My BCM Competency Level? ".  It is essential for you to know where you are "Know-Do-Manage" and where you aspire to reach or are required by the current BCM role.

So What Exactly Is Your BCM Role?

For those who are experienced and are seeking to progress in their career, it is time that you review and develop your learning road map that will accelerate both your knowledge, skillset and most importantly, your career. However, if you are already the BCM Manager, what are the other roles within the BCM organisation? So find out the respective roles in " Business Continuity Management: What is My Role? "

Here are some of the four key and related roles to be considered:

What BCM Certification Can I Achieve?

Business Continuity Management Certification provides you with the necessary verification that you have the knowledge and also the necessary experience to implement or manage the crisis management program.

The three levels of certification are shown below.  The types of crisis management certification include BCCP, BCCS and BCCE.

To elaborate on the requirement to attain your certification, you can find more information at " How to Obtain Your BCM Certification? "

Is There A Good Reference Guide?

The institute has published a specialized BCM book called "A Manager’s Guide to ISO22301 Standard for Business Continuity Management System."  You may want to get a  copy of this book from the BCM Institute's store .

This book will provide an overview of how a BCM framework is developed. The content is to advise the reader on the approach to implementing the ISO 22301:2012 framework, principles and methodologies. Using the PDCA component as spelt out in the ISO Standard, this book provides a clear explanation of the standard and details on the “How-to” aspect in implementing your BCM program,  plans and procedures.   It also guides BCM professionals new to ISO to implement and achieve its Business Continuity Management System or BCMS. ISBN: 978-981-07-2512-9

Other Useful References

A list of the other references can be found in " What Are BCM References That Is Useful? "

How to Obtain Funding from the Singapore Government?

WSQ Courses : BCM Institute is an Authorized Training Centre (ATO), and the crisis management training program is developed in collaboration with SkillsFuture Singapore (SSG).

It is good to know the differences between BCM Institute's certification courses versus competency-based training by reading  " What is Certification and Competency-based Courses? "

What are the specific BCM courses offered as part of a competency-based course, and what is the course content on the website? If you want to know more explanation about the course and the certification program, click [Read more BCM-3X0]

• BCM-310: Assessing Risk and Business Impact Requirements  [ Read more about BCM-310 ]
• BCM-320: Developing Business Continuity Strategies and Plans  [ Read more about BCM-320 ]
• BCM-330: Testing and Exercising Business Continuity Plans  [ Read more about BCM-330 ]

You can view this " Comparison Between BCM Intermediate Level Competency and Certification Courses " as an example.

If you have any questions, please feel free to write to us @ [email protected]

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The role of business continuity management during COVID-19 - Did business continuity planning pay off?

Did business continuity planning pay off?

For organisations that continued to operate throughout the pandemic, it is interesting to see whether having a business continuity plan (BCP)  actually helped them in the response to the crisis – with various surveys conducted throughout this challenging period.

Around a quarter of businesses surveyed in February 2020 were only just developing their first ever business continuity plan in response to the COVID-19 outbreak 1 , and by June 2020, 21% admitted that they still didn’t have a pandemic plan and process in place 2 .

Organisations with a well-established business continuity capability have generally been able to achieve a swifter activation of remote work and other required contingencies. For example, their BCP has provided a framework for incident management and decision making, critical IT staff and networks were ready to respond, and altered work areas were quickly leveraged to achieve social distancing.

While some BCPs required amendments, having a defined plan in place gave organisations a basis from which to define their response.

What happens from here?

A year of an altered working environments has brought a number of predictions for business and operating models. These include an increase in remote working (treated as the ‘norm’ where it may not have been embraced before), an increase in robotics and automation, especially in industries with a high reliance on site-based staff, and the diversification and localisation of supply chains. In a report created by the Business Continuity Institute, for example, it was highlighted that fewer than half of organisations surveyed had an adequate contingency plan in place to protect their supply chain and over 57% of organisations are looking to diversify their supplier base post-pandemic, in many cases reducing their reliance on the Far East (29.9%) 3 .

Data also shows that 95% of businesses said they will assess whether they need to revisit their enterprise risk management  framework and continuity plans as a result of COVID-19 4 and 45% of SMEs creating or changing continuity plans say they need to improve their risk assessment practices 5 . Another key consideration is identifying critical products/services that must be delivered in a crisis – a concern for 33% of SMEs 6 .

As we enter the next phase of the pandemic, the decisions made by organisations will define their future – particularly decisions around managing risk and business continuity.

How Gallagher can help

We have experienced and qualified BCM specialists within our Risk Management Solutions team who can assist you in all aspects of business continuity. This can range from initial business continuity plan development , through various types of exercise, to reviews and gap analyses of mature BCM programmes.

1. https://www.me.mercer.com/newsroom/covid-19-companies-have-no-businesscontinuity- plan-to-combat-coronavirus-outbreak.html 2. https://www.internationalsos.com/news-releases/second-wave-of-covid-19-feared-asleading- threat-to-business-continuity-jun-09-2020 3. https://www.thebci.org/news/3-out-of-4-supply-chains-adversely-affected-bycovid- 19.html 4. https://www.avetta.com/sites/default/files/2020-12/THE%20COVID-19%20EFFECT.pdf 5. https://www.trinet.com/about-us/news-press/press-releases/trinet-and-the-harrispoll-reveal-survey-results-highlighting-covid-19-preparedness-and-resiliency-of-smalland-medium-size-businesses 6. https://www.trinet.com/about-us/news-press/press-releases/trinet-and-the-harrispoll-reveal-survey-results-highlighting-covid-19-preparedness-and-resiliency-of-smalland-medium-size-businesses

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The Critical Role of Internal Audit

Business Continuity and Crisis Management

• Publication
• August 02, 2023

The increasingly fast-paced and unpredictable nature of the modern business landscape has left organisations increasingly susceptible to a myriad of challenges that can disrupt their operations and even threaten their existence altogether. Natural disasters, cyberattacks and economic downturns are just a few examples of crises that may result in significant disruptions to a business’s operations and financial stability. In such uncertain times, it is imperative for the survival of organisations that a proactive approach is taken to business continuity and crisis management.

Various institutions, such as the International Organisation for Standardisation (ISO), National Institute of Standards and Technology (NIST), Business Continuity Institute (BCI) and Disaster Recovery Institute International (DRII), have developed specific standards and guidelines for organisations to incorporate into their models of business continuity and crisis management [1] . Each business must identify its unique requirements depending on its relevant region, industry and business model.

Understanding Business Continuity and Crisis Management

The evolving role of internal audit, identifying and assessing risks, providing assurance and independent oversight.

At its core, business continuity refers to a company’s ability to maintain its essential functions and to continue to deliver products or services during or following a crisis, thus minimising the potentially adverse impacts on stakeholders and operations. Crisis management is closely intertwined with this and relates to the process of responding to and recovering from a crisis effectively. A well-designed crisis management plan is an integral part of an organisation's overall business continuity strategy.

The primary role of internal audit (IA) has traditionally been to assess operational controls, identify potential inefficiencies and ensure compliance with legal and regulatory requirements. More recently however, as the business landscape has evolved, so too has the role of IA, and internal auditors are increasingly becoming key players in the organisation's crisis management and business continuity efforts. IA, as an independent and objective function within the organisation, can play a critical role by identifying risks, assessing processes and controls, and guiding management's responses to crisis events. IA functions are also well positioned to perform a Gap Analysis of business continuity processes and procedures against the various business continuity standards and guidelines developed by the organisations listed above.

Internal auditors excel at identifying and assessing risks across various aspects of an organisation's operations. During a crisis, this becomes even more critical. By conducting comprehensive risk and control assessments, they can identify potential weaknesses that may be more likely to be exposed during a crisis. Organisations can then leverage this information to allocate their resources more effectively during a crisis scenario, focusing on the more vulnerable areas of operations. Adopting a proactive approach allows businesses to implement measures to mitigate these risks before they can potentially escalate into a full-blown emergency. Additionally, IA can assist in designing and implementing a robust control framework that strengthens the organisation’s ability to respond effectively when a crisis occurs.

In the event of a crisis, stakeholders, including the board of directors, executive management, and external parties, need assurance that the organisation is prepared to respond appropriately and effectively. Internal auditors, as independent and objective professionals, provide an invaluable source of assurance during these challenging times. Thorough testing is required to ensure that an organisation’s business continuity plan (BCP) will prove effective in practice. Independent evaluations of the BCP, as well as the performance of scenario-based testing exercises, will offer key oversight and help build confidence and trust among stakeholders within an organisation.

Conclusion In an increasingly uncertain world, business continuity and crisis management have become essential for organisations striving to withstand and recover from unexpected disruptions. The many different ways in which these crisis events manifest themselves mean that there will never be a single model of business continuity and crisis management that is valid for all organisations. With that being said, however, IA can offer a unique skill set and objective perspective, and with that provide invaluable assistance for organisations in identifying their risks, monitoring their processes and evaluating their business continuity plans and processes. Their involvement can make a substantial difference and provide crucial support to businesses during these challenging times. As organisations continue to navigate the complexities of the modern business environment, recognising the pivotal role of IA in business continuity and crisis management is no longer an option and can now be considered a necessity.

How we can help

References:

[1] Internal audit of crisis management and business resilience, (IIA, p. 7)

https://www.theiia.org/en/content/articles/advocacy-partner-content/2022/internal-audit-of-crisis-management-and-business-resilience/

Michel Ganado

Digital Services Leader, PwC Malta

Tel: +356 2564 7091

Senior Manager, Advisory, PwC Malta

Tel: +356 7975 6979

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An IT business continuity plan: Why you need one and what it entails

Business continuity and disaster recovery plans ( BCDR ) are organization-wide plans to help prepare your business for a wide range of potential crises and to mitigate the impact of such events.

Threats to your business can take various forms—from global pandemics that disrupt supply chains to natural disasters that threaten your physical workspace. However, as businesses rely increasingly on various systems to manage core operations and house crucial information, including customer, employee, and financial data, threats to IT systems loom largest for many business owners.

That’s where your IT business continuity planning comes in. This may be part of a larger business continuity plan or may be conducted in isolation if IT is the sole concern of your business continuity management.

A deeper dive into business continuity planning

When an event disrupts your business’s operations, a business continuity and disaster recovery plan (BCDR) comes into action. Downtime can lead to financial losses for companies, so minimizing its impact is crucial to ensure prompt business recovery and minimize revenue loss.

Although disaster recovery is a critical function of IT systems, BCDR is much broader than merely ensuring the stability and security of your tech stack. It encompasses various aspects, such as ensuring employee safety, managing brand reputation, crisis management, identifying alternative work locations, and ensuring systems security and data protection.

Therefore, developing a comprehensive b usiness continuity and disaster recovery plan requires thoroughness. While it may not be possible to predict every potential disaster that could befall your business, you can develop fallback plans to utilize when disasters inevitably occur.

Threats to your IT systems

When you think of your IT systems, it’s natural to think of things like cyberattacks or systems downtime as posing potential threats to your business continuity. However, IT systems can face various threats that can cause significant damage and disrupt business operations. These threats include:

• Natural disasters , such as hurricanes, floods, earthquakes, wildfires, and tornadoes, which can damage physical infrastructure (like servers) and cause business disruptions.
• Cyberattacks and data breaches , which can result in data loss, system downtime, reputational damage, financial losses, regulatory fines, and legal liability. These attacks are becoming more sophisticated and frequent, and companies must take necessary precautions to secure their systems and data.
• Human errors made by employees, contractors, or vendors can also lead to system failures, data breaches, or other disruptions to business operations. Companies must invest in training and implementing proper protocols to mitigate such risks.
• Power outages can result in system downtime and data loss. Companies must implement backup power systems and disaster recovery plans to minimize the impact of such events.

It’s important for your organization to identify the specific threats that are most relevant to their business and to develop appropriate plans and strategies to mitigate those risks.

Where to start when developing an IT business continuity plan (BCP)

Most good plans start with information-gathering, and your IT business continuity plans are no different. The components of gathering the right information are outlined here:

Business continuity management (BCM)

Business continuity management (BCM) is the process of identifying potential threats and risks to an organization, developing plans to mitigate those risks, and ensuring that the organization is prepared to respond effectively to a crisis or disruption. 

The goal of BCM is to enable an organization to continue its critical operations during and after a catastrophic event, whether that event is a natural disaster, cyber-attack, or any other unexpected occurrence that could impact the organization’s ability to function.

The role of a Business Impact Analysis (BIA) in business continuity management 

A business impact analysis (BIA) is a key component of your business continuity management or BCM process. The BIA identifies and evaluates the potential impact of a disruption on critical IT functions and business processes.

When doing a BIA, you’ll:

• Identify the essential IT functions and processes your business needs to restore quickly after a disruption. For example, if you’re an e-commerce business, your website and payment processing systems are critical IT functions that need to be restored quickly to avoid losing revenue and customers.
• Assess and quantify the potential impacts of a disruption on each function or process. These impacts can range from shipping delays to customers to regulatory non-compliance. By understanding the potential impacts, you’ll be able to prioritize your disaster recovery efforts and allocate resources effectively.
• Understand the resources required to support each IT function or process. This can include personnel, technology, and facilities. This can help you identify single points of failure, such as only one person who knows how to operate a certain system. If that person is unavailable, it could result in significant downtime and lost revenue.

By conducting a BIA, you can develop targeted and effective recovery strategies that minimize the impact of a disruption on your IT systems. It’s recommended that organizations conduct a BIA at least once a year or whenever there are significant changes to the organization’s operations or risk profile.

How your IT business continuity plan comes to life

As business continuity and disaster recovery are interdependent, there is a significant overlap in devising an IT disaster recovery (DR) plan and an IT business continuity (BC) plan. As such, we like to consider all three branches of BCDR when developing an effective business continuity plan. Those three branches are:

• Emergency response: This branch of business continuity focuses on the immediate response to a crisis or emergency situation. Think of it as the immediate “to-do plan” if there’s a natural disaster, cyber-attack, or any other unexpected event that can disrupt business operations.
• Crisis management & business continuity: Crisis management deals with the restoration of critical business functions after an interruption, including the recovery of data, systems, and operations. The objective is to ensure that business operations can be resumed as quickly as possible and minimize the impact of the disruption.
• Disaster recovery: Time to recover critical business functions! Whether you’re rebuilding infrastructure, replacing equipment, or upgrading systems, this stage is about getting your business back to where it was. This branch also focuses on the proactive measures that organizations can take to mitigate the impact of another potential disaster or crisis.

For each IT function, you should have a plan in place that covers all three branches. Let’s look at an example:

Example: A power outage impacts critical IT systems

Power outages or blackouts can happen for a number of reasons, but if your business is located in a region that is prone to volatile weather or extreme heat, power outages are something you should prepare for well in advance. If and when a power outage occurs, you might have the following steps in place:

Your emergency response to a power outage: 

With the correct procedures and training in place, your team will know exactly how to respond the next time there’s a blackout. This might include:

• Using personal wireless hotspots for urgent tasks that require web access
• Unplugging devices from power sources so they don’t short circuit when power returns
• Reporting the outage to the relevant authorities 
• Seeking to understand the extent of the problem (often this can be found on websites or through social media accounts of power companies)
• Notifying key people (customers/leaders) about the situation (this can even be done through social media

Roles and responsibilities will also be clear so people do not duplicate efforts or create confusion.

Crisis management & business continuity: 

Now that initial steps and actions have been taken, you can move to actively manage your business while the power is out. Actions taken now will depend on the duration of the power outage, but some options include:

• Sending employees home if it’s easier for them to simply work from home or it looks like the outage may impact the rest of the business day
• Investing in a backup generator if the power will be out for a prolonged period (this might also be part of disaster recovery if it’s a proactive step to be taken for next time)
• Continuing to keep customers and stakeholders up to date via essential channels like social media, email, and even phone

Disaster recovery from power outages: 

Hooray! The power is restored. Your office can now return to normal productivity. But before everybody jumps in, your tech team might want to:

• Reset the circuit breaker before turning on devices and network routers
• Confirm any steps for restarting systems that have not been shut down properly

Having survived an outage, your business might now reassess your preparedness for such events and decide to implement some changes. This can include things like:

• Setting up an uninterruptible power supply (UPS) to allow people to safely shut down their computers
• Ensuring all staff members store all business documents, contact lists, and other critical information in the cloud so it’s accessible from anywhere with an internet connection

Who’s responsible for your IT business continuity plan

Going through each and every IT system, from hardware to software, that your company uses may seem like a daunting task. That responsibility typically falls on the organization’s IT department or a designated IT team. 

However, depending on the organization’s size and structure, the responsibility for a successful business continuity plan may also fall on other departments or individuals, such as risk management, operations, human resources, or a business continuity team.

Moreover, your IT team will likely depend on all staff and even business partners for inputs on the nature of certain systems, how essential they are to maintaining business operations, and the revenue implications of those systems being down.

For example, your marketing team may use various systems for email deployment, social media monitoring, content production, and more. As such, your IT team may require information from them on which systems you use that are most critical to maintaining productivity and which systems are most closely tied to revenue.

The importance of staff training

Because human error puts your IT systems at risk, all staff should also be required to undergo annual training on data security and emergency procedures. Depending on the compliance frameworks your company adheres to, certification may also be required for all employees. 

For example, if your company processes credit card information, it may be required for all employees to complete PCI compliance training. PCI compliance training refers to a program or series of courses designed to educate individuals and organizations on the Payment Card Industry Data Security Standards (PCI DSS) and the requirements for complying with these standards. 

PCI DSS is a set of security standards developed by major credit card companies to help ensure that businesses that accept, process, store, or transmit credit card information do so in a secure manner and protect against fraud and data breaches.

The importance of testing & iterating your IT business continuity plans

Just like running regular fire drills, your IT business continuity plan needs to be constantly tested and updated. Plus, every time you do a new business impact analysis (or BIA), you’ll potentially identify new areas of vulnerability that your BCDR needs to account for.

Here are some steps to follow when testing your BCDR plan:

• Define the testing objectives: Defining the objectives of the test can include testing the effectiveness of specific recovery procedures, identifying weaknesses in the plan, or assessing the readiness of key personnel.
• Develop a testing strategy: A testing strategy will outline the scope of the test, the testing approach, and the expected outcomes. This should include a detailed test plan that identifies the testing scenarios, the resources needed to conduct the test, and the criteria for success.
• Conduct the test: Run the test according to the testing plan. This may involve simulating a disaster scenario, testing specific recovery procedures, or conducting a tabletop exercise to test the response of key personnel.
• Evaluate the results: This may involve reviewing the test data, conducting post-test interviews with key personnel, or analyzing the effectiveness of specific recovery procedures.
• Improve: Based on your results, improvements to the BCDR plan may be identified and implemented. These may include revising specific recovery procedures, updating the contact list for key personnel, or investing in additional resources to improve the organization’s overall readiness for a disaster.

Need help? Working with the experts at Thoropass can help you build the foundations for a resilient business that stands the test of time.

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Role of Incident Management in Business Continuity Planning

Dec 21, 2023 | 42Gears Team

Modern businesses rely heavily on technology to operate efficiently and effectively. However, with the increasing complexity of systems and the ever-present threat of unforeseen incidents, ensuring uninterrupted operations is a challenging task, and this is where incident management plays a pivotal role in business continuity planning.

Incident management is a multifaceted process that involves communicating incidents and scheduled maintenance to customers and internal incident response teams in real-time, reducing support volume at scale, and, most importantly, earning customers' trust through complete transparency. 

In this blog, we will explore the critical role of incident management, and how incident communication solutions, like AstroStatus , help in devising a robust incident management strategy. 

The Foundations of Incident Management

It’s important to note that incident management is not merely a reaction to problems when they occur; rather, it is a proactive approach that aims to minimize the impact of incidents on business operations. 

At its core, incident management involves the following key components:

Real-time Incident Communication: Incident management relies on real-time incident communication to inform all stakeholders, including customers and internal teams, about ongoing incidents or scheduled maintenance. This ensures that everyone is on the same page and can prepare or respond accordingly.

Support Volume Reduction: An essential aspect of incident management is to reduce the volume of support requests that flood in during an incident. By providing timely information and solutions, businesses can prevent the escalation of incidents and minimize the burden on their support teams.

Transparency and Trust: Perhaps the most critical aspect of incident management is transparency. By being open and honest about the nature and impact of an incident, businesses can build and maintain trust with their customers.

The Role of Incident Management in Business Continuity Planning

Now, let's delve deeper into what incident management involves, and how incident communication solutions like AstroStatus play a central role in business continuity planning:

1. Prevention and Mitigation: Incident communication solutions like AstroStatus aren't just about reacting to problems; they're about preventing them and mitigating their impact. By identifying potential risks and vulnerabilities in advance, businesses can take proactive measures to reduce the likelihood of incidents occurring.

2. Real-time Incident Response: When an incident does occur, whether it's a system outage or a security breach, time is of the essence. Incident management ensures that the response is immediate and coordinated, minimizing downtime and its associated costs.

3. Customer Communication: An effective incident communication tool, like AstroStatus, includes clear and consistent communication with customers. This includes notifying them about ongoing issues, sharing updates on the resolution process, and providing estimated recovery times. Such communication not only keeps customers informed but also reassures them that the business is actively working to resolve the problem.

4. Internal Coordination: Incident management teams within the organization play a crucial role in coordinating efforts to resolve incidents. They ensure that the right people are involved, resources are allocated efficiently, and everyone is working toward a common goal—restoring normal operations.

5. Learning and Improvement: Every incident presents an opportunity for learning and improvement. Incident management involves post-incident analysis to understand what went wrong and why. This knowledge can be used to refine processes, update procedures, and enhance overall resilience.

Benefits of Incident Communication Tools for Effective Incident Management

Implementing effective incident management practices, and leveraging incident communication tools, like AstroStaus, for your business continuity planning offers several tangible benefits:

1. Minimized Downtime: Rapid incident response and resolution mean reduced downtime, which translates to less revenue loss and improved customer satisfaction.

2. Cost Savings: By efficiently managing incidents, businesses can avoid unnecessary costs associated with extended outages, overtime pay, and crisis management.

3. Enhanced Reputation: Transparent and honest communication during incidents builds trust with customers, enhancing the company's reputation and loyalty.

4. Regulatory Compliance: Many industries have stringent regulatory requirements for incident reporting and data breaches. Effective incident management ensures compliance with these regulations, avoiding potential legal repercussions.

5. Competitive Advantage: Businesses that can effectively manage incidents and maintain operational continuity have a competitive advantage. They can deliver consistent services and products, even in the face of adversity.

Businesses are increasingly reliant on technology, but the digital landscape is rife with potential risks and incidents, incident communication solutions like AstroStatus are no longer optional; they are a necessity. It forms the backbone of business continuity planning, ensuring that organizations can withstand disruptions, protect their reputation, and continue delivering value to their customers.

By embracing incident communication tools like AstroStatus that emphasize real-time communication, support volume reduction, and transparency, businesses can not only weather the storms of unexpected incidents but also emerge stronger and more resilient, earning the trust and loyalty of their customers along the way. In the ever-evolving landscape of business, incident management is not just a solution; it's a strategy for success.

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The Role of the Board in Business Continuity Planning

Many businesses were simply not prepared for the level of disruption COVID-19 would cause. It would be safe to assume that most enterprises were somewhat blindsided by this event. 

In fact in early March 2020 (pre-lockdowns), the consulting firm, Mercer, found that 51% of companies around the world had no business continuity plan to address the impending pandemic. 

These days, organisations place themselves at a disadvantage — and at risk — without business continuity planning. 

But what exactly is business continuity planning (BCP)?

Why is it needed?

And what is the board’s role in ensuring the resilience of the business throughout a crisis?

What is Business Continuity Planning (BCP)?

Business Continuity Planning (BCP) is the framework by which organisations protect and sustain business functions during a disaster (natural or man-made, e.g. pandemic, cybersecurity breaches, etc.) It seeks to ensure that firms can prevent, respond, and recover from business disruptions.

What is the difference between BCP and Disaster Recovery Planning?

Disaster recovery planning focuses on data and technology accessibility, infrastructure, and systems recovery so that business continuity can take place. BCP, on the other hand, places emphasis on all areas of the business which are necessary to keep it operational. 

In simpler terms, disaster recovery planning can be viewed as a subset of business continuity planning. 

However, it is important to note that these two plans are interlinked and must be viewed cohesively. 

Business continuity is not possible without disaster recovery. Disaster recovery cannot guarantee business continuity. 

Why is Business Continuity Planning NEEDED ?

1. mitigate financial, operational and reputational risks.

Business disruptions can affect the organisation’s ability to operate efficiently as well as deliver on goods and services to customers. These can significantly impact the company’s bottomline. 

But what is often overlooked is the reputational damage that can be incurred by the organisation’s failure to withstand shock and fulfil contractual/legal obligations (or comply with regulatory requirements). This can be just as damaging for the business in the long-term, especially as it tries to protect shareholder value.

2. Guide recovery efforts for business operations and/or IT services

BCP establishes a carefully evaluated and measured plan that minimises the time to recover and resume operations. Preparation is key: a tested business continuity plan also mitigates the risks associated with being blindsided due to inadequate impact analyses.

3. Protect the safety of employees and other critical organisational assets and processes

BCP factors in the welfare of employees as well as the protection of other integral assets and processes throughout the crisis.

Five Benefits of Business Continuity Planning

1. increase resiliency and survival following a disruption.

Similar to what was discussed in the section above, BCP increases the likelihood of resiliency and continuity during catastrophes or disasters. It marries tactical requirements that are necessary to keep the business going with a strategic framework that will lead to long-term success.

2. Familiarity and awareness of mission-critical business processes

BCP requires the identification and analysis of processes and assets that the business can or cannot do without. This can result in a deeper level of understanding of the organisation and the environment in which it operates.

3. Competitive advantage

An effective BCP can place the organisation at a competitive advantage in situations of general uncertainty — especially if competitors are struggling to survive a shock. By covering all bases in the planning phase, firms are better suited to weather change and resume operations when others might not.

4. Establish trust, leadership and commitment to all stakeholders and shareholders

The process of BCP exhibits a dynamic and active role and approach to risk oversight. It is an exercise that demonstrates strategic leadership, foresight, and initiative so as to be able to protect critical assets and the interests of all stakeholders.

5. Satisfy legal, regulatory, and supplier compliance

BCP can help provide a level of assurance that organisations will continue to work within established legal and regulatory frameworks to meet and fulfil obligations to clients and suppliers.

There is the school of thought that believes that BCP should be left to management, while some posit that the role of the board (though not as obvious) is integral to the business continuity plan. It is worth exploring the latter. 

These are the roles of the board to ensure business continuity and resiliency:

1. Establish Business Continuity Planning as an important enterprise-wide initiative

The board needs to place ample priority on BCP initiatives. 

The board is responsible for setting the overarching BCP agenda, approving BCP policies and activities (such as employee awareness training), allocating the budget and resources to develop, support, manage, and maintain the different components of the business continuity plan. 

As these are rolled out, the board should be instrumental in communicating that BCP cannot take place in vacuums or functional silos. The entire management team needs to work as a unit for feedback and information gathering.

Lastly, the board’s role in leading BCP initiatives is to review the strategic alignment of the business continuity plan with the organisation’s culture, purpose, and set of values from inception to execution.

2. Ensure board operations, systems, and processes remain in place

The points above will become moot if the board can’t effectively discharge their duties due to the disruption of board systems and processes. For the business to continue, boards must be able to meet and lead during a crisis. 

A recent article by KPMG brought to light two technological challenges that organisations had to face as employees worked from home during the pandemic: 

a.) the lack of remote access technology

b.) the lack of digitised business processes 

Suffice to say, this was a challenge for many boards as well. Therefore, it would be prudent for boards to consider making investments that will allow them to carry on with their activities during a crisis. One such investment might be in board management software — or board portals. 

Board portals address the two pain points cited by the KPMG article above. 

Board portals , such as Boardlogic , digitise board meeting workflows from end-to-end, eliminating paper-based processes while allowing boards to communicate and collaborate remotely 24/7 — in a highly-secure environment.

(Note that security is of paramount importance because cybercriminals seek to exploit the vulnerability of organisations in stressful situations to further disrupt operations. For more on this, download our e-Book on boards and e-mail cybercrime.)

The adoption of such technologies enables the board to focus on strategic governance when it is needed most.

3. Create a Crisis Communications Plan

The board should establish clear communication procedures especially during business disruptions. It may even want to form an ad-hoc committee to monitor and address communication activities throughout the crisis.  

The board needs to work with management to assure stakeholders (i.e. employees, customers, suppliers, partners, investors, or key donors) of business continuity. As with any communications plan, consistency of message across all communication channels is imperative. Transparency is key.

Internally, the board should agree on reporting requirements it expects from management, factoring in the level of detail required and the frequency they should receive them. 

Seamless communication to and from the board enables a better crisis response and informed, effective decision making.

4. Proactive approach to overseeing risk controls

The board is responsible for setting an enterprise-wide risk management framework. It is also responsible for shaping the risk policies and risk appetite of the organisation. 

As management presents its business continuity plan, the board must make that all aspects are aligned with the risk appetite of the organisation. It also needs to carefully assess the plan’s impact on risk exposure and on the business’ long-term strategy.   

Business disruptions are not a matter of if they will happen, but rather when they will happen. It is important to be prepared and to stay ready. 

There are many lessons to be learned from the pandemic but this one stands out: 

Those who were prepared were not only able to continue on with business operations, but managed to thrive under pressure. This alters the definition of business resilience to a degree. It is no longer simply about withstanding shock and change — but also creating value when it is least expected.

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Adapting to Change: Business Continuity Planning in 2024 for Logistics and Metallurgy

How prepared is your business for the changes coming in 2024?

The logistics and metallurgy sectors are about to enter a year filled with economic growth, an e-commerce explosion, and shifting geopolitical and regulatory landscapes. These changes bring both opportunities and challenges, making it clear that having a solid Business Continuity Plan (BCP) is crucial to navigate the future effectively.

Navigating Logistics and Metallurgy Trends in 2024

Looking towards 2024, the logistics industry is bracing for significant shifts.

Expectations of rising Full-truckload (FTL) rates due to increasing diesel prices, labor costs, and insurance premiums demand a new approach to managing logistics.

Meanwhile, Less-than-truckload (LTL) rates seem set for stability, though they might adjust slightly based on market conditions.

These trends will also impact the metallurgy industry, which relies heavily on efficient supply chains. Adapting to these logistics changes is vital for keeping operations smooth and staying ahead in the market.

The Core of Adaptation: Business Continuity Planning

At the heart of handling these shifts is Business Continuity Planning (BCP). BCP is about preparing for unexpected disruptions and keeping your business running no matter what. It’s about planning, communication, and resilience.

Enhancing Communication with Mass Notification Systems

Speaking of communication, it’s essential in managing crises and maintaining operations. This is where mass notification systems come into play. They’re key for quick and effective communication during emergencies.

In this blog we’ll introduce Regroup, a mass notification solution that fits well into any BCP strategy, enhancing how you communicate during crises.

This blog will guide you through preparing for 2024. We’ll cover strategic planning, the importance of communication systems like Regroup , and how embracing technology can help your business face the future confidently.

Understanding the 2024 Logistics Forecast: Key Trends and Predictions

Navigating through uncertainty.

The logistics sector is on the threshold of significant change.

With 2023 witnessing fluctuations in full-truckload (FTL) rates due to excess capacity and weak demand, a notable recovery was seen in the latter half of the year.

This trend suggests a shift in the FTL market in 2024, driven by a mix of decreased capacity and a surge in demand, particularly from the continuing boom in e-commerce. These factors, coupled with rising operational costs like diesel fuel prices, labor, and insurance, hint at potential rate increases.

Conversely, less-than-truckload (LTL) rates have shown remarkable stability, with expectations for this trend to continue into 2024. However, slight adjustments might occur, reflecting specific market conditions and segments.

This balance between FTL and LTL rates underscores the strategic importance of planning and flexibility within logistics operations.

As we delve into the intricacies of the 2024 logistics forecast and the critical need for adaptability, it becomes evident that navigating through uncertainty requires a strategic approach.

While understanding key trends and predictions is essential, implementing actionable strategies is equally crucial.

Let’s explore how businesses can leverage these insights to thrive in the evolving landscape of the logistics industry.

Building Strong Relationships with Carriers

For businesses navigating these waters, building strong relationships with carriers is paramount. This is more than just securing competitive rates. It is about fostering partnerships built on trust and reliability. By understanding your business’s unique needs and collaborating closely with carriers, you can ensure seamless operations and timely deliveries.

Leveraging Technology for Optimization

In parallel, leveraging technology will be instrumental in staying ahead of the curve. Freight procurement platforms, dynamic Transportation Management Systems (TMS), and visibility platforms offer invaluable insights into your supply chain. They enable you to optimize routes, track shipments in real-time, and make data-driven decisions. Embracing these technological advancements empowers businesses to streamline processes, reduce costs, and enhance overall efficiency.

Exploring Green Logistics Options

Moreover, the growing emphasis on sustainability underscores the importance of exploring green logistics options. From utilizing fuel-efficient vehicles to partnering with carbon-neutral transport providers, embracing eco-friendly practices not only reduces environmental impact but also enhances your brand’s reputation as a responsible corporate citizen.

Staying Abreast of Market Trends

Staying abreast of market trends is another critical aspect of strategic planning. By monitoring fluctuations in fuel prices, regulatory changes, and consumer preferences, businesses can proactively adjust their strategies to capitalize on emerging opportunities and mitigate potential risks.

Proactive Cost Management

In the face of rising parcel delivery costs, proactive cost management becomes paramount. Adopting freight-spend-management solutions enables businesses to analyze shipping expenses, identify cost-saving opportunities, and negotiate more favorable contracts with carriers. Additionally, exploring alternative carriers offers flexibility and resilience in managing parcel deliveries, particularly amidst general rate increases imposed by major carriers.

Embracing Technology for Resilience

The ongoing e-commerce explosion places pressure on parcel networks, potentially creating competition for available capacity and influencing pricing. In this landscape, technology plays a pivotal role. Leveraging AI-powered platforms and multicarrier parcel optimization solutions can aid businesses in comparing rates, optimizing routes, and automating processes for better cost management and efficiency.

As we approach a dynamic 2024, these insights underscore the necessity for logistics and metallurgy sectors to adapt their strategies, ensuring business continuity and growth in the face of evolving market conditions.

For those looking to dive deeper into the anticipated changes in the logistics sector and explore comprehensive strategies for 2024, detailed insights are available here .

Impact of 2024 Forecast on Logistics and Metallurgy

These forecasted changes in logistics directly impact the metallurgy industry, which relies heavily on efficient supply chain management. The expected adjustments in rates necessitate a recalibration of logistics strategies to ensure uninterrupted supply chains and to maintain a competitive edge. This section explores the consequences of logistic shifts on metallurgy operations, highlighting the interconnectedness of these industries and the imperative for strategic foresight.

The Pillar of Resilience: Business Continuity Planning

The recent insights suggest a multi-faceted approach to BCP, focusing on analysis, resilience, risk management, and adapting to the evolving work environment and economic conditions.

Performing a Business Impact Analysis

A fundamental step in BCP is conducting a business impact analysis (BIA) . This process helps identify potential vulnerabilities within your operations and overall business model, guiding you to prepare solutions effectively. Such proactive measures are instrumental in planning for budgeting, hiring, and other crucial business activities, ensuring readiness for future challenges​​.

Strengthening Business Resilience

Given the unpredictable nature of 2024, bolstering your business’s resilience is essential. This includes preparing for natural disasters, cybersecurity threats, and other disruptions that can impact operations. A resilient business model, backed by a comprehensive BCP, can withstand various challenges, allowing for continued growth and investment​​.

Disaster Recovery and Risk Management

Having a disaster recovery plan is a key component of BCP. Identifying potential risks and having a recovery strategy ensures your business can manage and recover from disruptions effectively. With the lessons learned from the COVID-19 pandemic, the importance of risk management techniques and preparing for unforeseen events has been highlighted, emphasizing the need for a solid BCP​​.

Adapting to New Work Trends

The persistence of work-from-home trends and the need for cybersecurity planning are also crucial elements to consider in your BCP. As remote work continues to be favored by many, integrating this model into your business continuity planning ensures operational flexibility and employee well-being. Additionally, the rise in cyber threats calls for a robust cybersecurity strategy to protect your business and customer data​​​​.

Considering Economic Factors

Economic downturns, such as recessions, pose significant threats to businesses. A BCP that includes strategies for navigating these economic conditions is crucial for ensuring your company’s survival and ability to capitalize on growth periods. Managing operational costs amidst inflation and understanding new regulations coming into effect each year are also critical aspects of a comprehensive BCP​​​​.

The Role of Mass Notification Systems in BCP

Mass notification systems have become an indispensable part of Business Continuity Planning (BCP), especially as businesses navigate through the complexities of modern threats and disruptions in the logistics and metallurgy sector.

These systems serve a critical role in ensuring effective communication during crises, which is essential for maintaining operational continuity and managing emergencies effectively.

Let’s see the 3 primary functions of Mass Notification Systems and how they help BCP.

1. Enhancing Communication Speed and Reach

In the event of a crisis, time is of the essence. Mass notification systems enable organizations to disseminate crucial information quickly and efficiently to a wide audience, including employees, stakeholders, and even customers. This rapid communication capability is vital for initiating emergency protocols, providing real-time updates, and minimizing the impact of disruptions.

2. Streamlining Communication Processes A well-integrated mass notification system can streamline communication processes, reducing complexity and the potential for errors. These systems often come with features that allow for the customization of messages, ensuring that the right information reaches the right people at the right time.

3. Ensuring Timely Alerts Timeliness can significantly influence the effectiveness of emergency response efforts. Mass notification systems are designed to send alerts instantly across multiple platforms, such as SMS, email, and social media, ensuring that all recipients receive the message as soon as possible.

Introducing Regroup: A Strategic Asset for 2024

Regroup stands out as a strategic asset for organizations looking to strengthen their BCP. With its robust capabilities in managing and distributing critical communications, Regroup facilitates a more coordinated response to emergencies and disruptions.

Streamlining Communication: Regroup simplifies the communication process during crises by providing a centralized platform for sending alerts and messages. This not only enhances the speed of communication but also ensures consistency in the information being disseminated.

Customizable Alert Systems: One of the key features of Regroup is its ability to tailor alerts and messages to specific groups or individuals. This customization ensures that each recipient receives relevant information, which is crucial for effective crisis management.

Integration into BCP Frameworks: Incorporating Regroup into an organization’s BCP framework can significantly improve its preparedness and response to emergencies.

By leveraging Regroup’s capabilities, businesses can ensure that their communication strategy is robust, responsive, and capable of handling the challenges of 2024 and beyond.

Looking Ahead: Preparing for a Dynamic 2024

As logistics and metallurgy sectors approach a year of significant transformation, the imperative becomes clear: to reassess, reinvent, and reinvigorate BCP strategies with a focus on sustainability, resilience, and growth.

The time to fortify your Business Continuity Planning is now!

With Regroup as your strategic partner, you can empower your organization with seamless communication and crisis management solutions. Take the first step towards resilience and growth by booking a quick demo today to discover how Regroup can transform your preparedness for the future.

Q1: What is business continuity planning and why is it crucial for logistics and metallurgy sectors? Business continuity planning (BCP) involves preparing organizations to maintain essential functions during and after a disaster. It’s crucial for minimizing disruptions in logistics and metallurgy, sectors highly sensitive to operational delays.

Q2: How have recent trends in the US logistics sector influenced BCP strategies? Recent trends, such as fluctuating FTL and LTL rates and increased e-commerce demands, underscore the need for robust BCP to navigate economic and market changes effectively.

Q3: What role do mass notification systems play in BCP? They ensure timely, effective communication during crises, a cornerstone of any BCP strategy, by alerting stakeholders of disruptions and recovery actions.

Q4: When should Regroup be introduced into a BCP strategy? Introduce Regroup after establishing your core BCP objectives to enhance your communication strategy, ensuring all parties are informed and can respond promptly to disruptions.

Q5: Can mass notification systems help with regulatory compliance in logistics and metallurgy? Yes, they can disseminate regulatory updates and compliance requirements swiftly to all relevant parties, aiding adherence and minimizing risk.

Q6: How does economic growth impact logistics and metallurgy sectors’ BCP? Economic growth can increase demand, straining resources. BCP helps manage this by planning for capacity and maintaining supply chain resilience.

Q7: How can technology optimize BCP in these sectors? Technology, particularly mass notification systems like Regroup, can automate and streamline communication for efficiency and effectiveness during disruptions.

Q8: What are some best practices for integrating Regroup into BCP for logistics and metallurgy? Start with a clear assessment of communication needs, ensure staff training on Regroup’s features, and regularly update your plan based on new insights.

Q9: How do mass notification systems support sustainability in logistics and metallurgy? They facilitate the coordination of green logistics practices, like optimizing routes for fuel efficiency and communicating sustainability initiatives.

Q10: In light of 2024 predictions, how should logistics and metallurgy sectors update their BCP? Consider the predicted market conditions, like FTL rate increases, and integrate flexible, responsive tools like Regroup for dynamic risk management.

Q11: How do mass notification systems like Regroup handle the complexity of global supply chains? They offer scalability and global reach, ensuring that messages are delivered across different regions and time zones, crucial for international operations.

Q12: How can businesses measure the effectiveness of their BCP involving mass notification systems? Through drills, response time analyses, stakeholder feedback, and reviewing the resolution of actual incidents, businesses can gauge and improve their BCP efficacy.

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