Business

What is Business Continuity Planning (BCP)?

Would you like to know what does a business continuity plan typically include (BCP) is the process involved in creating a potential threat prevention and recovery system for an enterprise. The plan ensures that personnel and assets are protected and can function quickly in the event of a disaster. BCP is generally designed in advance and involves contributions from key stakeholders and staff.

BCP entails defining every risk that may affect the company’s operations, making it an essential part of the organisation’s risk management strategy. Risks may include natural disasters (fires, floods, or weather-related events) and cyber attacks. Once the risks are identified, the plan should also include:

  •         Determine how these risks will affect operations
  •         Implement safeguards and risk mitigation procedures.
  •         Testing Procedures to Ensure They Work
  •         Review the process to ensure it is up to date

BCPs are an essential part of any business. Threats and disruptions mean lost revenue and higher costs, leading to a drop in profitability. And companies can’t just rely on insurance because it doesn’t cover all the costs and customers entering the competition.

Basic Concepts of Business Continuity Planning (BCP)

Companies are prone to a variety of disasters that vary in degrees from minor to catastrophic. Business continuity planning generally aims to help a business continue to operate in the event of major disasters such as fires. BCPs are different from a disaster recovery plan, which focuses on recovering a company’s IT system after a crisis.

Consider a financial company based in a big city. You can implement a BCP by performing steps that include backing up your external client and your computer files. If something happened to the company’s corporate office, its satellite offices would still have access to relevant information.

An important point to keep in mind is that BCP may not be as effective if a large part of the population is affected, as in the case of an outbreak of disease.

Develop a business continuity plan.

There are several measures that many companies must take to develop solid BCP. Include:

Business impact analysis: Here, companies will identify related functions and features that are time-sensitive. (More on this below.)

Recovery: in this part, the company must identify and implement steps to recover critical business functions.

Organisation: a continuity team must be created. This team will develop a plan to manage the interruption.

Training: The continuity team must be trained and tested. Team members must also complete exercises that address the plan and strategies.

Companies may also find it useful to create a checklist that includes relevant details, such as emergency contact information, a list of resources that the continuity team may need, where backup data and other necessary information are housed or stored, and others essential people.

In addition to testing the continuity equipment, the company must also verify the BCP. It must be tested several times to ensure that it can be applied to many different risk scenarios. This will help identify any deficiencies in the plan that can be identified and corrected.

Analysis of The Impact on Business Continuity:

An essential part of developing a BCP is an impact analysis of business continuity. Identify the impact of disruptions to business functions and processes. Also, information is used to make decisions about priorities and recovery strategies.

FEMA provides a worksheet with operational and financial implications to conduct business continuity analysis. The spreadsheet must be completed by business function and process managers who know the business well. These worksheets summarise the following:

The financial and operational impact of losing individual business functions and processes.

Identify when the loss of a function or process would lead to identified business impacts

By completing the analysis, companies can identify and prioritise the methods that have the most significant impact on the financial and operational functions of the business. The point at which they need to recover is commonly referred to as a “recreational time goal.”

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