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

business continuity plan what is it

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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.  

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15 - 17.

Ready. “ IT Disaster Recovery Plan .”

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15-17.

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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.

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Business Continuity Simplified

By Andy Marker | December 17, 2018 (updated October 24, 2021)

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Unexpected work interruptions can cripple a business and cause millions of dollars in expenses and lost business. Learn about the importance of business continuity planning and management from experts. 

In this article, you’ll learn the definition of a business continuity plan and the primary goal of business continuity planning . Additionally, you’ll learn the steps involved in business continuity planning and about the business continuity lifecycle .

What Is Business Continuity Management?

In business continuity management (BCM) , a company identifies potential threats to its activities and the threat impact. The company then develops plans to respond to those threats and continue activities through any crisis.

What Is a Business Continuity Plan?

A business continuity plan (BCP) describes how a business will continue to run during and after a crisis event. The BCP details guidelines, procedures, and work instructions to aid continuity.

To learn more about writing a plan, see our how-to guide to writing a business continuity plan .

What Is Business Continuity Planning?

Business continuity planning (BCP) refers to the work a company does to create a plan and system to deal with risks. Thorough planning seeks to prevent problems and ensure business processes continue during and after a crisis.

Business continuity planning ensures that the company deals with disruptions quickly, and minimizes the impact on operations. Business continuity planning is also called business resumption planning and continuous service delivery assurance (CSDA) .

What Is the Primary Goal of Business Continuity Planning?

The main goal of business continuity planning is to support key company activities during a crisis. Planning ensures a company can run with limited resources or restricted access to buildings. Continuity planning also aims to minimize revenue or reputation losses.   

A business continuity plan should outline several key things that an organization needs to do to prepare for potential disruptions to its activities, including the following:

  • Recognize potential threats to a company.
  • Assess potential impacts on the company’s daily activities.
  • Provide a way to reduce these potential problems, and establish a structure that allows key company functions to continue throughout and after the event.
  • Identify the resources the organization needs to continue operating, such as staffing, equipment, and alternative locations.

Business Continuity Planning Steps

A business continuity plan includes guidelines and procedures to guide a business through disruption. The efforts to create a plan are the same for large or small organizations. A simple plan is better than no plan. 

The basic steps for writing a business continuity plan are as follows:

  • Create a governance team.
  • Complete your business impact analysis (BIA) and risk assessment documents.
  • Document your plan. Remember to include detailed guidelines and procedures that cover key processes and facilities.
  • Test and update the plan regularly.

The Business Continuity Management Lifecycle

Business continuity management includes preparing for and handling unexpected events. BCM has a six-step lifecycle. This cycle repeats during both in regular business times and crises, as you take the right steps to keep activities always running.

The BCM lifecycle includes the following points:

  • Mitigate Risk: Proactively identify business continuity risks to your company, and plan how your company will respond.
  • Prepare: Train staff on your business continuity plan and ensure they understand what they need to do to help the business respond.
  • Respond: Ensure that your company and all employees respond appropriately to a crisis. Be prepared to adapt in the moment.
  • Resolve: Ensure that the company plans how to communicate effectively with staff and that it does so appropriately during the crisis.
  • Recover: Inform employees, customers, and other important people about the status of the crisis and your company’s response.
  • Resume: Communicate with employees and others after the crisis ends.

What Are Business Continuity Risks or Events?

Also called business continuity events, business continuity risks are the most common events that can disrupt a company’s regular operations — these can be natural and human-made crises. Defining these risks is a vital part of business continuity planning.

Such events might include the following:

  • Severe weather
  • Natural disasters (tornadoes, floods, blizzards, earthquakes, fire, etc.)
  • A physical security threat
  • A recall of a company’s product
  • Supply chain problems
  • Threats to staffing and employee safety
  • Accidents at an organization’s facilities
  • Destruction to a company’s facilities or property
  • Power disruptions
  • Server crashes
  • Failures in public and private services (communications, transportation, safety, etc.)
  • Environmental disasters, including hazardous materials spills
  • Network disruptions
  • Human error/human-made hazards
  • Stock market crashes
  • Cyber attacks and hacker activity

Any of these triggers can result in broader problems for a company, such as danger or injury to staff and others, equipment damages, brand injury, and loss of income and net worth. Business continuity management and planning address and mitigate these contingencies.

What Is a Business Continuity Strategy?

A business continuity strategy is more often called a business continuity plan. The strategy includes the processes and structure a company uses to manage an unexpected event.

Some people consider business continuity strategy to be a step in the planning process. In the strategy phase, business continuity planners describe the overall approach a company should take to prevent, manage, and recover from a crisis.

An Overview of Business Continuity Management and Planning

There are several goals, key elements, and benefits to business continuity management and planning. The primary goals of management and planning are as follows:

  • Build Company Resiliency: Doing so means that your company’s tools, buildings, and operations are resistant to — and not greatly affected by — most disruptions.
  • Create a Plan for Recovery (with Contingencies that Aid in That Recovery): If a major event does cause problems, you should have a plan for how to recover quickly. That plan will include contingencies. For example, you should plan for how key operations will resume if there is a widespread power outage.

Business continuity management and planning generally cover the following areas, with differences depending on the organization and industry:

  • Disaster Recovery: Disaster recovery involves recovering technology after a disruptive event. You can learn more about disaster recovery and download free templates in our comprehensive article .
  • Emergency Management: Emergency management focuses on avoiding and mitigating catastrophic risks to staff and communities.
  • Business Recovery: Considered part of business continuity, business recovery centers on short-term activities after a disruptive incident. The short-term is sometimes defined as less than 60 days.
  • Business Resumption: This describes the longterm phase of recovery (60 or more days after an even), wherein the company returns to near-normal conditions.
  • Crisis Management: Crisis management focuses on communicating with stakeholders during and after a crisis, and controlling damage during the event. To learn more, read our comprehensive guide to crisis management .
  • Incident Management: Incident management is an ITIL (previously known as Information Technology Infrastructure Library) framework for reducing or eliminating downtime after an incident.
  • Contingency Planning: This covers outlier risks that are unlikely to occur but which could have disastrous results.

business continuity plan what is it

“A well managed business continuity management program will help protect people, assets, and business processes,” says Scott Owens, founder and managing director of BluTinuity , a business continuity firm based in New Berlin, Wisconsin. “It may not be able to prevent all incidents. But it can reduce the likelihood of incidents, decrease response time, and lower the cost and impact of an incident.”

Key Elements of Business Continuity Management

All business continuity management programs should include a number of key elements, which serve to ensure that your plan is positioned for success and that you regularly update and improve it.   

These important elements include the following:

  • Governance: This is the structure and team your business sets up to create and monitor the program.
  • Business Alignment: This section details how your company’s current business continuity management and planning processes compare to expert approaches and industry standards.
  • Continuity Strategy and Recovery Strategies: Include a detailed plan that assesses risks to your organization and how you can recover, should those risks become reality.
  • Plan Documentation: Provide details on the plan that everyone in your company can access. To get started, see our roundup of free business continuity plan templates .
  • Tactical Implementation: This section includes details on the specific ways your company plans to recover from certain types of incidents.
  • Training: In this section, detail how you will train your staff to understand the business continuity plan and their role in it.
  • Testing: Include real-world simulations of a crisis event, and test how your company and its employees respond and the effectiveness of your business continuity plans.
  • Maintenance: Make changes to the plan where necessary to increase its effectiveness.
  • Monitoring: This section details how you will continue to compare industry standards and expert advice to how your plan is working.

To learn about formal requirements for business continuity planning and management, see our comprehensive article on the ISO 22301 standard . 

The Costs of Business Continuity Management

The costs to do an appropriate job of business continuity management can be significant. However, some reports say that the cost of unforeseen downtime may be as much as $2.5 billion a year for Fortune 1000 companies.

Kurt Engemann, Ph.D., is Director of the Center for Business Continuity and Risk Management at Iona College in New York, Editor-in-Chief of the International Journal of Business Continuity and Risk Management and author of Business Continuity and Risk Management: Essentials of Organizational Resilience . In the book, he says that costs for business continuity preparation do not only include the groundwork to assess a company’s risks and plans to manage those risks. Rather, they also cover the needed backup facilities and equipment and company assets for emergency response. In addition, costs must cover resources for training employees and testing the plan.

Some experts have estimated that business continuity management and planning within only the crucial information technology aspects of companies can cost two to four percent of the information technology budget. But the costs are necessary, and worth it in the long run, according to business continuity experts.

“There is an initial outlay of a modest amount of money that will lessen the financial impact of a possible future crisis,” Engemann writes in his book. “Similar to an insurance policy, the financial benefit of BCM must be viewed from a long-term prospective.”

When an organization’s top executives complain about the costs, Owens says, “Ask them what it would cost their organization for an hour of downtime. Or eight hours. Or 24 hours. Chances are the cost — financial, operational, and to brand and reputation — of having key business functions unavailable for an extended period are significant. They will most likely find business continuity management to be worth the investment.” 

Benefits of Business Continuity Management

Like Engemann, Owens points out that there are significant benefits to the investment organizations make in business continuity management, including the following:

  • Mission Critical Processes: If you understand your key processes, you can plan to protect them and prioritize their recovery.
  • Legal and Regulatory Compliance: Laws or regulations require companies in some industries to implement a formal business continuity management system.
  • Satisfying Demands from Other Organizations: Some groups and companies may require that your company sets up BCM before they do business with you.
  • Insurance Payments: To get the maximum payments from an insurance policy after an event, a company must have suitable business continuity management policies in place.
  • Reputation Management: Your business’s brand will be greatly helped or hurt, depending on how an unforeseen event affects its operations.
  • Competitive Advantage: A strong business continuity plan can offer your company the advantage over peers who are not as well prepared.
  • Seamless Recovery: Cloud-based technologies make data backup, remote work, and business recovery affordable and accessible. Groups and businesses of all sizes can benefit from such tools. See our article on cloud computing for business continuity to learn more.
  • Time Savings: Planning prevents teams from scrambling at the last minute to cobble together a recovery effort. Strong planning helps you get back online — and back on track — faster.

Michael Herrera, CEO of MHA Consulting , a business continuity and disaster recovery firm, cites two other significant benefits: 

  • Keeping Customers and Avoiding Major Financial Losses: Getting operations back to normal quickly after an event means your company loses less money.

business continuity plan what is it

“Your customers aren’t as patient as you think they are,” Herrera explains. “They expect you to have a business continuity system and they expect you to be up and running. Their patience does run out.”

  • Improving Day-to-Day Operations: Herrera says his firm’s clients often discover how business continuity planning gives them insights into the day-to-day operations of their company. “It really can help you with process improvement and getting a good understanding of what your business does every day.”

Additionally, strong business continuity planning will enable you to do the following:

  • Officially declare a disaster and alert senior management.
  • Assist in the development of an official public statement regarding a disaster and its effects on a business.
  • Monitor your business’s progress and present the recovery status.
  • Provide ongoing support and guidance to teams with pre-planned operations.
  • Review critical processing, schedules, and backlogs to keep everyone up to date on status.
  • Ensure businesses have both the resources and the information to deal with an unforeseen emergency.
  • Reduce the risk that an emergency might pose to employees, clients, and vendors, etc.
  • Provide a response for both man-made and environmental disasters.
  • Improve overall business communication and response plans.
  • Summarize both the operational and the financial impacts resulting from the loss of critical business functions.
  • Allow businesses to plan for a loss of function that has potentially larger, more severe consequences.

See our article on the importance and benefits of business continuity planning to read more expert examples of how business continuity can bolster your company. 

Key Business Continuity Management and Planning Considerations

Companies don’t have to face business continuity planning alone. There are a variety of tools and services that can help, including the following:

Consultant Services

There are hundreds, if not thousands, of consultants and companies that can provide help with developing your business continuity plan. Below are a few things to think about in choosing one:

  • How experienced are they? How long have they been around?
  • What’s their reputation as a company? What do their clients say about them?
  • Are they focused on a specific industry or area of business continuity, or do they have experience with a range of industries and a broad spectrum of business continuity?
  • How do they think about business continuity (as a somewhat separate practice or something that needs to be ingrained within your organization)?
  • How aligned is their advice with standards in your industry?

Business Continuity Software

There are also hundreds of pieces of business continuity software on the market. Here are some things to consider:

  • Are you looking for software that will automate the development of plan components, or software that offers more in-depth help during the planning phase?
  • What is the history of the software and the company behind it? How long has this particular software been on the market and what is the history and the reputation of the company behind it?
  • Is the software being continually updated and improved?

Below are some specifics to consider as you test drive the software:

  • Does it have an easy-to-use interface?
  • Does it cover all aspects and components of business continuity, including business impact analysis and risk assessment ?
  • Does it include sufficient storage for your company’s supporting documents?
  • Does it provide secure portable access via mobile or other technologies, if a crisis interrupts your information technology systems?
  • Does it provide strong data analytics?
  • Is it secure and private?

Primary Things Your Organization’s Business Continuity Management System Should Accomplish

While your business continuity management system will have various elements and details, there are some primary things it should do for your organization. They correspond to the key elements listed earlier in this article. 

For example, a BCM system should help do the following: 

  • Understand your company’s needs for business continuity and disaster preparedness. A BCM system should be able to assist company leaders in understanding the need for a business continuity management policy.
  • Understand which processes should be recovered and in what order.
  • Establish business continuity metrics to gauge success.
  • Plan for communicating with customers, staff, and other stakeholders.
  • Determine what tools, technology, and staffing are required to restore activities and support customers.
  • Establish remote-work support or relocation plans for staff and activities.
  • Implement ways to continually assess and manage continuity risks.
  • Monitor and review how its business continuity management system is working.
  • Continually improve the system.
  • Respond effectively in a real-world crisis, and allow the business’s critical operations to continue and all operations to resume quickly.

Although nobody wants to think about disasters or the effort needed to prepare to meet and mitigate crises, the alternative is the potential loss of reputation, income, or the entire business. In sum, planning translates to determining your key processes, equipment, and tools, and applying basic recovery strategies. 

The Importance of Senior Organizational Leaders Strongly Supporting Your Business Continuity Management and Planning

Your senior leaders must strongly support your company’s business continuity management plan for it to succeed. Such leadership is key as storms, floods, pandemics, and data breaches increase in force and frequency.

business continuity plan what is it

“Make sure senior management is committed to the planning, development, execution, and implementation of a business continuity/disaster recovery program,” says Paul Kirvan , a business continuity consultant and a fellow of the Business Continuity Institute with 25 years of experience in business continuity work. “Otherwise, it simply won’t happen. Such programs work best if they have top-down support and funding, as opposed to being developed from the ground up.”

Business Continuity Plan Test Types

Testing verifies the effectiveness of your plan and provides training for participants. To ensure better communication, include suppliers, vendors, and other stakeholders in exercises. If appropriate, also consider including local emergency preparedness officials.  

There are four types of testing, and each requires increasing levels of planning, resources, and focus. You should try to run each type of drill regularly.

  • Plan Review: Plan reviews are often the first test applied to a new plan. In this test, top management and some key BCP personnel review the relevance and completeness of a plan. Such a review can verify risk and BIA results, and help you check for gaps and inconsistencies among continuity documents.
  • Tabletop or Structured Walkthrough: A tabletop test requires more preparation and time. It provides a role-playing exercise for recovery teams.
  • Simulation or Walkthrough Drill: In a walkthrough drill, your continuity team physically completes the type of tasks they'd find in a crisis. They may practice evacuating a building during a fire, restoring a backup, or switching to another communication frequency.
  • Functional or Live Scenario: Functional tests include a complete physical drill of continuity plans. Live tests may focus on one aspect of the plan or include the complete plan. They may include one part of the company or all team members.

Be sure to document what happened in the test so everyone involved in the exercise — and especially those who created the plan — can understand what did and didn’t go well, and can revise as necessary.

Business Continuity Management Policy Statement

A business continuity policy statement is a written document that outlines an organization’s business continuity management program. The policy statement should be communicated to all employees and should be signed and endorsed by the organization’s senior management.

See real-world examples of a business continuity policy statement .

Cultivating Awareness of Business Continuity Plans

The best business continuity system is useless if no one knows about it. Find ways to promote your plans in daily company activities, and discuss business continuity regularly in company and team meetings. Also, be sure to include the business continuity manager in cross-functional planning meetings so they can represent the business continuity perspective. Above all, exercise your plan, test your plan, and then test again.

What Is the Importance of a Business Continuity Plan?

A business continuity plan is vital to ensure that your company mitigates downtime during a crisis. Resuming activities quickly after an event also helps ensure your company’s financial health.

How to Write a Business Continuity Plan

It is crucial that your company set up a group of people to help create your business continuity plan. The group should include senior leadership, experts, and staff. A simple, practical plan is the best plan. At a minimum, include continuity team roles and duties, and team member contact information. You should also add guidelines and checklists for dealing with unforeseen events. 

Daily business functions rely on many resources — human, utilities, machines, and even paper, pens, and pencils. Business recovery after a disruptive event is no different. See our in-depth article on writing a business continuity plan for a complete list of resource types you may want to include in a plan.

You can ask certain questions as you form your strategy, and a business continuity plan usually includes common resources and elements. See our article on how to write a business continuity plan to learn more.

Business Continuity Plan Template

business continuity plan what is it

This template can help you document and track business operations in the event of a disruption/disaster to maintain critical processes. The plan includes space to record business function recovery priorities, recovery plans, and alternate site locations. Plan efficiently for disruption and minimize downtime, so your business maintains optimal efficiency.

Download Business Continuity Plan Template

Word | PowerPoint | PDF

You’ll find other most useful free, downloadable business continuity plan (BCP) templates, in Microsoft Word, PowerPoint, and PDF formats in this article . 

What Is a Business Impact Analysis and Why Is It an Important Part of a Business Continuity Plan?

A business impact analysis (BIA) is one of the most important parts of business continuity planning. The analysis considers how an unforeseen disruption could affect a company. BIA results also suggest how a business can recover from a crisis.

The business impact analysis will include details on the following:

  • Recovery time objectives that outline the organization’s goals relating to how quickly various services and processes will resume after an event
  • Financial impact of an incident
  • Impact on customers
  • Other possible impacts of an incident
  • How the organization will prioritize recovery steps
  • How the organization will prioritize critical services or products
  • Identification of potential revenue loss
  • Identification of additional expenses the organization will incur because of the event
  • Identification of insurance an organization has or needs to have
  • Identification of an organization’s dependencies on other agencies, companies, and providers

See our business impact analysis toolkit to find guidelines and templates to get started.

Risk Mitigation for Business Continuity

Risk assessment is one of the first steps in preparing your business continuity plan. 

Risk management includes identifying and ranking risks, and risk control includes identifying policies and procedures to avoid and contain risks. 

To learn more about risk management , read our comprehensive guide.

The Importance of Periodically Testing an Organization’s Business Continuity Plan

Even the best business continuity plans are useless if you do not continually test them in real-world mockups. Testing helps you continuously improve procedures, and also keeps plans synched with current business context.

Robert Sollars, a security trainer and consultant from Mesa, Arizona, says, “You must exercise your plan and train your employees in it. This can be costly and unwieldy at times, but it is an absolute must. I liken this to buying a Lamborghini and letting it sit in the garage, never starting it up, never driving it, never doing anything but admiring it. Your plan must be taken out and test driven at least two to three times per year. If you don’t test it, then when the real thing pops you will realize what the books, consultants, and experts have told you is useless for your organization. Testing it allows you to figure out the bugs and tweak the necessary items to make it more efficient and effective.”

Owens adds, “If you haven’t tested your plans, you aren’t ready for a disaster.”

You can do some testing through simpler table top exercises — for example, by talking through hypothetical incidents with your team. But Owens and other business continuity experts say organizations should also periodically do exercises that more closely mimic a real-world event.

“Organizations need to move … to progressively more complex scenarios, involving cross-functional teams and interdependent systems and processes,” he writes in a blog post about business continuity. “This is the only way that a company can get outside its comfort zone to truly understand if what they have designed will really work. My preference is to involve role-playing, actors, and include participation from vendors, business partners, and local law enforcement when appropriate. This will almost always result in lessons learned and opportunities to improve the plan, which is another great outcome.”

The most important result from testing your plan is an understanding of where theoretical solutions won’t work in real events. This understanding will then allow your organization to amend the plan to be more effective.

What Is a Business Continuity Plan Governance Committee?

Many companies set up a business continuity plan governance committee, which consists of staff members and senior leaders (their continuity efforts is vital). Governance tasks include writing the business continuity plan and supervising ongoing plan maintenance.  

The committee is often responsible for the following duties:

  • Approving the governance structure of the committee
  • Clarifying the roles of committee members and others working on the plan
  • Overseeing the creation of working groups to develop and implement the plan
  • Providing overall direction and communicate important information to employees
  • Approving the continuity plan and essential specifics within it
  • Setting priorities within the plan

The committee often includes the following members:

  • A senior leader from the business, often the sponsor
  • A business continuity manager and assistant manager
  • The company employee, or outside consultant, who will serve as overall coordinator of the business continuity plan
  • The company’s security officer
  • The company’s chief information officer, or information technology leader
  • Representatives from the company’s business department, to help with the business impact analysis
  • An administrative representative

How to Cultivate Resilience in Your Organization

A resilient organization has the tools and abilities to survive a disruptive event, and also regularly looks for new threats and adapts to changes in the organizational and industry landscape. Resilience experts recognize two types of resilience: reactive resilience uses a company’s existing processes to meet and overcome a crisis; proactive resilience anticipates disruptions and considers methods to prevent problems.  

Real World Example: Lessons Learned About Business Continuity from the Terrorist Attacks of Sept. 11, 2001

Organizational leaders and business continuity experts learned a lot from the terrorist attacks of September 11, 2001. Worst of all, the attacks killed thousands of people. But they also severely disrupted communications, financial transactions, and some commerce in New York City and throughout the world.

The following are among the lessons learned:

  • Business continuity plans must be tested frequently, and updated where needed.
  • The plans must assume a wide range of threats.
  • The plans must take into account how much companies, agencies, and other entities depend on each other.
  • Key people from any organization must be available and reachable when an incident happens.
  • The ability to communicate, especially through landline phones, cell phones, and the internet, is vital.
  • Sites that organizations use for backup of their digital information should be located at a distance from their primary information technology site.
  • Employee support and counseling may be important during and after a crisis.
  • An organization should store copies of its business continuity plan at a location apart from its primary location.
  • Security perimeters around the scene of an incident may be large, which may affect employees’ access to organization facilities for long periods.

Legislation Governing Some Business Continuity Management and Planning

The United Kingdom did approved the Civil Contingencies Act in 2004, which requires businesses to have business continuity plans in place.

Some industries do have regulatory bodies that may impose business continuity requirements within those industries. For instance, the Financial Industry Regulatory Authority (FINRA) is a private self-regulatory organization overseeing the U.S. financial securities industry. FINRA established FINRA Rule 4370. This rule requires securities firms to create and maintain written business continuity plans. Utility bodies, such as North American Electric Reliability Corporation ( NERC ) and Federal Energy Regulatory Commission ( FERC ), also require continuity plans.

Guidelines, Standards, and Resources Providing Guidance on Business Continuity Management and Planning

Organizational leaders can use a number of standards set by industry and other groups to guide their business continuity planning and management programs. Below are some commonly used standards:

  • ISO 22301 : Developed by the International Organization for Standardization (ISO), a standard-setting body, this group of standards sets out appropriate business continuity management practices. Learn more about how this standard can help businesses of all sizes in our guide to ISO 22301 . 
  • NFPA 1600 : Developed by the National Fire Protection Association, the standard is one of the most widely recognized in the U.S. on emergency preparedness and business continuity.
  • National Institute of Standards and Technology SP 800-34 : Sets contingency planning standards for federal information systems in the U.S.
  • SPC-2009 — Organizational Resilience : Security, Preparedness and Continuity Management Systems provides critical business and infrastructure security standards developed by the American Society for Industrial Security.
  • ISO 27000 : Standards for security in information technology systems, which include standards for business continuity in information technology. Learn more about ISO 27000 and find free checklists and templates . 
  • DRI International : Professional Practices for Business Continuity Management
  • Federal Emergency Management Agency (FEMA): Continuity Guidance Circular: Continuity Guidance for Non-Federal Entities: An 86-page formal document, the circular presents FEMA’s perspective on how businesses can prepare for disasters.
  • Insurance Institute for Business & Home Safety: Open for Business Continuity Toolkit: This site offers a video, FAQ, and downloadable continuity planning tools.

What Is the Business Continuity Institute?

The Business Continuity Institute (BCI), based in the United Kingdom, is a non-profit professional organization providing education, certification, and leadership on business continuity management. The Institute has more than 8,000 members in more than 100 countries.

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5 Step Guide to Business Continuity Planning (BCP) in 2021

A business continuity plan provides a concrete plan to maintain business cohesion in challenging circumstances. Click here for the key steps that can help you formulate a formidable BCP.

A business continuity plan (BCP) is defined as a protocol of preventing and recovering from potentially large threats to the company’s business continuity. This article explains what a business continuity plan is today, its key benefits, and a step-by-step guide to creating a formidable plan.

Table of Contents

What is a business continuity plan (bcp), key benefits of having a business continuity plan, step-by-step guide to building a formidable business continuity plan (bcp) in 2021.

A business continuity plan (BCP) is a protocol of preventing and recovering from potentially large threats to the company’s business continuity. Such a plan often aims to address the need for updated business norms and operational standards in unpredictable circumstances such as natural disasters, data breach/ exposures, large scale system failures etc. The goal of such a plan is to ensure continuity of business with no or little damage to regular working environments, including job security for its employees.

It covers everything from business processes, human resources details, and more. Essentially a BCP provides a concrete plan to the organization to maintain business continuity even in challenging circumstances. 

Below are key reasons why businesses need to have a BCP today:

  • BCP’s relevance has gone up considerably after the outbreak of the COVID-19 pandemic and was also a major testing time for organizations that did have such a plan in place. The organizations which had a business continuity plan in place were better able to cope during these unprecedented circumstances better than those who did not have any such plans.
  • The recorded number of natural disasters has increased from 375 in 2016 to 409 in 2019 Opens a new window . Globally, the loss because of natural disasters was $232 billion in 2019, according to a study by Aon Opens a new window .
  • The number of cyberattacks has also increased in all geographies and all business verticals. MonsterCloud reported that cyberattacks have skyrocketed during the COVID-19 pandemic. All this means that the organizations have to be better prepared to fight disasters. The importance of BCP can hardly be exaggerated in this context. Preparing a BCP is imperative for any enterprise, big or small, today. 

The end goal of a BCP is to ensure that the essential services continue to run in the event of an incident. For instance, if there is an earthquake where your customer service representatives operate from, your BCP will be able to tell you who will handle customer calls until the original office is restored.

Also Read: What Is Disaster Recovery? Definition, Cloud and On-premise, Benefits and Best Practices

Difference between a business continuity plan (BCP) and disaster recovery plan (DCP)

A BCP is often confused with a disaster recovery (DR) plan. While a DR plan is primarily focused on restoring the IT systems and infrastructure, a BCP is much more than that. It covers all areas and departments of the organization, including HR, marketing and sales, support functions. 

The underlying thought behind BCP is that IT systems can hardly work in silos. Other departments also need to be restored to cater to the client or for meeting the business demands. 

“Many people think a disaster recovery plan (DRP) is the same as a business continuity plan, but a DRP is only a small, yet essential, a portion of a full BCP. A DRP focuses solely on restoring an organization’s IT infrastructure while minimizing data loss. On the other hand, a BCP is a comprehensive guide on how to continue the mission and business-critical operations during a time of an unplanned disruption (natural disasters, pandemics, or malware),” says Caleb Pipkin, a security expert at Logically . 

Whether a business is small, big, or medium-sized, it needs a ‘plan B’ to recover quickly in the event of a natural disaster or a crisis and can survive the disruption. BCP helps you dust yourself and get back to business quickly and easily. It means that the enterprise will be better placed to address their customers’ needs even in the wake of a disaster. 

On the other hand, the lack of a plan means that your organization will take longer to recover from an event or incident. It could also lead to loss of business or clients. Let’s look at some key benefits of BCP.

1. It is a roadmap to act in a disaster

A well-defined business continuity plan is like a roadmap during a disruption. It allows the firms to react swiftly and effectively and maintain business continuity. In turn, this leads to a faster and complete recovery of the enterprise in the shortest possible timeframe. It brings down the business downtime and outlines the steps to be taken before, during, and after a crisis and thus helps maintain its financial viability. 

2. Offers a competitive edge

Fast reaction and business continuity during a disruption allow organizations to gain a competitive edge over its business rivals. It can translate into a significant competitive advantage in the long run. Further, your clients will be more confident in your ability to perform in adverse circumstances allowing you to build a long and sustainable relationship with your business partners.

Developing competence to act and handle any unfavorable event effectively has a positive effect on the company’s reputation and market value. It goes a long way in enhancing customer confidence. 

Also Read: Top 8 Disaster Recovery Software Companies in 2021

3. Cuts down losses

Disasters have a considerable impact on all types of business, whether big or small. Business disruption can lead to financial, legal, and reputational losses. Failure to plan could be disastrous for businesses. You may lose your customers while trying to get your business on track. In the worst circumstances, you may not be able to recover at all. A well-defined business continuity strategy minimizes the damage to an organization and allows you to bring down these losses as much as possible. 

4. Enables employment continuity and protects livelihoods

One of the most significant consequences of a disaster is the loss of employment. The loss of livelihood can be curtailed to an extent if the business continues to function in the event of a disaster. It leads to greater confidence in the workforce that their jobs might not be at risk, and the management is taking steps to protect their jobs. It helps build confidence in senior management’s ability to respond to the business disruption in a planned manner. 

5. Can be life-saving

A regularly tested and updated BCP can potentially help save the lives of the employees and the customers during a disaster. For instance, if the BCP plan for fire is regularly tested, the speed with which the workforce acts can help save lives. 

6. Preserves brand value and develops resilience

Possibly the biggest asset of an organization is its brand. Being able to perform in uncertain times helps build goodwill and maintain its brand value and may even help mitigate financial and reputational loss during a disaster. 

BCP curtails the damage to the company’s brand and finances because of a disaster event. This helps bring down the cost of any incident and thus help the company be more resilient. 

Also Read: 10 Best Practices for Disaster Recovery Planning (DRP)

7. Enables adherence to compliance requirements

Having a BCP allows organizations to have additional benefits of complying with regulatory requirements. It is a legal requirement in several countries.

8. Helps in supply chain security

A precise BCP goes a long way in protecting the supply chain from damage. It ensures continuity in delivering products and services by being able to perform critical activities.

9. Enhances operational efficiency

One of BCP’s lesser-known benefits is that it helps identify areas of operational efficiency in the organization. Developing BCP calls for an in-depth evaluation of the company’s processes. This can potentially reveal the areas of improvement. Essentially, it gathers information that can benefit in enhancing the effectiveness of the processes and operations. 

Also Read: 7 Ways to Build an Effective Disaster Recovery and Business Continuity Plan  

The COVID-19 pandemic has put the spotlight on preparing for a disaster like never before. We make the job easier for you by listing out the key steps in building a formidable business continuity plan: 

How to Build a Business Continuity Plan

How to Build a Business Continuity Plan

Step 1: Risk assessment 

This phase involves asking crucial questions to evaluate the risks faced by the company. What are the likely business threats and disruptions which are most likely to occur? What is the most profitable activity of your organization? It is vital to prioritize key risks and operations, which will help mitigate the damage in the event of a disaster. 

Step 2: Business impact analysis

The second step involves a thorough and in-depth assessment of your business processes to determine the vulnerable areas and the potential losses if those processes are disrupted. This is also known as Business Impact Analysis . 

Essentially, Business impact analysis (BIA) is a process that helps the organization define the impact if critical business operations are interrupted because of a disaster, accident, or emergency. It helps in identifying the most crucial elements of the business processes. For instance, maintaining a supply chain might be more critical during a crisis than public relations.

While there is no formal standard for a BIA, it typically involves the following steps: 

  • Collating information: As a first step, a questionnaire is prepared to find out critical business processes and resources that will help in the proper assessment of the impact of a disruptive event. One-on-one sessions with key management members may be conducted further to gain insights into the organization’s processes and workings.
  • Analysis: This is followed by analyzing the collected information. A manual or computer-assisted analysis is conducted. The analysis is based on an interruption in which crucial activities or resources are not available. Typically it works on the assumption of the worst-case scenario, even when the chances of a risk likelihood are low. This approach is followed to zero in on the systems that, when disrupted or interrupted, threaten the organization’s very survival. This way, these processes are prioritized in the business continuity plan. 

The analysis phase helps identify the minimum staff and resources required for running the organization in the event of a crisis. This also allows the organizations to assess the impact on the revenue if the business is unable to run for a day, a week, or more. There might be contractual penalties, regulatory fines, and workforce-related expenditure which need to be taken into account while finding out the impact on the business. Further, there might be specific vulnerabilities of the firm, and they need to be considered in the BIA. 

  • Preparing a report: The next step is preparing a BIA report, which is assessed by the senior management. The report is a thorough analysis of the gathered information along with findings. It also gives recommendations on the procedure that should be followed in the event of a business disruption. The BIA report also shares the impact on the revenue, supply chain, and customer delivery to the business in a specific time frame. 

The business impact analysis report may also include a checklist of all the resources, such as the names of key personnel, data backup , contact information, emergency responders, and more.

  • Presenting the report: Usually, this report goes through several amendments before being cleared by the senior management. The involvement of senior management is crucial to the success of the business continuity plan. It sends out a strong signal in the organization that it is a serious initiative. 

Also Read: Will Extreme Weather Events Affect Your Business? Lessons From the Texas Winter Storm

Step 3: BCP Testing

Several testing methods are available to test the effectiveness of the BCP. Here are a few common ones: 

  • TableTop test: As the name suggests, the identified executives go through the plan in detail to evaluate whether it will work on not. Different disaster types and the response to them are discussed at length. This type of testing is designed to make all the key personnel aware of their role in the event of a disaster. The response procedure is reviewed, and responsibilities are outlined, so everybody knows their roles.
  • Walk through: In this type of testing, the team members go through their part in the plan with a specific disaster in mind. Drills or a simulated response and disaster role-playing are part of this. This is a more thorough form of testing and likely to reveal the shortcoming in the plan. Any vulnerabilities discovered should be used to update the BCP accordingly.
  • Disaster simulation testing: In this type of testing, an environment that simulates an actual disaster is created. This is the closest to the actual event and gives the best case scenario about the plan’s workability. It will help the team find gaps that might be overlooked in the other types of tests. Document the results of your testing so you can compare the improvement from the previous tests. It will help you in strengthening your business continuity plan. 

Frequency of testing – Typically, organizations test BCP at least twice a year. At the same time, it depends on the size of your organization and the business vertical you operate in.

Step 4: Maintenance

A business continuity plan should not be treated as a one-time exercise. It needs to be maintained , so the organization’s structural and people changes are updated regularly. The key personnel might move on from the firm, and this would need to be updated in the Business Impact Analysis and BCP. The process for regular updating of the documentation should be followed to ensure that the organization is not caught on the wrong foot in case of a business disruption. 

Also Read: Offsite Data Replication: A Great Way To Meet Recovery Time Objectives

Step 5: Communication

Sometimes executives tend to ignore communication while preparing a BCP. It is a crucial aspect, and your BCP should clearly define who will maintain the communication channels with the employees, regulators, business partners, and partners during the crisis. The contact information of the key people should be readily accessible for the BCP to work without any trouble.

In the end, the organizations should accept that despite preparing a formidable business continuity plan, several factors beyond your control may still affect its success or failure. The key executives might not be available in the event of a crisis; both the primary and the alternate data recovery sites might have been affected by the event; the communications network might be damaged, and so on. Such factors are common during a natural disaster and may lead to the limited success of the business continuity plan. 

The success of a business depends on it acting swiftly and efficiently when confronted with an unanticipated crisis. Any failure to do so results in a financial and reputational loss, which takes up a long time to recover. It can be avoided if the organization quickly gathers itself during a disaster. A business continuity plan is then of paramount importance for a business of any size. At the same time, it is crucial to ensure that the BCP is not a one-time exercise. It needs to be continuously evaluated, tested, amended, and maintained so it doesn’t let you down when you need it the most. 

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What Is A Business Continuity Plan? [+ Template & Examples]

Swetha Amaresan

Published: December 30, 2022

When a business crisis occurs, the last thing you want to do is panic.

executives discussing business continuity plan

The second-to-last thing you want to do is be unprepared. Crises typically arise without warning. While you shouldn't start every day expecting the worst, you should be relatively prepared for anything to happen.

A business crisis can cost your company a lot of money and ruin your reputation if you don't have a business continuity plan in place. Customers aren't very forgiving, especially when a crisis is influenced by accidents within the company or other preventable mistakes. If you want your company to be able to maintain its business continuity in the face of a crisis, then you'll need to come up with this type of plan to uphold its essential functions.

Free Download: Crisis Management Plan & Communication Templates

In this post, we'll explain what a business continuity plan is, give examples of scenarios that would require a business continuity plan, and provide a template that you can use to create a well-rounded program for your business.

Table of Contents:

What is a business continuity plan?

  • Business Continuity Types
  • Business Continuity vs Disaster Recovery

Business Continuity Plan Template

How to write a business continuity plan.

  • Business Continuity Examples

A business continuity plan outlines directions and procedures that your company will follow when faced with a crisis. These plans include business procedures, names of assets and partners, human resource functions, and other helpful information that can help maintain your brand's relationships with relevant stakeholders. The goal of a business continuity plan is to handle anything from minor disruptions to full-blown threats.

For example, one crisis that your business may have to respond to is a severe snowstorm. Your team may be wondering, "If a snowstorm disrupted our supply chain, how would we resume business?" Planning contingencies ahead of time for situations like these can help your business stay afloat when you're faced with an unavoidable crisis.

When you think about business continuity in terms of the essential functions your business requires to operate, you can begin to mitigate and plan for specific risks within those functions.

business continuity plan what is it

Crisis Communication and Management Kit

Manage, plan for, and communicate during your corporate crises with these crisis management plan templates.

  • Free Crisis Management Plan Template
  • 12 Crisis Communication Templates
  • Post-Crisis Performance Grading Template
  • Additional Crisis Best Management Practices

You're all set!

Click this link to access this resource at any time.

Business Continuity Planning

Business continuity planning is the process of creating a plan to address a crisis. When writing out a business continuity plan, it's important to consider the variety of crises that could potentially affect the company and prepare a resolution for each.

Business Continuity Plan

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What Is Business Continuity?

What is business continuity

Business continuity is an organization's ability to maintain or quickly resume acceptable levels of product or service delivery following a short-term event that disrupts normal operations. Examples of disruptions range from natural disasters to power outages.

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Is business continuity the same as business resilience or disaster recovery?

Business continuity, disaster recovery, and business resilience are not the same, but they are related.

  • Business continuity is a process-driven approach to maintaining operations in the event of an unplanned disruption such as a cyber attack or natural disaster. Business continuity planning covers the entire business—processes, assets, workers, and more. It isn't focused solely on IT infrastructure and business systems.
  • Business resilience encompasses crisis management and business continuity. It requires a response to all types of risk that an organization may face. An organization that is business resilient is essentially in a constant state of "expecting the unexpected." It means continuously preparing to meet disruptions head-on, including events of extended duration that may affect more than one facility or region.
  • Disaster recovery focuses specifically on how to restore an enterprise's IT infrastructure and business systems following a disruption. It is considered an element of business continuity. A business continuity plan (BCP) might contain several disaster recovery plans, for example.

What is a business continuity strategy?

A business continuity strategy is a summary of the mitigation, crisis, and recovery plans to be implemented after a disruption to resume normal operations. "Business continuity strategy" is often used interchangeably with "business continuity plan." Both consider the broader goals, legal and regulatory requirements, personnel, and even the business's clients and partners.

What does a business continuity plan mitigate?

A relevant and well-tested BCP can help ease the negative impacts of an unexpected business disruption in many ways.

  • Financial impact: Disruptions to product supply chains and critical services to customers can directly affect sales and revenue. Downtime caused by unplanned disruptions can also result in higher costs for a business as it looks to repair operations and mitigate previously unidentified threats.
  • Reputation and brand impact: Failure to resume operations quickly and supply customers with the products or services they expect can prompt customer defections and tarnish the brand. Damage to reputation can in turn cause investors and capital sources to pull back funding, exacerbating the financial impact of a business disruption.
  • Regulatory impact: Customers and vendors are likely to complain when businesses fail to respond appropriately to disruptions, which may result in regulatory scrutiny or even censure. In highly-regulated industries, such as energy and financial services, business continuity planning is mandatory to ensure regulatory compliance.

Business continuity planning activities

A well-crafted and tested BCP can go a long way toward helping a business recover swiftly from a disruption. These are key steps a business may want to take.

Identifying critical business areas and functions

Business continuity planning begins with identifying an organization's key business areas and the critical functions within those areas. A business needs to determine and document the acceptable downtime for each area and function considered vital to operations. Then a plan to restore operations can be established, documented, and communicated.

Analyzing risks, threats, and potential impacts

Creating appropriate response scenarios requires knowing what disruptions the business could experience. An upfront analysis of risks and threats is necessary in order to prepare contingency responses to events. Organizations can also conduct a back-end analysis after an event to gather metrics and assess lessons learned. This information can drive improvements in how the business responds to disruptions.

Outlining and assigning responsibilities

A BCP details which personnel will be responsible for implementing specific aspects of the plan. It also identifies key decision-makers and a chain of command. The plan should include alternative options in case primary personnel are incapacitated or unavailable to respond to the disruption.

Defining and documenting alternatives

A business continuity plan should define and document alternative communication strategies in case telephone services or the internet are down. Enterprises should also have alternatives for mission-critical spaces such as data centers or manufacturing facilities in case buildings are damaged.

Assessing the need for critical backups

Essential equipment may be damaged or unavailable during a disruptive event. A business should consider whether it has access to backup equipment and uninterruptible power supplies (UPS) during extended power outages. Business-critical data needs to be backed up regularly, and is mandatory in many regulated industries.

Testing, training, and communication

Business continuity plans need to be tested to ensure they will be effective. (Disaster recovery plans should be tested as well.) A best practice is to conduct a plan review at least quarterly with leadership and key team members who are responsible for executing the plan.

Many companies use role-playing sessions, simulations, and other types of exercises several times per year to test their BCPs. This approach helps to identify gaps, develop strategies for improvement, and determine if more resources are needed. Targeted staff training and communicating to the whole workforce the benefits of having a business continuity plan are also vital to its success.

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How to create an effective business continuity plan

A business continuity plan outlines procedures and instructions an organization must follow in the face of disaster, whether fire, flood, or cyberattack. Here’s how to create a plan that gives your business the best chance of surviving such an event.

Professional Meeting: Senior Businesswoman and Colleague in Discussion

The tumultuous events of the past several years have impacted practically every business. And with the number of extreme weather events, cyberattacks, and geopolitical conflicts continuing to rise, business leaders are bracing for the possibility of increasingly more frequent impactful incidents their organizations will need to respond to.

According to PwC’s 2023 Global Crisis and Resilience Survey , 96% of 1,812 business leaders said their organizations had experienced disruption in the past two years and 76% said their most serious disruption had a medium to high impact on operations.

It’s little wonder then that 89% of executives list resilience as one of their most important strategic priorities.

Yet at the same time, only 70% of respondents said they were confident in their organization’s ability to respond to disruptions, with PwC noting that its research shows that too many organizations “are lacking the foundational elements of resilience they need to be successful.”

A solid business continuity plan is one of those foundational elements.

“Every business should have the mindset that they will face a disaster, and every business needs a plan to address the different potential scenarios,” says Goh Ser Yoong, head of compliance at Advance.AI and a member of the Emerging Trends Working Group at the professional governance association ISACA.

A business continuity plan gives the organization the best shot at successfully navigating a disaster by providing ready-made directions on who should do what tasks in what order to keep the business viable.

Without such as a plan, the organization will take longer than necessary to recover from an event or incident — or may never recover at all.

What is a business continuity plan?

A business continuity plan (BCP) is a strategic playbook created to help an organization maintain or quickly resume business functions in the face of disruption, whether that disruption is caused by a natural disaster, civic unrest, cyberattack, or any other threat to business operations.

A business continuity plan outlines the procedures and instructions that the organization must follow during such an event to minimize downtime, covering business processes, assets, human resources, business partners, and more.

A business continuity plan is not the same as a disaster recovery plan , which focuses on restoring IT infrastructure and operations after a crisis. Still, a disaster recovery plan is part of the overall strategy to ensure business continuity, and the business continuity plan should inform the action items detailed in an organization’s disaster recovery plan. The two are tightly coupled, which is why they often are considered together and abbreviated as BCDR.

Why business continuity planning matters

Whether you operate a small business or a large corporation, it’s vital to retain and increase your customer base. There’s no better test of your capability to do so than right after an adverse event.

Because restoring IT is critical for most companies, numerous disaster recovery solutions are available. You can rely on IT to implement those solutions. But what about the rest of your business functions? Your company’s future depends on your people and processes. Being able to handle any incident effectively can have a positive effect on your company’s reputation and market value, and it can increase customer confidence.

Moreover, there are increasing consumer and regulatory expectations for both enterprise security and continuity today. Consequently, organizations must prioritize continuity planning to prevent not only business losses, but financial, legal, reputational, and regulatory consequences.

For example, the risk of having an organization’s “license to operate” withdrawn by a regulator or having conditions applied (retrospectively or prospectively) can adversely affect market value and consumer confidence.

Building (and updating) a business continuity plan

Whether building the organization’s first business continuity plan or updating an existing one, the process involves multiple essential steps.

Assess business processes for criticality and vulnerability: Business continuity planning “starts with understanding what’s most important to the business,” says Joe Nocera, principle in the cyber risk and regulatory practice at PwC, a professional services firm.

So the first step in building your business continuity plan is assessing your business processes to determine which are the most critical; which are the most vulnerable and to what type of events; and what are the potential losses if those processes go down for a day, a few days, or a week.

“This step essentially determines what you are trying to protect and what you are trying to keep up for systems,” says Todd Renner, senior managing director in the cybersecurity practice at FTI Consulting.

This assessment is more demanding than ever before because of the complexity of today’s hybrid workplace, the modern IT environment, and the reliance on business partners and third-party providers to perform or support critical processes.

Given that complexity, Goh says a thorough assessment requires an inventory of not only key processes but also the supporting components — including the IT systems, networks, people, and outside vendors — as well as the risks to those components.

This is essentially a business impact analysis.

Determine your organization’s RTO and RPO: The next step in building a business continuity plan is determining the organization’s recovery time objective (RTO), which is the target amount of time between point of failure and the resumption of operations, and the recovery point objective (RPO), which is the maximum amount of data loss an organization can withstand.

Each organization has its own RTO and RPO based on the nature of its business, industry, regulatory requirements, and other operational factors. Moreover, different parts of a business can have different RTOs and RPOs, which executives need to establish, Nocera says.

“When you meet with individual aspects of the business, everyone says everything [they do] is important; no one wants to say their part of the business is less critical, but in reality you have to have those challenging conversations and determinations about what is actually critical to the business and to business continuity,” he adds.

Detail the steps, roles, and responsibilities for continuity: Once that is done, business leaders should use the RTO and the RPO, along with the business impact analysis, to determine the specific tasks that need to happen, by whom, and in what order to ensure business continuity.

“It’s taking the key components of your analysis and designing a plan that outlines roles and responsibilities, about who does what. It gets into the nitty-gritty on how you’re going to keep the company up and running,” Renner explains.

One common business continuity planning tool is a checklist that includes supplies and equipment, the location of data backups and backup sites, where the plan is available and who should have it, and contact information for emergency responders, key personnel, and backup site providers.

Although the list of possible scenarios that could impact business operations can seem extensive, Goh says business leaders don’t have to compile an exhaustive list of potential incidents. Rather, they should compile a list that includes likely incidents as well as representative ones so that they can create responses that have a higher likelihood of ensuring continuity even when faced with an unimagined disaster.

“So even if it’s an unexpected event, they can pull those building blocks from the plan and apply them to the unique crisis they’re facing,” Nocera says.

The importance of testing the business continuity plan

Devising a business continuity plan is not enough to ensure preparedness; testing and practicing are other critical components.

Renner says testing and practicing offer a few important benefits.

First, they show whether or how well a plan will work.

Testing and practicing help prepare all stakeholders for an actual incident, helping them build the muscle memory needed to respond as quickly and as confidently as possible during a crisis.

They also help identify gaps in the devised plan. As Renner says: “Every tabletop exercise that I’ve ever done has been an eye-opener for everyone involved.”

Additionally, they help identify where there may be misalignment of objectives. For example, executives may have deprioritized the importance of restoring certain IT systems only to realize during a drill that those are essential for supporting critical processes.

Types and timing of tests

Many organizations test a business continuity plan two to four times a year. Experts say the frequency of tests, as well as reviews and updates, depends on the organization itself — its industry, its speed of innovation and transformation, the amount of turnover of key personnel, the number of business processes, and so on.

Common tests include tabletop exercises , structured walk-throughs, and simulations. Test teams are usually composed of the recovery coordinator and members from each functional unit.

A tabletop exercise usually occurs in a conference room with the team poring over the plan, looking for gaps and ensuring that all business units are represented therein.

In a structured walk-through, each team member walks through his or her components of the plan in detail to identify weaknesses. Often, the team works through the test with a specific disaster in mind. Some organizations incorporate drills and disaster role-playing into the structured walk-through. Any weaknesses should be corrected and an updated plan distributed to all pertinent staff.

Some experts also advise a full emergency evacuation drill at least once a year.

Meanwhile, disaster simulation testing — which can be quite involved — should still be performed annually. For this test, create an environment that simulates an actual disaster, with all the equipment, supplies and personnel (including business partners and vendors) who would be needed. The purpose of a simulation is to determine whether the organization and its staff can carry out critical business functions during an actual event.

During each phase of business continuity plan testing, include some new employees on the test team. “Fresh eyes” might detect gaps or lapses of information that experienced team members could overlook.

Reviewing and updating the business continuity plan should likewise happen on an ongoing basis.

“It should be a living document. It shouldn’t be shelved. It shouldn’t be just a check-the-box exercise,” Renner says.

Otherwise, plans go stale and are of no use when needed.

Bring key personnel together at least annually to review the plan and discuss any areas that must be modified.

Prior to the review, solicit feedback from staff to incorporate into the plan. Ask all departments or business units to review the plan, including branch locations or other remote units.

Furthermore, a strong business continuity function calls for reviewing the organization’s response in the event of an actual event. This allows executives and their teams to identify what the organization did well and where it needs to improve.

How to ensure business continuity plan support, awareness

One way to ensure your plan is not successful is to adopt a casual attitude toward its importance. Every business continuity plan must be supported from the top down. That means senior management must be represented when creating and updating the plan; no one can delegate that responsibility to subordinates. In addition, the plan is likely to remain fresh and viable if senior management makes it a priority by dedicating time for adequate review and testing.

Management is also key to promoting user awareness. If employees don’t know about the plan, how will they be able to react appropriately when every minute counts?

Although plan distribution and training can be conducted by business unit managers or HR staff, have someone from the top kick off training and punctuate its significance. It’ll have a greater impact on all employees, giving the plan more credibility and urgency.

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Published: 21 December 2023 Contributors: Mesh Flinders, Ian Smalley

Business continuity disaster recovery (BCDR) refers to a process that helps organizations return to normal business operations in the event of a disaster. While the terms business continuity and  disaster recovery  are closely related, they describe two subtly different approaches to crisis management that businesses can take.

As data loss prevention and downtime become more and more expensive, many organizations are upping their investment in emergency management. In 2023, companies worldwide are poised to spend USD 219 billion on cybersecurity and solutions, a 12% increase from last year  according to a recent report by the International Data Corporation (IDC)  (link resides outside ibm.com).

What is a disaster recovery plan?

A  disaster recovery plan (DRP)  is a contingency plan for how an enterprise will recover from an unexpected event. Alongside business continuity plans (BCPs), DR plans help businesses navigate different disaster scenarios, such as massive outages, natural disasters,  ransomware  and  malware  attacks, and many others.

What is a business continuity plan?

Like DRPs, business continuity plans (BCPs) play a critical role in disaster recovery, helping organizations return to normal business functions in the event of a disaster. Where a DRP focusses specifically on IT systems, business continuity management focusses more broadly on various aspects of preparedness.

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Most organizations divide BCDR planning into two separate processes: business continuity and disaster recovery. This is an effective approach because while the two processes share many steps, there are also key differences in how the plans are built, implemented and tested.

The primary difference is that BCPs tend to be proactive, while DRPs tend to be more reactive. It’s good to keep this in mind when building the two parts of your BCDR plan because it governs how the two processes relate to each other. A strong business continuity strategy focuses on processes, procedures and roles that are critical to business operations before, during and immediately following a disaster. DR planning is more geared towards reacting to an incident and taking appropriate actions to recover from it. 

Both processes depend heavily on two critical components, recovery time objective (RTO) and recovery point objective (RPO):

  • Recovery time objective (RTO):  RTO refers to the amount of time it takes to restore business processes after an unplanned incident. Establishing a reasonable RTO is one of the first things businesses need do when they’re creating their DRP. 
  • Recovery point objective (RPO):  Your business’ RPO is the amount of data it can afford to lose in a disaster and still recover. Since data protection is a core capability of many modern enterprises, some constantly copy data to a remote  data center  to ensure continuity in case of a massive breach. Others set a tolerable RPO of a few minutes (or even hours) for business data to be recovered from a backup system and know they will be able to recover from whatever was lost during that time.

1.    Conduct business impact analysis (BIA)

To build an effective BCP, you’ll first need to understand the various risks your organization faces. Business impact analysis (BIA) plays a crucial role in risk management and business resilience. BIA is the process of identifying and evaluating the potential impact of a disaster on normal operations. Strong BIA includes an overview of all potential existing threats and vulnerabilities—internal and external—as well as detailed plans for mitigation. Additionally, the BIA must identify the likelihood of an event occurring so the organization can prioritize accordingly.

2.    Design responses

Once your BIA is complete, the next step in building your BCP is planning effective responses to each of the threats you’ve identified. Different threats will naturally require different disaster recovery strategies, so each of your responses should have a detailed plan for how the organization will spot a specific threat and address it.

3.    Identify key roles and responsibilities

This step dictates how key members of your team will respond when facing a crisis or disruptive event. It documents expectations for each team member as well as the resources required for them to fulfill their roles. This is a good part of the process to consider how individuals will communicate in the event of an incident. Some threats will shut down key networks—such as cellular or internet connectivity—so it’s important to have fallback methods of communication your employees can rely on.

4.    Test and update your plan

To be actionable, you need to constantly practice and refine your BCDR plan. Constant testing and training of employees will lead to a seamless deployment when an actual disaster strikes. Rehearse realistic scenarios like cyberattacks, fires, floods, human error, massive outages and other relevant threats so team members can build confidence in their roles and responsibilities.

Like BCPs, DRPs require business impact analysis (BIA)—the outlining of roles and responsibilities and constant testing and refinement. But because DRPs are more reactive in nature, there is more of a focus on risk analysis and  data backup and recovery . Steps 2 and 3 of DRP development, performing risk analysis (RA) and creating an asset inventory are not part of the BCP development process at all. 

Here's a widely used five-step process for creating a DRP:

1.    Conduct business impact analysis

Like in your BCP process, start by assessing each threat your company could face and what its ramifications might be. Consider how potential threats might impact daily operations, regular communication channels and worker safety. Additional considerations for a strong BIA include loss of revenue, cost of downtime, cost of reputational repair (public relations), loss of customers and investors (short and long term) and any incurred penalties from compliance violations.

2.    Analyze risks

DRPs typically require more careful risk assessment than BCPs since their role is to focus on recovery efforts from a potential disaster. During the risk analysis (RA) portion of planning, consider a risk’s likelihood and potential impact on your business.

3.    Create an asset inventory

To create an effective DRP, you must know exactly what your enterprise owns, its purpose/function and its condition. Doing regular asset inventory helps identify hardware, software, IT infrastructure and anything else your organization might own that is crucial to your business operations. Once you’ve identified your assets, you can group them into three categories— critical, important  and  unimportant:

  • Critical:  Only label assets as critical if they are required for normal business operations.
  • Important:  Give this label to assets that are used at least once a day and, if disrupted, would have an impact on business operations (but not shut them down entirely).
  • Unimportant:  These are assets your business uses infrequently that are not essential for normal business operations.

4.    Establish roles and responsibilities

Just like in your BCP development, you’ll need to clearly outline responsibilities and ensure team members have what they need to perform their required duties. Without this crucial step, no one will know how to act during a disaster. Here are some roles and responsibilities to consider when building your DRP:

  • Incident reporter:  Someone who maintains contact information for relevant parties and communicates with business leaders and stakeholders when disruptive events occur.
  • DRP supervisor:  The DRP supervisor ensures team members perform the tasks they’ve been assigned during an incident. 
  • Asset manager:  Someone whose job it is to secure and protect critical assets when a disaster strikes. 
  • Third-party liaison:  The person who coordinates with any third-party vendors or service providers you’ve hired as part of your DRP and updates stakeholders accordingly on how the DRP is going.

5.    Test and refine

Like your BCP, your DRP requires constant practice and refinement to be effective. Practice it regularly and update it according to any meaningful changes that need to be made. For example, if your company acquires a new asset after your DRP has been formed, you’ll need to incorporate it into your plan to ensure it's protected going forward.

When it comes to BCDR planning, every business is going to have its own unique set of needs. Here are a few examples of plans that have proven effective for companies of differing sizes and industries:

  • Crisis management plan:  A crisis management plan, also known as an incident management plan, is a detailed plan for managing a specific incident. It provides detailed instructions on how your organization will respond to a specific kind of crisis, such as a power outage, cyberattack or natural disaster.
  • Communications plan:  A communications plan outlines how your organization will handle public relations (PR) in the event of a disaster. Business leaders typically coordinate with communications specialists to formulate communications plans that complement any crisis management activities needed to keep business operations going during an unplanned incident.
  • Data center recovery plan : A data center recovery plan focuses on the security of a data center facility and its ability to get back up and running after an unplanned incident. Some common threats to data storage include overstretched personnel that can result in human error, cyberattacks, power outages and difficulty following compliance requirements. 
  • Network recovery plan:  Network recovery plans help organizations recover from an interruption of network services, including internet access, cellular data, local area networks (LAN) and wide area networks (WAN). Given the importance of many networked services to business operations, network recovery plans must clearly outline the steps, roles and responsibilities needed to restore services quickly and effectively when a network has been compromised.
  • Virtualized recovery plan:  A virtualized recovery plan  relies on virtual machine (VM) instances that can be ready to operate within a couple of minutes of an interruption. Virtual machines are representations, or emulations, of physical computers that provide critical application recovery through high availability (HA), or the ability of a system to operate continuously without failing.

BCDR planning helps organizations better understand the threats they face and better prepare to face them. Enterprises that don’t undertake BCDR planning face a variety of risks, including data loss, downtime, financial penalties and reputational damage. Effective BCDR planning helps ensure business continuity and the prompt restoration of services in the event of a business disruption. Here are some of the benefits companies with strong BCDR planning enjoy:

When an unplanned incident disrupts business as usual, it can cost hundreds of millions of dollars. Additionally, high-profile cyberattacks frequently attract unwanted attention in the press and can result in loss of confidence in both customers and investors. BCDR plans increase an organization’s ability get back up and running swiftly and smoothly after an unplanned incident.

According to  IBM’s recent Cost of Data Breach Report , the average cost of a data breach in 2023 was USD 4.45 million, a 15% increase over the last 3 years. Enterprises with strong BCDR can reduce those costs by helping maintain business continuity throughout an incident and speeding recovery afterwards. Another opportunity for cost-savings with strong BCDR is in cyber insurance. Many insurers simply won’t ensure organizations that don’t have a strong BCDR plan in place.

Data breaches incur hefty fines when private customer information is compromised. Businesses that operate in heavily regulated sectors like healthcare and personal finance face especially costly penalties. Since these penalties are often tied to the duration and severity of a breach, maintaining business continuity and shortening response and recovery lifecycles is critical to keeping financial penalties low.

Even a minor outage can put you at a competitive disadvantage. Protect your data with a cloud disaster recovery plan. 

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Learn about what factors come into play when deciding whether to invest in and manage your on-premises Disaster Recovery (DR) solutions or use Disaster Recovery as a Service (DRaaS) providers.

Learn about technologies and practices for making periodic copies of data and applications, that enable your business to recover in case of a power outage, cyberattack, human error, disaster, or some other unplanned event.

Discover critical similarities and differences between disaster recovery and backup, as well as how these solutions can help you solve your business' most important problems.

Learn about IBM's plans and processes tot help sustain its business by assessing and preparing for potential disasters.

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Learn about immutable storage, a kind of storage protocol that protects stored data by preventing any changes or alterations for either a set or indefinite amount of time.

The demand for increasingly scalable, capable, and affordable backup and recovery solutions has never been greater. Talk to an IBM representative about how IBM Cloud Solutions can help support your priorities and budget.

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business continuity plan what is it

Business Continuity Planning

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Organize a business continuity team and compile a  business continuity plan  to manage a business disruption. Learn more about how to put together and test a business continuity plan with the videos below.

Business Continuity Plan Supporting Resources

  • Business Continuity Plan Situation Manual
  • Business Continuity Plan Test Exercise Planner Instructions
  • Business Continuity Plan Test Facilitator and Evaluator Handbook

Business Continuity Training Videos

The Business Continuity Planning Suite is no longer supported or available for download.

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Business Continuity Training Introduction

An overview of the concepts detailed within this training. Also, included is a humorous, short video that introduces viewers to the concept of business continuity planning and highlights the benefits of having a plan. Two men in an elevator experience a spectrum of disasters from a loss of power, to rain, fire, and a human threat. One man is prepared for each disaster and the other is not.

View on YouTube

Business Continuity Training Part 1: What is Business Continuity Planning?

An explanation of what business continuity planning means and what it entails to create a business continuity plan. This segment also incorporates an interview with a company that has successfully implemented a business continuity plan and includes a discussion about what business continuity planning means to them.

Business Continuity Training Part 2: Why is Business Continuity Planning Important?

An examination of the value a business continuity plan can bring to an organization. This segment also incorporates an interview with a company that has successfully implemented a business continuity plan and includes a discussion about how business continuity planning has been valuable to them.

Business Continuity Training Part 3: What's the Business Continuity Planning Process?

An overview of the business continuity planning process. This segment also incorporates an interview with a company about its process of successfully implementing a business continuity plan.

Business Continuity Training Part 3: Planning Process Step 1

The first of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “prepare” to create a business continuity plan.

Business Continuity Training Part 3: Planning Process Step 2

The second of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “define” their business continuity plan objectives.

Business Continuity Training Part 3: Planning Process Step 3

The third of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “identify” and prioritize potential risks and impacts.

Business Continuity Training Part 3: Planning Process Step 4

The fourth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “develop” business continuity strategies.

Business Continuity Training Part 3: Planning Process Step 5

The fifth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should define their “teams” and tasks.

Business Continuity Training Part 3: Planning Process Step 6

The sixth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “test” their business continuity plans. View on YouTube

Last Updated: 12/21/2023

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Business Continuity Planning: Ensuring the Resilience of Your Organization

Let’s explore the intricacies of business continuity planning, from understanding its importance to implementing a robust strategy that safeguards your enterprise.

Published by Orgvue   November 20, 2023

Home > Resources > article > Business Continuity Planning: Ensuring the Resilience of Your Organization

In an unpredictable world, the ability to sustain your business’s essential functions and operations, even in the face of disruptions, is paramount.

business continuity plan what is it

Business continuity planning is the framework that ensures your organization can weather storms, both literal and metaphorical.

What is Business Continuity Planning?

At its core, business continuity planning is the process of developing a proactive strategy to ensure an organization’s critical functions and operations can continue in the face of unforeseen disruptions.

It encompasses a range of activities, from risk assessment to the creation of detailed recovery plans, with the ultimate goal of minimizing downtime and ensuring the organization’s resilience.

The Importance of Business Continuity Planning

The importance of being prepared for various external and internal factors cannot be overstated. While many businesses have a standard business plan, not all of them consider the potential disruptions caused by natural calamities, economic downturns, or other unexpected events. Business continuity planning is the key to ensuring a company’s sustained operation, regardless of the challenges it may face.

Business continuity planning goes beyond the traditional business plan. While a business plan outlines goals and strategies for growth, a continuity plan focuses on how the organization will continue to function in the face of adversity. It involves identifying potential risks and developing strategies to mitigate and recover from them. Whether it’s a natural disaster, a cyberattack or an economic recession, having a well-thought-out strategic plan is essential for business survival.

One of the most significant threats to businesses is an economic downturn, such as a recession. During these challenging times, consumer spending often decreases, and businesses may face financial instability. A recession can have a ripple effect on companies of all sizes, causing decreased revenue, layoffs, and even closures.

For a detailed look at the impact of recessions on businesses, read how to prepare for a recession , which delves into strategies for navigating these challenging economic conditions.

Business strategy planning is not just about surviving during tough times; it’s also crucial for capitalizing on periods of growth. When businesses experience an upturn, they often need to scale rapidly to meet increased demand. Having a continuity plan in place allows for a smoother transition during periods of growth, ensuring that the infrastructure, resources and workforce can adapt effectively.

The financial consequences of not having a business continuity plan can be devastating. Without a plan in place, businesses are more vulnerable to unexpected disruptions, which can result in significant financial losses. These losses may come from increased downtime, lost revenue, legal liabilities, reputational damage and the costs associated with recovery efforts.

Considerations for Business Continuity Planning

Creating a robust business continuity plan is a complex task that involves a multitude of factors. Among these considerations, three key aspects stand out: cultural differences, limited resources and alignment with business objectives. A successful business strategy plan takes these factors into account to ensure that an organization can effectively respond to disruptions while maintaining its core values and strategic direction.

1. Cultural Differences

Cultural diversity is a significant consideration in business strategy planning, especially for multinational companies or organizations with a diverse workforce. Cultural differences can influence how employees perceive and respond to crises. When developing a business continuity plan, it is important to consider the following aspects:

  • Communication Styles : Different cultures have varying communication norms and hierarchies. Understanding how employees from various cultural backgrounds communicate during a crisis can help in crafting effective crisis communication strategies.
  • Decision-Making Processes : Some cultures prioritize consensus-driven decision-making, while others lean towards hierarchical authority. A business continuity plan should acknowledge these differences and provide flexibility in decision-making approaches during disruptions.
  • Crisis Response Expectations : Cultural expectations can shape how employees expect the organization to respond to a crisis. Your business strategy plan should be sensitive to these expectations and ensure that response strategies align with cultural norms.

2. Limited Resources

For many businesses, resource constraints are a reality. When developing a business continuity plan, it’s crucial to consider the organization’s resource limitations, such as budget, personnel and technology. Here are some key considerations:

  • Resource Allocation : Prioritize critical functions and allocate resources accordingly. Not all business processes are equally important, and a business continuity plan should identify and protect the most essential ones first.
  • Efficiency and Scalability : Develop strategies that focus on efficiency and scalability. Efficient resource use is critical, and a business strategy plan should outline how to adapt to changing resource constraints during a crisis.
  • Collaboration : Collaboration with external partners, such as suppliers, can be a resource-saving strategy. Establishing relationships with partners who can provide support during disruptions is a valuable aspect.

3. Business Objectives

A business continuity plan should align with the broader business objectives to ensure that it doesn’t hinder growth or innovation. Consider the following aspects:

  • Market Expansion:  If the organization’s objective is to expand into new markets, the business strategy plan should accommodate this goal. It should address the challenges and opportunities that come with market expansion, including regulatory compliance and logistical considerations.
  • Relocation or Migration : If there are plans to relocate or migrate operations, the business continuity plan should include strategies for a seamless transition. This may involve considerations such as data migration, employee relocation and continuity of customer service.
  • Competitive Landscape : Changes in the competitive landscape, such as the emergence of new competitors, can impact the organization’s continuity. The business strategy plan should be flexible enough to adapt to shifts in the competitive environment.
  • The COVID-19 pandemic forced companies to adapt rapidly, with remote work becoming the norm for many, reshaping entire industries like healthcare and e-commerce.
  • The global recession of 2008 had long-lasting effects on financial institutions and prompted regulatory changes that influenced business operations.
  • The rise of the internet transformed countless businesses, from retail to media, and required adaptation to online platforms.
  • Looking ahead, emerging technologies like artificial intelligence have the potential to disrupt industries in unprecedented ways, with automation and data-driven decision-making reshaping the future of work. These events emphasize the critical importance of adaptable and comprehensive business continuity planning to navigate the unpredictable landscape of our ever-evolving world.

Developing a Strategic Business Plan

A well structured business plan serves as a roadmap for your organization, guiding actions and decisions while enabling effective response to a dynamic business environment.

  • Conduct a comprehensive assessment of the current state of the business.
  • Review financial statements, market positioning and operational performance.
  • Identify strengths, weaknesses, opportunities and threats.
  • Evaluate the company’s internal resources and capabilities.
  • Analyze micro-environment factors such as competitors, customers, suppliers and regulatory changes.
  • Examine macro-environment factors like economic trends, technological advancements and political factors.
  • Use tools like PESTEL analysis and Porter’s Five Forces to assess the external business environment.
  • Clearly define short-term and long-term business objectives.
  • Make objectives specific, measurable, achievable, relevant and time-bound (SMART).
  • Align objectives with the company’s mission and vision.
  • Identify key operational processes that drive business success.
  • Evaluate the efficiency and effectiveness of these processes.
  • Prioritize improvements in critical areas to align with strategic objectives.
  • Plan for potential risks and uncertainties that could impact the business.
  • Create contingency and crisis management strategies.
  • Establish a risk management framework to mitigate and respond to unforeseen events.
  • Implement key performance indicators (KPIs) to track progress.
  • Regularly review and revise the business plan based on changing market conditions.
  • Adapt to emerging opportunities and challenges.
  • Ensure that the strategic plan is communicated effectively throughout the organization.
  • Secure buy-in and commitment from employees at all levels.
  • Ensure that all team members understand their roles in achieving the plan’s objectives.
  • Allocate resources, including finances and manpower, in alignment with the strategic priorities.
  • Develop a budget that reflects the financial requirements of the plan.
  • Monitor spending and adjust budgets as needed.
  • Develop a timeline and action plan for the execution of the strategic initiatives.
  • Assign responsibilities to specific teams or individuals.
  • Regularly review progress and make adjustments to stay on track.
  • Periodically evaluate the effectiveness of the strategic plan.
  • Solicit feedback from employees, customers and stakeholders.
  • Use feedback to make continuous improvements and refine the plan.
  • Establish a system for measuring and reporting progress.
  • Create dashboards or reports to communicate key metrics to stakeholders.
  • Ensure that performance data aligns with the defined objectives.
  • Incorporate sustainability and responsible growth practices into the plan.
  • Address social and environmental impacts as part of corporate responsibility.
  • Seek opportunities for sustainable growth and innovation.
  • Develop scenarios that explore alternative future situations.
  • Consider various outcomes and their implications on the business.
  • Prepare for different scenarios to enhance adaptability.
  • Leverage technology for data analytics, automation, and efficiency.
  • Stay updated on emerging technologies that can support the strategic plan.
  • Integrate technology solutions to enhance business processes.

Implementing a Business Continuity Plan

business continuity plan what is it

 Importance of Training and Awareness:

  • Awareness:  Create awareness about the business continuity plan across the organization to foster a culture of preparedness. This includes educating employees on the potential risks and the importance of the plan.

 Consistent Review of the Plan:

  • Conduct post-incident reviews to assess the BCP’s performance after a real event and make necessary adjustments.

 Address Cultural and Technological Issues:

  • Technological Challenges: Recognize and mitigate technological hurdles that can hinder the plan’s execution, such as infrastructure limitations or cybersecurity threats. Ensure that IT systems are resilient and can support the plan.

 Software Integration:

  • Organizational design software like Orgvue can assist in visualizing and optimizing the organizational structure, enabling efficient allocation of resources and responsibilities during a disruption.

Business continuity planning is not merely a precaution but a strategic imperative for any organization. It provides a structured approach to safeguarding business operations in the face of unforeseen disruptions, thereby minimizing downtime and potential financial losses.

By fostering a culture of preparedness, training employees, regularly reviewing and adapting the plan, addressing cultural and technological issues, and leveraging software solutions like Orgvue for organizational design, businesses can ensure their resilience and adaptability in an ever-changing landscape.

For businesses with specific 1-5 year plans, the integration of business strategy planning is paramount. It aligns seamlessly with forward-looking strategies by fortifying the organization’s ability to execute those plans in the face of unexpected events.

By weaving business continuity considerations into your strategic framework, you not only protect your investments but also demonstrate your commitment to long-term success, customer trust and stakeholder confidence. The benefits of such foresight extend far beyond mitigating risk; they empower your business to thrive in an increasingly unpredictable world. Therefore, it is recommended that businesses of all sizes prioritize and integrate business continuity planning as an integral part of their strategic vision and ongoing operations.

Business Continuity Plan FAQs

● where does business continuity planning belong in an organization.

Depending on the organization’s culture, the department your business continuity plan falls under varies. IT is usually one of the most vital components of any business strategy plan, in which case it could belong under the IT department. Or, if financial impacts are your organization’s main concern, the finance department may need to run the plan.

● Who Is Responsible For the Business Continuity Plan?

The business continuity plan usually falls under the responsibility of a dedicated role or department, often led by a Business Continuity Manager, who reports to senior leadership. This individual or team is responsible for creating, implementing, and regularly updating the plan to ensure the organization’s resilience in the face of disruptions.

● Is Business Continuity Planning a Legal Requirement?

It is not always a legal requirement, but certain industries and jurisdictions may have regulations or standards that mandate organizations to have such plans in place to ensure operational resilience and preparedness for emergencies.

● What Role Can Business Continuity Planning Play In Recovering From an Incident?

It plays a crucial role in helping organizations recover from incidents by providing a structured framework to assess, respond to and mitigate the impact of disruptions, minimizing downtime and financial losses. It outlines clear procedures and responsibilities, ensuring that essential operations can resume swiftly and efficiently, thus safeguarding the organization’s reputation and maintaining stakeholder trust.

● When Should a Business Continuity Plan Be Activated?

A business continuity plan should be activated as a preventative measure in the event a disruptive incident occurs. Triggers may include natural disasters, cyberattacks, supply chain disruptions or any event that threatens the continuity of critical business functions.

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What is a Business Continuity Plan (BCP)? Why do we need it?

  • August 11, 2022
  • BPO Insights
  • BPO , Business Process Management

WHAT IS BUSINESS CONTINUITY PLAN (BCP)?

Table of Contents

A Business Continuity Plan (BCP) is a protocol for preventing and recovering from potentially significant threats to the company’s business continuity. This article explains what this plan entails, its key benefits, and an easy step-by-step guide on how you can create your own Business Continuity Plan for Business Process Management .

What is a Business Continuity Plan (BCP)? What does a good BCP look like?

Business Continuity Plan (BCP) is an essential tool for keeping your operations running smoothly in the event of a major disaster. They identify processes and procedures that will help you maintain or restore them quickly , whether due to physical disasters (extreme weather) or technological ones such as cyberattacks.

Your business is only as good, fast, and efficient at recovering from unplanned disruptions when you have a plan. A lack of preparedness can lead to delays that will slow down your revenue recovery process, potentially impacting the health of your brand reputation.

WHAT IS BUSINESS CONTINUITY PLAN (BCP)?

Business Continuity Plan is about more than just disaster recovery. A successful program includes preventative measures and procedures for all types of disasters and the ability to continue operating during emergencies without any detrimental effects on productivity or customer service.

A business’s ability to weather difficult times externally impacts its prosperity internally too.

There are three primary aspects to a Business Continuity Plan for key applications and processes:

  • High availability is an essential component for any business. No matter what errors arise, you can be confident that your company has access to its applications and data through robust processes which are well protected against hardware or software failures in all areas – not just those related directly to IT infrastructure.
  • Continuous operations: You can continue your company’s operations in the event of a disruption and during planned outages such as backup and maintenance.
  • Disaster recovery: To avoid a disaster’s consequences, you must have an alternate site in mind. Your options for recovery include moving your entire operations over or restoring them from backups taken beforehand so that they can continue running as usual after any unexpected disruption – a process known appropriately enough as “ disaster prevention .”

What should a Business Continuity Plan include? 5 components of a Business Continuity Plan

Every company needs a plan to ensure that it can continue operating if there is ever an emergency on its end. This way, you’ll never have any customers feel frustrated or abandoned because something out of control happens within the business–and everyone will be safer too. The five critical components:

Risks and potential business impact

The goal of any Business Continuity Plan should be to protect the integrity and longevity of your company’s operations. Impact analyses identify external and internal vulnerabilities that could cause significant harm if they were activated. This way, you can take steps before something goes wrong.

A strong plan will use the output of your business impact analysis not only for risk assessment but also to anticipate the cost and time needed to recover.

Planning an effective response

Once you know what types of risks and threats your business may be vulnerable to, creating a plan to keep them safe is easy.

A comprehensive Business Continuity Plan is crucial to the success of any company. The document should identify which risks are most pressing and develop strategies for addressing them to minimize or prevent damage.

Roles and responsibilities

A Business Continuity Plan will document which key personnel need to be involved in the response . Senior staff members, but this depends on your company and the risk you are dealing with.

When disruption strikes, it’s essential to be prepared. Allowing for the prioritization and allocation of resources can save time in reacting efficiently – which could mean everything when trying to restore service as quickly and smoothly as possible.

Communication

During a business disruption, effective communication is vital. This means speaking with your team members and talking to anybody else who may be interested in what you’re doing – whether they work for the company or not.

The best way to prepare for a crisis is by having an effective Business Continuity Plan . This will ensure that your staff and external contacts are kept up-to-date with what’s happening, so they can continue providing excellent service during any natural or artificial emergency.

Testing and training

WHAT IS BUSINESS CONTINUITY PLAN (BCP)?

Business Continuity Plan must be tested and exercised regularly to work well. This final key component of a successful business continuity plan is “testing,” or exercising your project so it can stay on top form.

By testing and exercising your Business Continuity Plan , you can identify ways to improve it before a disruption occurs. This way, the company can respond quickly when something goes wrong with its plans.

Raising awareness of your company’s Business Continuity Plan is a critical first step in helping to ensure that employees are prepared and able to respond as needed during difficult times. Many companies run regular training sessions on how they can make pivotal decisions under pressure, including learning what steps must be taken should disaster strike.

Why do you need a Business Continuity Plan?

Maintaining business operations during a crisis can help you avoid financial loss and communicate that your company is stable. This will be important for maintaining employee morale and building trust with customers who may have worries about future work from this point on. It’s best if partnerships between all parts of an organization so they know what their roles entail in case something happens.

Building customer confidence is essential. Your customers want to know that you can respond quickly , so they don’t have any concerns about their order being delayed or if something goes wrong with the product when it ships out. Of course, this depends on whether other factors are involved in shipping timeframes.

Brands that can show themselves as strong, consistent, and graceful in the face of adversity will see their consumers as having a deep understanding of what they stand for and how it reflects on them. This is an opportunity to create deeper connections with customers through confident branding that showcases your ability to withstand any storm or challenge head-on without flinching.

Protect your supply chain. Supply disruptions are common because there’s so many ways they could happen! A pandemic can shutter manufacturing facilities, for example – or a natural disaster may paralyze transportation in a critical geographic area (which would effectively cut off points). A good plan will set out already-vetted options for circumventing supply chain issues.

With so many businesses being disrupted at once, your ability to quickly get things back on track will go a long way in showing consumers that you’re one of the few brands they can trust. In times like these, too – when people need help getting their lives back together.

Recover quickly from a business disruption. The key to mitigating financial risk is knowing what you should do in case of an emergency and how long it will take for your company to return up again after any unforeseen incident. The more extended downtime, the more significant potential that money could be lost through unchecked expenses or revenue disruptions which may lead to more severe consequences if left unattended too long without action being taken on their behalf accordingly.

4 Characteristics Guiding Your Continuity Planning

  • Comprehensive: There’s no way to plan for every possibility, but it is worth trying. Don’t assume your first idea will work; you’ll need backup plans and more! Make sure that any factor involved can be accounted for in case things go wrong – because they probably won’t just once (or twice) happen on multiple fronts simultaneously without causing some chaos among all parties concerned.
  • Realistic: When making plans, it is essential to be realistic and think of ways that things can go wrong . Ensure your project has as many contingencies for unforeseeable events , so there are no disasters when they least expect them.
  • Efficient: Making sure your Business Continuity Plan can be executed efficiently and with your resources will make any disaster or disruption easier to handle . The added stress from not having a proper strategy in place could cause problems for even regular tasks, so consider this when creating yours.
  • Adaptable: The best way to prepare for anything is by getting thrown curveballs. Your plan should account for constant monitoring of the situation and provide a good foundation from which you can pivot when necessary, as circumstances change minute-to-minute or even second by second.

How do you start a Business Continuity Plan? 7 steps of continuity management

WHAT IS BUSINESS CONTINUITY PLAN (BCP)?

A Business Continuity Plan can help your company recover quickly and efficiently in an emergency, which is why you need one.

Identify goals

Business Continuity Plan shouldn’t just be for the IT department. It’s essential to all of your critical business functions , including human resources and operations public relations, to keep them running or minimize disruption in case something goes wrong with either side.

You should identify what’s most important to your operations and ensure your risk assessment covers all areas in need. You’ll also do Business Continuity Plan and recovery strategies, so nothing gets left out when disaster strikes.

Establish an emergency team

To make this process more efficient and effective, select a few cross-functional managers or leaders from among those who may bring something valuable . Make sure someone is designated as the leader so they can keep things moving forward while making decisions when necessary.

Perform a risk assessment and business impact analysis (BIA)

The next step in identifying vulnerabilities is researching and analyzing potential threats. You’ll want your team on board with this to determine what would happen if certain services or functions were eliminated, reduced, or modified by removing them from consideration before deciding which option might be best for preserving critical aspects of the business operations.

Identify essential business functions

To ensure that essential services/functions continue during an emergency, you must determine how your organization will maintain them . Here are some of the essential services and functions that you’ll need to have a plan for.

Inventory management and supply continuity: The importance of inventory management cannot be overstated. If you don’t have enough on hand to meet demand, your business could suffer greatly and even fold entirely. This is why all companies must strive for efficient supply chain practices during times when there are disruptions in the market – like disasters or pandemics, which often cause shortages due to their severity.

Order fulfillment and shipping deadlines are crucial. If a crisis hits, can you still fill orders? It may be helpful to diversify the types of providers that offer services for your company because they will likely have different approaches regarding how quickly things get back up on track after either disaster or manufactured causes have triggered an emergency.

Functionality of your eCommerce platform: Can you handle a crisis if something happens, such as an increase in suppliers’ demand for products or services because they become more popular than expected? Would this lead to problems with out-of-stock items on your site, and would it make things difficult when suddenly increased supply due to new production rates coming online?

Customers need transparency and empathy during a crisis. You’ll want to provide your marketing/communications teams with an effective plan for responding so that they can keep the public informed of what’s happening while also communicating effectively through customer support channels when needed. You might consider adding staff members if necessary to answer any questions.

Prepare a plan

Your ecommerce engine runs as a combination of parts, including:

  • Team members
  • Suppliers/ subcontractors

Each of these parts has to have its own plan .

Review and make sure every function has been addressed

Including every aspect of your business in any plan for disruption is essential. Still, it is also true that certain elements will become more critical as you work through the process and make adjustments one step at a time. You’ll want to make sure you’ve documented the following:

  • Level of business risk.
  • Impact on employees and customers, and how you’ll communicate with them.
  • Emergency policy creation.
  • Financial resources can be tapped into in the event of a disaster.
  • External organization or community partners who can work together with you to be mutually beneficial.

Train staff, test, revise, and update the plan

To avoid potential problems, you must present the plan to all your stakeholders and suggest being proactive by performing trial runs. This will allow for a gut check on each part of our strategy before we implement them, which helps ensure everything works as expected ! Once updates are based on this feedback (or if new issues arise), training begins accordingly so everyone can get back up and running quickly after an emergency strikes.

Who is responsible for the Business Continuity Plan?

The business continuity steering committee, program sponsor, and manager are the individuals who should work together in identifying an approach for planning. They’ll determine which plans (crisis management or IT disaster recovery) are, among many other things, then decide on how many teams will be needed to own those specific types of activities/resources within your company’s scope.

Finally, we need people who know what needs to be done when it comes time to recover critical aspects, both externally facing ones such as customer service and internally focused ones, including inventory levels at stores.

What is Risk Assessment in Business Continuity Plan? How do you prepare a continuous Risk Assessment?

WHAT IS BUSINESS CONTINUITY PLAN (BCP)?

To be prepared for any emergency that might strike your business, you need a Risk Assessment . This is essential in creating the perfect continuity plan and ensuring all possible threats are identified before harming operations.

Business Continuity Plan is essential in ensuring that your company can keep running no matter what. Businesses should consider all possibilities for natural disasters like hurricanes and pandemics; manufactured such as cyber attacks-and plan accordingly with time to spare.

5 Steps in the Risk Assessment Process

Identify the hazards

Your organization’s workplace is a reflection of you and your team. It can be challenging to keep up with all aspects of work. Still, accidents/incidents serve as important pointers in determining what hazards could potentially harm an employer if not appropriately handled.

They might be natural disasters like hurricanes or fires or biological ones such as pandemics/foodborne illnesses which result in the loss of life. A workplace accident could also occur with all its risks, including slips from heights; transportation-related incidents caused by accidents while driving cars down busy streets.

Determine who might be harmed and how: Hazard identification is an important first step in Risk Assessment . To be thorough and efficient, you should identify who would come into contact with or become exposed to if the hazard suddenly occurred.

Evaluate the risks and take precautions: To determine the level of risk for each hazard, you need to evaluate how likely it is that a particular threat will occur and what kind or severity of consequences would result from such an event. This helps us decide where we should reduce our risks.

Record your findings: As a business owner, you must ensure that all employees are safe on the job. You can do this by implementing an effective risk assessment process which includes identifying potential hazards and how you plan for them to protect yourself and prevent accidents from happening with others around you.

Review assessment and update: Your workplace is constantly evolving, which means the risks to your business are changing too. New equipment or people may introduce new hazards you didn’t know about before. To protect yourself from these surprises and maintain a reputation, ask for help when necessary by updating Risk Assessment regularly, so they stay updated with current issues.

The following Risk Assessment steps will help you manage potential threats to your brand reputation. By partnering with an experienced specialist, the chances are slim that something could go wrong and unfairly affect business operations.

Thorough preparation is vital for maintaining uninterrupted service when disaster strikes— luckily, it never hurts too much to prepare ahead of time.

Is Business Continuity Plan part of Risk Assessment?

Business Continuity Plan is an integral part of Risk Assessment . The benefits of having a sound Business Continuity Plan in place are immense. From cyberattacks to fires and floods, all organizations will face unforeseen disruptions at some point – but with proper preparation, they can resume their most critical functions more quickly than ever before.

Pairing a Business Continuity Plan with other Risk Assessment techniques is an excellent way to mitigate all potential risks. This plan should be paired for maximum effectiveness and efficiency, such as through disaster recovery planning or by regularly assessing your organization’s strengths. Hence, you know what needs improvement before anything happens.

Businesses need to be prepared for the worst. Being fully aware of your level of risk and what needs to keep business moving is where you want to start. But that alone won’t give a competitive edge or help mitigate any financial risks involved with disasters like major disruptions from external factors.  Creating an entire plan will make everyone in your company feel more at ease; knowing they’re well trained on implementing it too means there’s the peace-of plan if disaster strikes.

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Small Business UK

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business continuity plan what is it

Business continuity plan: What it is and why you need it

business continuity plan what is it

Bruce Penson, managing director of Pro Drive IT, discusses why business continuity plans and disaster recovery plans are crucial to protecting your organisation.

When it comes to keeping your business in business, it’s important that you have plans in place to deal with both the good and the bad times ahead. Business continuity plans and disaster recovery plans are great way of ensuring that you protect your organisation, however, the two often get mixed up. Many people think that because they have a business continuity plan (BCP) they don’t need a disaster recovery plan (DRP), and vice versa.

They are, of course, very closely linked but with BCPs taking a more proactive approach to avoid and minimise the risk of downtime, and DRPs focusing on recovering from a disaster – they do what they say on the tin! In this post, we’re going to look specifically at the business continuity plan and why you should have one.

Nobody enjoys paperwork, and it’s understandable that many business owners will view a business continuity plan as just another laborious task to complete and that will probably go unused; so here are a few compelling facts which highlight just how important it is to prioritise a BCP.

– On average, a medium-sized data centre will experience over three downtime events each year, with the average power cut lasting over 3.5 hours. Source: Eaton UK

– Some 77 per cent of UK organisations (approximately 4.2 million) experienced connectivity failures in 2016. On average, UK organisations were also found to have suffered 4-5 outages each during 2016 and a wait of six  hours every time for service to be restored. Source: ISP Review

– Just over half (54 per cent) of UK companies have been hit by ransomware attacks resulting in variable amounts of downtime (58 per cent of UK companies pay up to get access to data and systems again.) Source: Malwarebytes

– Almost all (97 per cent) of network professionals in a survey by Veriflow agree that ‘human error’ is the most common reason for network outages. Source: Network World

– The average cost of downtime for an enterprise is $5,600 per minute. Source: Gartner

If you’re questioning that last statistic, it’s worth nothing that Gartner’s data was collected from extremely large companies – not SMEs – however, downtime also costs small businesses heavily. Downtime not only results in lost revenue but also in wasted employee time (you’re still paying them even when they can’t work). As well as loss of productivity you may also be paying for services you can’t use such as SaaS solutions that are redundant if your employees are unable to get online. Then there is the cost of getting back to business, such as overtime to catch up on, lost time, missed targets etc.

Depending on your company, losing key business systems can ultimately cost you customers, as your existing customers may choose to go elsewhere. Furthermore, the damage to your reputation and the lack of credibility your business will look to have if there is no disaster recovery plan in place could be extremely costly!

Hopefully the above has convinced you of the importance of having a business continuity plan so that in the event of connectivity issues, a power cut, network outage or cyber attack your organisation can weather the storm and get back to business as quickly as possible.

If you’re under the impression that a business disaster is unlikely to happen to your organisation, you could be mistaken. It could be as simple as one member of staff keeping an eye on an absent colleagues emails whilst they’re on annual leave and accidentally opening a cleverly presented, yet malicious, email. If the email contains ransomware such as ‘Zepto’, it could take seconds for all files on the computer and everything else connected to it – namely the server – to be encrypted.

Before you know it, network systems are unavailable, employees are unable to work, and a disaster recovery plan is essential. In addition to downtime, failing to have a business continuity plan in place can cost an organisation severe reputational damage, and it could even raise compliance issues.

When you’re running a small business, it can be easy to forget that you’re a prime target for cyber criminals, and many people have made the mistake of assuming that hackers are more interested in going after bigger organisations. But, the fact is that when you’re an SME, your cyber defences are easier to breach, as the chances are you won’t have the same budget available to you to spend on cybersecurity as a larger company, and attacking a small business carries a much lower risk than attempting to infiltrate a larger organisation, as the criminals are less likely to be caught.

Furthermore, hackers know that as a small business you’re probably more likely to pay a ransom to have files decrypted quickly, so that business can run as normal and downtime can be minimised. That’s why it’s more important than ever that you have a robust Business Continuity Plan in place, so that these situations can be avoided as far as is possible, and can be dealt with swiftly should they arise. Below, I outline the key aspects you should take into consideration when creating a BCP.

Key considerations for a business continuity plan

The following points will help you understand what needs to be part of your BCP so that you put processes in place to reduce the risk of disruption and recover quickly.

– Critical business functions – what’s going to cost your business most if they are affected by an IT outage or system downtime? These areas need to be prioritised. – Minimise risk – what can be done to avoid these critical business functions being impacted by downtime, i.e. preventative solutions such as networking monitoring, staff education and awareness about cyber threats and risks etc. – Improve recovery times – what can you do to reduce the time it takes to get critical business functions operational again? Perhaps by increasing the frequency of back-ups for critical data. – Failover plans – what can you do to get critical business functions operating during an incident? For example, if your HQ suffers a power cut could staff work from another site?

Need help answering these questions? These free online business continuity tools can help: Click on this link to get started.

Bruce Penson is managing director of Pro Drive IT . 

Further reading on business continuity

  • How to improve your business continuity strategy in five steps

Ben Lobel

Ben Lobel was the editor of SmallBusiness.co.uk from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR. More by Ben Lobel

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https://www.nist.gov/mep/business-continuity-planning

Manufacturing Extension Partnership (MEP)

Business continuity planning.

Business continuity planning enables you to create an easy-to-use, actionable business continuity planning solution to prepare for the impact of a broad range of threats including natural disasters, disease outbreaks, accidents and terrorism. In addition business continuity planning can help when you face technology-related hazards like the failure of systems, equipment or software. MEP Centers can assist you in developing a plan unique to your needs.

If your company needs to create or tweak a business continuity plan, I highly suggest reaching out to Purdue MEP!

—Doug Ellington, Director of Finance, Estes Design and Manufacturing Read the Success Story

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For more information or assistance with business continuity planning, please contact your local MEP Center .

If you would like someone to contact you about business continuity planning , please complete the form below.

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What is a Business Continuity Plan? And Why is it Important?

Jeff Salway

Business continuity planning is something many companies have been very grateful for – and which others will have regretted not having.

Business continuity plans will have been dusted off or hastily put together in 2020 and into 2021 as companies sought to overcome the enormous disruption caused by the coronavirus pandemic.

When it comes to making sure that a company can cope with threats and protect its people and assets when the unexpected happens, it’s often the plans that were made well in advance that suddenly become invaluable.

So what is a business continuity plan?

This is the document that organisations turn to in just those circumstances – when they are forced by unexpected events to find a way to continue operating.

A business continuity plan can sound similar to a disaster recovery plan. But the latter is concerned primarily with maintaining or recovering company IT systems during and after a crisis. In contrast, a continuity plan will usually incorporate the disaster recovery plan and go much further by setting out contingencies for all parts of the business that might be adversely affected by unplanned disruptions or unexpected events.

At its most simple, the continuity plan sets out the procedures to follow and the systems to put in place when disaster strikes. From personnel and property to IT networks and supplier risk management, it should contain all that’s needed to ensure the business can keep functioning.

» MORE: How to write a small business plan

Why are business continuity plans important?

The clue is in the name – without it there may be a significant risk of the business being unable to continue.

As lockdowns were put in place in March 2020, for example, companies had to quickly identify alternative working spaces, migrate to virtual working systems, put new communication channels in place and ensure staff could access the resources they needed, to cite just a few examples of the measures taken That’s when business continuity planning becomes indispensable.

» MORE: Benefits of remote working

A company’s ability to handle a crisis can also affect customer confidence and have long-term repercussions for its reputation.

Recent years have unfortunately provided numerous examples of crises that have had wide-ranging, sometimes devastating, consequences for businesses, from natural disasters and pandemics to terrorist attacks and cyber-attacks.

Even where a crisis or a disaster isn’t potentially fatal to the business it can still have severe consequences, undermining its viability, adding to costs, eating into profitability and resulting in a possible loss of staff and customers.

What are the steps for developing a business continuity plan?

The continuity plan often builds to some extent on business scenario planning, which seeks to identify the potential risks facing a company and set out a strategy for dealing with them.

The number of stages in a continuity plan will vary with the size and type of business and the market it’s in, among other factors. However, the key steps are likely to include:

  • Business impact analysis – identify the priorities in terms of the short-term vulnerabilities and threats, such as the loss of certain functions or operations.
  • Recovery – assess the resources needed (based on the impact analysis), identify gaps in capabilities and implement strategies to recover critical business functions.
  • Plan development – develop the continuity plan, establish the relevant continuity teams, create relocation plans and secure management buy-in.
  • Testing and exercises – train and test the relevant teams, including exercises to be carried out to ensure the strategies work properly.

It may also help to devise a checklist that runs through important details such as the resources needed, where and how data are stored and emergency contact information.

How to create a business continuity plan during the pandemic

The fundamental steps in a continuity plan will be the same across a range of different circumstances. Over the last year, however, the focus will inevitably have been on finding a way to keep companies operating through a pandemic in which repeated use of the description ‘unprecedented’ has been fully justified.

There will be some features that are unique or particularly crucial to a continuity plan during a pandemic. For example, the real impact on the organisation may take much longer to understand than it might do in the event of a one-off disaster (such as a fire or flood), while its global nature also poses particular problems for supply chains and all business locations.

Your business continuity plan may still have the same steps, but it will likely need to be updated to reflect the impacts and risks that are unique to a pandemic. For instance, it may require new policies to deal with workplace health and safety, infection risks, distancing requirements and customer-facing protocols.

Where can I find a business continuity plan template?

A quick search online will bring up a number of templates and other resources for continuity plans. Examples of templates that you can customise for your own business include smartsheet and bcpbuilder. Image source: Getty Images

About the Author

Jeff is a freelance journalist who writes across finance & business. He was the personal finance editor at The Scotsman & Scotland on Sunday & a member of the Financial…

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COMMENTS

  1. What Is a Business Continuity Plan (BCP), and How Does It Work?

    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...

  2. What is business continuity and why is it important?

    Business continuity planning establishes risk management processes and procedures that aim to prevent interruptions to mission-critical services and reestablish full day-to-day function to the organization as quickly and smoothly as possible.

  3. What is Business Continuity?

    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 ...

  4. Business Continuity Plan: Example & How to Write

    A business continuity plan is a practical guide developed by companies to enable continuous operations in the event of major business disruptions like natural disasters and global lockdowns. Business continuity planning usually involves analyzing the impact of disrupted business processes and determining recovery strategies with management.

  5. What is a Business Continuity Plan (BCP)?

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue operating during an unplanned event. The BCP states the essential functions of the business, identifies which systems and processes must be sustained, and details how to maintain them.

  6. All about Business Continuity Planning

    A business continuity plan (BCP) describes how a business will continue to run during and after a crisis event. The BCP details guidelines, procedures, and work instructions to aid continuity. To learn more about writing a plan, see our how-to guide to writing a business continuity plan. What Is Business Continuity Planning?

  7. 5 Step Guide to Business Continuity Planning (BCP) in 2021

    A business continuity plan (BCP) is defined as a protocol of preventing and recovering from potentially large threats to the company's business continuity. This article explains what a business continuity plan is today, its key benefits, and a step-by-step guide to creating a formidable plan. Table of Contents

  8. What Is A Business Continuity Plan? [+ Template & Examples]

    A business continuity plan outlines directions and procedures that your company will follow when faced with a crisis. These plans include business procedures, names of assets and partners, human resource functions, and other helpful information that can help maintain your brand's relationships with relevant stakeholders.

  9. What Is Business Continuity?

    Business continuity is a process-driven approach to maintaining operations in the event of an unplanned disruption such as a cyber attack or natural disaster. Business continuity planning covers the entire business—processes, assets, workers, and more. It isn't focused solely on IT infrastructure and business systems.

  10. How to create an effective business continuity plan

    A business continuity plan (BCP) is a strategic playbook created to help an organization maintain or quickly resume business functions in the face of disruption, whether that disruption is...

  11. Business continuity planning

    A business continuity plan [10] outlines a range of disaster scenarios and the steps the business will take in any particular scenario to return to regular trade. BCP's are written ahead of time and can also include precautions to be put in place.

  12. Business continuity plan (BCP) in 8 steps, with templates

    Step 1: Establish an emergency preparedness team. Assign a team the responsibility for emergency preparedness. Select a few managers or an existing committee to take charge of the project. It's advisable to assign one person to lead the planning process.

  13. What is business continuity disaster recovery?

    A disaster recovery plan (DRP) is a contingency plan for how an enterprise will recover from an unexpected event. Alongside business continuity plans (BCPs), DR plans help businesses navigate different disaster scenarios, such as massive outages, natural disasters, ransomware and malware attacks, and many others.

  14. Business Continuity Planning

    Organize a business continuity team and compile a business continuity plan to manage a business disruption. Learn more about how to put together and test a business continuity plan with the videos below. Business Continuity Plan Supporting Resources Business Continuity Plan Situation Manual

  15. Business Continuity Plan: What It Is and How To Make One

    A business continuity plan is a document that outlines important information about a company that is needed in the case of an emergency or unexpected event. This plan may include recovery and prevention tips and techniques used to protect the company against threats as well as guide employees and other personnel if a disaster were to happen.

  16. Business Continuity Planning: Why You Need It and Why It Is So Important

    Business continuity planning is the key to ensuring a company's sustained operation, regardless of the challenges it may face. Business continuity planning goes beyond the traditional business plan. While a business plan outlines goals and strategies for growth, a continuity plan focuses on how the organization will continue to function in ...

  17. What Is a Business Continuity Plan?

    A business continuity plan (BCP) is a document that sets guidelines for how an organization will continue its operations in the event of a disruption, whether it's a fire, flood, other natural disaster or a cybersecurity incident. A BCP aims to help organizations resume operations without significant downtime.

  18. What is a Business Continuity Plan (BCP)? Why do we need it?

    A Business Continuity Plan (BCP) is a protocol for preventing and recovering from potentially significant threats to the company's business continuity. This article explains what this plan entails, its key benefits, and an easy step-by-step guide on how you can create your own Business Continuity Plan for Business Process Management.

  19. Business Continuity Planning (BCP)

    Business continuity planning (BCP) is a set of procedures and instructions to restore critical business processes in the event of disasters. It is a document, which contains information about managing business assets, such as human resources and supplies and equipment, data backups, business partners, key personnel, etc. ...

  20. Business Continuity Plan: What Is It and Why Do You Need One?

    A business continuity plan (BCP) is a document that outlines how a company will continue to function in the event of a disaster or other emergency. The BCP will identify critical systems and processes that need to be kept up and running, as well as strategies for restoring operations after a disruption. It's important to note that a BCP is ...

  21. Business continuity plan: What it is and why you need it

    Business continuity plans and disaster recovery plans are great way of ensuring that you protect your organisation, however, the two often get mixed up. Many people think that because they have a business continuity plan (BCP) they don't need a disaster recovery plan (DRP), and vice versa.

  22. Business Continuity Planning

    Business continuity planning enables you to create an easy-to-use, actionable business continuity planning solution to prepare for the impact of a broad range of threats including natural disasters, disease outbreaks, accidents and terrorism. In addition business continuity planning can help when you face technology-related hazards like the ...

  23. Business Continuity Planning: What is it?

    A business continuity plan can sound similar to a disaster recovery plan. But the latter is concerned primarily with maintaining or recovering company IT systems during and after a crisis.

  24. Business continuity planning: Strategies to enable a secure future for

    When it comes to crafting a business continuity plan, a one-size-fits-all approach falls short in addressing the diverse needs and vulnerabilities that define each business. However, there are still several crucial factors you can consider to create a tailored and resilient continuity plan that effectively safeguards your business. 1.

  25. Key Differences Business Continuity Vs Disaster Recovery Plans

    Business continuity planning is the foundation of a business's disaster planning. It should come first, followed by disaster recovery planning. Both business continuity and disaster recovery planning are necessary. But, an organization's needs will determine which is more important. A response plan is a playbook for assessing and handling ...

  26. Business continuity and resilience management: A conceptual framework

    1 INTRODUCTION. Aspects of business continuity management (BCM) include planning, preparation and mitigation activities that aim to deal with potential threats to a company, reduce vulnerability and maintain operations after experiencing disturbing circumstances (ISO22301, 2019).A range of challenges has triggered research interest in the BCM field over the past decade.

  27. Disaster Recovery vs Business Continuity: What You Need to Know

    A business continuity plan (BCP) is a broader document that covers not only the IT aspects, but also the operational, financial, legal, and human aspects of your business in the event of a disruption.

  28. How To Ensure Business Continuity In The Face Of Internet ...

    Maintaining business continuity requires planning and investment. As business leaders, it's important to recognize that no company is exempt from unexpected disruptions. By investing in network ...