Experts Discuss the Importance and Advantages of Business Continuity Plans

By Andy Marker | August 25, 2020 (updated October 14, 2021)

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Experts make the case for developing a business continuity plan so that disruptions don’t negatively affect your operations, when they inevitably arise. 

Included on this page, you’ll learn the importance and benefits of business continuity planning (BCP) , and how a strong plan helps staff in a crisis . Plus, find a PowerPoint business continuity argument template to help make the case for embracing business continuity in your company.

What Is a Business Continuity Plan?

A business continuity plan (BCP) is part of a business continuity management system (BCMS), and includes the procedures an organization must follow in an emergency. The document also contains steps for recovery in the days and months after the incident.

One part of a BCP is the disaster recovery plan , which contains plans for IT and technical continuity. An organization can follow specific steps to write its business continuity plan, or hire an outside consultant. For details on writing a BCP, read "How to Write a Business Continuity Plan” ,

Importance of a Business Continuity Plan

A strong business continuity plan can reduce risks during a crisis, and helps ensure that the company can continue to provide goods or services and earn income by detailing how to respond during and after an incident. 

An often-quoted statistic claims that 40 percent of businesses never recover from a disaster . Although some experts question the statistic’s sources, it stands to reason that recovering from a major disruption is tough. After all, staying in business can be difficult, even during the best of times.

Alex Fullick

As business continuity consultant Alex Fullick, General Manager at Stone Road , explains, "I think the global pandemic has proven that everybody and every organization, no matter what size, needs the ability to respond and recover from any sort of eventuality, whether large or small. If anyone still has the mindset that it's going to happen to someone else, they're probably going to go out of business."

As natural disasters and data breaches become more frequent, the question is not if, but when a disruptive event will take place.

Business continuity plans can help an organization address the following issues before disruption occurs:

  • People Don't Know What to Do in a Disaster: Proactively creating plans and training employees ensures a safe and timely recovery. When you've identified sensitive and critical functions ahead of time, you can better plan to execute quickly when a crisis occurs. 
  • Insurance Isn't a Solution: An organization may acquire insurance plans for healthcare, vehicles, or fixtures and equipment replacement. However, insurance can't cover the loss of customers who turn to other companies when you can't fulfill orders or reimburse you for a lost reputation.
  • Creating a Plan Is an Investment in Your Company: Although a BCP may carry fixed costs in training, wages, or equipment, the plan will get your company up and running ASAP in a disaster. For more about budgeting for a business continuity plan, read “ Business Continuity Planning: How to Do It Well .”

Business continuity can also provide a competitive edge. As the following examples show, companies that pursue business continuity are first to get back to work after a disaster.

  • Fire swept through the facilities of Cantey Technology, a consultancy and server host, destroying cables and hardware. However, a business continuity plan gave the company the foresight to implement a redundant offsite data center with regularly scheduled backups, which ensured seamless, continued service for clients. 
  • In another instance of a fire, this time at a telecom provider, redundant network infrastructure and solid incident planning enabled the company to restore service within six hours of a fire reaching the switching center. 
  • Even though they were located on the second floor, Houston-based Gaille Media’s offices were destroyed during Hurricane Harvey. Since they stored their data and critical documents in the cloud, however, they continued to serve customers throughout the disruption, with staff working remotely. 

"I find myself a little frustrated with some planners who have said, ‘Oh, they're busy updating their pandemic plan now,’" Fullick adds. "What do you mean you're updating your plan on people's availability? Don't you already have plans in place for, let's say, the winter flu season when you're missing 20 percent of your staff because they're all at home with the flu?"

How Business Continuity Helps Different Departments

Importance of business continuity for the supply chain .

Supply chain disruptions can be crippling, and a BCP can help sustain inventory levels. A business impact analysis (BIA) can reveal risks to key vendors’ ability to make and deliver goods in a crisis, so you can plan ahead. 

Toyota plants in North America demonstrate how a broken supply chain shut down production thousands of miles away. After the 2011 Fukushima earthquake in Japan, Japanese parts manufacturers went offline. When Toyota plants in southern Ontario couldn’t get parts for the assembly line, the company had to lay off many employees. 

"Companies are starting to realize they can be impacted, [and] not just directly by an upstream supplier that sends them something. That supplier can be impacted, too, and the effect trickles down,” Fullick explains. “[As] you see in the news, companies are starting to think more locally, rather than internationally. Companies have more control over a supplier or a vendor who is local, in the same state or province or country, than [they do] over a supplier in another country."

Ask how your suppliers will respond to a disruption to determine if they have a business continuity plan. Then, work that information into your BCP.

Importance of Business Continuity to Small Business

Small business owners often think they are exempt from crises — but when large-scale events occur, they can be among the first casualties. Almost a quarter of companies that do reopen fail within a year; having a BCP is essential to recovery.

"Unfortunately, some people think it won't happen to us ," says Fullick. "That carefree attitude is no longer tenable, especially after a pandemic that affected everyone."

Tony Bombacino

For Tony Bombacino, business continuity is a daily practice. He is the co-founder and President of Real Food Blends , a private company that makes whole foods for people with feeding tubes. “I'm always thinking to myself, 'What am I not thinking about?'” he says. “I spend a lot of time thinking about what might happen, and how to be ready for it.”

Bombacino also believes that business continuity preparedness starts outside of the business continuity plan. "It starts up front with contract negotiation” he says. “Cash is king in a small business.”

Real Food Blends doesn’t produce or pack their products, so it’s important that his manufacturing partners are large, stable, and have their own well-defined business continuity plans. If his partners aren’t prepared for handling disruption, his business might not be able to survive.

Importance of Business Continuity to IT

Most companies rely on IT to maintain services like the internet and Voice over IP (VoIP). The team also stores documents and runs machines. Without IT, a business is unworkable. Therefore, a business continuity plan for IT is crucial.

Importance of Business Continuity Planning in Crisis Management

Crisis management is part of a business continuity plan. Business continuity provides the overall approach for protecting human and other resources, and ensures that vital processes keep running. Crisis management focuses on communications and decision-making.

The Importance of Governance in Business Continuity Management

Effective governance is key to sustaining business continuity efforts. Governance starts with the business continuity policy, and the support of leadership ensures the plan always covers new risks.

However, not everyone thinks that governance always addresses all the correct questions. "Traditionally, governance tends to focus on how many scenarios your plan covers," explains Fullick. "It covers a flood, it covers fire, it covers an earthquake, a tornado, and a hurricane. You need a different plan for each one. Five plans. Each department has five plans, but do they contain the right detail?”

The Importance of Business Continuity to HR and People

Crises do not only impact tools and buildings — they also affect human well-being. If you understand how disasters change lives, you can better help staff manage their emotional and physical tolls. 

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"We bring our whole selves to work," says Debbie Rosemont, a productivity consultant and Certified Professional Organizer at Simply Placed , a business consulting firm. "I don't take my emotions, or what happened to me before I came to work, and set that outside. Who I am and how I feel shapes my ability to work and produce. When businesses or companies think about continuity plans, they've got to consider the whole person and how an event or disruption might impact somebody, even if it happens outside of work."

Disruptions can prevent people from coming to work. Illness, like a flu outbreak, may keep them at home. Damaged roads and train systems (that can occur after an earthquake) can hinder their commute. Whether employees commute to the office or work remotely, some of the following concerns may distract them from their duties:

  • They fear they will be laid off.
  • They've lost loved ones.
  • They have a financial burden and are anxious about economic losses.
  • They've suffered a disruption to their living arrangements with a loss of personal effects from a natural or human-made disaster.

Michele Barry

"When there are job losses, when people don't know when they're going to get their next gig,  when some people have lost numerous family members, this is extreme grief," says Michele Barry , Principal Consultant at Fortis Consulting. "You need your cloud system as your recovery system. You need an evacuation plan. You need to get all your files back after a crisis, which could motivate staff and sustain the business. But understanding people and politics is essential, too."

Rosemont suggests that doing business continuity planning in "normal times" is a chance for employers to source support systems. Employees can use these resources daily and during a crisis. Examples of resources include the following:

  • An excellent healthcare benefits program
  • An employee assistance program (EAP) that provides discounted legal or other advice
  • Mental health and medical resources, such as access to doctors or counselors
  • Daycare facilities or resources for both children and adults (such as elderly parents)
  • Financial planning tools or advisors
  • Sources of financial assistance
  • Apps for meditation and calming anxiety

Mike Semel

A further consideration, especially in natural disasters, is that it may be easier to restore the business than to gather your workforce. “It's easier to recover technology than it is to have the people there to use it,” explains Mike Semel, President and Chief Compliance Officer at Semel Consulting . “With the cloud and online backups, you can just go to somebody else's computer and log into Microsoft and get to your email. Your bigger problem will be people, and you need to focus on making sure your people don't disappear on you.” 

In disasters, people may leave town. If you can keep people safe, but local, you may be able to recover your business faster. As an example, he shares how his company guided a credit union to contract with a local hotel chain. The executives would move their families to safety and only then return to work. This same consideration applies to small businesses. “If you're a doctor's office, you know that the doctor needs to be there,” says Semel. “The receptionist needs to be there. The nurse needs to be there.”

How Business Continuity Helps

Business continuity business case template.

Business Continuity Business Case Template

Top leadership might wonder why they should invest time and money in business continuity planning. Use this free downloadable business case template to build a convincing argument for business continuity. These customizable slides include suggested argument points that you can adapt to fit your company’s needs. 

Download Business Continuity Business Case Template — PowerPoint

For most useful free, downloadable business continuity plan (BCP) templates please read our  "Free Business Continuity Plan Templates"  article.

​​​​​​​Benefits of Having a Business Continuity Plan

The benefit of a business continuity plan is that it prepares a company for a crisis. Trained staff will know what to do and the organization will be able to safely continue delivering key products and services, while meeting its legal and other commitments.

The following are additional advantages of business continuity:

  • Review Weaknesses and Risks: Planning for business continuity provides valuable data and insights that have worth beyond emergency preparedness. Business continuity planning means leadership can assess skills, resources, strategies, and personalities, and uncover inefficiencies. Such findings often result from a business impact analysis. To learn more, read “ All about Business Impact Analysis: A Step-by-Step How-To .”  
  • Understand Your Business Processes: Business continuity planning demands that you put your entire organization under a microscope. As a result, you can find and remedy inefficiencies in everyday operations, which will make your company more resilient.
  • Improve Processes: Ideally, your plan will cover all aspects of the company and can reveal new challenges and opportunities. Improving processes at all levels pays for the investment.
  • Help Companies Pivot Quickly: Planning helps you quickly recover critical IT systems and other processes after an incident.
  • Build Confidence among Customers: With your BCP, customers know they can rely on continued access to your products or services. For example, when experiencing the aftermath of a natural disaster or a pandemic, B2C customers may find comfort in such things as a favorite food that you may provide. Your parts and services may help B2B customers pursue their livelihoods in the face of uncertainty. 
  • Build Confidence among Employees: A plan and adequate training shows staff what to do when a crisis occurs. They also have some reassurance that their jobs will continue during and after a disruption.
  • Mitigate Financial Risk: A 2019 ITIC survey indicates that an hour of downtime can cost anywhere between $1 million and $5 million for large enterprises. Smaller businesses (those with 200 to 500 employees) responded that halting processes for one hour can cost at least $100,000. Can your company afford such losses? Plans reduce losses.
  • Keep Your Team Members Safe: Creating and training staff on an accident response and evacuation plan can keep your team safe during accidents and disasters.
  • Define Responsibility: When management and the chain of command grow ad hoc, they can fail in a crisis. A strong business continuity system names and trains crisis response leaders, and also provides roles for the rest of the team. "People need to be empowered to actually take action, and not sit there and wait for the CEO to make a decision," insists Fullick.
  • Streamline Technology: As part of the process, you will review processes and the digital platforms and infrastructure that the company has pieced together over time. You may find that it’s practical to integrate technology, and one platform may effectively complete the tasks of several disparate apps. 
  • Allocate Key Financial and Human Resources: Understanding your company’s critical functions means you can focus financial and human resources on those processes, so you can keep the business running during a severe disruption.
  • Provide a Way to Continue Working: Planning helps ensure that remote workers have access to the files, applications, and digital resources they need. This step reduces or eliminates downtime, so you can still provide products and services to customers.
  • Eliminate Potential Costs: When a business is offline or closed, it inevitably loses revenue. However, slipped supply deadlines can result in additional fees from vendors or, depending on the locale and industry, fines for regulatory non-compliance.
  • Make Coping in a Crisis Easier: In an emergency, people are often distracted thinking about their safety, as well as that of their friends and family. Training and a plan to fall back on helps people focus.

What Is Business Continuity Management (BCM)?

Business continuity management is the process a company uses to identify risks and, from there, to avoid or reduce the impact of those risks. Ultimately, this makes a company more resilient in a crisis.  

Disruptive events can impact information systems, business processes, or both. For example, a hurricane or an earthquake can cut electricity. Without power to run data centers or laptops, business processes such as supply replenishment and payroll are impossible. 

As StoneRoad’s Fullick explains, "Business continuity management is a set of plans and procedures to help you prepare for, respond to, and recover from business interruptions. Beyond that, it empowers people to make decisions when things occur. It's about knowing what resources and skills are available when something happens, whether it’s a small incident or a global pandemic." 

With BCM, companies review their needs and capabilities to create contingency plans. From there, they can deliver at least some of their regular output, or the minimum acceptable service, in the event of a crisis. Continuity of service preserves a corporation’s reputation and revenue.

Benefits of Business Continuity Management System (BCMS)

A BCMS keeps staff safe and protects assets from risk. With human, IT, and other resources, a company can continue to provide goods and services. As a result, the company will continue to create revenue and retain a solid reputation.

You can learn about the types of risks and threats to organizations, as well as regulatory requirements for business continuity planning in our article, “ Business Continuity Planning: How to Do It Well .”

"I don't think as many business people consider business continuity like they should,” says Bombacino. “I feel more prepared here, at my company, than I did when I worked at big companies. I think that’s because when big companies get really big or successful, or have lots of money, they think nothing bad can happen to them. One boss used to say there's a difference between being successful because of something and being successful in spite of something. Many companies are successful and don't have a business continuity plan. But what one thing could happen and wipe them out because they're not ready?”

Fullick adds that the value of business continuity will become increasingly clear to companies in the near future. “I think business continuity will grow as a key component for a lot of organizations, and [that] leadership on all levels is going to focus on BCP now.”

Disadvantages of Business Continuity Plans

Business continuity plans are costly and time-consuming to execute. Plans often require outside advice, and poorly written plans (or those that leadership doesn’t support) can be unsafe and cause financial losses. 

A plan also risks becoming a ticked box on a requirements list, rather than an actionable, practical document. Management can forget to share the plan with the teams who could benefit from it. "Often when people aren't a part of discussions, the crisis management team is activated, but everyone else, including leadership, is sitting around and thinking, ‘What's going on?’” explains Fullick. “Management and employees are each waiting for the other to act. But people should know what to do and just start doing it."

 Plan writers also often worry too much about specific disaster scenarios. "You need to focus on people, places, and things, and not so much on the trigger," Fullick urges. "You could lose your building because of a pandemic, or a flood, a fire, or an earthquake. Those are all different triggers for the same problem: What do we do now that our building is gone? Continuity planning should be about building a skillset, so your employees and leadership — beyond the disaster recovery team — know exactly what to do, and what the resources are, no matter what is happening." 

In essence, business continuity planning empowers people and adds value to the company. Real Food Blends’ Bombacino says, “Some entrepreneurs hate meetings and process and structure. They don't want to talk about business continuity planning. But for us, this is our life's work. Other families, our customers, depend on us. So we view business continuity planning not as just a smart thing to do, but as our responsibility to make sure that we avoid the continuity pitfalls out there."

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  • Business Continuity Plan Basics
  • Understanding BCPs
  • Benefits of BCPs
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  • BCP & Impact Analysis
  • BCP vs. Disaster Recovery Plan

Frequently Asked Questions

  • Business Continuity Plan FAQs

The Bottom Line

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

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What Is a Business Continuity Plan (BCP)? 

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

Key Takeaways

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

Understanding Business Continuity Plans (BCPs)

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

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

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

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

Benefits of a Business Continuity Plan

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

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

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

How To Create a Business Continuity Plan

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

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

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

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

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

Business Continuity Impact Analysis

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

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

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

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

Business Continuity Plan vs. Disaster Recovery Plan

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

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

Why Is Business Continuity Plan (BCP) Important?

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

What Should a Business Continuity Plan (BCP) Include?

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

What Is Business Continuity Impact Analysis?

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

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

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

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

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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Business continuity plan advantages and disadvantages for 2021

Someone assessing advantages and disadvantages of business continuity planning

Do businesses continuity plan advantages and disadvantages exist? The importance of having a business continuity plan cannot be under-estimated. Business continuity strategies ' sometimes referred to as disaster recovery plans ' are an essential element of organizations planning.

You might be surprised, then, to find an article considering not just the benefits of a business continuity plan, but also the disadvantages. Are there really disadvantages to business continuity planning? Here we look ahead to the things that might impact your continuity strategies in 2021 and to some of the business continuity plan advantages and disadvantages.

What Are the Advantages of Business Continuity Planning?

Unexpected events can catch an organization out at any time. Whether the event is a natural disaster or accident, deliberate disruption or attack, the impact on your business can be significant. If you have failed to plan for such an event, the impact is likely to be far more significant. The benefits of developing a business continuity plan are numerous. A BCP can help to:

  • Ensure your business can keep trading during and after an incident.
  • Restart operations swiftly following disruption.
  • Minimize the cost of tackling business interruption.
  • Shorten the period of disruption.
  • Reduce the risks and effect of risks on your business.
  • Assure your customers, stakeholders and employees that your organization is capable of weathering disruption.
  • Protect your corporate reputation.
  • Increase compliance with regulatory or legal obligations.
  • Improve insurance terms and costs.
  • Reduce risk and danger to your employees and customers.

2020 has shown, more than most years, the importance of having such a plan in place. COVID-19 has highlighted the need for well-thought-out business continuity strategies, with organizations that had prepared for the worst being best-placed to maintain business continuity through the pandemic . From a coronavirus perspective, indications are that things are likely to remain disrupted at least in the early part of 2021. For businesses looking to maximize operational capability, this reinforces the need for a robust business continuity plan. And of course, coronavirus is far from the only threat businesses will face in 2021. Weather-related events; terrorism; cyber-attacks; fires ' there is a long list of things with the potential to disrupt your business. Whatever the year may throw at us, organizations that have planned for the unexpected will be best able to manage potential disruption. Having a team in place to spring into action as soon as business interruption looks likely speeds your response, increases your ability to cope with a crisis, and minimizes the impact on your business.

What Should You Consider When Assessing Your BCP

  • Is your business continuity plan out of date? Your BCP shouldn't be static but needs to be revisited and updated regularly to take account of evolving threats. It also needs to keep pace with your changing business. Has your organization grown, organically or through M&A activity? If you have new subsidiaries since the plan was last reviewed, or have gone through an IPO that subjects you to additional regulatory or legislative requirements, your obligations will have changed.
  • Is your plan complete; does it cover all your entities and every risk you face? A comprehensive BCP demands a full 360-degree organizational vision. The mitigating actions you put in place need to reflect the entirety of your business ' data on your legal entities and subsidiaries is therefore an essential foundation to your plan. Without this, the BCP may have dangerous holes that threaten your ability to maintain operations.
  • Does it stand up to rigorous testing? Your plan should be tested regularly, either as part of a planned review or via surprise checks.

Are There Any Disadvantages To Having a Business Continuity Plan?

With business continuity plans delivering all the benefits set out above, it may seem counter-intuitive to consider that there may be disadvantages to developing a business continuity strategy. And maybe when we talk about disadvantages, 'limitations' may be a better term. Because while there are many advantages of business continuity planning, if plans are not prepared properly, they may give organizations a false sense of security. One thing that may be considered a disadvantage of business continuity planning is the spotlight it throws onto your contingency plans. If these are lacking ' if your back-up IT, power, communications or remote working plans are substandard ' the fact that a BCP brings this into sharp focus may be seen by some as a disadvantage of the process. In fact, painful as this may be, identifying shortcomings in your emergency plans is a vital step in putting in place the strategies you will need in the event of any crisis. The process of business continuity planning itself may also be considered a disadvantage; it can often be time-consuming, frustrating and seemingly never-ending, as plans evolve to meet the changing threats they must consider. Now that we have looked at the business continuity plan advantages and disadvantages, how can you ensure your company is prepared for crisis while mitigating business continuity planning limitations?

How To Overcome Business Continuity Challenges

Luckily, there are ways to make business continuity strategy planning pain-free. Many organizations have discovered the benefits of technology during the pandemic, in supporting their business processes and ensuring they could continue to operate. And it's not just the hardware itself that can help; the best technology providers are proving their worth as trusted partners, helping their clients to navigate the challenges of operating in unprecedented times. Cloud-based software allows businesses to maintain operations when their own locations are compromised. Highly-secure, off-site servers can host everything from compliance solutions to secure file sharing for board and other organizational documents. Market-leading entity management software gives businesses confidence that their plans are based on 100% accurate data. You can find out how Diligent and our suite of cloud-based solutions can help you to maintain operations in the event of the unexpected by getting in touch with us .

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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.

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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

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 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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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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5 benefits of having a business continuity and disaster recovery plan

Tags: Assurance services

By Fritz Coyro

If the COVID-19 pandemic has taught us anything in the last year, it’s to expect and prepare for the unexpected. 

Organizations without a business continuity (BC) or disaster recovery (DR) plan struggled across the board to redefine how to do business — losing revenue along the way. But organizations that had BC and DR plans — and tested them regularly — made the transition with ease and discovered a new way of doing business. 

How does a business continuity and disaster recovery plan help organizations?

Even in a normal business climate, there are many benefits to implementing a BC/DR plan:

  • Develop muscle memory:  Practicing a disaster scenario via tabletop or with a real exercise develops a kind of “muscle memory” when a situation really does happen. When (not if) an incident does happen, hours and days are shaved off the recovery process. The last thing you want to do in a chaotic time is not have a plan.
  • Meet customer requirements:  Many security frameworks, vendor agreements and customers are requiring organizations to have defined, documented and tested plans in place in the case of a disaster.
  • Meet insurance requirements:  Insurance providers of cyber insurance have started requiring their policy holders to have plans in place before writing a policy. This is becoming standard practice and is increasingly seen as a requirement as opposed to a nice to have.
  • Build resiliency:  No one can plan for everything, but creating and implementing a plan (and practicing with it) can give you the blueprint for surviving one of many threats, from a cyberattack to a natural disaster.
  • Cut down on your recovery time:  When your business is down, it’s not just the revenue loss that affects you. It’s also the hours of employee downtime, additional time spent getting back up and overall impact to your brand reputation. A BC/DR plan can be the difference between losing a few hours of employee salary versus losing a week of it. Sometimes it’s next to impossible to build back the brand image, which can do irreparable damage to the way customers view your business.

The range of challenges that a BC/DR plan can help you overcome is wider than you might think. For example, one of our clients experienced power and communications outages due to a nearby plant, but their BC/DR plans allowed them to switch to alternate processes and keep on running.

What makes up an effective business continuity plan or disaster recovery plan?

Creating a successful BC/DR plan starts with prioritization.

  • By performing a business impact analysis on your applications, you can highlight which are most important to your business environment. For example, if you’re an online retailer, your website and order entry application are going to be tier one in importance to business continuity. 
  • Once you know which business processes and applications are most important and have prioritized them into tiers, step two is determining what is an acceptable amount of time for those applications to be down in the event of a disaster. Since the quicker you want to recover, the more money you’ll spend doing so, you’ll want to focus on getting tier one applications back up and running. A BC/DR plan can define your acceptable timeline, as well as how long you can wait on tier 2 and other applications.
  • After that, you can begin looking at your recovery options, such as which pieces of technology you may need to enable a faster recovery. Cloud-based technology was critical to enabling organizations to quickly transition to remote work during the pandemic, so organizations that had transitioned off of on-premises technology because their BC/DR plans had identified this potential challenge were already one step ahead. 
  • The final piece is often overlooked but no less important. Enabling business continuity or a fast and effective recovery requires periodic testing and keeping documentation up to date. We recommend testing quarterly or annually to help ensure your plan will actually work as designed. And since your business environment is going to change after you’ve created your BC/DR plans, making necessary updates and keeping documents up to date is just as critical.

How Wipfli can help

Wipfli’s business continuity specialists can help you create effective business continuity and disaster recovery plans — from performing a business impact analysis, to helping you develop your plan, to performing testing.  Click here to learn more .

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Related content:

What are RTOs and RPOs in business continuity planning Concerned about disasters or ransomware? Practice! Fraud and cybercrimes exploding during COVID-19 Take remote work to the next level

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

  • August 11, 2022
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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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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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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.

feature_mini img

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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Can your company operate under challenging circumstances? Establish a business continuity plan, so you know the answer is yes.

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Business disruption costs your company money. It can result in lost revenues and extra expenses. The worst part is that potential threats can come anytime and anywhere. A natural disaster or sudden illness can leave your company without a leader, supplier, or office space. A business continuity plan (BCP) ensures your organization can function during a crisis.

In 2020, more than 50% of companies worldwide didn’t have a business continuity plan. While many have since implemented one, others lag behind. Learn what a BCP is, how it benefits your company, and how to start.

What is a business continuity plan, and who needs one?

A business continuity plan is a written document that outlines the steps your organization takes during an emergency. On a basic level, your BCP explains who handles essential business operations and highlights time-sensitive tasks. You assign each person a role and describe operational processes so that you can fill empty positions with another team member or new employee as needed. It should be updated regularly and accessible to all staff in digital and paper forms.

All companies benefit from having a business continuity plan, even solo entities. After all, if you are a solopreneur, who will communicate with your clients if you can’t? Also, corporations in some industries must create a BCP. For instance, the Financial Industry Regulatory Authority (FINRA) requires member firms to keep plans according to Rule 4370 .

[ Read more: 5 Types of Organizational Structures for Small Business ]

Core components of business continuity plans

Although business continuity plans vary according to industry and company size, most include similar sections. A solopreneur without employees will have a less extensive guide than an entrepreneur with multiple locations and a large staff.

Your business continuity plan may include the following:

  • A list of roles and responsibilities.
  • Communication protocols for staff, vendors, and customers.
  • An outline of critical functions like payroll and revenue operations.
  • Your strategy for assessing risks, testing your plan, and updating it.

Assessing threats and having an actionable plan gives your company a competitive edge.

Business continuity vs. disaster recovery

A disaster recovery plan (DRP) helps your company move forward after an incident. It’s focused on returning to business as normal. In contrast, a business continuity plan prioritizes keeping your store open and running regardless of the circumstances. A DRP is often part of a more extensive business continuity plan; alternatively, it can be a stand-alone document. The key to creating a resilient business is having both strategies in place.

[ Read more: How to Write an Emergency Preparedness Plan ]

How small businesses benefit from having a BCP

Assessing threats and having an actionable plan gives your company a competitive edge. It ensures that you’re prepared to handle anything that comes your way while reassuring your customers, employees, and suppliers that your business will remain open during trying times.

Here are a few ways business continuity planning benefits your company:

  • Increases organizational awareness: Going through the planning process can alert you to insurance issues, unknown risks, or supply chain concerns . It also encourages your staff to take their roles seriously and understand what’s expected of them.
  • Reduces financial risks: Having strategies to resolve employee, supply chain, or location problems can decrease downtime, allowing you to continue to generate revenue during an emergency.
  • Prevents customer dissatisfaction: Communication issues and business disruption can lead to clients turning to your competitors. Remaining operational means you can fully support customers in their time of need.
  • Improves employee relations: Instability can lower worker retention rates. A BCP shows your staff how and when you will communicate during a crisis. Also, you can engage them during the process to demonstrate their importance to your small business.

Getting started: BCP tips and resources

Ready.gov provides top-notch resources to help you throughout the business continuity planning process. Along with guides and templates, you can view training and testing information or learn how to complete a risk assessment.

Check out free business continuity plan templates from the following agencies:

  • Federal Emergency Management Agency (FEMA).
  • Department of Homeland Security (DHS).

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5 reasons why business continuity management is important

You never need a business continuity plan until you do. Here are 5 reasons you should start yours today.

Read time: 6 minutes

...updated 12/12/2023...

Organizations often underestimate the importance of a business continuity plan. No one ever notices its absence – until disaster strikes. By then, it’s too late.

Any unplanned interruption of normal business processes can create immense hurdles and costly setbacks. Operations suffer. Revenue may suffer even more. 

Unplanned interruptions take many forms. It can be something as simple as a power outage. It could be a major hurricane. Ultimately, a disaster can be anything that disrupts normal business operations. Regardless of the cause, unplanned means unexpected.

With a business continuity plan in place, you position yourself to minimize the impact and damage of an unexpected event. In this article, we will discuss:

What constitutes business continuity planning and the difference between it and disaster recovery .

The top 5 reasons your organization needs a business continuity plan.

The importance of business continuity planning beyond simply restoring operations.

How to get started building a business continuity plan.

planning meeting

What is business continuity planning?

A business continuity plan gives an organization the ability to maintain essential processes before, during, and after a disaster.

Business continuity differs from disaster recovery in its holistic approach to the business.  Business continuity reflects a business-wide implementation plan to ensure the continuation of critical business functions should a disruptive event occur. Disaster recovery “recovers” an organization’s hardware, applications, and data after a technology disruption.

Learn more about Business continuity and disaster recovery solutions and services

disaster recovery planning

5 Reasons your organization needs a business continuity plan

While it takes time and effort to build and test a business continuity plan, you’ll find it well worth it should a disaster strike.

Here are 5 of the main reasons you need a business continuity plan:

Reason #1: Disaster recovery

As noted in the previous section, disaster recovery plays a significant role in the restoration of business operations.

Disasters happen. Their unexpected nature is what makes them so devastating. Being prepared may not prevent the disaster, but it does mitigate the impact on your business.

Research states that 40 percent of small businesses never recover from a disaster.¹ Larger organizations take major hits.

Often when we think of disasters, we think of major events like earthquakes, floods, and natural disasters. These, however, aren’t the only causes of downtime. Data deletion due to human error, poor security habits of users, and incompetent employees or accidents also rank among the prime reasons for IT downtime.

data center backup

Reason #2: Data shows backups are not enough

Most companies deploy some form of data backup. Having data backed up does you no good if you cannot access it, such as could occur in a power outage or need to leave an office site even on a temporary basis. 

Accessing data in the event of a disaster can prove a problem. After all, having a backup is different from accessing it.

It’s a question business continuity planning asks: How will you access that data in the event of an outage? 

For example, the average enterprise backup reaches over a petabyte or more. This pushes conventional storage to its limits. Even several terabytes of data backed up by a small to mid-sized business can strain capacity and bandwidth. And if you don’t have a data center or hardware prepared to handle this volume of data, it does you no good.

By deploying business continuity and disaster recovery solutions leveraging cloud technologies and virtual servers, organizations can run critical business applications from backup instances on virtual servers in the cloud. This approach enables you to effectively “flip a switch” and can keep your downtime to a minimum.

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Reason #3: Insurance does not protect your data

Cyberattacks are becoming more sophisticated and successful every year. 

A 2018 study of companies that were attacked found that 68% of breaches took months or longer to discover.² And insurance doesn’t restore data due to data center, server, or backup loss, or even lost access to any of these. 

Insurance isn’t enough to cover all the damages of a disaster. Yes, it can cover the costs of repairs, but in terms of loss of revenue and business prospects due to downtime, it has little effect.

happy business woman

Reason #4: Competitive edge

You have a big advantage over your competitors if you can restore normal operations while they are still trying to figure it out. Getting your network back up and running fast, restoring access to your business data and documents, and reconnecting your employees to communicate with each other and support your customers allows for your organization to stand-out as a leader and one that can be trusted and relied upon.

working remotely

Reason #5: Business must go on

Keeping a business going is essential. Taking a very simple view, if you lose the ability to buy and sell, your business – for all practical purposes – ceases to function.

Business continuity makes this possible by establishing actions that must be taken to ensure operations remain active, no matter the nature of the disaster. For example:

If the power goes out without certainty of when it will be restored, can you switch to a server or network located in a functioning data center?

If you experience a server failure, do you have a backup server (or virtual server) ready to go?

If your office location becomes inaccessible for any reason, can your employees work remotely?

When building your business continuity plan, you consider all the possible disruptions you might encounter. Loss of power or an office location is one of the biggest reasons offsite and redundant backup remains one of the most important aspects of IT reliability.

Your business simply cannot afford downtime. A solid business continuity plan can mean the difference between being back up and running in a matter of minutes versus days or even weeks.

customer support rep

The importance of a business continuity plan

A business continuity plan positions your organization to survive serious disruption. It eliminates confusion common to every disaster, providing a clear blueprint for what everyone should do.

More importantly, your business continuity plan supports:

Communication between employees and customers

Workflow operations essential to business activity

Customer service response, especially if you are a service provider

Business security, keeping your data and information secured wherever you and your team find yourself working

The flow of information and documents

Beyond business operations, your business continuity plan helps people. By keeping operations going, you are better positioned to keep your employees working, protecting the jobs that support them and their families. You also continue to meet the needs of your customers, impacting their lives, and if you are in a B2B business, the lives of their customers.

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We are here to help

We have helped many businesses develop and implement business continuity plans.

In addition to consulting services like these, our IT services can remove the burden of monitoring and managing your data infrastructure to help give you increased reliability, reduced risk and a comprehensive business continuity plan in the event of a disaster.

Our IT services include: 

Server & network management

Device & desktop management

Managed cybersecurity services

End user communication services

Managed cloud services

Data center services

Disaster recovery and backup

IT project work

Remote IT support

We know that your business is unique and has its own needs. In every engagement, you can be confident that we’ll work together to create a business continuity plan and if needed, a technology infrastructure built specifically for you.

Frequently asked questions.

A business continuity plan is crucial for ensuring an organization's resilience during unexpected disruptions, such as natural disasters, cyberattacks, or economic downturns. It helps maintain essential functions and minimizes downtime.

A business continuity plan typically includes risk assessments, recovery strategies, communication plans, and testing. These components help businesses prepare for and respond to emergencies effectively, minimizing the impact on operations.

To assess your needs, identify critical functions, potential risks, and the resources required for recovery. A tailored plan should address your organization's unique vulnerabilities and objectives.

While a business continuity plan can significantly improve an organization's chances of survival, it does not guarantee it. Common challenges include resource constraints, resistance to change, and the need for regular updates to stay effective.

A business continuity plan should be reviewed at least annually or after significant changes to business operations, technology, or personnel. External events, such as major industry shifts, emerging threats, or regulatory updates, can also trigger revisions to ensure the plan remains relevant and effective.

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Risk Publishing

Benefits of Business Continuity Planning

February 6, 2024

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Business Continuity Planning (BCP) has several benefits that can help an organization navigate through disruptions while maintaining operations and services. Some of these benefits include:

  • Reduction of Operational Downtime : A well-crafted BCP can significantly reduce the time it takes for a business to recover from a disruptive event, ensuring that critical operations can continue with minimal interruption ( C2 ).
  • Protection of Brand and Reputation : By demonstrating a proactive approach to dealing with potential crises, a business can maintain customer trust and confidence, which is crucial for long-term success ( Deloitte Ireland ).
  • Regulatory Compliance : Many industries have regulations that require businesses to have a continuity plan in place. By adhering to these regulations, a company can avoid legal penalties and maintain good standing ( C2 ).
  • Competitive Advantage : Companies with an effective BCP may have a strategic advantage over competitors who do not have a plan in place, especially in the face of widespread disruptions ( Deloitte Ireland ).
  • Financial Protection : By minimizing the impact of disruptions, a BCP can help protect a company’s financial position, ensuring that it can continue to generate revenue and control costs during a crisis ( Smartsheet ).
  • Stakeholder Assurance : A BCP provides stakeholders, including investors, customers, and employees, with the assurance that the company is well-prepared to handle unforeseen events, which can bolster confidence and support ( Deloitte Ireland ).
  • Employee Safety and Morale : Having a plan in place can ensure employee safety during a disaster and boost morale by providing clear protocols and a sense of security ( TechTarget ).

This is where business continuity planning comes into play. With a comprehensive plan in place, businesses can weather the storm and emerge stronger than ever.

But what are the benefits of such planning? Stay tuned to discover how businesses can bounce back swiftly from disruptive events and safeguard themselves against cyber attacks , among other advantages.

Key Takeaways

  • Business continuity planning ensures the resilience and continuity of business operations, mitigating the impact of unplanned interruptions.
  • Implementing a comprehensive plan allows for quick recovery from unexpected events, minimizing downtime and financial losses.
  • Regular testing of the plan ensures its effectiveness and the ability to bounce back swiftly after a disruptive event.
  • Recognizing the threat of cyber-attacks and ensuring supply chain resilience are crucial aspects of business continuity planning to protect valuable assets and maintain operations.

Introduction

Why is an introduction to business continuity planning important for companies of all sizes?

An introduction to business continuity planning is essential to ensure the resilience and continuity of business operations in the face of unforeseen events or disruptive events.

By implementing an effective business continuity plan, organizations can mitigate the impact of unplanned interruptions, manage risks , and enhance their organizational resilience.

This proactive approach to risk management provides numerous benefits, safeguarding the future of the business.

business continuity plan

Definition of business continuity planning

Business continuity planning is the process of creating and implementing strategies and measures to ensure the uninterrupted operation of a business in the event of unexpected disruptions or crises.

It involves developing a robust business continuity plan , which includes a recovery strategy, risk management strategy , communication plan, emergency plan, crisis management , and disaster recovery planning .

The benefits of business continuity planning are numerous, including minimizing downtime, reducing financial losses, maintaining customer trust, and ensuring the overall resilience and sustainability of organizations.

However, it’s important to consider the potential disadvantages of business continuity planning, such as the cost and time required for implementation.

The importance of having a comprehensive plan in place

Having a comprehensive plan in place is crucial for businesses as it enables them to minimize downtime and losses. By ensuring the continuity of critical business functions, companies can reduce the impact of disruptions on operations and revenue.

Additionally, a well-prepared plan allows for quick recovery from unexpected events, enabling businesses to resume normal operations efficiently.

Minimizing Downtime and Losses

A comprehensive plan in place for business continuity is crucial for minimizing downtime and losses.

With a well-designed business continuity plan , organizations can ensure the smooth recovery of critical business functions in the event of disruptions.

This includes conducting a thorough business impact analysis and risk assessment to identify vulnerabilities and prioritize recovery efforts.

Ensuring the continuity of critical business functions

With a well-designed plan in place for business continuity, organizations can ensure the smooth recovery of critical business functions, allowing them to effectively navigate disruptions and maintain operational stability.

This comprehensive approach to continuity planning offers numerous benefits, including minimizing downtime and losses. By ensuring the continuity of critical business functions, organizations can continue to deliver products and services to their customers, maintain their reputation, and protect their bottom line.

A well-executed plan provides a sense of security and confidence, allowing businesses to adapt and thrive in any situation.

Reducing the impact of disruptions on operations and revenue

To reduce the impact of disruptions on operations and revenue, it’s crucial to develop and implement a comprehensive plan. A well-designed business continuity planning can provide several benefits in this regard.

It helps identify critical functions and prioritize their recovery in the event of unforeseen disruptions. By having a clear plan in place, companies can minimize downtime and resume their operational functions more quickly, thereby reducing the financial impact on their revenue.

Quick Recovery from Unexpected Events

Having a comprehensive plan in place is crucial for ensuring a quick recovery from unexpected events and minimizing the financial impact on revenue.

Business continuity planning helps organizations anticipate potential threats and develop strategies to mitigate risks . This includes creating protocols for handling disasters , ensuring the safety of employees and stakeholders, and implementing measures to resume operations swiftly.

Regular testing of the plan ensures its effectiveness and helps identify areas that need improvement, enabling organizations to recover quickly and maintain business continuity.

Implementing strategies to bounce back swiftly after a disruptive event

Implementing strategies to bounce back swiftly after a disruptive event is crucial for businesses to minimize downtime and resume normal operations as soon as possible.

By having a comprehensive plan in place, companies can protect themselves against natural disasters and other unexpected events that can disrupt their operations.

Developing strategies to mitigate the impact of these events on business operations is essential for ensuring business continuity and minimizing financial losses.

Reducing downtime and resuming normal operations as soon as possible

Businesses can expedite their recovery process and minimize downtime by implementing efficient strategies to swiftly bounce back after a disruptive event.

  • Regular testing of the business continuity management system ensures preparedness for potential disruptions.
  • Taking a proactive approach to identify and mitigate potential risks helps in maintaining critical operations.
  • Timely recovery and resumption of normal operations are advantages of having a well-established business continuity plan in place.

Protection against Natural Disasters

Swiftly recovering after a disruptive event, businesses can implement strategies to protect against natural disasters. As a part of their business continuity planning, they need to develop a comprehensive recovery plan to minimize the damage and loss caused by unexpected events.

Developing strategies to mitigate the impact of these events on business operations

Developing effective strategies to mitigate the impact of disruptive events on business operations is crucial for ensuring swift recovery.

Companies and businesses must be prepared to face various threats that can disrupt their services, such as natural disasters or cyber attacks.

To do so, they need to establish a strong team and effective communication channels.

Additionally, having a well-defined business continuity strategy , including disaster recovery plans and secure supply chains, is essential for bouncing back quickly after such events.

Safeguarding Against Cyber Attacks

Recognizing the growing threat of cyber attacks to businesses, it’s crucial to implement preventive measures and response plans to minimize the potential damage.

This includes investing in robust cybersecurity systems, conducting regular vulnerability assessments, and educating employees on best practices for online security.

Additionally, businesses must also ensure the resilience of their supply chain by working closely with vendors and partners to establish rigorous security protocols.

cybersecurity risk management

Recognizing cyber attacks as a major threat to businesses

Businesses must be aware of the significant threat posed by cyber attacks and take proactive measures to safeguard against them.

  • Cyber attacks can disrupt business operations and lead to a loss of revenue.
  • Recognizing cyber attacks as a major threat allows businesses to prioritize their resources effectively.
  • Implementing business continuity planning helps protect valuable assets and ensures a quick recovery from cyber attacks.

Implementing preventive measures and response plans to minimize damage caused by cyber attacks

To minimize the damage caused by cyber attacks, organizations must implement preventive measures and response plans.

The increasing cyber threat landscape poses significant risks to businesses, including financial losses, trust erosion, and supply chain disruptions .

By developing a comprehensive business continuity plan and integrating it into their overall risk management strategy, organizations can ensure prompt and effective responses to cyber attacks.

This proactive approach helps mitigate business interruption and enables swift recovery, safeguarding against potential damages.

Ensuring Supply Chain Resilience

After implementing preventive measures and response plans to minimize damage caused by cyber attacks, organizations can further safeguard against such threats by ensuring the resilience of their supply chains.

This is crucial because any disruption in the supply chain can have a significant impact on the business continuity planning .

To achieve supply chain resilience , organizations should consider the following:

  • Establishing strong partnerships with suppliers and regularly assessing their cybersecurity measures.
  • Diversifying the supply chain to minimize dependencies on a single source or location.
  • Conducting regular risk assessments and implementing appropriate risk mitigation strategies .

Frequently Asked Questions

What are the key elements of a successful business continuity plan.

The key elements of a successful business continuity plan include identifying critical functions, implementing backup systems, conducting regular training and testing, and establishing communication protocols. These components ensure resilience and minimize disruptions during unexpected events.

How Can Businesses Determine the Potential Risks and Threats They May Face?

Businesses can determine potential risks and threats by conducting a thorough risk assessment . This involves identifying potential hazards , evaluating their likelihood and impact, and developing strategies to mitigate or respond to them.

What Steps Should Be Taken to Ensure Employees Are Adequately Trained in Business Continuity Procedures?

To ensure employees are adequately trained in business continuity procedures , companies should implement comprehensive training programs. These programs should cover the necessary skills and knowledge employees need to handle potential disruptions and effectively carry out their roles during crisis situations.

How Often Should a Business Update and Test Its Business Continuity Plan?

A business should regularly update and test its business continuity plan to ensure its effectiveness. This helps identify any gaps or weaknesses and allows for adjustments to be made, ultimately enhancing the organization’s ability to respond to disruptions.

What Are Some Common Challenges Businesses Face When Implementing and Maintaining a Business Continuity Plan?

Some common challenges businesses face when implementing and maintaining a business continuity plan include lack of employee awareness, difficulty in prioritizing critical functions, and insufficient resources for plan development and testing.

business continuity plan

In conclusion, business continuity planning is essential for organizations to effectively respond and recover from disruptive events.

By having a comprehensive plan in place, businesses can minimize downtime, protect their data, and resume operations swiftly.

With the increasing threat of cyber attacks, safeguarding against such risks has become even more critical.

Therefore, implementing strategies to bounce back and ensuring business continuity is crucial for the long-term success and sustainability of any organization.

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

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Business continuity

A holistic approach .

Can your organisation sustain operations in the midst of a serious crisis? How do you identify “mission-critical” processes? Do you have a backup strategy in the event of a massive disruption in your technology, facilities or other functions? Are your employees trained to respond during business disruptions?

Companies that take a holistic approach to business continuity management develop the ability to identify, prevent and prepare for events that may disrupt normal activities. 

A fully integrated business continuity strategy helps to build an overall culture of resilience .

67% of organisations applied a business continuity plan as part of their response to the COVID-19 pandemic. Source: PwC’s Global Crisis Survey 2021

Business continuity and a culture of resilience

Business continuity means more than just making sure the lights stay on when a crisis hits. The benefits of establishing a business continuity strategy include:

  • Resilience: With greater awareness of what really matters during a crisis, you can focus resources effectively.
  • Employee engagement and ownership: Your people understand their roles and responsibilities in a crisis, and are invested in executing a seamless recovery .
  • Strategic recovery plans: Pre-defined strategic decisions are embedded into recovery plans to guide your people toward a common goal during disruption.
  • Detailed business impacts and risks identified: Potential risks and areas of concern can be mitigated in “peace time” rather than in the heat of a crisis. 
  • Empowered leadership: Leaders are actively enabled to monitor the state of resilience within the organisation and provide hands-on guidance and support.
  • Continuous improvement: Tests, drills and simulation exercises help you understand what works and what doesn’t, enabling continued resilience and growth.

Assessing an organisation’s business continuity program

Effective business continuity programs have a common framework, core capabilities, and coordination of resources and activities to plan for and respond to events. 

PwC’s Organizational Preparedness Assessment (OPA), based on leading industry practices, helps organisations identify program blind spots and provides actionable recommendations to enhance program maturity.

PwC’s business continuity planning solutions

We’ve built scalable solutions to create a bespoke solution for each of our clients:

  • Business continuity program assessment and design
  • Business impact analysis and interruption risk assessment
  • Recovery plan creation and resilience improvement
  • Business continuity program exercises, maintenance and training
  • Business continuity program technology enablement and enterprise risk management integration
  • Third-party resilience framework and analysis
  • Crisis management program development and exercises
  • Information technology disaster recovery and business continuity program alignment and analysis

PwC brings depth and experience to support your response to an enterprise-wide crisis

Our PwC crisis management teams have developed tools and processes to help you survive an unexpected event and emerge stronger.

We take a holistic view of your organisation’s business continuity needs. And as your trusted advisor, we’ll help you build resilience for the long term.

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Dave Stainback

Dave Stainback

Global Crisis & Resilience Co-Leader, PwC United States

Tel: +1 678 419 1355

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Global Crisis & Resilience Co-Leader, PwC United Kingdom

Tel: +44 (0)7483 422701

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Understanding the Essentials of a Business Continuity Plan

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In the face of unforeseen disruptions, a robust business continuity plan (BCP) is essential to preserve the trust of stakeholders. If you are able to seamlessly continue operations even in the face of sudden challenges, stakeholders are reassured of the company’s resilience and commitment to their interests.

In this blog post, we offer a comprehensive guide to business continuity planning, how it can benefit organizations and share key insights into Developing and Maintaining an Effective business continuity plan.

What is a Business Continuity Plan?

A business continuity plan (BCP) is an essential blueprint that outlines how a company will continue operating during an unplanned disruption in service. It’s more than just a reactive strategy; it’s a proactive measure to ensure that critical business functions can continue during and after a crisis. The purpose of a BCP is to provide a systematic approach to mitigate the potential impact of disruptions and maintain business operations at an acceptable predefined level.

The role of a BCP is crucial in maintaining operations during unforeseen events such as natural disasters, cyber-attacks, or any other incident that could interrupt business processes. By having a well-structured business continuity plan, organizations can:

  • Minimize downtime and ensure that essential functions remain operational
  • Protect the integrity of data and IT infrastructure
  • Maintain customer service and preserve stakeholder trust

Why is a Business Continuity Plan Important

Immediate Response : A BCP ensures that there is a predefined action plan, minimizing downtime and demonstrating control over the situation.

Transparent Communication : Keeping stakeholders informed during a crisis promotes transparency and maintains confidence in the company’s management.

Inclusive Planning : Involve stakeholders in the business continuity plan development process. Their insights can enhance the plan’s effectiveness and ensure their needs are addressed.

Consistency in Service : By prioritizing critical operations, a BCP helps maintain the quality and consistency of services or products, which is important for customer retention.

The absence of a business continuity plan can lead to a domino effect of negative outcomes, including a tarnished reputation and the potential loss of future business. Stakeholders remember how a company responds in a crisis, and a well-executed BCP can be the difference between a temporary setback and a long-term impact on the company’s image and relationships.

Elements of a Business Continuity Plan

When exploring various business continuity plan examples, certain common elements emerge as critical for their effectiveness. These elements serve as the backbone for a robust BCP plan, ensuring that businesses can maintain operations and protect their reputation during unforeseen events. Here are some of the key components found in successful BCP examples:

Risk Assessment and Business Impact Analysis : Identifying potential threats and assessing their impact on business operations is a foundational step in any BCP plan.

Crisis Communication Plan : A clear communication strategy is essential to manage stakeholder expectations and maintain trust.

Recovery Strategies : Detailed procedures for restoring business functions and services post-disruption are indispensable.

Employee Training and Awareness : Ensuring staff are well-prepared and knowledgeable about the BCP plan is crucial for its successful implementation.

Case studies of successful BCP implementations often highlight how these elements are tailored to fit specific business models and industries. For instance, a financial institution may focus heavily on data security and regulatory compliance within their BCP, while a manufacturing business might prioritize supply chain alternatives and on-site safety protocols. Regular testing and adjustment of these plans are also a common thread, underscoring the importance of adaptability and continuous improvement in business continuity planning.

Business Continuity Plan Toolkit

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Business Continuity vs. Disaster Recovery

It’s important to distinguish between a business continuity plan and a disaster recovery plan. While both are vital, a BCP is broader and focuses on the continuity of the entire business, whereas a disaster recovery plan is more technical and concentrates on the recovery of specific operations, such as IT services. Understanding these differences helps organizations allocate resources effectively and ensures comprehensive preparedness for any type of disruption. Understanding when to activate a business continuity plan (BCP) versus a disaster recovery plan is crucial for maintaining operational resilience.

To ensure a comprehensive crisis management strategy, consider the following integration points:

Pre-emptive Planning : Establish clear triggers for when each plan is activated. For instance, a BCP might be initiated in the face of a supply chain disruption, while disaster recovery would come into play during a data breach or server failure.

Unified Communication : Both plans should have a coordinated communication strategy to inform stakeholders and employees about the status and steps being taken.

Regular Testing : Conduct joint drills that test both the BCP and disaster recovery plans to identify any gaps or overlaps in procedures.

Continuous Improvement : Use insights from drills and actual incidents to refine both plans, ensuring they evolve with the changing business landscape and technological advancements.

By integrating both plans, organizations can navigate crises with agility and confidence, minimizing downtime and protecting their reputation. Tools like Creately, with features such as real-time collaboration and visual project management, can help create and maintain these critical plans, ensuring that all stakeholders are on the same page and ready to act when necessary.

Crisis Communication Strategies within Business Continuity Planning

A business continuity plan (BCP) is not just about responding to the crisis at hand, but also about how you communicate during the disruptions and the decisions you make. Here are some best practices to ensure your crisis communication and decision-making processes effective:

Clear Communication Channels : Establish predefined channels for internal and external communication. This ensures that messages are consistent and reach all stakeholders promptly.

Designated Spokespersons : Identify individuals who are authorized to speak on behalf of the company during a crisis. This helps maintain a unified voice and message.

Factual Updates : Provide regular, factual updates to keep stakeholders informed. Avoid speculation and commit to transparency.

Decision-Making Protocols : Implement decision-making protocols that are clear and allow for swift action. This includes having a chain of command and predefined criteria for making critical decisions.

Training and Simulations : Regularly train your crisis management team and conduct simulations to prepare for potential scenarios. This ensures that when a crisis does occur, your team is ready to act effectively.

By integrating these best practices into your BCP plan, you can maintain control during a crisis, make informed decisions, and communicate effectively with all parties involved. Remember, the goal is to protect your company’s operations, reputation, and stakeholder relationships during unexpected events.

Utilizing Business Continuity Plan Templates and Tools

When it comes to developing a robust business continuity plan (BCP), leveraging templates can offer a significant head start. These templates serve as a foundational framework that can be customized to align with the specific requirements of your business. Here’s why using BCP templates is advantageous:

Efficiency in Development : BCP templates provide a structured approach, ensuring that all critical elements are considered without starting from scratch. This saves valuable time and resources.

Consistency Across the Organization : Templates help maintain a uniform response strategy, which is crucial for coherent and coordinated action during a crisis.

Ease of Customization : While templates offer a general outline, they are designed to be adaptable. This means you can tailor them to reflect your business’s unique operational processes, risk profile, and recovery objectives.

Incorporating features like crisis response directions into your BCP template is essential. With Creately you can,

  • Visualize these procedures on an infinite canvas, ensuring clarity and accessibility for all team members.
  • Easily modify the plan as your business evolves, with the drag-and-drop functionality, making regular testing and adjustment a seamless process.
  • Create a central repository of information by having docs, links and attachments in the notes panel of any shape in your diagram.

Key Insights for Developing and Maintaining an Effective Business Continuity Plan

A robust business continuity plan (BCP) is not a ‘set it and forget it’ document; it requires ongoing attention and refinement. Here’s why regular testing, updates, and staff training are non-negotiables in business continuity:

Financial Protection : By regularly testing your BCP, you can identify and rectify gaps that could otherwise lead to significant financial losses during a crisis. It’s not just about having a plan, but ensuring it works effectively when you need it most.

Reputational Safeguarding : Your company’s reputation is on the line when disaster strikes. A well-rehearsed BCP means your team can respond swiftly and competently, preserving stakeholder trust and customer loyalty.

Customization for Evolving Threats : The threat landscape is constantly changing. Regular BCP reviews allow you to tailor your plan to new types of risks, ensuring your business remains resilient against the unforeseen.

Empowered Employees : Training staff on the BCP turns theory into practice. When every team member knows their role in a crisis, response times improve, and confusion is minimized.

Remember, a BCP is a living document. It thrives on the feedback loop created by regular drills and updates, ensuring that when a crisis does occur, your business is prepared not just to survive, but to continue operations with minimal disruption.

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Small Business Trends

What is a business continuity plan and can it benefit your business.

What is a Business Continuity Plan and Do You Need One

A big part of planning for small business success is a business continuity plan. This is the fallback position your business has when a natural disaster, power outage, or any one of a number of mishaps threatens your company’s ability to function.

Part of the initial planning for one of these important documents starts with understanding how vulnerable your small business might be if an emergency happens.

Here’s an insight from Mike Clayton, discussing the essentials of a Business Continuity Plan:

How to Get Started with a Business Continuity Plan

Business Continuity Plan in a folder

One of the first things that you will need to do is understand the natural disasters like floods and wildfires that can happen in your area. This is a good starting point so that you can tailor make a business continuity plan that reacts to any potential issues of this kind. Here’s a good starting point to better understand some of the risks.

Take Proactive Measure

Having one of these plans in place is a proactive measure. It is also motivational even if the disaster doesn’t strike because it shows your customers and shareholders as well as your employees that you are prepared.

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Here’s some of the steps that you should work through with your small business to come up with a plan that will put everyone at ease.

Put an Emergency Team Together

Business Continuity Plan - Emergency Team Meeting

Being ready for an emergency that can otherwise disrupt your business means having an emergency preparedness team in place. These are people that will be the foundation for how your business reacts and how operations will be able to continue.

Having this team in place means selecting some individuals or maybe a few managers who will be up to the task. They should have a thorough understanding of how your business works and these individuals all need to be reliable when it comes to decision-making.

If the whole idea was the brainchild of a committee in the first place, it’s a good idea to let them take charge although one person should lead the entire planning process.

Look at the Risks

Business Continuity Plan - Looking at the risk

Finding out where your company is vulnerable by looking at the risks and doing an assessment is the next step. One of the ways to approach this type of assessment is to take proactive steps for each disaster possibility.

In other words, it’s a good idea to be able to see any potential disruptions before they happen. There’s a National Weather Service that you can monitor and local services too. If you’re in a location where potential IT outages are an issue, assigning someone to monitor your network is a good idea.

If your business is near a body of water, making some flood preparations is a positive step.

Determine Essential Services

You’ll also need to be able to determine the essential services for your small business. Some of the things that your company does might need to satisfy regulatory requirements so they should be top priority. You might be in a business that makes goods or services that can impact the health and safety of your customers.

Your business may experience a disruption because of interruptions in power lines or communication. These are considered essential services because you need to keep them running so you will need to consider alternate sources like generators.

Indentify Major Customers

Business Continuity Plan - identify major clients

Even if your products and services don’t fit in those other categories, you’ll want to be able to earmark major customers that keep you afloat financially. Ticking off check marks next to your major clients so they are in the essential services category is a good idea.

Prepare an Action Plan

This is one of the foundations of your entire business continuity plan. It should start by describing the essential parts of your business that you identified in the previous step. Clearly mention the individuals in charge here.

It’s a good idea to have backups as well. This is the meat and potatoes of all planning that you’ve done. Everything needs to be covered here. This includes how you’re going to reallocate staff to keep things moving and what plans you have for using other sectors to keep the essential parts of your business up and running.

Any changes that you need to make with delivery models and business reporting are detailed here. An important part of any action plan lists contact information should you need to contract services including staffing and equipment.

Keep in mind you have a variety of software solutions that can help you by providing access to the cloud for disaster recovery.

Test and Train

Business Continuity Plan - test and train

Once you have a plan in place, you will need to test it and train the continuity team. By running through a few mock exercises, you see where the plan needs tweaking.  It’s a good idea that you continue to test even when you get the plan to where you think it needs to be. Reviewing your plan quarterly is a good idea to stay on top of any changes that need to be implemented.

Table: Key Steps in Developing a Business Continuity Plan

This comparison table summarizes the key steps involved in developing a BCP from the previous list. It serves as a concise and informative reference for small business owners and entrepreneurs. The snapshot provides a quick overview, allowing small business owners to understand and compare different aspects of the planning process. It ensures you cover all essential areas to enhance your business’s resilience:

Reviewing and understanding each of these steps is essential for creating a robust and effective business continuity plan, capable of safeguarding your business against a range of potential disruptions.

Incorporating Technology and Digital Strategies into Your Business Continuity Plan

In today’s digital age, integrating technology and digital tools into your business continuity plan is a necessity. Why? For starters, this integration is paramount to enhancing resilience and operational continuity. These strategies not only ensure business stability during disruptions but also provide a competitive edge in rapidly changing scenarios.

Here are key aspects to consider:

  • Leveraging Cloud Computing : Utilize cloud services to ensure data safety and accessibility. This approach enables remote work capabilities and maintains customer services during disasters.
  • Utilizing Communication Tools : Implement digital communication tools to keep teams connected and operations running smoothly, especially in cases where physical office access is restricted.
  • Implementing Cybersecurity Measures : Develop robust cybersecurity strategies to protect your business from increased risks during emergencies, such as phishing attacks or data breaches.
  • Digital Training and Simulation : Use virtual training programs to prepare your team for various emergency scenarios, offering flexibility and ensuring everyone understands their role in the continuity plan.
  • Automating Critical Processes : Automate essential operations to maintain continuity with minimal human intervention. This is particularly crucial for processes that are critical to business functioning.
  • Data Analytics for Risk Assessment : Employ data analytics to predict potential threats and prepare accordingly. This proactive approach helps in refining the business continuity plan, making it more effective over time.

By incorporating these technological and digital strategies, your business continuity plan becomes more dynamic, adaptable, and equipped to handle the challenges of the modern business environment.

Find a Business Continuity Plan Template

Putting together a business continuity plan is easy if you can find a template and just fill in the blank spaces to tailor make it to suit your business. There are a series of excellent resources to help you with a small business plan including The National Fire Protection Association’s Standard on Continuity, Emergency and Crisis Management . Here’s another version you can download and customize for your small business.

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9 Benefits of business continuity plan for a small business

Imagine arriving at your office, ready to tackle the workday, only to encounter malfunctioning computers, a paralyzed network, and crucial files out of reach. Panic sets in across the entire organization . Customers are calling, deadlines are looming, and your business operations are grinding to a halt. 

This is a nightmare scenario that many businesses worry about. Fortunately, business continuity plans can help them prepare for disruptive events , ensuring disaster recovery plans are followed and allowing businesses to maintain operations during such events.  

What is a business continuity plan?

A business continuity plan is a written document that outlines the steps your company will take to resume critical business functions in the event of natural disasters , cyber attacks , or any incident that can disrupt normal business processes .

What are the key benefits of a business continuity plan?

There are many key advantages of business continuity planning , and these include: 

1. Identification and mitigation of business risks

Business continuity planning involves a thorough assessment of the potential threats your business faces. This allows you to take proactive steps to mitigate risks and prevent unexpected disruptions to your business processes from happening in the first place.

2. Peace of mind

Knowing that a business continuity plan is in place and everyone is prepared to restore service and essential functions when a crisis occurs can significantly reduce stress and anxiety for both you and your employees. 

3. Minimized downtime 

Business continuity planning helps you pinpoint your critical systems and data so you can prioritize their protection and rapid recovery during an outage. This means you can get back up and maintain operations , protecting you from data loss, business disruption , and financial setbacks.

4. Improved employee morale and decision-making during a crisis

In the face of unexpected events , uncertainty breeds fear and paralysis. A business continuity program provides employees with a response plan, outlining their roles and responsibilities during disruptions. Such a plan empowers them to take decisive action, reducing stress and fostering a sense of control. Knowing they’re equipped to handle unpredictable events boosts morale, turning anxious employees into confident recovery responders.

For example, when a fire breaks out in your office, business continuity helps clarify what each person’s role is in the emergency procedure. Human resources staff, equipped with clear evacuation plans and signage, guide everyone to safety. Emergency contacts are instantly notified, triggering a swift response from firefighters. Trained individuals, if necessary, use fire extinguishers to contain the blaze until professional help arrives. This coordinated response prioritizes safety, minimizes damage, and demonstrates effective crisis management .

5. Protection of company reputation

When disaster strikes , it can quickly unleash a PR nightmare, as panicked reactions may erode trust among customers and stakeholders. However, a robust business continuity plan empowers you to respond calmly and effectively. Clear communication protocols keep everyone informed, while your swift recovery showcases unwavering commitment to service and reliability. This proactive approach builds trust and confidence, safeguarding your hard-earned reputation and helping you retain customers and foster customer loyalty . 

6. Competitive edge

Customers are increasingly looking for businesses that are prepared for anything. Business continuity planning ensures your commitment to resilience, showcasing your ability to weather disruptions and deliver consistently. 

This can give you a leg up on the competition. Imagine a competitor unprepared for a major supply chain disruption. They would be hard-pressed to keep their operations going. Equipped with a comprehensive business continuity plan , your company can carry on uninterrupted, serving customers and earning their trust and loyalty in the process.

7. Improved business continuity

Business continuity planning is not a one-time exercise. A business continuity plan is supposed to be a living document that needs to be reviewed and updated regularly. This ongoing process helps to ensure that your business continuity strategy remains effective as your business grows and changes, strengthening your overall organizational resilience and preparing you for any unforeseen challenges.

8. Compliance with regulations

Depending on your industry, regulatory requirements may include a business continuity strategy . Having a documented plan demonstrates your commitment to compliance, avoiding hefty fines and legal headaches. But beyond mere compliance, it showcases your dedication to responsible business practices, potentially building trust and positive relationships with regulatory bodies.

9. Potential insurance cost savings

Insurance companies reward preparedness. A robust business continuity plan demonstrates your proactive approach to risk management, making you a less risky client. This often translates to lower premiums, freeing up valuable resources for investment and growth. The business continuity plan, in essence, becomes a financial shield, protecting your bottom line by reducing insurance burdens.

How SUCCESS Computing Consulting can help with business continuity planning

Developing and implementing business continuity plans can seem daunting, especially for a small business with limited resources. This is where SUCCESS comes in. Our disaster recovery team can help you create a customized business continuity strategy that meets your company’s specific needs.

Our business continuity planning service includes the following:

Risk assessment

We’ll conduct risk assessments to help you identify the potential threats that could cripple your critical functions , such as:

  • Natural disasters (e.g., floods, earthquakes, global pandemic )
  • Technological threats (i.e., cyber attacks , data breaches , hardware failure, power outages )
  • Human errors (e.g., accidental file deletion)

Business impact analysis

Next, we’ll conduct a business impact assessment to gauge the potential impact of disruptive events on your critical business operations . This includes analyzing how long normal operations might be disrupted, financial losses that could occur, and reputational damage that could be sustained.

Vulnerability assessment

This assessment involves evaluating your vulnerabilities to these threats by looking at weaknesses in your infrastructure, security protocols, and operational procedures that could be exploited.

Business continuity plan development

Working closely with you, we’ll develop a comprehensive business continuity plan that outlines your preventive measures and contingency plans . Preventive measures could include investing in disaster-resistant infrastructure, leveraging cloud technologies , installing robust cybersecurity systems, implementing training programs for employees, and diversifying your supply chain. Contingency plans typically involve activating backup systems, relocating operations to a temporary site, or communicating effectively with stakeholders.

Business continuity testing and training

Regular business continuity plan testing and training are vital for ensuring your plan’s effectiveness. We simulate disruptive scenarios, allowing you and your team to practice disaster recovery strategies , identify any gaps, and refine your approach.

Ongoing business continuity management and support

We don’t simply create business continuity plans and then leave you to your own devices . Our ongoing business continuity management and support ensures your plan stays relevant and adaptable. We’re here to review and update your business continuity plan . We will also guide you through any unforeseen business continuity challenges so you can enjoy all the benefits of a business continuity plan . 

Don’t wait for a natural disaster or other unexpected events to strike. Get in touch with SUCCESS Computer Consulting today , and we’ll help you develop a business continuity plan that gives you the peace of mind you deserve. We can also help you with all your crisis management , disaster recovery , and business continuity activities .  

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