Business Continuity and Risk Management: Your Complete Guide

Bcp risk management: complete guide.

You already know that risk management is vital to any competitive, responsible, and well-prepared company. But how does BCP fit into your risk management strategy? And what are the differences between BCP and risk management?

If you’re wondering how to improve your BCP (or create a BCP from scratch), check out our guide to learn the basics. We’ll answer your questions related to BCP and risk management for any size institution.

What Is BCP? (Simple Definition)

BCP stands for business continuity plan—a document that describes how an organization will carry on in the case of emergency, natural disaster, or other disruptions to typical operations.

A BCP is more extensive than a disaster recovery plan, outlining every possible situation that could occur in case of a disruption—and what the organization will do about it. The plan proposes ways to mitigate risks and details procedures to test all proposals.

Is BCP Part of Risk Management?

BCP is an important part of risk management. From cyberattacks to fires and floods, all organizations are vulnerable to unforeseen disruptions. But having a thorough BCP in place protects the organization, allowing them to quickly resume the most critical functions and ultimately bounce back faster even when faced with disaster. 

Still, a BCP is only one aspect of risk management. In order to best mitigate risk, an organization should pair a BCP with a continuity program , disaster recovery plan , and ongoing risk assessments.

What Are the Differences Between BCP and Risk Management?

BCP is a sub-category of risk management, playing an important role in helping an organization get back up and running after a disruption.

While risk management focuses on mitigating problems from the outside, business continuity plans outline what a company should do in case they are faced with the worst possible outcome. Hence, organizations that invest in both risk management and BCP will be able to mitigate risk and be prepared for any scenario that may come their way.

How Does BCP Help Mitigate Risk?

A BCP helps to mitigate risk by making sure the organization is ready for any possible disruption to everyday operations. By having an outlined plan of how every department should respond to the disaster, the organization will be able to resume the most critical functions and return to typical business operations as quickly as possible, minimizing financial losses and other problems resulting from the disruption.

Who Is Responsible for BCP?

Organizations may hire continuity plan coordinators specifically tasked with the job of developing a BCPs. This job might also fall under the role of another administrative position that typically deals with risk management and mitigation.

Business continuity coordinators should work closely with all departments within the company to understand their unique processes and potential risks that could arise in case of a disaster or emergency. Once coordinators understand those risks, they should outline solutions and procedures to mitigate risk in the business continuity plan.

What Is the Primary Goal of Business Continuity Planning?

Business continuity planning offers many benefits to organizations, allowing them to be more agile, competitive, and prepared for any situation. But what is the primary goal of business continuity planning?

In short, the main focus of BCP is to allow organizations to continue operating as smoothly as possible when faced with any type of business disruption, such as a cyberattack or natural disaster. By keeping the organization running smoothly, a BCP could ultimately save the business a great deal of money, plus avoid serious short-term and long-term repercussions.

Ultimately, a BCP protects an organization’s main functions and assets, restores operations, and prevents and mitigates risk.

Manage Risk with Continuity Planning Software

It’s time to make sure your organization is prepared for anything that comes your way. Kuali Ready makes it easy to create thorough, effective BCPs with intuitive continuity planning software. 

Contact us today to learn more about how higher education institutions are using Kuali Ready to improve resilience and amplify risk management efforts.

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Enterprise Risk Management vs. Business Continuity Management: What’s the Difference?

A lot of organizations that are just embarking upon their enterprise risk management journey have questions about the basic terminology involved. In this blog post, we want to tackle some basic terms that are often—incorrectly!—used interchangeably. Enterprise risk management vs. business continuity management: Let’s break it down.

How to define enterprise risk management and business continuity?

In our webinar with Sphera [formerly riskmethods] customer Clariant, we got asked a very interesting question from one of the participants: “What’s the difference between enterprise risk management and business continuity management?”

Great question. And, like most great questions, the answer is a little fuzzy.

At the end of the day, enterprise risk management and business continuity management are tightly linked. The best way to think about it is probably this: Enterprise risk management (ERM) is about processes that are enacted before a disaster occurs, because enterprise risk management is concerned with protecting a business from risk by identifying the existence of vulnerabilities and defining a way to minimize their probability.

Business continuity management (BCM), on the other hand, is about processes that are designed to be enacted after a disaster has occurred, because business continuity management is the process of maintaining business operations during or after an actual disaster, which is executed through the use of business continuity plans.

To put a different spin on it, let’s use a hiking analogy. Enterprise risk management is the part of the hike where you pack your survival kit full of flares—and business continuity management is the part of the hike where you shoot off those flares because you’ve broken your leg and can’t move.

The difference between ERM and BCM

One of the key differences between ERM and BCM  is their approaches. Due to the preventive nature of ERM programs, enterprise risk management is a largely strategic undertaking—it’s focused on understanding and planning for hypothetical situations. Business continuity management, on the other hand, is much more tactical—it’s focused on the actual way that an organization should act when a business disruption occurs.

How ERM and BCM work together?

In many organizations, enterprise risk management and business continuity management are likely managed by the same team, since they’re so tightly intertwined—after all, it’s not possible to create a business continuity plan for a risk event if you don’t have a good sense of what risk events are likely to occur. By the same token, it’s not possible to adequately protect a business against disruption without a plan to address it when it happens. In other words: if your business has risk managers and business continuity managers, you better make sure they’re the best of friends.

But regardless of how your company is set up, here’s the bottom line:  risk management and business continuity management are both critical functions  if you want to keep your organization running. And although ERM and BCM are large topics that encompass a number of types of risk, a significant chunk of those risks have to do with your organization’s ability to produce its product—which is heavily impacted by your supply network.

riskmethods was acquired by Sphera in October 2022. This content originally appeared on the riskmethods website and was slightly modified for sphera.com.

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The Bottom Line

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

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What Is a Business Continuity Plan (BCP)? 

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

Key Takeaways

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

Understanding Business Continuity Plans (BCPs)

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

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

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

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

Benefits of a Business Continuity Plan

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

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

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

How To Create a Business Continuity Plan

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

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

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

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

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

Business Continuity Impact Analysis

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

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

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

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

Business Continuity Plan vs. Disaster Recovery Plan

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

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

Why Is Business Continuity Plan (BCP) Important?

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

What Should a Business Continuity Plan (BCP) Include?

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

What Is Business Continuity Impact Analysis?

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

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

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

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

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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What is the relationship between Business Continuity and Risk Management?

The relationship between Business Continuity and Risk Management depends on the organization. In most cases, Business Continuity is a sub-domain of Risk Management.

If there is an existing Enterprise Risk Management framework in the organization, can you use that in your Business Continuity Planning? Or, should you create a new Risk Register and new Risk Assessments for each department inside the Business Continuity Plan?

  • You should refer to your organizational Risk Register as a starting point. However, some Business Continuity Plans may contain lower level risks that are important to the department but not significant to the organization as a whole
  • Risk Management is focused on the mitigation of issues and Business Continuity is more concerned about a worst case scenario action plan.

Enterprise Risk Management

When it comes to Business Continuity and Risk Management – Risk is in the driving seat.

Business Continuity as part of an overall Operational Resilience program is the mitigation of risk. However, Enterprise Risk Management, especially in large businesses can be focused either on the macro scale and / or miss localized impacts for satellite operations. This means the best approach is a mix of the top impacting risks from Enterprise Risk Management and a local risk analysis.

A modern 24/7 business cannot tolerate interruption and therefore looks for its resilience teams to prepare for the high risk scenarios which could occur. This allows them to proactively develop pragmatic strategies to mitigate the risk.

As an example, tropical cyclones are not instant events – they can be prepared for, as can wildfires. If flooding is a real risk in your area, then make plans to mitigate against it. Don’t wait for the water to be lapping round you and then get your plan out. As that is too late and your business will have been interrupted.

Business Continuity Management

Business Continuity Management is a tool that reacts when there is a business disruption, while Enterprise Risk Management is a strategic tool used by management to accomplish its business objectives. Although Business Continuity Management can be part of the action plans to achieve those business objectives, for example – to ensure the business resumes its operations continuously in the event of a disruption.

Business Continuity Management risk is a sub domain of Enterprise Risk Management, like Information Security Risk Management or Health and Safety Risk Management. It is a collection of good management practices linked together. The Business Impact Analysis pulls from the Enterprise Risk Management process, the Business Continuity Plan is a series of contingency actions.

The Business Continuity Management System framework is the system that stitches activities together. However, if we rely on Business Continuity specialists to manage the company Business Continuity, then we create the paradox of being unable to respond when our specialists are unavailable.

Enterprise Risk Assessment

The Risk Assessment carried out by Enterprise Risk Management professionals takes into consideration known knowns, and unknown knowns. The resulting Risk Register will be comprehensive and will cover almost all the risks and could be used both for Business Continuity and Risk Management.

The result of the Risk Assessment enables leadership to determine the acceptable risk appetite of the company. After the risk appetite is defined this will determine whether or not to move forward with the rest of the Business Continuity Management framework.

Business Continuity Risk Assessment

Performing a specific Business Continuity Management related risk assessment helps you consider the various in scope resources and risks to them. It also helps you validate current controls in place and assess any additional controls that could be put in place.

For example, a high risk premise – are there controls that could be put in place, or should relocation be a serious consideration. When you are evaluating the internal and external issues (Clause 4.1 of ISO 22301:2012) these can be sourced (in part) from the risk register and Enterprise Risk Management and evaluated with a Business Continuity Management lens. This is a high level input into the process that is often missed or skipped over.

Enterprise Risk Management is higher level than Business Continuity Management, as it looks at any uncertainty that can have an effect on the organizations objectives. While Business Continuity risk assessments will look at more specific risks to in scope resources affecting processes and delivery of products and services (such as a loss of premise risk).

A Business Continuity Management risk should also be tracked in the Enterprise Risk Register but can be treated with Business Continuity plans or preventative measures by the Business Continuity Management professional and then tracked upwards.

You should consider:

  • What needs protecting
  • What might disrupt it and how
  • What happens if it gets disrupted

Business Continuity Management is by its very nature is more focused on the impact of risk events, rather than the likelihood of them – unpredictable and unavoidable as some such events are.

Preparing to Plan

One of the first steps you should take when considering the preparation of a Business Continuity Plan is to understand the risks faced by the business.

Business disruption incidents are triggered by both internal and external risk factors. It is therefore essential to understand what risks could potentially stop your business activities. Once you understand the risks then you can develop corresponding control/mitigation plans to avoid or minimize the disruption impacts.

All Hazards Approach

An alternative school of thought is that Business Continuity Planning should adopt an “All Hazards Approach”. This approach focuses on how to continue / recover services following the materialization of risk.

It is possible to prepare for a disruption without waiting for it to occur. You cannot mitigate a flood, wildfire or hurricane, however you can have the capability to respond and recover should such an event impact operations.

So, if you have the ability to recover from a specific hazard, that same strategy could be employed for a wide variety of threats. You should build recovery capabilities based on the impact of an event (loss of resources, locations, staff, etc.) not the risk itself. If a risk provides the opportunity to take pro-active measures then certainly do so, but many threats do not provide any warning and it is best to be prepared for the hazards you do not see coming. That includes the risks that may not even show up on a risk register.

In this approach Business Continuity is seen as equal to Risk Management and not a subset of it. Organizations should manage risks but must acknowledge that resources do not exist to reduce all risks to zero. This is why an equal amount of effort should be devoted to preparedness, which is where Business Continuity comes in.  Equal time should be devoted to both Business Continuity and Risk Management, rather than two disciplines performing duplicate efforts.

We don’t need any Risk Assessments to do good Business Continuity. In Business Continuity Management, it doesn’t matter if the building is burning, the important point is how to relocate people and where they will work tomorrow. A plan should be a toolbox with only useful information for recovery. Putting a list of risks inside doesn’t bring any value.

Even if Business Continuity Plans are considered a risk control, the objective is different – they don’t mitigate the probability at all.

A generic “all hazards” plan ensures continuity regardless of the cause of the disruption. This is how you can effectively prepare for unanticipated or low probability events. If we plan for the impact then we can be more flexible in response, particularly if the cause is something we did not anticipate. Conversely, by focusing just on specific hazards, there is a danger of being more susceptible to the ones we did not plan for.

For a more in depth discussion of the All Hazard’s approach you can view Mark Armour’s article:  On Stones, Clay and Rubber Balls

Whether you choose to take a Risk based or All Hazards approach to your Business Continuity Planning – you will be able to use BCP Builder’s Online Business Continuity Plan Template .

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ISO 22301 Business Continuity Simplified: Fortify Your Business Against Disruption

By Andy Marker | June 22, 2020 (updated September 15, 2022)

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In this article, you’ll find expert tips and implementation guides, and you'll learn how ISO 22301 can buffer your business against disasters. 

Included on this page, you’ll find an International Standards Organization (ISO) 22301 audit checklist template , a simplified ISO 22301 cheat-sheet , and an ISO 22301 self-assessment checklist , as well as examples of ISO 22301 in action and an ISO 22301 quick-start guide .

What Is ISO 22301?

ISO 22301 is a global standard for business continuity planning requirements to help organizations protect themselves against disruptions. The most current version is 22301:2019, Security and resilience - Business continuity management systems - Requirements.

The requirements in ISO 22301 address disruptive incidents that can be natural or human-made, widespread or local, intentional or unintentional, such as a snowstorm, a broken water main, an epidemic, a data breach, or a phishing attack. Large or small, for- and nonprofit organizations alike can use ISO 22301.

The Business Manager’s Quick-Start Guide to ISO 22301

The ISO 22301 standard can provide benefits for your business continuity planning, even if your organization chooses not to pursue certification, or the review process that confirms your business continuity system meets all ISO 22301 requirements. 

"Certification is nice, but not required,” says Mart Rovers of InterProm. “First, seek compliance. That way, you know that your business continuity management practices are in better shape." You can start to create a solid business continuity plan with just a few simple steps, which you can also download as this ISO 22301 Quick-Start Guide .

  • Check If You Already Have Continuity Plans: Find out if your organization already has business continuity plans. Search through your document management system and ask management or long-time employees. Organizations sometimes create and quickly forget about resources, or store responses locally in an informal system.  As Andrew Nichols of the Michigan Manufacturing Technology Center suggests, if your organization already implements other ISO standards, such as ISO 9001 or ISO 27000, you can leverage some of the common requirement elements for your 22301 plan.
  • Identify Missing Components: Conduct a gap analysis of existing policies and processes to see what business continuity resources you need. According to Mart Rovers, one way to conduct a self-assessment is to copy into a spreadsheet each phrase of the ISO 22301 standard that contains the word "shall." Then, determine gaps between your company and the standard. "Use the standard as your guide to establishing a coherent set of practices to address business continuity management for your organization," says Rovers. You can also use Smartsheet's ISO 22301 Self-Assessment Checklist and ISO 22301 Simplified Cheatsheet for your gap analysis.
  • Keep It Simple: Having binders full of perfectly formatted procedures won’t help in an emergency. Create easy-to-follow guidelines and checklists and, more importantly, build "muscle memory" in your employees through training and drills. That way, in a panic, people understand what to do without having to be told.
  • Make Your Plan a Living Document: Ticking off items on an audit checklist doesn't mean you’re prepared. Frequently read, revise, and practice your plan to keep it relevant and to train new staff.

Alex Fullick

  • Communicate Your Plan to Staff and Other Stakeholders: Even the most well-written plan is useless if the people who can benefit from it don't know about it. Inform everyone covered by the plan that it exists, including your supply chain and other outside stakeholders.

ISO 22301 Requirements

The ISO 22301 standard offers a framework for planning, testing, and monitoring a business continuity management system (BCMS). The ISO 22301 document contains 10 sections, which introduce the standard and definitions, as well as actionable requirements of the standard. 

As with other ISO requirement documents, ISO 22301 describes only what organizations must do to reach minimum proficiency — it does not prescribe how to achieve these standards. Each organization must consider its distinct conditions and obligations to find the best way to follow the requirements.

Here is an overview of the clauses in ISO 22301 that impact an organization most: 

  • Clause 4, Context: Your organization must understand what it is, what it does, and what outputs and processes it must sustain. You must also determine who has a stake in the continuity of your operations — in other words, the interested parties. For example, customers have a stake in your organization continuing to function.
  • Clause 5, Leadership: Few organizational initiatives thrive without the sustained support and championship of top management. Management must commit to a business continuity plan and make available any resources — human, financial, or otherwise — to ensure its success. 
  • Clause 6, Planning: To plan for sustainability, you must understand what disruptions could potentially occur and how these incidents affect the business — in other words, potential risks and their impact. Set measurable business continuity objectives to guarantee the minimum viable products or services, as well as compliance with any legal or regulatory requirements. 
  • Clause 7, Support: No program can advance without resources and support. Decide what personnel, roles, and teams you need for threat response and how you can best enhance their effectiveness. Create internal and external communication procedures for reference, and communicate the continuity plan to all necessary parties before and during a crisis. Establish a document management system for key continuity documents, such as procedures.
  • Clause 8, Operation: Conduct your risk assessment and business impact analysis , and plan your disruption recovery approach. Implement the recovery plan with detailed procedures, and test it regularly to verify that it works. Make sure people can find the procedures (and other documents) they need, and revise your plan as necessary.
  • Clause 9, Evaluation: Establish a process to regularly measure and assess your continuity policies and procedures and their execution. Review and revise your plan and documents to ensure they are effective and relevant
  • Clause 10, Improvement: Seek continual improvement in all functional and operational areas, including through periodic management reviews. Improvements in day-to-day activities help bolster the organization in times of disruption. When processes veer from the standard or fail to conform with ISO and quality management standards, implement corrective action.

Key Definitions Related to ISO 22301

Some of the following key terms and concepts originate with ISO, some with ISO 22301, and some with business continuity and risk management:

  • Context: The purpose and character of the organization and the environment in which it operates. This includes internal and external influences that shape the business continuity management system.
  • Disruptive Incident: A disruptive incident is an event that stops or slows the everyday work of an organization. Examples of disruptive incidents include earthquakes, internet stoppages, broken fans in a data center, or food poisoning in a cafeteria. 
  • Interested Parties: Interested parties are stakeholders in the successful operation and outcomes of your business continuity plan. They can include customers, employees, suppliers, or regulatory officials.
  • Leadership: In ISO 22301, leadership refers to top management or the person or people who run the organization and champion the business continuity effort. 
  • Maximum Acceptable Outage (MAO): The length of time an activity or process can be unavailable or ineffective before the health and survival of the organization are threatened. 
  • Minimum Business Continuity Objective (MBCO) : The lowest level of products or services that is acceptable for a business to offer during a disruption.
  • Recovery Timeframe Objectives (RTO): This refers to the prioritization of key activities and the timing that makes those activities operational.

Benefits of ISO 22301 and Business Continuity Management System

If teams are already overwhelmed with their workload, they may not like to think about disasters. Furthermore, organizations might think that ISO standards include difficult jargon and that pursuing a continuity plan adds unnecessary work. However, management systems practitioners suggest that continuity preparations produce substantial gains.

Andy Nichols

“I think it's a truism that many organizations can benefit from the principles and some of the practices of resiliency and contingency planning,” says Andrew Nichols, Quality Program Manager at the Michigan Manufacturing Technology Center .

As an example of the benefits that risk analysis and preparation can yield, Nichols relates his experience of visiting a small northeastern town during a widespread winter power outage. The whole town was closed, with the exception of one restaurant that had a generator. 

“They had a line of people out the door every mealtime because nowhere else was capable,” Nichols remembers. “Somebody had the foresight to think about the loss of power. And that organization cleaned up financially because they were able to provide what the customers needed.” 

Consider these specific benefits to using ISO 22301 business continuity planning:

  • Protect against and recover from disruptive incidents.
  • Identify and control current and future threats.
  • Improve your risk management planning efforts.
  • Prevent large-scale damage.
  • Become proactive in preventing problems and recovering from incidents, rather than reactive to damage and disruption.
  • Reduce downtime and increase recovery time.
  • Keep important activities running during disruption.
  • Deliver quality products consistently. 
  • Provide dependable service. 
  • Prove you’re a reputable supplier.
  • Prove your resilience to all stakeholders.

Experts also assert that ISO 22301 can be a simple and effective continuity tool. “All these ISO standards, they’re like hidden gems because of how fast they can get you up to speed without having to reinvent the wheel,” says Mart Rovers, President of IT consulting firm InterProm . 

Mart Rovers

“I cannot emphasize enough how within reach this standard is. Anytime people hear the word ‘ISO,’ they think, ‘Oh, that's for large organizations. Oh, that's way too formal. It's too much. It's overkill.’ I understand where this is coming from because the word ‘standard’ itself is scary for many organizations. However, the size of organization really doesn't matter. The things you should be doing in ISO 22301, you can do at a smaller scale,” says Rovers. 

Some also hesitate at the thought of certification. Both Nichols and Rovers stress that certification is not necessary for every enterprise. Although certification may be a condition of doing business for some companies, those who don’t need certification can still gain advantages from following ISO 22301. 

In weighing the pros and cons of ISO certification, Rovers suggests buying a copy of ISO 22301 , and then copying and pasting each sentence that contains the word “shall” into a spreadsheet (these sentences represent the requirements you must follow). From the spreadsheet, consider whether full ISO adoption and certification are too complicated for your organization. Regardless of your decision, you can always use the spreadsheet to conduct a self-audit.

ISO 22301 in Action

The following image provides a small sample of the possible outcomes to business continuity management.

How a Management System Helps Business Continuity

For those familiar with other ISO standards, the management system component of ISO 22301 might be a new concept. Rovers describes management systems as follows: 

“The best way to explain a management system is to imagine opening up an old watch. It has these spinning wheels, these gears. In the case of an ISO standard, you're looking at a number of requirements to put that watch together with all these spinning wheels. That watch is a coherent system. You take out one of those gears, and then the watch fails. 

“A management system for continuity follows the same idea — every requirement that the standard asks for represents one of those gears. And every requirement serves a distinct purpose (otherwise, it would not be a requirement). If you don't meet a particular requirement, the watch, so to speak, may not function as it could or should. These ISO requirements are not just there to keep you busy.”

ISO 22301 and PDCA

Each segment of the PDCA (plan-do-check-act) cycle for continuous improvement corresponds to at least one ISO 22301 clause. Organizations can use ISO 22301 to test continuity procedures, review outcomes, and implement updates or fix problems in a continuous cycle that leads to an increasingly resilient business continuity system.

PDCA for ISO 22301

ISO 22301 and Maturity Models

A maturity model measures an organization’s ability to pursue continuous improvement in key areas. ISO 22301 does not have a maturity model.

As Rovers explains, “It was never the intent of ISO 22301 to be a maturity model. You either meet all the requirements of the standard, or you don’t. You could say that by not meeting the requirements of the standard, you’re not mature. Or better said, your business continuity management practices are not mature.”

BCM Lifecycle ISO 22301

The business continuity management (BCM) lifecycle represents industry best practices and some of the core requirements of ISO 22301. These practices offer a solid foundation for resilience, while offering flexibility to adapt to changes in the organization. 

Guided by leadership, these are the key activities for the lifecycle:

  • Conduct a business impact analysis and risk assessment.
  • Establish a business continuity strategy.
  • Establish and implement business continuity procedures.
  • Exercise and test the procedures regularly before a disruption occurs.

BCM Lifecycle ISO 22301

ISO 22301 Audit Checklist Template (Excel)

ISO 22301 Audit Checklist Template

Use this detailed checklist to determine if your business continuity plan aligns with ISO 22301 standards. You can use the template whether you’re applying for certification or simply pursuing a continuity management plan. 

Download ISO 22301 Audit Checklist Template

Excel  | Smartsheet

ISO 22301 Self-Assessment Checklist

ISO 22301 Self-Assessment Checklist Template

This self-assessment checklist is divided into sections that correspond to clauses in ISO 22301. Use it to confirm whether your business continuity system meets the requirements for leadership, planning, support, operation, performance evaluation, and continual improvement.

Download ISO 22301 Self-Assessment Checklist Template

Excel | Word |  PDF

ISO 22301 Implementation Guide

ISO 22301 Implementation Guide Template

This guide states the essential information from ISO 22301 in plain English. For best results, read it with the full standard, which is currently available for free online to support the COVID-19 response. 

Download ISO 22301 Implementation Guide Template

Excel | Word | PDF

ISO 22301 Simplified Cheat-Sheet

ISO 22301 Simplified Cheatsheet Template

Use this simplified cheat-sheet to understand the basic elements of creating a business continuity plan. The template walks you through the process of determining critical aspects of your organization, writing the recovery plan, and exercising the plan to ensure proficiency. 

Download ISO 22301 Simplified Cheat-Sheet Template

ISO 22301 Business Continuity Policy Template

ISO 22301 Business Continuity Policy Template

A business continuity policy describes the processes and procedures an organization needs in order to function well daily, including in times of disruption and crisis. This policy template includes space for BCMS objectives, a leadership description, a policy outline, and any certification details.

Download ISO 22301 Business Continuity Policy Template

ISO 22301 Business Continuity Template

ISO 22301 Business Continuity Plan Template

Use this template to create a business continuity plan. Describe the results of your risk analysis and business impact analysis, detail your disaster recovery and continuity procedures, and list key contacts and important assets. 

Download ISO 22301 Business Continuity Template

Word |  PDF

ISO 22301 Business Continuity Sample

The Community Nonprofit Center of New York made available this business continuity template to support the response to coronavirus. Find space to detail responses to minimal and critical emergencies, a risk matrix template, and lists for information about insurance, critical assets, and responses to disruptive events.

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

Disaster Recovery Plan Templates

After you perform a risk analysis and business impact analysis, consider writing a disaster recovery plan. Disaster recovery plan templates , available in different formats, provide an easy-to-use structure for documenting continuity plans. Download templates specialized for IT, payroll, small businesses, and more.

To learn about the difference between recovery plans and continuity plans, visit our "Business Continuity and Disaster Recovery: Their Differences and How They Work Together" article.

ISO 22301 Versus ISO 27301

ISO 27301 provides requirements that organizations use to ensure their information and communications technology (ICT) continuity, security, and readiness to survive a disruption. The standard is often staged with ISO 22301 because both are based on similar management system approaches.

The full name of this standard is ISO 27301 - Information Technology - Security Techniques . Originally published in 2011, it is soon to be revised.

“Both [ISO 27301 and ISO 22301] ask for top management involvement and commitment, both ask that you have the right resources, that you have documentation management, that you do performance evaluations, and that you make improvements,” explains Rovers. 

They differ in the focus of the risk assessment: ISO 27001 addresses security, whereas ISO 22301 addresses business continuity. “Each area has different risks, but the approach to the risk management assessment and mitigation follows the same steps. There's enormous overlap.”

IT security continuity has significant relevance in the remote work environment. For example, while using your work laptop at home or signed into the work network, what happens when someone innocently plugs in a thumb drive that infects your laptop and corrupts the network? Both ISO 22301 and ISO 27001 work together to prevent such incidents and mitigate problems that occur.

For additional resources, visit " Free ISO 27001 Checklists and Templates ."

General Requirements Across Management System Standards

Some ISO requirements are commonly stated across the management system standards, which include ISO 22301; ISO 9001 , Quality Management; ISO 20000, IT Service Management; and ISO 27001, Information Security. Examples of common requirements include establishing objectives for the business continuity management system as appropriate to the organization, obtaining management’s commitment to supporting the system, implementing a documentation management system, conducting internal audits, and pursuing continual improvement. This functional overlap enables organizations to undertake combined audits for these standards.

Historical Foundations of ISO 22301

The concept of business continuity was borne out of the IT boom of the 1980s and 1990s. Public and private organizations realized the need to ensure continuity of service and key supplies and to mitigate the effects of disruptive events. The first formal standard reflecting these concerns was the United Kingdom’s British Standard (also known as BS) 25999, which introduced the management system concept to the business continuity discipline. 

In 2012, the global standards body ISO released ISO 22301:2012 as the first international standard for business continuity. Based on the contributions and comments of continuity professionals from assorted industries in over 60 countries, ISO 22301 superseded BS 25999. 

ISO’s consensus-based standards, such as 22301, cover practices and industries ranging from quality management, IT service, and food safety to environmental safety and information security. ISO standards aim to increase the quality and safety of many products and services, including most common household items, appliances, and cars. Although large enterprises and manufacturers usually follow ISO requirements and guidelines, organizations of all sizes and types can benefit from ISO principles. 

For ISO 22301, the standard provides a consistent BCMS framework and a universal language among organizations for communicating about continuity and aligning processes.

When they get certified in ISO 22301 and other ISO standards, organizations can demonstrate to management, legislators, regulators, customers, and other stakeholders that they follow good practices. For ISO certification, organizations need third-party verification that they comply with all requirements of a standard. 

“Certification shows you have some level of competence,” explains Rovers. “It shows you take the standard seriously. For organizations buying your goods or services, it can be a compelling reason to choose you.”

Guidance Documents for ISO 22301

For in-depth discussions of aspects of the 22301 standard, ISO offers a series of guidance documents. To those considering pursuing ISO 22301 certification, these documents provide additional insight:

  • ISO 22313 - Security and resilience — Business continuity management systems — Guidance on the use of ISO 22301
  • ISO 22316 - Security and resilience — Organizational resilience — Principles and attributes
  • ISO 22317 - Societal security — Business continuity management systems — Guidelines for business impact analysis (BIA)
  • ISO 22318 - Societal security — Business continuity management systems — Guidelines for supply chain continuity
  • ISO 22330 - Security and resilience — Business continuity management systems — Guidelines for people aspects of business continuity
  • ISO 22331 - Security and resilience — Business continuity management systems — Guidelines for business continuity strategy

What Is the Latest Version of ISO 22301?

The requirement document ISO 22301:2019, Security and resilience - Business continuity management systems - Requirements , was released on October 31, 2019. The update from the original 2012 version reflects changes in management system approaches and clarifies specifications around clause 8.

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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 and risk management

business continuity planning and risk management

ISO 22301 - Business continuity

Year of publication:  2019   |   Edition:  1

A free publication about ISO 22301, Security and resilience – Business continuity management systems – Requirements , the International Standard for implementing and maintaining effective business continuity plans, systems and processes.

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Bryghtpath

Business Continuity and Crisis Management Consultants

Integration of Business Continuity and Enterprise Risk Management: A Guide

Explore strategies for the successful integration of business continuity and enterprise risk management.

integration of business continuity and enterprise risk management

August 17, 2023 By //  by  Bryan Strawser

Integration of business continuity and enterprise risk management has become crucial for organizations striving to manage risks effectively. As a seasoned professional, I have observed that aligning these two strategic processes can bolster the organization’s resilience against potential threats.

This article will explore how successful enterprise risk management (ERM) and solid business continuity plan work hand-in-hand to mitigate risks. You’ll learn about the benefits of integrating ERM with your broader business continuity planning, including improved decision-making capabilities and resource allocation.

We will also discuss establishing transparent governance by setting risk management roles, which is critical in ensuring accountability across all levels within an organization. A successful ERM program requires a standardized infrastructure for managing risks.

Furthermore, you’ll gain insights on developing unified strategies for managing different types of risks such as activating disaster recovery plans or implementing intelligent contingency routing plans based on built-in business rules. Lastly, we’ll explore ways to monitor and report progress regularly to ensure continuous improvement.

Benefits of Integrating Business Continuity and Enterprise Risk Management

In the contemporary corporate sphere, companies confront a plethora of hazards. But fear not. Integrating business continuity with enterprise risk management is like having a superhero duo that can save the day.

This dynamic duo creates a unified approach to managing risks, ensuring your business is as solid as a rock. With this comprehensive strategy, you can anticipate disruptions before they hit you like a ton of bricks and take action to minimize their impact.

A Comprehensive Approach Towards Risk Management:

  • Better Visibility: By combining business continuity planning (BCP) with enterprise risk management (ERM), you’ll have the vision of a hawk, spotting potential threats and making informed decisions on handling them.
  • Improved Efficiency: With a single integrated system, you’ll avoid the chaos of duplication and streamline your efforts in identifying, assessing, monitoring, and controlling risks. Efficiency, baby.
  • Risk Mitigation: An integrated approach lets you identify risks and prioritize your response strategies based on their severity. Keep your critical functions running smoothly, even in the face of chaos.

This unified strategy is especially crucial in today’s digital age, where cyber threats are as common as a Kardashian selfie. According to IBM’s 2023 Cost of Data Breach Report , companies take an average of 280 days even to realize they’ve been breached. Yikes. That’s why having robust BCPs and effective ERM practices is more critical than ever.

To successfully integrate business continuity planning with enterprise risk management, you need a plan as solid as Dwayne “The Rock” Johnson. Establish clear roles and responsibilities, and make sure everyone’s on the same page about what constitutes a risk. We’ll dive deeper into this in our next section: Establishing Risk Governance.

Key Takeaway: 

Integrating business continuity and enterprise risk management creates a powerful approach to managing risks, allowing organizations to anticipate disruptions and minimize their impact. This comprehensive strategy provides better visibility of potential threats, improves efficiency by avoiding duplication, and enables prioritized response strategies for risk mitigation in today’s digital age where cyber threats are prevalent.

Establishing Risk Governance

In a well-functioning organization, everyone knows their role in managing risks, from the C-suite to frontline employees. It’s like a well-choreographed dance but with fewer jazz hands.

At Bryghtpath, we’ve seen that successful integration often starts at the top. The board of directors or executive leadership team should set the overall risk appetite and strategy. They’re the ones calling the shots, but hopefully not at a shooting range.

Key Risk Indicators (KRIs) are like the bat signal for potential threats. They give organizations an early warning system so they can be proactive instead of reactive. It’s like having a powerful ally to help protect you without the need for flashy costumes.

Once KRIs have been established, it’s important to communicate them throughout the organization. Employees must understand how their daily tasks contribute to the big picture. It’s like piecing together a puzzle without the colors.

  • The Chief Risk Officer (CRO) plays a pivotal role in this communication process – translating high-level strategic goals into operational activities. They’re like the risk whisperer but without the horse.
  • The Business Continuity Manager ensures that contingency plans are in place for unexpected events. They’re like the MacGyver of the organization but without the mullet.
  • Information Security Professionals focus on safeguarding sensitive data against breaches and ensuring compliance with regulations. They’re like the cybersecurity ninjas but without the throwing stars.

A robust Enterprise Risk Management framework, endorsed by the COSO (Committee Of Sponsoring Organizations), can serve as a blueprint for establishing governance structures. It’s like having a roadmap but without the annoying voice telling you to turn left.

Bryghtpath has extensive experience assisting companies in establishing strong governance frameworks tailored to their specific requirements. We’re like the risk management fairy godmothers but without the magic wand.

Successful integration of business continuity and enterprise risk management starts at the top, with the board or executive leadership team setting the risk appetite and strategy. Key Risk Indicators (KRIs) act as early warning signals for potential threats, allowing organizations to be proactive rather than reactive. Communication throughout the organization is crucial, ensuring that every employee understands how their daily tasks contribute to overall risk management goals. The Chief Risk Officer plays a pivotal role in translating strategic goals into operational activities, while the Business Continuity Manager ensures contingency plans are in place for unexpected events and Information Security Professionals focus on safeguarding sensitive data against breaches. A robust Enterprise Risk Management framework can serve as a blueprint for establishing governance structures tailored to specific requirements. Bryghtpath has extensive experience helping companies establish strong governance frameworks customized to their needs.

Developing a Unified Risk Management Strategy

When it comes to managing risk, a smart organization adopts an integrated approach that combines business continuity and enterprise risk management. This way, they can tackle all potential risks head-on and keep things running smoothly.

The first step is identifying the risks your organization faces. You need to know what you’re up against, from natural disasters to cyber attacks. Once you have them all noted, it’s time to analyze the probability and potential consequence. It’s like playing a game of risk, but with less world domination.

Don’t forget to conduct a business impact analysis . This helps you determine which parts of your business suffer the most in a crisis. It’s akin to determining which of your pals would be least helpful in a zombie invasion.

Risk assessment isn’t a one-time thing. Risk assessment is an ongoing adaptation process, with new threats constantly emerging while others become outdated. New threats pop up, while others fade away like last year’s fashion trends.

Once you’ve identified and assessed your risks, it’s time to make a plan. Business continuity planning is like having a superhero cape for your organization. It outlines the steps you’ll take to keep things running smoothly during disruptions, while also keeping your customers and stakeholders happy.

But don’t just make a plan and forget about it. Test it regularly, like a fire drill for your business. And update it as needed, because let’s face it, things change faster than the latest TikTok dance craze.

Being prepared isn’t just about reacting quickly when things go wrong. It’s about being one step ahead, like a chess grandmaster. Anticipate potential issues and put mitigation strategies in place before they even happen.

In summary, integrating Business Continuity Planning (BCP) with Enterprise Risk Management (ERM) gives organizations a clear view of their overall risk profile. It’s like having x-ray vision for your business. With this knowledge, you can make informed decisions and be more resilient when the unexpected comes knocking.

Developing a unified risk management strategy involves integrating business continuity and enterprise risk management to identify, assess, and plan for potential risks. This approach allows organizations to anticipate issues, make informed decisions, and enhance resilience in the face of unexpected disruptions.

Implementing Risk Controls

The integration of business continuity and enterprise risk management is like peanut butter and jelly – they go together. Once the risks have been identified, it’s time to implement measures to control them.

A business impact analysis (BIA) is your secret weapon at this stage. It helps you understand how disruptions could mess with your operations and shows you where to focus your efforts.

But wait, there’s more. You also need to create some kickass business continuity plans. These plans should cover everything from IT system recovery to mobilizing your workforce. No stone left unturned.

  • Risk Identification: Time to play detective and find those potential threats that could ruin your day.
  • Risk Assessment: Evaluate each risk based on how likely it is to happen and how much damage it could do.
  • Risk Treatment: Take action, baby. Decide how you’re gonna manage each risk – avoid it, reduce it, share it, or accept it and move on.
  • Risk Monitoring & Reporting: Keep your eyes peeled for any environmental changes that could mess with your risks. Report any big changes ASAP.

But wait, there’s more. You also need to make sure you’ve got the resources actually to implement and maintain your plans. That means having trained personnel ready to jump into action when disaster strikes. Don’t leave them hanging.

This integrated approach covers all the bases – short-term disruptions and long-term uncertainties. It’s like being prepared for any eventuality, ’cause you never can tell what life will bring.

Monitoring & Reporting

In the ever-changing world of business, keeping an eye on risks is like playing a never-ending game of whack-a-mole. Staying on top of risks is critical in the realm of business continuity and enterprise risk management, which is why monitoring and reporting are so essential. At Bryghtpath, we know it’s not just about spotting changes – it’s about responding quickly and appropriately.

Integrating business continuity planning with enterprise risk management requires a solid system for tracking risks, evaluating controls, and measuring their effectiveness over time. This means constantly evaluating potential threats and disruptions to your operations.

  • Risk Tracking: Step one is keeping tabs on all the risks you’ve identified, plus any new ones that pop up like surprise party guests.
  • Evaluating Controls: It’s time to see if your controls are doing their job. Are they working like a well-oiled machine or need a tune-up?
  • Mitigation Strategies: Based on your evaluation, you can update your mitigation strategies or come up with new ones. It’s like playing chess, but with risks instead of pawns.

But wait, there’s more. This isn’t a single-time event; it’s an ongoing cycle that necessitates consistent monitoring from your risk and business continuity managers. It’s an ongoing cycle that needs constant attention from your business continuity manager and risk management team.

Now, let’s talk about communication. Transparent reporting is key to keeping everyone in the loop – from top-level executives to the intern who just learned how to make coffee. You’ll keep everyone on the same page by sharing information about current risks and the steps you’re taking to mitigate them.

Imagine having a dashboard that shows real-time data on all the threats your organization faces. It’s like having a superhero sidekick that alerts you to trouble before it even happens.

Integrating business continuity planning with enterprise risk management isn’t just about making fancy strategies and implementing controls. It’s about constantly monitoring, reporting, and adapting to the ever-changing landscape of threats. It’s like being a ninja, but for risks.

Integrating business continuity planning with enterprise risk management requires constant monitoring and reporting to effectively respond to potential threats and disruptions. This ongoing cycle involves tracking risks, evaluating controls, updating mitigation strategies, and transparently communicating with stakeholders to keep everyone informed about current risks and the steps being taken to mitigate them. It’s like playing a never-ending game of whack-a-mole while being a ninja for risks.

Frequently Asked Questions about Business Continuity & Risk Management Integration

What is the link between business continuity and risk management.

The link between business continuity and risk management lies in their shared goal of safeguarding an organization’s operations from disruption. Risk management identifies, assesses, and prioritizes potential threats to an organization’s assets or operations. It then develops strategies to mitigate these risks.

On the other hand, business continuity planning focuses on creating protocols that ensure essential functions continue during and after a disaster. Essentially, while risk management aims to prevent crises, business continuity plans for how to respond when they occur. Therefore, both are critical components of a comprehensive strategy for organizational resilience.

How does business continuity fit into an enterprise risk management strategy?

Business Continuity (BC) is critical to any Enterprise Risk Management (ERM) strategy. It focuses on ensuring that critical operations continue to function during and after a disruption, thereby minimizing the impact on the organization’s overall performance.

The BC process involves identifying potential threats, assessing their impact on business functions, developing strategies for mitigating risks, testing these strategies through exercises or simulations, and constantly updating the plan based on lessons learned and changing circumstances. This aligns directly with ERM’s objectives of understanding, managing and mitigating organizational risk.

What is the difference between enterprise risk management and business continuity management?

Enterprise Risk Management (ERM) and Business Continuity Management (BCM) are two distinct disciplines that serve different but complementary roles in an organization’s overall strategy to manage uncertainty, mitigate risks, and ensure resilience. ERM focuses on identifying, assessing, and preparing for any potential dangers or uncertainties that could disrupt an organization’s operations or objectives. It provides a holistic view of all risks across the enterprise.

In contrast, BCM specifically concentrates on ensuring that critical functions can continue during and after a disruptive event. It involves planning for potential incidents to minimize their impact and enable a swift recovery.

How does risk management ensure business continuity?

Risk management is an integral part of ensuring business continuity. It involves identifying, assessing, and prioritizing potential threats that could disrupt normal operations. Once these risks are understood, strategies can be developed to mitigate their impact.

These strategies may include implementing preventive measures, creating response plans for different scenarios or transferring the risk through insurance. This proactive approach helps businesses prepare for disruptions before they occur, minimizing downtime and loss of revenue.

Effective risk management allows organizations to maintain critical functions during a crisis and recover more quickly afterwards – thereby ensuring business continuity.

Integrating business continuity and enterprise risk management brings a boatload of benefits to organizations – it’s like getting a two-for-one deal on risk mitigation and operational continuity.

By establishing risk governance, developing a unified risk management strategy, implementing risk controls, and monitoring & reporting on risks, businesses can effectively dodge potential threats and keep their operations sailing smoothly.

This integration allows for a comprehensive approach to managing risks across all levels of an organization – it’s like having a superhero team that tackles risks from every angle, making better decisions and allocating resources like a boss.

It also helps in identifying interdependencies between different risks and ensures that appropriate measures are taken to address them – it’s like playing a game of Risk, but with a strategy that actually works.

In conclusion, the integration of business continuity and enterprise risk management is crucial for organizations looking to manage risks and protect their assets proactively – it’s like having a security guard that never takes a coffee break.

Want to work with us or learn more about Business Continuity?

  • Our proprietary  Resiliency Diagnosis  process is the perfect way to advance your business continuity &  crisis management  program. Our thorough standards-based review culminates in a full report, maturity model scoring, and a clear set of recommendations for improvement.
  • Our  Business Continuity  (including effective Business Continuity Lifecycles) &  Crisis Management  services help you rapidly grow and mature your program to ensure your organization is prepared for the storms that lie ahead.
  • Our  Ultimate Guide to Business Continuity  contains everything you need to know about Business Continuity
  • Our free  Business Continuity 101 Introductory Course  may help you with an introduction to the world of business continuity – and help prepare your organization for your next disruption. Our paid  5-Day Business Continuity Accelerator  might just be the thing you need to jumpstart your business continuity program.
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About Bryan Strawser

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

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

Learn more about Bryan at this link .

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The CFO'S Perspective

Business continuity planning and risk management.

by CFO Selections Team , on Jul 9, 2020

business continuity planning and risk management

One of your most important tasks as a business leader and manager is mitigating risk. Understanding what kind of risk exists, planning for the impact of this risk, and executing continuity plans to keep the organization operational during a disruption is of paramount importance. The earlier risk can be identified, assessed, managed, and integrated into strategic planning, the better.

Typically, this burden falls on the C-Suite, but leaders at all levels should be included in the planning stage to ensure buy-in across the company. According to CFO Magazine , CFOs have seen risk management fall under their umbrella more over the last decade. They explain,

“The CFO’s role has expanded in recent years, perhaps most notably in the area of risk management. Finance chiefs frequently took charge of assessing and guarding against risk during the financial crisis, and as the economy has slowly recovered, few have relinquished the task. More than half of the finance executives responding to CFO’s latest Deep Dive Survey say their responsibility for risk management has increased.”

Not much has changed in the years since, with CFOs taking more ownership of risk than ever before, whether they want to spearhead this role or not.

While it is easy to task an individual with overseeing risk management, ideally, it should not roll up to a single person. An emphasis on risk mitigation should be ingrained across the organization with alignment and compliance at every level. CFOs leading the charge can get their organizations on board to share the responsibility by taking a four-step approach to business continuity planning.

Identify Risk Factors

The cornerstone of risk management is identifying all possible risk scenarios. Knowing what kind of risk exists sets a foundation for business continuity planning. Risk can come from inside or outside an organization, and falls within four main areas:

  • Financial Risk – The most apparent threat to a business is financial risk. Cash flow, regulatory guidelines, tax filings, fraudulent activity, lender obligations, contract stipulation, and other financial elements create dangers that all organizations need to navigate. Subsequently, these are the kinds of risks that businesses usually plan for first. However, these are, by no means, the only risks that your company may encounter.
  • Operational Risk – Regardless of industry or size, a company’s operations will inherently be subject to their own risks as well. Employee turnover, manufacturing processes, materials costs, compliance requirements, and transportation logistics all provide places where risk can threaten your organization.
  • Cyber Risks – Cyber risks can arise both internally and externally. Data leaks, trade secret disclosures, computer hacking, NDA breaches, and privacy infringements can pose severe risks to companies and their brands, especially in this heightened digital age. Even companies that outsource their IT functions are susceptible to cyber risk.
  • Catastrophic Risk – Finally, no organization is immune to catastrophic risk. Things like natural disasters, pandemics, wars, violent acts, terrorism, embargos, and other unforeseen events can dramatically affect your business. Whether the catastrophe is a single-impact event like a fire inside a business or a widespread event like a global pandemic, these occurrences represent the worst - case scenarios for your company.

A CFO must help business leaders identify risk and understand the scope of these risks by classifying and triaging them to know how best to respond. Organizations accustomed to focusing solely on financial risk may need to be recalibrated to expand their risk horizon view.

Plan to Mitigate Risks

The goal is for a CFO to insure the business against adverse outcomes by planning for a wide variety of risk factors. Maintaining financial reserves is one of the best ways for organizations to protect themselves against not only financial risk, but also operational and catastrophic risks. As the financial head of the company, a CFO is uniquely positioned to manage this initiative. Additionally, a CFO has the skillset needed to model how the business will respond strategically to moderately or highly probable risks. Continuity planning will reduce your subsequent financial and operational impacts.

Continuously Monitor Risks

Reassess to update risk probabilities and impact scenarios periodically. While a CFO can oversee risk management, one person cannot be tasked with understanding every possible risk area when other individuals are closer to a threat. Widespread adoption of risk management enables continuous risk management, equipping your business to act swiftly when a possible risk turns into a reality.

Report and Track Risk Levels

Empower employees company-wide to identify possible risks and ensure the proper chain of command is in place to get information to analysts and key decision-makers quickly. When feedback is coming from employees on the front-line, take it seriously and track it to identify emerging trends. Where credible risk exists, weave it into your organization’s risk mitigation efforts, and give credit to the individuals or teams responsible for identifying it. Protect (and even reward) employees who report risk to encourage ongoing contribution at all levels.

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Use our free financial risk assessment tool to understand where your organization stands. This assessment can help you develop a plan to manage business risk and mitigate its impact.

A financial risk assessment can make all the difference for your business. Preparing to take advantage of opportunities and eliminate potential landmines makes good business sense.

Get instant access to our free finance and accounting risk assessment here !

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Understanding Risk Management and Business Continuity Plans

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We continue to urge all businesses and organizations to have a  risk management plan . Further, what is termed a business continuity plan is also essential. However, many people confuse the two. True, they are related and typically work together to help keep organizations safe and, should an unfortunate incident occur, allows them to reopen and begin operating as quickly as possible. However, the two are not the same.

risk management

  • A Risk Management Plan is about processes that are enacted  before a disaster occurs. This means that a risk management plan is primarily concerned with protecting a business from risk by identifying potential vulnerabilities and defining a way to minimize their probability.
  • On the other hand, a Business Continuity Plan is about processes that are designed to be enacted  after a disaster has occurred. The goal of a business continuity plan is to maintain business operations after an actual disaster.
  • Risk Management is primarily a  strategic undertaking . It is focused on understanding and planning for a variety of hypothetical situations that could harm people, facilities, or data.
  • A Business Continuity plan is  tactical thinking . A business continuity plan focuses on the actual steps an organization can take after a business disruption occurs to get its operations up and running as quickly as possible.

Further, Nguyen offers the following advice to all those considering establishing or updating a current Risk Management or Business Continuity Plan:

  • Conduct a business impact analysis to identify time-sensitive or critical business functions and processes and the resources that support them.
  • Identify, document, and implement ways to recover critical business functions and processes.
  • Organize a business continuity team and compile a business continuity plan to manage a business disruption.
  • Conduct training for the business continuity team along with testing and exercises to evaluate recovery strategies and the plan.

“Finally, follow the guidelines put forth by  ready.gov . This website offers solid, practical advice that every organization should follow, especially in today’s uncertain world.”

As you can see, there is quite a bit involved. Dealing with potential and unforeseeable risks and keeping a business operating should one occur is crucial for every organization. Many organizations attempt to put together a risk management and business continuity plan in-house.  While these can be effective, this can be an extensive undertaking and not every organization has the resources to handle such a comprehensive task.

Furthermore, even when they do, they often need a fresh set of eyes to evaluate their situation. In today’s world, bringing in a fresh set of eyes such as  Team-TAL Global  or those at Prestige Analytics, Inc . can be one of the most effective and cost-saving steps any organization can take.

Click on the image below to request a review of your risk management/business continuity plans.

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What is Business Continuity Risk?

In today’s ever-evolving business landscape, companies face a myriad of risks that can disrupt their operations and threaten their very existence. Among these, “Business Continuity Risk” looms as a potential disruptor that demands vigilant attention. Business continuity risk refers to threats or risks that disrupt the functioning of a business. These threats maybe any untoward incidents or disasters that negatively impact an organization.

business continuity planning and risk management

Several business continuity risks make organizations suffer, such as cyber-attacks, data breaches, security incidents, fire, flood, transport disruption, and terrorism.

Perhaps the best example of business continuity risk is the effect of the Covid 19 pandemic on businesses all over the world. As shops and organizations closed down indefinitely and consumers were forced to shelter in place during lockdowns, businesses faced huge losses. A record number of people were laid off, as companies struggled to make payroll or pay rent.

For essential services that were allowed to continue such as health workers and food supply managers, it became a matter of huge concern to protect their health and wellbeing. To ensure complete safety of workers, organizations were required to provide them with PPE lists, hand sanitizers, masks, and strictly observe social distancing measures.

A business continuity plan helps to mitigate such unforeseen risks, and ensure smooth and efficient functioning of the organization.

Types of Business Continuity Risks

Let’s take a look at five business continuity risks that a firm must monitor and control:

1. Cyberattacks

Cybersecurity attacks area major source of concern for businesses. Network and system damage by hackers not only damages a firm’s reputation but can also cause monetary damage.

For example, Software AG, a German tech firm, was attacked by Clop ransomware in October 2020. The cyber-criminal gang demanded more than $20 million ransom. The attack disrupted parts of their internal network.

2.  Data breaches

Data breaching refers to releasing or revealing important, private and sensitive information to an untrusted person or environment. In the first half of 2020, there were  540 reported data breaches in the U.S .

Some examples of data breaching include loss of USB drives, mobile or computer devices, laptops, and computer networks. Such breaches can put sensitive information regarding the firm and it’s customers in the hands of unscrupulous people and cause severe damages to the business.

3.  Terrorism

When terrorism strikes a country or city, it instill a sense of fear and uncertainty in it’s residents and the public at large. Employees and organization security forces might be ill-equipped to handle attacks of terrorism. Property damage and business interruption are the most obvious impacts of terrorism.

Further, even after a terror attack, tourism and day-to-day life in a country remains affected. It takes a few months for businesses to resume their operations as usual.

types of business continuity risks

Fires generally take place suddenly, without any warning  signs. They often occur due to faulty firm equipment or misuse of organizational tools and instruments.

Keeping a fire control plan involving fire brigades, fire alarms and fire extinguishers as a precautionary measure to control fires, is quintessential for businesses of all kinds.

5. Supply Chain Disruptions

Disruption in supply chains is also a big concern for organizations. Supply chains that operate on a global scale face various risks, such as transportation delays, supplier failures, natural disasters, and geopolitical events. These risks can cause disruptions in the supply chain, resulting in product shortages, production delays, and financial losses. To manage and mitigate these risks, organizations should consider diversifying their supplier base, cultivating strong relationships with key suppliers, and establishing effective communication channels.

6. Natural Disasters

Natural disasters such as floods, hurricanes, earthquakes, tsunamis, storms, often lead to such disruption. The loss of life, displacement, loss of equipment and communication, damaged builds can all have catastrophic impact on businesses. One of the major concerns for business in time of disasters are how to connect with and serve their customers. The disruption in supply network can weaken and as a result, the supply network between companies and suppliers weakens and the supply chain suffers

7. Health Emergencies and Pandemics

The outbreak of the COVID-19 pandemic has underscored the importance of organizational preparedness for health emergencies. Infectious diseases, public health crises, and widespread employee absences can significantly disrupt operations and pose risks to business continuity. In this blog post, we will explore the significance of developing comprehensive pandemic response plans, including remote work capabilities, flexible staffing arrangements, and robust health and safety protocols, to safeguard business continuity in the face of such challenges.

8. Regulatory Compliance and Legal Issues

Non-compliance with legal and regulatory requirements can lead to substantial financial penalties, reputational harm, and operational disruptions. Businesses, particularly those in heavily regulated industries, face challenges due to evolving laws, regulations, and industry standards. To mitigate risks, organizations must stay updated on regulatory changes, maintain comprehensive documentation, and establish robust mechanisms to ensure compliance.

4 Major Risks of Not Having A Business Continuity Plan

Not having a business continuity plan might be more dangerous for a business than you think.

Here are four major risks of not having a well-defined plan to handle business continuity disruptions:

1. Death and Injury

When organizations suffer from natural disasters and other threatening events, it leads to loss of life and brutal injuries to workers, clients, and other individuals associated with the business.

This can be prevented by keeping premises under regular inspection, maintaining tools and equipment, and posting warning signs, if combustible or dangerous equipment is being used.

2. Business Failure

Disasters and unexpected incidents also affect and damage business property and goods. After suffering such damage, organizations are generally unable to recover.

For example, due to Covid 19,  more than 100,000 restaurants have permanently closed  this year, according to the National Restaurant Association. Business continuity plans provide better alternatives for businesses to survive even after a disaster.

3. Reputational Risk

Disasters also affect a company’s reputation in a negative way. People’s lose trust in a company and start to view it with a healthy dose of scepticism.

For example, a fire may damage a firm’s internal property as well as injure people, which might make the public think the firm is not secure and doesn’t take necessary precautions to safeguard it’s personnel and premises. This might discourage future clients and employees from associating with them.

Likewise, a firm’s reputation can also be damaged by data breaches. People’s trust towards a firm decreases due to the spread of sensitive data.

4. Loss of data

Loss of essential data not only disrupts business activities but also puts the company’s future in jeopardy. Loss of data can have severe implications for business continuity. Data is a critical asset that drives decision-making, operations, and customer interactions. Without proper backup and recovery measures, organizations risk losing valuable information due to hardware failures, cyberattacks, or human error. Such data loss can disrupt business operations, hinder productivity, and lead to financial losses. Moreover, the inability to access vital data can impair decision-making and customer service, eroding trust and damaging the organization’s reputation. To ensure business continuity, organizations must implement robust data backup, recovery, and cybersecurity measures to protect against data loss and maintain uninterrupted operations.

5. Regulatory Non-Compliance

Various industries are subject to specific regulations and legal requirements related to risk management, data protection, and business continuity. Neglecting a business continuity plan can result in non-compliance with these obligations. The failure to meet regulatory standards may lead to severe penalties, legal repercussions, and potential lawsuits. Additionally, non-compliance can further strain the organization’s financial stability and reputation, causing lasting damage.

6. Competitive Disadvantage

Organizations that lack a business continuity plan may struggle to keep pace with competitors who have invested in comprehensive continuity strategies. Insufficient preparedness limits an organization’s ability to swiftly recover from disruptions, resume operations promptly, and maintain customer satisfaction. This puts the organization at a distinct disadvantage in terms of market share, customer loyalty, and overall competitiveness. Customers and clients often prioritize reliability and uninterrupted service, making preparedness a crucial factor for success.

7. Stakeholder Confidence Erosion

Key stakeholders, including investors, business partners, and suppliers, place significant emphasis on an organization’s ability to effectively manage risks. The absence of a business continuity plan raises doubts about the organization’s commitment to preparedness and resilience. Stakeholders may experience reduced confidence, which can lead to strained business relationships, challenges in securing financing, and difficulties attracting strategic partnerships. Ensuring stakeholder confidence is vital for maintaining a strong reputation and fostering long-term growth.

Managing Business Continuity Risk:

Effective management of Business Continuity Risk involves several key steps:

Risk Assessment: Begin by identifying potential risks and assessing their potential impact on your operations. Prioritize risks based on their likelihood and severity.

Business Continuity Planning: Develop comprehensive continuity plans that outline how your organization will respond to disruptions. These plans should include strategies for IT recovery, crisis communication, and resource allocation.

Testing and Training: Regularly test your continuity plans through simulations and drills. Ensure that your employees are well-trained in executing these plans in the event of a disruption.

Regular Review and Updates: Continuously monitor and update your Business Continuity Plans to adapt to changing circumstances, emerging threats, and organizational changes.

Insurance and Financial Preparedness: Consider investing in insurance policies that cover business interruptions. Maintain financial reserves to help your organization weather financial challenges during disruptions.

Maintain effective communication channels : Establish robust communication channels to facilitate timely and accurate information dissemination during disruptions. This includes internal communication systems, contact lists, and emergency notification procedures.

Monitor and Stay Informed: Continuously monitor internal and external factors that may impact business continuity. Stay updated on emerging risks, regulatory changes, and industry trends to adapt your strategies accordingly.

Mitigate Business Continuity Risk: 4 Steps to Create a Business Continuity Plan

To develop resilience as a business and future-proof it’s functioning against unexpected disasters and events, businesses must prepare a business continuity plan.

What is a business continuity plan?

A business continuity plan is a critical document that outlines how a business will overcome unplanned disruptions and continue critical operations. Create a detailed plan that identifies potential risks, outlines response strategies, and assigns responsibilities. The plan should include procedures for various scenarios, such as natural disasters, cyberattacks, or supply chain disruptions.

Here’s a four-step guide to develop a business continuity plan and mitigate business continuity risk:

4 steps to create business continuity plan

1. Scope and Teamwork

The first step involves putting together a team for implementing a business continuity plan. This step should also establish management buy-in and commitment to the BCP process.

The firm must clearly explain the key reasons for having a BCP, namely, to protect employees, suppliers, and customers as well as the business operations themselves.

2. Business Impact Analysis

Business impact analysis helps determine the potential impacts of a disruption to critical business operations. The BIA can be facilitated by asking the following questions:

  • Which activities are critical to the core operations of the business?
  • What resources need to be obtained to resume these prioritized activities? This includes both internal and external resources such as vehicles, inventory, human resources, and electricity supply.
  • What is the maximum period of time for which a business might be able to withstand temporary disruption? This identifies the time frame for the prioritized activities to be resumed.

Post this, a firm should assess external risks which may affect a business. This helps establish the types of disasters which an enterprise may face.

It’s essential to account for all possible disasters a business might face, be it natural, data-based, corporations-based. To get a more accurate assessment, firms should also look at past events and disasters that similar businesses may have faced.

3 . Develop Strategies

Information gathered from the business impact analysis should be utilized to develop strategies which help an enterprise tackle an emergency and resume operations efficiently.

Strategies must include different types of plans to figure out how the enterprise will function during the time of emergency. Some basic questions your strategy might answer include:

  • How will customers contact the organization during that time?
  • How will the organization gain access to electricity and food?
  • Will the organization be relocated elsewhere?

The business continuity management team is responsible to ensure these   strategies are implemented should a disaster strike.

4. Plan Testing

The final step of this plan consists of testing your plan to improve your ability to recover from various unexpected scenarios successfully. Conduct testing and simulations of their business continuity plans to assess their effectiveness and identify areas for improvement. This allows for fine-tuning of the plans and ensures preparedness in the face of potential disruptions.

BCP testing should be exercised to experiment the effectiveness of your plan. Here are a few pointers to effectively test your business continuity plan:

  • Review plan strategies and ensure each disaster or scenario has been accounted for.
  • Ensure each employee is aware of the significant sections of the plan and their roles in a disaster or scenario. Carry out BCP simulation tests.  These tests include actual recovery actions such as restoring backups and live testing of superfluous systems.
  • Involve vendor partners in your testing process. This will help you attain accuracy in your tests and receive feedback from the vendors on the effectiveness of your plan.
  • Document your testing results and implement processes by following up on the results to improve your BCP.

Wrapping up

Business continuity plans help organizations safeguard their existence as well as retain the trust of their customers and employees. The lack of a well-documented business continuity plan can disrupt the functioning of a business, affect it’s employees’ physical and monetary health, and in some cases, cause complete business failure.

The importance of risk management and compliance automation

A risk management platform can enable organizations to identify and assess potential risks across various areas, such as operational, financial, regulatory, and reputational risks. This helps in understanding the critical risks that could impact business continuity and allows for proactive mitigation efforts.

In the event of a disruption or incident, the platform helps organizations efficiently manage and respond to the situation. It provides a structured framework for incident reporting, tracking, and resolution, ensuring a coordinated response and minimizing downtime.

While it’s difficult to anticipate when the next pandemic might strike, or when businesses will fully recover from the current one, one thing is clear: failing to plan is planning to fail.

VComply’s   Compliance and Risk Management software   streamlines and automates risk assessment, internal control procedures, managing compliance frameworks, and monitoring and reporting.

Request a demo today to learn more about how VComply can help your business. 

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Business Continuity Planning Solutions

In an increasingly interconnected world, it’s imperative for you to rethink contingency planning. Transformed global business and operations strategies add new interruption risks to risk portfolios. Building resilient and recoverable operations is more difficult to implement when time is precious and challenges are approaching.

PwC’s business continuity planning solutions help you identify, prepare for and prevent events that may disrupt business activities. Working with us, you can develop the plans needed to recover efficiently and effectively including program assessment, implementation, testing, maintenance and training.

Understanding today’s drivers is the first step when planning a business continuity program

Recent industry interruptions.

Cyber events and natural disasters have sparked the need to develop more robust recovery plans.

Third-party resiliency

Regulatory guidance now requires transparency into critical third-party resiliency. Third parties may include call centers, IT providers and back office services.

Being a resilient supplier/partner

Regulators and partners are seeking insight into resiliency plans to assure fund availability and portfolio integrity as well as their relative priority during crisis events.

Focus on enterprise-wide governance, risk management and compliance (GRC)

Organizations are increasingly focused on integrated risk and compliance management to reduce compliance cost and provide better risk insight.

Reduced tolerance for downtime

Customers demand 24/7 access to products and services. The new technology has high availability requirements to provide competitive and customized service offerings. Regulators' tolerance for critical system downtime is also diminishing.

Crisis management and social media

Quick identification and internal/external response to crisis events can protect and increase brand value

Developing operational resilience and business continuity

PwC’s business continuity planning solutions will help you develop operational resilience and business continuity that is scalable and that enables your company to prioritize investments.

Some of our solutions include:

  • BCP program assessment and design
  • Business impact analysis and interruption risk assessment
  • Recovery strategy selection and implementation
  • Recovery plan creation and resiliency improvement
  • BCP program exercising, maintenance and training
  • BCP program technology enablement and enterprise risk management integration
  • Third-party resiliency framework and analysis
  • Crisis management program development and exercises
  • IT disaster recovery and BCP program alignment and analysis  

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The Essential 3 Elements of a High-Functioning BCM Plan

The role of Business Continuity Management is to plan and prepare in advance so an that organization can identify, mitigate and reduce risk impact while ensuring continuity of its critical business processes.

Regardless of a company’s current BCM maturity, planning and preparing for the next incident is an ongoing process driven by continuous improvement. The cornerstone of that is the business continuity management (BCM) plan.

A BCM plan is the base for most BCM processes and consists of three distinct sections: an emergency response plan, a crisis management plan and an operational recovery plan. Each part of a three-pronged business continuity plan must be strong to have a high-functioning BCM program.

business continuity planning and risk management

Emergency Management and Response

An emergency response plan provides a detailed set of protocols and guidelines that seek to minimize the impact on the safety and health of personnel and reduce the overall effect of an emergency. Proper planning and training of an organization and its staff enable a quick and effective response to the threat. Every emergency response plan should:

  • Set specific emergency response goals
  • Design evacuation routes and staging areas
  • Evaluate and enhance emergency response communications

Regular reviews and testing are needed to ensure that the plan functions as intended and delivers when disaster strikes.

business continuity planning and risk management

Crisis Management and Communication

A crisis management plan may sound similar to an emergency response plan, but in a BCM context, they address two different needs. Organizations should view the crisis management plan as the bridge between its emergency response and its operational recovery. To execute a crisis management plan effectively, organizations need a well-trained crisis management team. Every crisis management plan should:

  • Verify the appropriate resources available in support of the decisions and activities of the crisis management team
  • Provide instructions for identifying, managing and recovering from the crisis
  • Develop status boards designed to track all team activities and assist in the coordination of incident remediation
  • Identify key constituencies and outline necessary communication protocols

Disasters will test even the most experienced people's capabilities, which is why it is necessary to conduct training and exercises that challenge the crisis management team to maintain the plan’s effectiveness.

business continuity planning and risk management

Business Restoration and Operational Recovery

An operational recovery plan helps ensure that personnel and assets are protected, and operations are efficiently restored following business interruptions, emergencies, crises or disasters. This plan helps organizations recognize threats to their operations and develop functional response capabilities to recover. Every operational recovery plan should:

  • Qualify and quantify threats and vulnerabilities
  • Develop mitigation and control strategies for the significant threats to business continuity
  • Determine the impact that major risks have on the supply chain and logistics

Threats and vulnerabilities often escalate after a business interruption. Qualitative and quantitative analysis across an organization is needed to identify the natural, technical and human-made gaps to any Business Continuity Management strategy.

Testing and Updating are Crucial to BCM Plan Success

Successfully recovering after an interruption depends on not only the business continuity plan's comprehensiveness, but also the organization's ability to execute the plan effectively. Untested plans and teams have a greater likelihood of failure, loss of revenue and increased reputation damage. Organizations can keep their plans updated and their employees sharp through rigorous exercising. The options can vary depending on the organization, but here are the most common and useful exercises and tests:

Structured Walkthrough: An informal review with team members to assess comprehensiveness, effectiveness and identify enhancements and deficiencies.

Desktop Exercise: A simulation typically conducted in a conference room and is designed to execute documented plan activities in a stress-free environment.

Multi-Location Simulation: A series of simulated events across several locations where multiple teams execute the plan.

Functional Test: An exam that tests whether plan procedures are effective, assumptions are accurate, and resources are available during a simulated event.

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Providing thought leadership, education and training on the subjects of enterprise risk management, role of risk managers and continuity planning.

October 22, 2008 | Abstract of source article authored by ERM initiative factulty

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Business continuity planning has become a critical component to companies with respect to risk management.  Over the past few years, risk managers have changed how they view risk from looking at it from a silo perspective to an enterprise wide perspective.  They have determined that a cohesive corporate risk management strategy is imperative in today’s world.  Critical ingredients to this enterprise wide risk management system are being prepared, mitigating risks, recovering from risks, and being able to continue operating.

For business continuity planning, risk managers are essential to the process.  This point is highlighted in an article by Pat Moore The Role of the Risk Manager in Continuity Planning .    They create and contribute to the steering committee, help to determine the scope of the project, and make certain that the vital resources are provided to achieve the goals and objectives.  Some of the benefits of business continuity planning recognized by risk managers are the organization’s ability to comply with contractual agreements concerning delivery of products or services, the institution of procedures to discover and explain for costs incurred during the recovery process, and the reduction of stockholders filing lawsuits against management for a lack of due diligence or duty of trust. 

In today’s economy, companies’ risk management areas utilize the business impact analysis ( BIA ) process to identify the financial and operational impacts of risk exposures for the businesses and their suppliers.  The BIA process helps to determine the cost of risks and also develop recovery strategies.  Some additional impacts consider with the use of the BIA process are:

  • Loss of critical employees
  • Loss of important documents or records
  • Global issues such as a change in political climate
  • Interruption of importing/exporting operations
  • Critical labor relationships
  • Potential sources of revenue
  • Regulatory controls

In addition to identifying the impacts of specific areas, the BIA process assists risk management and an organization’s executive management to make better-educated decisions on which business units are critical to the operations of the business, how long of a time lag is acceptable before the units are back in operation, what resources are needed to get the business going again, and the methods on addressing the company’s internal and external interdependencies.  In the past contingency planning was performed by a contingency planner with a background in information systems.  However companies are realizing that the planning needs to begin with the CEO or COO and then go through the CFO to the risk manager.  The risk manager’s goal is to protect the assets and manage the risks of a company and today the risk manager is integrated this objective with the financial decisions and business continuity planning issues.  More and more risk managers are becoming involved with strategic management and continuity of operations planning and therefore are influential to helping business continuity professionals improve the process while expanding the scope of contingency planning. 

Original Article Source:  Moore, Pat., Education Corner: "The Role of the Risk Manager in Continuity Planning,"  2008

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Business Continuity Planning

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Part of the Encyclopedia of the UN Sustainable Development Goals book series (ENUNSDG)

Adverse conditions ; Business continuity and resiliency planning (BCRP) ; Business continuity management (BCM) ; Crisis management ; Disaster ; Disaster recovery planning ; Disruption ; Emergency ; Hazards ; Incidents

Definitions

Business continuity planning supports an organization to continuing its operations after an incident or under adverse conditions, such as a natural disaster, disease pandemics, terrorist attacks, serious accidents, external hacker or other IT attacks, disruption of supply chains, and/or other abrupt and unexpected changes in business environment. Hence, business continuity is the organizational capability to continue delivery of products and services even under the aforementioned adverse conditions within an acceptable time frame. Business continuity planning means to identify critical core processes of the organization, to analyze business impacts, and to find backup processes and response strategies in the event of disruption. For this reason, business...

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Barnes P (2007) Business impact analysis. In: Hiles A (ed) The definitive handbook of business continuity management, 3rd edn. Wiley, Chichester, pp 145–161

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Will, M., Brauweiler, J. (2020). Business Continuity Planning. In: Leal Filho, W., Marisa Azul, A., Brandli, L., Gökçin Özuyar, P., Wall, T. (eds) Sustainable Cities and Communities. Encyclopedia of the UN Sustainable Development Goals. Springer, Cham. https://doi.org/10.1007/978-3-319-95717-3_2

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Risk Management Monitor

Risk Management and Business Continuity: Improving Business Resiliency

Tackling these risks requires an integrated and holistic framework with the capability to identify, evaluate and adequately define responses to the circumstances. For more and more organizations, this means adapting an enterprise risk management (ERM) model. ERM seeks to identify all threats—including financial, strategic, personnel, market, technology, legal, compliance, geopolitical and environmental—that would adversely affect an organization. This holistic approach gives organizations a better framework for mitigating risk while advancing their goals and opportunities in the face of business threats. But in order to implement and continuously manage this enterprise-wide model there is a critical need for closer integration of two typically distinct roles within the organization—business continuity management (BCM) and risk management. Together, these two vital elements make up a robust ERM plan and have a tremendous impact on an organization’s ability to contend with interruptions to the execution of organizational activities.

Put in the simplest terms, risk management is concerned with minimizing the probability of and destruction caused by negative events. Operational risk management, as the name implies, must cope with interruptions at the operational level. Recognizing that there are inherent imperfections in systems, people, facilities and general operational functions, the essence of operational risk management is to negate or reduce the probability of an incident occurring. Focusing upon incident-specific, site-specific analysis of potential causes of interruptions, risk managers seek to preclude incidents from occurring. If elimination of the risk is not possible, the focus moves to minimizing the results of the negative event.

For example, suppression systems reduce the risk of operational disruption caused by fire damage. Redundant equipment decreases the possibility of operational interruption resulting from machine breakdown and redundant communications help maintain connectivity. By analyzing past events and examining known hazards (defined flood plains, hurricane-prone areas, construction sites, earthquake areas and terrorism-prone areas) operational risk management seeks to avoid the occurrence of negative destructive events.

Because it is event-neutral, BCM is able to categorize effects into four distinct categories:

  • Effects on facilities, making them inaccessible or unusable
  • Effects on operational capability, such as supply chain interruptions, processing errors or staff unavailability
  • Effects on technology
  • Effects on the organization itself, ranging from financial problems to intellectual property rights.

When an event inevitably does occur, the optimal goal is to make any business interruptions imperceptible to those outside the affected organization. Here’s an example of how risk management and business continuity management, working together, enabled an organization to achieve that goal:

One of the world’s most important foreign exchange dealers realized that, as an occupant of a high rise building, it could not control the consequences of all incidents that might impact its ability to service its customers, which were some of the largest financial institutions in the world. A review by the company’s risk manager determined that there was a likelihood of an interruption in service as a result of construction work in the surrounding area. To reduce the risk, it was recommended that they install redundant lines and route them through alternative conduits into the building. So they undertook building redundancy in their telecom network. In addition, the risk of server failure was similarly high and so mirroring was implemented to duplicate all transactions and ensure that no data would be lost in the event of a failure of the building’s infrastructure.

Despite all the precautions to reduce risk, what risk management couldn’t control was an East Coast blackout that terminated power to its operation. Recognizing the impact that a loss of power could have, including the loss of use of the facility, the business continuity professional determined that a robust contingency plan was required.

The business continuity plan included a strategy that automatically forwarded incoming calls to another facility outside the U.S. and also provided connectivity to its back-up technology center. When the blackout hit, the business continuity plan worked exactly as tested. Phones were switched, systems were accessible and, best of all, customers never knew the difference. The company was actually more prepared than many of its customers who failed to provide similar capabilities and had to cease trading.

The combination of risk management and business continuity provides the level of resiliency that most organizations must achieve in light of the uncertainty that exists today. The blend will reduce uncertainty and promote a more stable operating environment.

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Relationship Between Business Continuity And Risk Management

The relationship between business continuity and risk management often gets changed in agreement with the organization's perspective. Some enterprises take business continuity as ...

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The relationship between  business continuity and risk management  often gets changed in agreement with the organization’s perspective. Some enterprises take business continuity as a sub-domain of risk management, while others put these two concepts in two different segments.

During the COVID-19 outbreak, people are focusing on overall enterprise resilience and often asking questions like whether there is a difference between business continuity and risk management. Here is an effort to address this question.

Business Continuity

Business Continuity is a process that builds a framework for organizational resilience. AutoRecon enables businesses to continue their core functions. As a result, other operations continue uninterrupted even during outages.

Process of Business Continuity

The key to effective business continuity lies in its planning and strategy implementation by understanding the intensity of the crisis and how to respond to such impacts.

Five key business continuity management steps are discussed below:

Risk Assessment

Exposure of qualitative and quantitative risk intensity and its potential impact on organizations under different scenarios. Identification of threat possibilities and sketching out the communication plans. Creating a roadmap to mitigate threats.

Business Impact Analysis (BIA)

This process takes care of the identification of critical processes and workflows by understanding recovery assumptions, recovery points, and time objectives. Tracing of resource dependencies in the organization before setting up backups.

Develop a Business Continuity Plan

Chalk out a thorough actionable plan after completion of risk assessment and impact analysis. Segregation of plans as per departments and priorities. Detailed auditing of a plan with key stakeholders for finalization.

Framework of Strategy

Creating a strategic framework of the finalized plan to ensure that objectives are obtainable. Incorporation of employee perspective and enterprise goals before sending it to the review team for final validation. Give access to staff for ensuring that they can access it during the crisis period.

Testing & Maintenance

The testing and maintenance phase includes periodic tabletop exercises to ensure that the organization is content with the strategy. Reviewing the performance of the BCM plan for assessing its impact.

Risk Management

Risk Management is the process to identify, assess, and control risks or threats related to an organization’s earnings & capital. The framework for risk management thoroughly examines the potential for threats from many sources. The risk could be anything, from accidents, legal liabilities, and errors to financial uncertainty.

Process of Risk Management

Often organizations have confronted our experts about the efficacy of building extensive planning and implementation structure that covers all the processes of risk management. Here is the breakdown into five key sections for easy understanding.

Identifying the Risk

Identifying operating environment risks and dangers to which the organization is vulnerable. Therefore, information is documented. It is accessible to important stakeholders through the system.

Analysis of Risk

However, Before examining the connections between these risks and the many internal factors of the company, the extent of the risk is established. A thorough assessment of risk severity and its impact on business functionalities.

Ranking of Risk

Evaluation of risks is set as per its prioritization in enterprises. Assembling threats levels as per their effect on an organization for ensuring that key stakeholder knows for which risk they should intervene immediately.

Treating the Risk

In the risk management solution , proper action plans are formed through the system. During this period, risks and their possible resolving functions are discussed. Every personnel gets a direct update from the system.

Monitoring Risk

Monitoring of risks through the risk management framework of the organization for ensuring effective business continuity.

Relationship between Business Continuity and Risk Management

These two distinct standards when applied together can result in effective and efficient  business management  systems that lower  risk  and the potential negative effects of a crisis situation. Business Continuity management and risk management are interconnected.

The survivability of enterprises often gets threatened by severe risks. Using risk management solutions at this time reduces threat intensity to facilitate effective business continuity planning. After mitigating the risk, business continuity ensures that the business does not suffer any consequences from crises, disasters, or other types of risks. Thus, according to thought leaders, competent risk management may demonstrate the success of business continuity. Others, however, contend that the implementation of a suitable BCM and strategy framework is necessary in order to achieve effective risk management.

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The How to guide is undergoing review. Please contact [email protected] if you would like assistance.

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2024 Annual Plan

A forward plan for 2024 commencing the transformation of risk management at the university has been devised by the Director, Risk. This plan sets out clear goals and expectations for 2024 aimed at enhancing the risk posture for UNSW.

Please contact [email protected] for guidance on agreed approaches across your respective faculty and division, or to discuss your requirement for Risk Engagement in 2024.

Risk Strategy

UNSW's risk strategy is usually reviewed every 3 years. It was last updated in 2019.

CISSP Domain 1 - Episode 7 - Risk Management, Types of Risk Analysis, Types and Methodologies of Risk Assessments, Business Continuity Planning Podcast By  cover art

CISSP Domain 1 - Episode 7 - Risk Management, Types of Risk Analysis, Types and Methodologies of Risk Assessments, Business Continuity Planning

  • Mar 12 2022
  • Length: 14 mins

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CISSP Domain 1 - Episode 7 - Risk Management, Types of Risk Analysis, Types and Methodologies of Risk Assessments, Business Continuity Planning  By  cover art

In this episode I talk continue on Risk Management, Types of Risk Analysis, Types and Methodologies of Risk Assessments, Business Continuity Planning.

If you like this episode do share it with your buddies and also feel free to reach out to me with your suggestions, comments and queries. https://linkedin.com/in/tanayshandilya

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IMAGES

  1. What is business continuity risk?

    business continuity planning and risk management

  2. Where Does a Business Continuity Plan Fit with Emergencies

    business continuity planning and risk management

  3. Business Continuity Planning: How To Create and Maintain BCPs (2022)

    business continuity planning and risk management

  4. Business Continuity: How to Identify Risks

    business continuity planning and risk management

  5. PPT

    business continuity planning and risk management

  6. Business Continuity Plan

    business continuity planning and risk management

VIDEO

  1. Project Risk Management -lecture 9

  2. Module.03 ,Topic A. 1. Risk Management Plan

  3. Strategic PLanning and Risk

  4. 11.5 Plan Risk Responses

  5. 11 1 Plan Risk Management

  6. Understanding LLC Management: Important Considerations

COMMENTS

  1. Enterprise risk management and business continuity management ...

    The ERM and BCM programs report to the same risk committee and/or board of directors. Organizations that integrate enterprise risk management (ERM) into their strategic planning efforts have found that business continuity management (BCM) enhances both their value creation objectives and their protection objectives.

  2. Complete Guide to Business Continuity and Risk Management.

    Business continuity coordinators should work closely with all departments within the company to understand their unique processes and potential risks that could arise in case of a disaster or emergency. Once coordinators understand those risks, they should outline solutions and procedures to mitigate risk in the business continuity plan.

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

    Business continuity management software is also an option. Software -- either on premises or cloud-based -- helps conduct BIAs, create and update plans and pinpoint areas of risk. Business continuity is an evolving process. As such, an organization's business continuity plan shouldn't just sit on a shelf.

  4. Enterprise Risk Management vs. Business Continuity Management: What's

    Due to the preventive nature of ERM programs, enterprise risk management is a largely strategic undertaking—it's focused on understanding and planning for hypothetical situations. Business continuity management, on the other hand, is much more tactical—it's focused on the actual way that an organization should act when a business ...

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

    Business Continuity Planning - BCP: The business continuity planning (BCP) is the creation of a strategy through the recognition of threats and risks facing a company, with an eye to ensure that ...

  6. Business continuity and risk management

    A business continuity plan details processes and procedures that will help keep operations up and running or restore them as quickly as possible in the event of a major disaster. Here's a look at important business continuity planning steps for organizations to take as they build their risk management and business continuity strategies.

  7. Business Continuity and Risk Management

    When it comes to Business Continuity and Risk Management - Risk is in the driving seat. Business Continuity as part of an overall Operational Resilience program is the mitigation of risk. However, Enterprise Risk Management, especially in large businesses can be focused either on the macro scale and / or miss localized impacts for satellite ...

  8. ISO 22301 Business Continuity Management Made Easy

    Improve your risk management planning efforts. Prevent large-scale damage. Become proactive in preventing problems and recovering from incidents, rather than reactive to damage and disruption. ... ISO 22317- Societal security — Business continuity management systems — Guidelines for business impact analysis (BIA)

  9. What Is Business Continuity?

    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.

  10. ISO

    A free publication about ISO 22301, Security and resilience - Business continuity management systems - Requirements, the International Standard for implementing and maintaining effective business continuity plans, systems and processes.

  11. Integration of Business Continuity and Enterprise Risk Management: A Guide

    The link between business continuity and risk management lies in their shared goal of safeguarding an organization's operations from disruption. Risk management identifies, assesses, and prioritizes potential threats to an organization's assets or operations. It then develops strategies to mitigate these risks.

  12. Business Continuity Planning and Risk Management

    The cornerstone of risk management is identifying all possible risk scenarios. Knowing what kind of risk exists sets a foundation for business continuity planning. Risk can come from inside or outside an organization, and falls within four main areas: Financial Risk - The most apparent threat to a business is financial risk.

  13. Understanding Risk Management and Business Continuity Plans

    Risk Management is primarily a strategic undertaking. It is focused on understanding and planning for a variety of hypothetical situations that could harm people, facilities, or data. A Business Continuity plan is tactical thinking. A business continuity plan focuses on the actual steps an organization can take after a business disruption ...

  14. What is business continuity risk?

    Here's a four-step guide to develop a business continuity plan and mitigate business continuity risk: Four Steps to Create Business Continuity Plan 1. Scope and Teamwork. The first step involves putting together a team for implementing a business continuity plan. This step should also establish management buy-in and commitment to the BCP process.

  15. Business continuity and resilience management: A conceptual framework

    The overall objective of business continuity management (BCM) systems is to provide guidance and analytical subcomponents on how to assess and manage risk and sustain operations when facing a disruptive event. Current BCM practices largely follow a standard structure for formal planning processes and risk-assessment activities.

  16. PDF Crisis management and business continuity guide

    the wider risk management of the business. Risk Assessment quantifying what matters most through risk assessment techniques. Planning for the worst and protecting what's most vulnerable. Testing & Exercising putting incident response capabilities to the test through engaging and interactive live and table top scenario exercises.

  17. Business Continuity Planning Solutions: PwC

    PwC's business continuity planning solutions will help you develop operational resilience and business continuity that is scalable and that enables your company to prioritize investments. Some of our solutions include: BCP program assessment and design. Business impact analysis and interruption risk assessment.

  18. The Essential 3 Elements of a High-Functioning BCM Plan

    The role of Business Continuity Management is to plan and prepare in advance so an that organization can identify, mitigate and reduce risk impact while ensuring continuity of its critical business processes. Regardless of a company's current BCM maturity, planning and preparing for the next incident is an ongoing process driven by continuous ...

  19. Role of Risk Managers and Continuity Planning

    Critical ingredients to this enterprise wide risk management system are being prepared, mitigating risks, recovering from risks, and being able to continue operating. For business continuity planning, risk managers are essential to the process. This point is highlighted in an article by Pat Moore The Role of the Risk Manager in Continuity ...

  20. PDF Chapter 7 Business Continuity and Risk Management

    4. Management must also plan for business continuity, including disaster recovery, based on these risks and document continuity and recovery strategies and procedures in a defined business continuity plan that is reviewed, approved, tested and updated on an annual basis. ISO 27002 REFERENCES 14.1.04 Business continuity planning framework

  21. Business Continuity Planning

    For this reason, business continuity management is closely related to risk management, IT security management, facility management as well as to environmental and occupational health management. The business continuity plan (BCP) is a set of documents or documented information that guides an organization to respond to a disruption, to resume ...

  22. Risk Management and Business Continuity: Improving Business Resiliency

    The business continuity plan included a strategy that automatically forwarded incoming calls to another facility outside the U.S. and also provided connectivity to its back-up technology center. ... The combination of risk management and business continuity provides the level of resiliency that most organizations must achieve in light of the ...

  23. Relationship Between Business Continuity And Risk Management

    The relationship between business continuity and risk management often gets changed in agreement with the organization's perspective. Some enterprises take business continuity as a sub-domain of risk management, while others put these two concepts in two different segments. During the COVID-19 outbreak, people are focusing on overall ...

  24. Risk Management

    Risk management: Empowering UNSW to navigate uncertainty, amplify Opportunities, and enhance strategic decision-making. ... At UNSW, the Business Continuity and Resilience program focuses on identifying the most critical functions that need to continue in the event of an incident or disruption, developing a recovery plan (BCP) and where ...

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

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

  26. CISSP Domain 1

    In this episode I talk continue on Risk Management, Types of Risk Analysis, Types and Methodologies of Risk Assessments, Business Continuity Planning. If you like this episode do share it with your buddies and also feel free to reach out to me with your suggestions, comments and queries.

  27. Department of Agriculture

    퐋퐎퐎퐊: The Mawalao MNLF Multipurpose Cooperative recently underwent the Training Workshop on Capacity Development, Business Continuity Planning, and Disaster Risk Reduction and Management held at...