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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 .”

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

Swetha Amaresan

Published: December 30, 2022

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

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

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

Free Download: Crisis Management Plan & Communication Templates

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

Table of Contents:

What is a business continuity plan?

  • Business Continuity Types
  • Business Continuity vs Disaster Recovery

Business Continuity Plan Template

How to write a business continuity plan.

  • Business Continuity Examples

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

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

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

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Crisis Communication and Management Kit

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

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Business Continuity Planning

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

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What Is Business Continuity?

What is business continuity

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

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

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

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

What is a business continuity strategy?

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

What does a business continuity plan mitigate?

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

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

Business continuity planning activities

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

Identifying critical business areas and functions

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

Analyzing risks, threats, and potential impacts

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

Outlining and assigning responsibilities

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

Defining and documenting alternatives

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

Assessing the need for critical backups

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

Testing, training, and communication

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

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

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How to create an effective business continuity plan

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

Professional Meeting: Senior Businesswoman and Colleague in Discussion

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

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

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

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

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

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

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

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

What is a business continuity plan?

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

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

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

Why business continuity planning matters

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

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

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

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

Building (and updating) a business continuity plan

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

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

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

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

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

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

This is essentially a business impact analysis.

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

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

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

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

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

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

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

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

The importance of testing the business continuity plan

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

Renner says testing and practicing offer a few important benefits.

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

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

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

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

Types and timing of tests

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

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

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

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

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

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

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

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

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

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

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

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

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

How to ensure business continuity plan support, awareness

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

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

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

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Understanding the Essentials of a Business Continuity Plan

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

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

What is a Business Continuity Plan?

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

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

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

Why is a Business Continuity Plan Important

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

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

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

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

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

Elements of a Business Continuity Plan

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

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

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

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

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

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

Business Continuity Plan Toolkit

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Business Continuity vs. Disaster Recovery

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

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

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

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

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

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

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

Crisis Communication Strategies within Business Continuity Planning

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

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

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

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

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

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

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

Utilizing Business Continuity Plan Templates and Tools

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

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

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

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

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

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

Key Insights for Developing and Maintaining an Effective Business Continuity Plan

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

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

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

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

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

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

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The Backbone of Resilient Organizations: Demystifying Business Continuity

What is business continuity.

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

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

What is business continuity and why is it important?

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

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

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

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

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

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

What should be included in a business continuity plan?

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

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

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

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

What is business continuity management?

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

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

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

What kind of business continuity solutions should I consider?

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

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

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

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

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Business Continuity Planning

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

Business Continuity Plan Supporting Resources

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

Business Continuity Training Videos

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

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Business Continuity Training Introduction

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

View on YouTube

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

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

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

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

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

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

Business Continuity Training Part 3: Planning Process Step 1

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

Business Continuity Training Part 3: Planning Process Step 2

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

Business Continuity Training Part 3: Planning Process Step 3

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

Business Continuity Training Part 3: Planning Process Step 4

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

Business Continuity Training Part 3: Planning Process Step 5

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

Business Continuity Training Part 3: Planning Process Step 6

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

Last Updated: 12/21/2023

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  • Business Continuity Plan

What is a Business Continuity Plan (BCP)?

A  Business Continuity Plan (BCP)  is a detailed strategy and set of systems for ensuring an organization’s ability to prevent or rapidly recover from a significant disruption to its operations. The plan is essentially a playbook for how any type of organization—such as a private-sector company, a government agency or a school—will continue its day-to-day business during a disaster scenario or otherwise abnormal conditions.  

Examples of such disruptions include a fire, a major earthquake or other a natural disaster, a disease outbreak, a cyberattack and many other scenarios that could upend “business as usual.” When such events significantly disrupt an organization’s normal routines, it turns to its business continuity plan for instructions, processes and tools it needs to continue to operate or to quickly recover from downtime. 

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Hindsight is 2020 - The Pandemic Provides a Wakeup Call

Why is a business continuity plan important.

Risks can be managed, but they can’t be eliminated. Business continuity planning is critical because without it, an organization faces downtime and other problems that could damage its financial health. In major disasters, a lack of a business continuity plan could cause irreparable financial harm that might ultimately force a company to permanently close. 

How to create a Business Continuity Plan?

There are many frameworks for creating an effective business continuity plan. Most of them cover three overlapping phases: 

  • Analysis : In this phase, you identify and evaluate the various functions of your business and its operations. Then, you determine how those different functions will be affected by a disaster. This phase usually entails prioritizing different areas or departments in terms of how important they are to your operation, so that your plan ultimately ensures the continuity of your most critical functions first. Business continuity  professionals often conduct a Business Impact Analysis (BIA) at the outset of developing a new plan. A BIA estimates the consequences of different disaster scenarios in terms of lost revenue and other business-specific metrics.
  • Planning : Once an initial analysis is complete, the next phase entails all facets of developing an actual plan for continuing to operate in a disaster, or rapidly recovering from a disruption to normal operations. During the planning phase, organizations:  
  • Develop protocols for potential needs such as a rapid relocation or shift to  remote work . 
  • Strategize temporary staffing changes or needs. 
  • Implement  IT disaster recovery  tools to ensure continuity of critical systems. 

A key part of this phase is to name a continuity or crisis management team, comprised of executives and stakeholders who will lead the plan’s implementation if necessary. 

  • Training and Testing : Even the most robust BCP must be put through regular testing to ensure it will work if needed. This includes educating employees on their roles and responsibilities in these scenarios, as well as conducting trials of various elements of the plan. An example would include a short-term rollout of a remote work scenario to identify issues and opportunities for optimization.  

Key features of a business continuity plan

Some features of a BCP will be industry or business-specific, but there are components that are common to almost any plan: 

People : A BCP will clearly define roles and responsibilities, not just for the crisis management leadership team, but also for any units responsible for implementing different pieces of the plan in a disaster scenario. Some BCPs will also define “essential personnel”—for example, people whose job requires them to report to work even in periods of heightened risk. 

Technology : Almost all modern business continuity plans will also clearly outline the role that information technology will play in ensuring critical data, applications and services remain available or are quickly restored after an interruption. These include: 

  • Data backup and recovery tools 
  • Cloud computing infrastructure  and services 
  • Remote work platforms

Service Delivery : A BCP should also describe which services are most critical and how they will continue to be delivered to customers, employees, partners, the public and other stakeholders. 

Health & Safety : Finally, a strong business continuity program will include criteria and guidelines for ensuring the health and safety of all people involved—employees, customers, partners—as the plan is implemented and managed. 

Business Continuity Plan checklist

Many organizations create a checklist as part of their business continuity planning. This is a list of all of the key steps in the BCP. It can be used in two ways:  

  • Conception : First, it can be used as part of the initial creation of the plan. In this context, the BCP checklist would describe in detail the steps necessary to develop the plan, from analysis through testing.  
  • Implementation : Second, a BCP checklist can be used for testing and/or actually implementing the plan. In this context, the BCP or crisis management team would use the checklist to ensure that it addresses all of the plan’s tools and processes and communicates them effectively throughout the organization. 

Business Continuity and Disaster Recovery Planning

Business continuity planning and disaster recovery planning are often mentioned in similar contexts, but they are not interchangeable terms. A business continuity plan is an overarching strategy for operating in disaster scenarios or recovering from a major disruption. 

A disaster recovery (DR) plan refers more specifically to the IT processes and tools you can rely on to retain or restore access to mission-critical data, applications, and services in these scenarios. A DR plan would detail, for example, how you could restore access to a revenue-generating web application in the event of a flood in the data center that powers that service. 

How often should a Business Continuity Plan be reviewed?

Most experts recommend that business continuity plans be reviewed regularly and updated as needed. This helps ensure that the plan will still meet the organization’s needs in the face of evolving risks and threats. 

The frequency with which you review a business continuity plan depends on many factors, including the nature of the organization, its industry and its particular risks. As a general rule of thumb, such plans should be reviewed annually or at least every other year. However, there are multiple scenarios where an organization may want to consider more frequent reviews, including: 

  • Significant changes to the business or its operations 
  • Location in a region at greater risk for natural disasters or other potentially disruptive events 
  • Any organization or agency that provides essential services to the public 

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5 reasons why business continuity management is important

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

Read time: 6 minutes

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

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

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

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

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

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

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

The importance of business continuity planning beyond simply restoring operations.

How to get started building a business continuity plan.

planning meeting

What is business continuity planning?

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

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

Learn more about Business continuity and disaster recovery solutions and services

disaster recovery planning

5 Reasons your organization needs a business continuity plan

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

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

Reason #1: Disaster recovery

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

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

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

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

data center backup

Reason #2: Data shows backups are not enough

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

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

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

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

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

business man and woman meeting

Reason #3: Insurance does not protect your data

Cyberattacks are becoming more sophisticated and successful every year. 

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

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

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Reason #4: Competitive edge

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

working remotely

Reason #5: Business must go on

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

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

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

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

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

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

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

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The importance of a business continuity plan

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

More importantly, your business continuity plan supports:

Communication between employees and customers

Workflow operations essential to business activity

Customer service response, especially if you are a service provider

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

The flow of information and documents

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

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We are here to help

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

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

Our IT services include: 

Server & network management

Device & desktop management

Managed cybersecurity services

End user communication services

Managed cloud services

Data center services

Disaster recovery and backup

IT project work

Remote IT support

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

Frequently asked questions.

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

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

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

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

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

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A step-by-step guide to writing an effective business continuity plan.

Posted Aug 30, 2022

What is a business continuity plan?

A business continuity plan is a written document that describes the emergency procedures that should happen if a business-critical process fails.

Several sources can threaten businesses. Sometimes, disruption can take the form of Force Majeure circumstances, like extreme weather or political unrest. Other circumstances are less obvious, but just as disruptive: supply chain issues, web server downtime or power outages can leave permanent damage to a business’s finances after a certain amount of time.

Businesses must prevent unwanted downtime to ensure critical functions and services aren’t affected. The best way to ensure a consistent and effective response to potential issues is to implement a robust, documented business continuity plan.

Learn more with our in-depth guide to business continuity.

What is the purpose of a business continuity plan?

A strategically structured and rehearsed business continuity plan provides a number of benefits to both employees and the company itself.

With improvements to communication, technology and resilience, here are a number of examples of the positives that you can expect from a business continuity plan:

Helps your business to survive a disruptive event — Ensuring you have a robust plan in place will enable your business to recover in the shortest possible timeframe from an incident.

Protect your organisation’s reputation and brand — Whether it’s in the eyes of the public, suppliers and/or clients you work with, showing that you can respond well to the unexpected will instil confidence in your business and help to mitigate any negative feelings due to disruptions.

Strengthen your relationship with third parties and subsidiaries — With an effective business continuity plan, you’ll demonstrate that your company is being run well from the top down. By showing that you’re a reliable partner that can be depended on, you’ll attract new business and solidify your relationship with current clients and service providers.

Ensure staff safety — The well-being of your employees is a natural factor in a business continuity plan. By ensuring your team is looked after and knows what the procedure is during disruptions, you can establish clear roles and responsibilities to keep everyone under your care safe in an emergency.

Meet regulatory standards — Globally, there are corporate governance regulations that require directors and key stakeholders to exercise reasonable care, skill and diligence to mitigate risks facing an organisation. With an effective business continuity plan in place, you can ensure you’re meeting the requirements of a growing body of legislation.

What does a good business continuity plan look like?

The three key elements of a business continuity plan are:

1. Resilience

Businesses can increase their resilience by designing critical functions and infrastructures to protect against specific scenarios. Examples include; data redundancy, staffing rotations and maintaining a surplus of capacity. If implemented efficiently, resilience in business continuity can even keep essential services running on-site or remotely without interruption to daily operations.

2. Recovery

There’s no way an organisation can prepare for every eventuality. But with rapid recovery, you can future-proof your business by ensuring you have strategies in place to restore business functions in an emergency. With recovery time objectives for different systems, you can analyse and prioritise which needs recovering first.

3. Contingency

A contingency plan ensures that an organisation has procedures in place to distribute and delegate responsibilities for a range of external scenarios. These can include replacing hardware, sourcing an emergency workspace and contracting third-party vendors for assistance.

Who is responsible for a business continuity plan?

To ensure your organisation’s readiness, it’s important to designate who will be responsible for implementing and managing your business continuity plan. For small businesses, a single individual could be tasked with writing a business continuity plan. Or for larger organisations, a whole team could be involved with developing a business continuity plan.

In such cases, business unit leaders — such as payroll, corporate travel, human resources and security — will be given the responsibility of creating their respective unit’s business continuity plan with a program manager overseeing the process.

It is essential to make sure each person understanding their responsibilities and that there are clear lines of communication between employees and external stakeholders, in order to keep everything as smooth as possible during an disruptive scenario.

What is the first step in writing a business continuity plan?

The first step you should take when preparing to write a business continuity plan is to conduct a full Business Impact Assessment (BIA).

A BIA predicts the consequences of a significant disruption to your business processes. It clarifies the potential losses that could be incurred in each circumstance.

A BIA should include the following:

Potential losses — What would your lost sales and income look like for each hour of downtime, or each day?

Delayed sales — Could disruption create cash flow issues for you by delaying your sales or income? If so, to what extent? What lines of credit would you have to rely on?

Increased expenses — How much would you have to spend on resources to mitigate the issue? Think about things like overtime, outsourcing, and costs associated with expediting business-critical activities.

Regulatory fines — How much could you be fined by regulators for breaches to things like data privacy or health and safety?

Contractual penalties — Are there any charges you could incur for failing to meet SLAs with your business partners?

Customer satisfaction — How much damage to your public reputation could a disruption have? You can quantify by thinking of the number of additional negative reviews you could receive for each day of delays.

Delay of new business plans — Would you need to push back any planned launches or new business agreements while you deal with disruptions?

Writing your plan: Step-by-step instructions

Identify your business-critical processes — Critical business processes are those necessary for the survival of the company in the case of loss of revenue, customer service interruption or reputation damage. E.g. Manufacturing — what you would need to keep your production line going. Finance — how to recover important documents that contain sensitive information. IT — is home working feasible for your business?

Specify the target recovery time for these processes — How long would it take for the loss of a business-critical process to do irreparable damage to your business? Your target recovery time for each process you identified should be within this window. Determine how long you could tolerate a disruption: this is known as a recovery time objective (RTO). Your business continuity plan should enable you to mitigate disruptions within this time window.

Define the specific resources needed for each process — Once you’ve identified how long you’ll need to restore a process, you’ll need to outline everything you’ll need to do so, and plan within that time frame. You could split this into internal resources (key people in your organisation, passwords, office space, specialist equipment) and external resources (e.g. supplies, transportation). Along with identifying how readily available they can be, and for how long you’ll need them.

Describe the steps needed to restore each process — If your business is disrupted by an IT failure, fire, flood or an extreme weather event, what is your plan to address this? Devise a backup plan for each key operation you have, detailing who to contact, what resources you’ll need, and how much you might need to spend in order to restore each process.

Decide on a schedule to update the information — Once you’ve compiled the above 4 points, you’ll have a strong business continuity plan that you can action. But it won’t be bulletproof forever. As your business evolves, so will the technology it uses and the relationships it has. Therefore, you need to plan ways to keep the information up-to-date. It might be that you decide on a regular date that the whole plan needs to be revisited, whether that’s yearly, quarterly or even monthly. Alternatively, you might decide it’s better to update small elements of the plan as and when they change: e.g. if a password to a critical folder is changed, there’s someone in your organisation who is responsible for updating your business continuity plan accordingly.

What are the four P’s of business continuity planning?

The four P’s of business continuity are:

People — This covers your staff, customers and clients.

Processes — This includes the technology and strategies your business uses to keep everything running.

Premises — Covers the buildings and spaces from which your business operates.

Providers — This includes parties that your business relies on for getting resources, like your suppliers and partners.

You can use the four P’s when reviewing the initial draft of your business continuity plan to ensure you’ve considered the impact on each of them at every stage.

For example, how might your plan to recover important documents out of working hours impact your staff? How hard would it be to access the premises? When should you notify your clients and business partners?

What is the most important part of a business continuity plan?

Every element of your business continuity plan is important, but perhaps the most critical part to get right is how you plan to respond to potential issues. It’s advantageous to have precise calculations about potential losses and the impact of your business relationships, but without a clear and effective way of reacting to disruptions, your business will incur serious — and sometimes irreparable — financial damage.

Business continuity plan template

We’ve prepared an example business continuity plan to get you started.

1. Objective of the plan

Open with a short summary of the ‘why’ behind the how. Explain clearly and succinctly that the aim of your business continuity plan is to protect your business in the event of a disruption to business-critical processes.

2. Business-critical processes checklist

Your plan will need to contain a list of its most important processes. Below are a few examples:

3. Recovery plan

For each critical function you listed in step (2), you’ll need to specify a comprehensive, tailored recovery plan that should be followed in order to get the process back up and running within your RTO.

4. Contact list

Create lists of staff, suppliers and insurers that should be contacted in case of an emergency.

List of key staff: example

Supplier list: example

List of insurers: example

Ensure your business continuity

If you want to protect your business against all eventualities, putting in place reliable business continuity plans is a crucial step.

CMAC specialises in providing emergency assistance to businesses experiencing transport disruptions to keep things running smoothly and minimise potential losses. Learn more about CMAC’s full suite of industry-leading recovery solutions , from ground transport to emergency accommodation.

Other useful guides

What is Business Continuity and why is it important for your business? | CMAC Group

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Business Continuity Planning: Ensuring the Resilience of Your Organization

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

Published by Orgvue   November 20, 2023

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

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

business continuity plan nedir

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

What is Business Continuity Planning?

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

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

The Importance of Business Continuity Planning

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

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

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

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

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

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

Considerations for Business Continuity Planning

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

1. Cultural Differences

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

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

2. Limited Resources

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

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

3. Business Objectives

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

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

Developing a Strategic Business Plan

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

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

Implementing a Business Continuity Plan

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 Importance of Training and Awareness:

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

 Consistent Review of the Plan:

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

 Address Cultural and Technological Issues:

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

 Software Integration:

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

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

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

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

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

Business Continuity Plan FAQs

● where does business continuity planning belong in an organization.

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

● Who Is Responsible For the Business Continuity Plan?

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

● Is Business Continuity Planning a Legal Requirement?

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

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

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

● When Should a Business Continuity Plan Be Activated?

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

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Why You Need a Reliable Business Continuity Plan

ProjectManager

You’ve likely heard that nearly half of all new businesses fail . According to the Small Business Association (SBA), 50 percent of businesses fail during the first five years. Over a 10-year span, the percentage increases to 66. But what can be done to avoid this? A business continuity plan. While it’s difficult to determine the percentage of businesses that have a continuity plan in place, one thing is certain: it’s better to have one than not.

A business continuity plan is a process by which businesses can prepare themselves to weather the potential threats that are always on the horizon, keeping their project plans, schedules and processes intact. Before we dive into what is a business continuity plan and how to write one, let’s quickly define business continuity planning.

What Is Business Continuity Planning?

Business continuity planning (BCP) is the process by which companies can overcome potential threats that can affect their ability to continue. Business continuity planning consists in creating recovery strategies, improving business processes and defining a recovery time objective.

ProjectManager is an online project and work management software that allows you to track time, costs, tasks and budgets. Our real-time dashboard gives you a high-level view of six metrics, a great tool to help you manage the implementation of your business continuity plan. Get started for free.

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What Is a Business Continuity Plan?

A business continuity plan (BCP) is a plan to assist a business when and if there’s an emergency or potential threat to its solvency. These can be any number of risks including natural disasters such as fires and earthquakes to man-made risks such as cyberattacks. All of these are outside of normal business operating conditions.

In other words, business continuity is exactly as it sounds: maintaining business functions or responding quickly to resuming them if there’s a major disruption to that business. A business continuity plan is not the same as a business plan, which contains the executive summary , company info, market research and strategies, etc.

Why Do I Need a Business Continuity Plan?

The importance of a business continuity plan should be clear, but some business owners might be overworked by simply running operations and ensuring solvency. The problem with such thinking is that it’s reactive. You’re never in a position to profit from good business and grow your company as you’re always chasing fires and putting them out.

Remaining competitive is key for business success, and to lose operational capacity due to an act of nature removes you from the marketplace either temporarily or forever. It’s not a risk that can be ignored, which is why there’s a strong need to create a plan of action.

Key Elements of a Business Continuity Plan

A business continuity plan varies from one company to another as they’re tailored to the needs of a particular business. However, there are basic elements that should always be included. Here are the five most commonly used elements of a business continuity plan.

Critical Business Areas & Processes

The first step in business continuity planning (BCP) is to analyze your business operations and identify the business units, business areas and business processes that are important to your company. You’ll need to identify which of those require improvements and which can be cut from your continuity plan.

Business Data

Once you’ve identified the business areas and processes that’ll be part of your BCP, you’ll need to look for all of the business data you can find. Data analysis is the only way to accurately understand what aspects of your business are successful and which aren’t.

Risk Assessment

Risk assessment is a critical element of a business continuity plan. To help your business continue to grow, you need to identify every potential risk that could stop you. It’s suggested that you use a risk register to list the potential risks along with risk mitigation strategies to implement if needed.

Business Continuity Impact Analysis

A business continuity impact analysis is done to determine the consequences of a sudden loss of business operations, units or processes. By conducting a business continuity impact analysis, you can determine the business impact in terms of costs, time frames and affected dependencies.

Recovery Time Objective

A business continuity plan is meant to be an actionable document that helps companies overcome difficulties and natural disasters. The recovery time objective is an estimated point in time by which you believe your business continuity planning strategies will take effect.

How to Create a Reliable Business Continuity Plan in 7 Steps

When working on a business continuity plan, there are several steps that must be taken to ensure that it’s reliable, all of which are outlined below.

1. Analyze Organizational Threats

You can’t prepare for what you don’t know. There will always be aspects of potential risks that are beyond your control so it’s important to do the due diligence. Make a comprehensive list of what threats are the most likely to impact your business. Then, dig deeper into each threat to see how it would impact your operations.

By analyzing your organizational threats, you’ll have an idea of what you need to do in order to respond. Consider using a risk register template to keep track of each risk.

2. List Primary Tasks to Stay Operational

Once you know what might happen, you have to devise a strategy to respond so the business can keep its doors open. That means prioritizing your list to include only top-level items that address the livelihood of the business.

Other points on your list are important, of course, but you can’t do everything, especially in an emergency. Pick what must be done and complete the rest once the dust has settled.

3. Safeguard Contacts

What if your facility is damaged or what if your IT is compromised? What if you lose contact information for executives and managers who are crucial to the smooth operation of the business? This is why it’s important to keep a list of management and their contacts in a safe or in multiple places so they’re easily accessible.

In case of an emergency, you need to reach the important stakeholders in your organization immediately. There’s no time to search for this information; it needs to always be at your fingertips.

4. Direct Personnel

Depending on the situation, there might not be anyone in a position of authority to explain what personnel should do and where they should go. This is a recipe for chaos, which only adds another problem on top of an already problematic situation.

That’s why it’s important to have a plan for where personnel needs to be if and when a disaster happens. You want to keep them out of harm’s way and place them in a position to carry on with operations if that’s a possibility.

5. Backup Data

Although this is second nature for many, it still bears repeating. Information is one of the most important assets for many businesses, and it must be protected from a potential breach or compromise of IT.

That data must be backed up in more than one place and there should be backups both on-site and off-site in case there is a localized catastrophic event. Online project management software offers you cloud storage for your data, creating an additional safeguard.

6. Collaborate Across the Organization

Businesses are collections of many different departments and the coordination of these elements is critical in getting operations up and running or running as normal. This is why a collaboration plan that includes all facets of the business must be in place to ensure these different departments are working together, not against one another.

7. Get Buy-In on Your BCP

For any business continuity plan to work, it must be distributed to everyone in the business so they understand their part in the process is. But even more than that, every person, from the top to the bottom of the business, must buy into the plan.

Anyone who doesn’t buy into your business continuity plan is a weak link that will break the chain you created to protect the business during this challenging period.

Creating a business continuity plan is like creating any plan. You need to have the tools to plan one, share it and then track it to make sure it’s progressing as planned. That requires robust project management software with the scheduling features you need to facilitate the process. ProjectManager is a cloud-based project management tool that lets you manage and control even major changes to keep your business operational. See how it can help your business by taking this free 30-day trial.

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Business resilience vs. Business continuity: Overlooked differences you need to know

Someone looking at the differences between business resilience and business continuity

Much has been said about resilience throughout COVID-19 ' including the resilience of supply chains, our health or our organizational cultures . Yet, admittedly, there is still confusion over the meaning. And further confusion over business resilience vs. business continuity. So, what's the difference and do you need both? Let's start with business continuity.

Defining Business Continuity

Business continuity is your organization's ability to continue operations if struck by an unexpected incident or crisis and the process of doing so. Business continuity planning is essential to this. Much has been written, from us and others, on the need for a best practice business continuity plan to underpin your operations. You should regularly review the procedure, test and update the plan, and finally, support it by establishing the right team and approach. While business continuity definitions and strategies may vary, there is a firm agreement that having a plan in place is vital for business continuity in the event of an interruption. Having a business continuity plan protects your people and assets while also allowing your organization to function no matter what it may encounter.

What Is Business Resilience?

According to ISO 22316:2017 , organizational resilience is: 'The ability of an organization to absorb and adapt in a changing environment to enable it to deliver its objectives and to survive and prosper.' Resilience, then, is perhaps more about adapting to changing conditions that are expected to continue ' i.e., the need for businesses to continually improve to keep pace with a business landscape that is always evolving. And less about the immediate response to a crisis. Often, though, the terms 'business resilience' and 'business continuity' are used interchangeably, both being used to describe an organization's short-term actions in the event of a disruption. FmLink , for instance, describes organizational resilience as: 'the ability to rapidly adapt and respond to business disruptions, safeguard people and assets, while maintaining continuous business operations' ' a description that might tally with others' definitions of continuity.

Our Take on the True Meaning of Business Resilience

When we talk about business resilience, we're talking about an organization's ability to respond to and withstand the challenges of an increasingly uncertain world. Business resilience ' or business resiliency, as it's sometimes termed ' is an essential attribute. Without it, organizations will struggle to recover from unexpected business interruptions or change course responses to sudden changes in their operating environment. Conversely, the ability to swiftly adapt to changing circumstances will put a business in a strong position to minimize any negative impact and capitalize on any opportunities that result. 2020 and 2021, of course, brought this ability into sharp focus, as organizations in all sectors pivot to deal with the challenges posed by the coronavirus pandemic. Whether it was an almost-overnight move to remote working , a need to adapt to unreliable supply chains, or either drastically increased or drastically reduced demand for products or services, almost no area of business or public service was untouched by the pandemic. Resilience was indispensable here. Equally important was the need for business continuity ' the ability to maintain operations in the face of disruption. But what is the difference between business resilience and business continuity? Do you need both a business resilience plan and a business continuity plan? And if so, what are the differences between the two?

Business Resilience vs. Business Continuity

Resilience and continuity are often pitted against each other as opposing strategies. But in fact, 'business resilience vs. business continuity' may be an unnecessary rivalry. There's a strong argument that successful organizations need to demonstrate both resilience AND continuity. A BMC.com blog details some of the things needed for business resilience, among them:

  • Behavior that is aligned with a shared vision and purpose
  • Ability to absorb, adapt and effectively respond to change
  • Good governance and management
  • Diversity of skills, leadership, knowledge and experience
  • Coordination across management disciplines and contributions from technical and scientific areas of expertise
  • Effective risk management

While, arguably, these are also all a bonus when it comes to business continuity, it's clear that some of the above are broader in scope than crisis response. The need for a shared corporate purpose, for instance, and the need to adapt to ongoing change, transcend the immediacy of disaster planning. Organizations need both the ability to ensure continuity in a crisis and run a resilient business that can evolve in line with longer-term trends and shifts.

The Key Elements Underpinning Both Resilience and Continuity

Business resilience and business continuity are like a Venn diagram, with some common elements connecting them. For instance, the need for strong governance ; a clear picture of your entire organization, including all the entities and subsidiaries you're responsible for, across all locations; an adaptive nature; and the necessary people, expertise and technologies. Underpinning all of this is one thing ''' there's a need for a clear and comprehensive understanding of your organization. Any business that tries to devise a business continuity plan, or resilient approach, based on incomplete data or inaccurate information is doomed to fail. On the other hand, accurate, up-to-date entity data helps with regulatory compliance and better prepares businesses for significant processes like going public . It is vital to both resilience and continuity; the integrity of entity data is an essential building block in any corporate strategy that needs to capture the entirety of your organization. Best practice entity data management is more easily achieved when you have a '''single source of truth,' a central repository for all your entity information that supports accuracy, currency and compliance. Diligent Entities not only provides this but also integrates with the rest of our software suite, including Diligent Boards , to provide a 360-degree view of your organization's structure, strategies, documentation and obligations. So when it comes to business resilience vs. business continuity, remember, both are essential. Get in touch and request a demo to find out how Diligent can equip you with a robust solution for all your governance needs.

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business continuity plan nedir

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

business continuity plan nedir

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Key considerations for a business continuity plan

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

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

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

Bruce Penson is managing director of Pro Drive IT . 

Further reading on business continuity

  • How to improve your business continuity strategy in five steps

Ben Lobel

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

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IMAGES

  1. 7 Stages of a Business Continuity Plan

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  2. How to create an effective business continuity plan?

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  3. The importance of Business Continuity Planning

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  4. What Is A Business Continuity Plan?

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  5. How to Write a Business Continuity Plan?

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  6. Business Continuity Management

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VIDEO

  1. Business Continuity Plan

  2. BUSINESS CONTINUITY PLAN

  3. Business Continuity Plan Part IV

  4. Business Continuity Plan BCP meeting with SERCO Consultant & Riyadh Airports Clients

  5. Business Continuity Training

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COMMENTS

  1. Business continuity planning

    Business continuity may be defined as "the capability of an organization to continue the delivery of products or services at pre-defined acceptable levels following a disruptive incident", [1] and business continuity planning [2] [3] (or business continuity and resiliency planning) is the process of creating systems of prevention and recovery to...

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

    Business continuity plans (BCPs) are prevention and recovery systems for potential threats, such as natural disasters or cyber-attacks. BCP is designed to protect personnel and assets and make...

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

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

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

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

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

    Business continuity is an organization's ability to maintain critical business functions during a disaster and after it has occurred.

  6. What Is Business Continuity?

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

  7. Business Continuity Plan: Example & How to Write

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

  8. Business Continuity Planning (BCP)

    Business continuity planning (BCP) is a broad disaster recovery approach whereby enterprises plan for recovery of the entire business process. This includes a plan for workspaces, telephones, workstations, servers, applications, network connections and any other resources required in the business process.

  9. Working Toward a Managed, Mature Business Continuity Plan

    Working Toward a Managed, Mature Business Continuity Plan. Business continuity is defined as having the right tools in place to make sure that an organization can continue to function during an interruption of one or more of its critical mission functions. Consider the example of an earthquake that causes massive damage to the majority of an ...

  10. How to create an effective business continuity plan

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

  11. Understanding the Essentials of a Business Continuity Plan

    A business continuity plan is a document that outlines how a company can keep running during a crisis. It covers everything from backup systems, communication channels, emergency contacts, and recovery strategies. A good business continuity plan can help you avoid downtime, minimize losses, and protect your reputation. In this blog post, we'll show you how to create a business continuity ...

  12. What is Business Continuity?

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

  13. Business Continuity Planning

    View on YouTube Business Continuity Training Part 3: Planning Process Step 1 The first of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should "prepare" to create a business continuity plan. View on YouTube

  14. What Is a Business Continuity Plan?

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

  15. What is business continuity? Business continuity planning

    Definition of business continuity. Business continuity is the advanced planning and preparation required to ensure that an organization can maintain essential operations in the event of a disaster, emergency, or other unexpected event that causes significant disruption. The planning and preparation for business continuity covers all people, processes, technologies, and supporting frameworks.

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

    A Business Continuity Plan (BCP) is a detailed strategy and set of systems for ensuring an organization's ability to prevent or rapidly recover from a significant disruption to its operations.The plan is essentially a playbook for how any type of organization—such as a private-sector company, a government agency or a school—will continue its day-to-day business during a disaster scenario ...

  17. The Importance of a Business Continuity Plan

    With a business continuity plan in place, you position yourself to minimize the impact and damage of an unexpected event. In this article, we will discuss: What constitutes business continuity planning and the difference between it and disaster recovery. The top 5 reasons your organization needs a business continuity plan.

  18. A step-by-Step Guide to Writing an Effective Business Continuity Plan

    We've prepared an example business continuity plan to get you started. 1. Objective of the plan. Open with a short summary of the 'why' behind the how. Explain clearly and succinctly that the aim of your business continuity plan is to protect your business in the event of a disruption to business-critical processes. 2.

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

    Business continuity planning is the framework that ensures your organization can weather storms, both literal and metaphorical. Let's explore the intricacies of business continuity planning, from understanding its importance to implementing a robust strategy that safeguards your enterprise. What is Business Continuity Planning?

  20. Why You Need a Reliable Business Continuity Plan

    Business continuity planning consists in creating recovery strategies, improving business processes and defining a recovery time objective. ProjectManager is an online project and work management software that allows you to track time, costs, tasks and budgets. Our real-time dashboard gives you a high-level view of six metrics, a great tool to ...

  21. Business resilience vs. Business continuity: Overlooked differences you

    Business continuity planning is essential to this. Much has been written, from us and others, on the need for a best practice business continuity plan to underpin your operations. You should regularly review the procedure, test and update the plan, and finally, support it by establishing the right team and approach. ...

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

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

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

    Artificial intelligence (AI) can be further leveraged for business continuity, with a 2022 Deloitte survey revealing that 76% of respondents plan to increase investments in AI to gain more ...

  24. PDF 7 Steps to Create a Business Continuity Plan

    Step 1: Perform a Regulatory Review and Landscape. The first step to creating a Business Continuity Plan is to perform a regulatory review, as all businesses have requirements coming from oversight bodies. Some examples of regulators include: International Bodies, EU General Data Protection Regulation (GDPR)