The ultimate guide to business continuity management

What is business continuity management?

Business continuity management is the process of finding the threats a business faces and building plans to prevent, respond to, and recover from them.

• It keeps key operations running during a crisis.
• It covers planning, disaster response, and return to normal.
• It protects your reputation, staff, and revenue.

Major disruptions can hit any business at any time. In fact, recent years have shown how fast a crisis can spread. Above all, they taught firms the value of a backup plan, or a business continuity management strategy.

One recent study from Yelp found that a large share of temporary business closures later became permanent. Small businesses were hit the hardest. In many cases, bankruptcy and a lack of a continuity plan forced them to close.

As part of staying future-proof, firms of all sizes now need continuity plans on hand. With good business continuity management, they can face the challenges ahead.

Defining business continuity management

Business continuity management (BCM) is the process that identifies a business’s risk of exposure to potential threats. These threats may be internal or external.

Disruptions can strike at any time. For example, they include data breaches, natural disasters, financial crises, and pandemics. As a result, a firm could lose its data, assets, or even the whole business.

BCM helps a firm spot these threats and plan for prevention and recovery. Once done well, it protects core functions, compliance duties, and investor trust. BCM sits within the wider field of enterprise risk management.

Main areas of business continuity management

In some cases, BCM is seen as part of enterprise risk management. However, smaller firms often use it only in a worst-case scenario.

There are three main areas that BCM covers. These are:

• Planning and prevention
• Disaster response
• Return to normal

ISO 22301 and business continuity

ISO 22301 is the International Standard for Business Continuity Management. In short, it shows how much BCM matters to firms of all sizes and industries. It also gives a framework for setting up a BCM system based on your risks.

Most firms worldwide do not need this certificate. Still, it is vital for those required to plan for contingencies. For example, this includes utilities, transport, healthcare, and other key public services.

The International Organization for Standardization (ISO) has recorded strong global growth in ISO 22301 certifications. As a result, more firms now treat continuity planning as a core duty.

Is establishing business continuity management standards necessary?

An ISO certificate is optional. Still, setting BCM standards helps prevent disruptions before they happen.

A business impact analysis helps firms find critical processes. In addition, it lets them rank activities and build plans to reduce risk.

By setting standards, firms protect operations and boost resilience. As a result, they reduce the impact of unexpected events. Clear standards also lower common outsourcing risks when partners are involved.

Aside from this, several other reasons make BCM necessary.

Preserve company’s reputation

Customers and staff respect a firm that acts fast in a crisis. So a quick, clear response protects your good name.

Boost morale

Your efforts ease staff worries about their future at the firm. As a result, this can boost their morale and motivation.

Build stronger connections

A strong BCM system shows a firm runs well from top to bottom. In short, it tells partners and subsidiaries that you care for your people responsibly.

Meet regulatory requirements

Governance rules require firms to put continuity plans in place. Because of this, you must know your key risks, such as cyber threats, and act on them. Strong data security in outsourcing is a big part of meeting these rules.

By safeguarding critical functions, firms can keep operations smooth despite disruptions. As a result, good planning helps meet regulatory demands. Meanwhile, it also improves the resilience and long-term health of the business.

Phases of business continuity management framework

The business continuity management framework has six phases. Here is how each one works.

Programming the management

Your BCM plan needs top management’s approval. So it is best to brief the executives first.

Understanding the organization

Everyone must back the BCM policy. This includes stakeholders, subsidiaries, and outsourcing suppliers. So reach out to internal teams and suppliers, then share the agreed policy.

Identifying BCM strategy

First, name a BCM sponsor to lead the work. Next, the sponsor forms a team to build the full strategy.

A sponsor need not come from an internal team. In fact, a subsidiary or outsourcing partner can also take this role.

Developing/implementing BCM response

The team runs a risk assessment for critical functions. Then it maps out response strategies based on the results. Next, it builds business recovery and disaster recovery plans.

Practicing the response

Once the plan is live, the team runs practice exercises. These cover different plans and their goals. As a result, the team can update the plans based on what it learns.

Reviewing and embedding BCM

Finally, use the plan-do-check-act cycle to review and improve. In short, the firm keeps testing its strategies and fixes gaps before they cause harm.

What is a business continuity plan (BCP)?

A business continuity plan (BCP) is part of a risk management strategy. In short, it maps out a firm’s risk and resilience plan. It lists likely threats, such as cyberattacks, and the ways to prevent them.

A solid BCP is key to business continuity management. After all, it puts in writing how a firm will keep running during a crisis.

BCP vs Disaster recovery (DR) plan

Some firms think a disaster recovery (DR) plan is the same as a BCP. However, a BCP takes a wider view of disruptions and contingencies.

A BCP focuses on keeping the shop open. Meanwhile, a DR plan focuses on getting back to normal fast.

A DR plan aims to restore business-as-usual aspects. For example, it covers data access and IT infrastructure. On top of that, it adds steps to keep employees safe.

These steps are practical. For example, they include fire and earthquake drills, emergency supplies, and first aid training.

Steps in making a business continuity plan

A BCP usually includes the following sections:

• Objectives
• Risk management plan and analysis
• Incident response plan, response team, and communications list
• Recovery plan
• Review and update schedule

As noted earlier, a solid BCM framework makes your BCP easier to build. With that in mind, here are some steps in creating a BCP.

Assemble your BCM team

Your BCM team should be able and empowered to run your plans. So gather them and list the key people. Include their full names, titles, and contact details. In addition, set a clear process for updates and how the team will be reached.

Put employees’ safety first

Always put your people’s well-being first. For example, build a safe work setting now through wellness programs and clear lines of communication for emergencies.

Conduct an impact analysis

Your team must run a business impact analysis (BIA). This finds financial, operational, and performance threats.

You can use your risk assessment as a guide. As a result, you can measure the impact of each risk with more accuracy.

Implement your recovery strategies

Make sure you can put your BCP into action when a crisis hits. So discuss the plan with the whole company. Then practice your strategies as often as you can.

Continuously make improvements

Finally, use the plan-do-check-act (PDCA) method to improve your BCP. In short, meet with your team often to see what you can fix. As a result, everything runs more smoothly next time.

Business continuity management for global businesses

Recent years have proved that threats and calamities can strike anytime. So the worst move a firm can make is to have no continuity framework at all.

It is never too late to build resilience. Because of this, firms should put continuity measures in place as soon as they can. Providers in the Philippines, for example, have shown strong business continuity in the BPO sector during extreme weather.

Continuity planning is no longer done only by an in-house team. These days, firms lean on their outsourcing suppliers to keep serving customers. Many follow proven business continuity principles adopted by leading outsourcers.

Compliance also matters here. For example, rules set by bodies like the Financial Industry Regulatory Authority (FINRA) help keep operations smooth during disruptions.

A BCM framework protects more than the company itself. In fact, it also protects your resources, employees, and credibility. In short, a good BCP is essential for reducing risk and preparing for disasters.

Frequently asked questions

What is business continuity management?

It is the process of finding the threats a business faces and planning for them. In short, it helps a firm prevent, respond to, and recover from a crisis.

What is the difference between a BCP and a disaster recovery plan?

A BCP focuses on keeping the business open during a crisis. Meanwhile, a disaster recovery plan focuses on restoring IT and data fast after one.

Is ISO 22301 certification required?

Most firms do not need it. Still, it is vital for sectors like utilities, transport, and healthcare that must plan for contingencies.

Who should lead business continuity management?

A named BCM sponsor should lead the work. This person can come from an internal team, a subsidiary, or an outsourcing partner.

How often should a business continuity plan be updated?

You should review it on a regular schedule. In addition, use the plan-do-check-act cycle so the plan stays current and effective.

Key takeaways

• Business continuity management keeps key operations running during a crisis.
• It covers planning, disaster response, and return to normal.
• A BCP focuses on staying open, while a DR plan restores IT and data.
• Good BCM protects your reputation, staff, revenue, and credibility.
• Many firms now rely on outsourcing partners to support continuity.