Business Continuity Management
Why does an organization need a Business Continuity Management?
“It won’t happen to us,” “we will cope -we always do”, “we are too big to fail” and “we are not a terrorist target”, “are frequent response by business when questioned about their lack of preparedness.” Others believe their insurance company will pay for everything. Most think they haven’t got the time to prepare for something that will never happen.
Research indicated that organizations affected by catastrophes fall into two distinct groups-recoverers and non-recoverers. Where an organization has successfully dealt with a crisis their share value has increased in the long term in contrast to those who were perceived not to have managed the crisis well whose share price declined and, after a year, had still not recovered. More recent research has shown that those organizations which budget most on risk, BCM and governance are the most profitable companies in their sector suggesting that BCM is an investment not a cost.
What is Business Continuity Management?
Business Continuity Management is a holistic management process to identify potential impacts that threaten an organization. Also, BCM provides a framework for building resilience and capability for an effective response that safeguards the interests of its key stakeholders, reputation, brand and value creating activities.
BCM aims to improve an organization’s resilience. By identifying, in advance, the potential impacts of a wide variety of sudden disruption to the organization’s ability to succeed it is able to prioritize the efforts of various other specialists aiming to achieve resilience in their areas of expertise such as security, facilities and IT.
How will BCM benefit an organization?
The main purpose of BCM is to ensure that the organization has a response to major disruptions that threaten its survival. Whilst it muse be worthwhile in itself, there are other benefits that can be gained by embracing BCM as a management discipline.
For many companies, BCM will address some key risks and help them achieve compliance. Business selling to other businesses have used BCM as a competitive advantage to gain new customers and to improve margins by using it as a demonstration of customer care.
BCM Lifecycle covers six phases, they are:
Policy and Programme Management
Understanding the Organization
Determining BCM Strategy
Developing and Implementing a BCM Response
Exercising, Maintaining and Reviewing
Embedding BCM in the Organization’s Culture
Source: GOOD PRACTICE GUIDELINES 2010: The Business Continuity Institute
KEY CONCEPT OF BCM
Maximum Tolerable Period of Disruption (MTPD):
The duration after which an organization’s viability will be irreparably damaged if a product or service delivery cannot be resumed.