When it comes to Business Continuity planning, many companies tend to disregard its importance. They might argue, “We haven’t needed it in 20 years; it’s not worth the paper; it’s a waste of time and resources.” At first glance, Business Continuity planning seems comparable to paying for liability or flood insurance — like pouring money into something you hope never to use. This perspective can make one question the rationale behind such preparations. Yet, just as with insurance, having a Business Continuity plan in place in the event of an unforeseen disaster becomes invaluable.
But what is Business Continuity?
So, let’s define Business Continuity:
“Business continuity refers to an organization’s advanced planning and preparation to ensure that it can continue its critical business functions during and after significant disruptive events.”
This involves identifying vital systems and processes and implementing strategies to minimize disruption and recovery time.
Business continuity aims to maintain essential operational functions and recover quickly from disruptions, such as natural disasters, technological problems, or other unforeseen circumstances.
This ensures the organization can continue to deliver its services or products at acceptable predefined levels, even during a crisis.
In short, Business Continuity is a company’s ability to efficiently deal with crises and survive events that, if left unhandled, could destroy entire businesses.
Examples are a longer power or Internet outage, natural disasters like earthquakes or floods, or a fire in your basement data center. All those events can potentially kick you out of business for a while or, in the worst case, forever.
There are two parts of Business Continuity.
Two terms are often mixed up regarding business continuity: BCM and BCP.
But there is a difference between both, and here is which:
- Business Continuity Planning (BCP): This refers specifically to the process involved in creating a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and can function quickly in a disaster. BCP is essentially creating a strategy by recognizing threats and risks facing a company, intending to ensure that personnel and assets are protected and able to function in the event of a disaster.
- Business Continuity Management (BCM): This is a broader approach that includes managing the overall business continuity program. BCM encompasses not only the development and maintenance of plans like BCP but also the ongoing management, assessment, and improvement of these plans. It involves integrating business continuity into the organization’s day-to-day operations and culture. It is more comprehensive and includes all aspects of organizational resilience.
And what now?
It depends. If you are ready to bridge a couple of months after a disaster or other company-threatening event, then you don’t need to bother with Business Continuity.
But if a few weeks or even a few days of missing revenue will hurt your business or even throw you off track, you should certainly consider business continuity.
Feel free to contact me if you need help with that.