As a management process, BCM involves several key activities: In recognition of the reality of the economic and business landscape being unpredictable and volatile, businesses are now taking a lot of precautions to ensure that their operations will still stand a chance against unexpected disruptions.
We usually hear of these precautions in the form of disaster recovery planning, which is primarily focused on the restoration of a firm’s IT infrastructure and IT operations.
We can probably enumerate more than a dozen reasons why businesses should create and maintain BCP initiatives but, at the end of the day, there is only one ultimate goal or purpose for it, and that is to help ensure that the organization, business or company has the required resources, information, and capabilities to deal with emergencies and similar unexpected events, particularly their aftermath.
You will probably be able to appreciate BCP even more if you have a clearer idea of what the business can gain from it.
All these threats must be taken seriously by companies, considering their various effects or impacts when they result in the disruption of business operations.
Some of the most likely effects are: When a retail store does not open for a week, the potential income that it usually earns in a one-week period is gone.Business disruptions usually lead to the company spending more on incidental expenses in order to do some damage control.For example, if the disruption is caused by a blizzard leading to the closure of manufacturing facilities, there is a high chance that the facilities have been damaged, and will require some major repairs.This view is rather limited, when you look at the bigger picture, since a business and its operations are more than just its IT infrastructure.Thus, more attention is put on business continuity planning (BCP), which puts the company in a proactive position in planning how to ensure that it will still be able to deliver its critical products and services safely and smoothly, while meeting its legal, regulatory, and other obligations.Thus, they make every decision with continuity of the business in mind, while taking into account the possible effects of unexpected events that may lead to disruptions and interruptions in business operations.If we are to take the phrase “business continuity” for its surface value, the most obvious meaning would be the ability of the business or enterprise to continue operating as a going concern for a very long time.Even the most loyal customers may be swayed out of their loyalties if the business fails to rise to the occasion.Soon, the business will be unable to do anything except watch helplessly as its customers shift to the competition while it is still in the middle of figuring out how to deal with the fallout of the crisis that caused the interruption of business operations.While some companies have developed contingency plans, most have not.This lack of preparedness not only threatens the viability of sectors in Canada but, as in the case of manufacturing, it also jeopardizes the delivery of critical goods that depend on complex supply chain systems.