Business Continuity Management (BCM) can be defined as a holistic management process, focused on the ability of a business to plan for and respond to incidents and business interruptions. The primary objective is to facilitate continuity or recovery of operations at a pre-determined acceptable level. Examples of disruptions where BCM tools and processes can be utilised to great effect include:
- Industrial action/Strikes
- Workplace accidents
- Loss of critical utilities (water/electricity/telecommunications)
- Fire
- Cyber attacks
- Acts of Nature e.g. Hurricane, Lightning strikes, Volcanic Eruptions and Ash Fall
- Pandemic
| BCM – Key Aspects and Areas for consideration [1] |
The level of planning required may seem overwhelming, but we should always ask ourselves, why did we create the company in the first place? For many, those reasons will be linked to achieving success, profitability, and longevity, along with a desire to provide a product or service that is of great value to your customers. It is important therefore, to have a plan in place. Having a basic strategy can provide the structure required when dealing with disruptive events. The plan needs to be relevant and applicable to the type of business and a given scenario. Do not limit resilience plans to hurricanes and fires only!
The passage of Hurricane Elsa on July 1, 2021 significantly impacted both domestic residences and businesses. This triggered leaders of the Private Sector agencies to again encourage members to invest in the development of Business Continuity Plans, and for private homeowners to insure their properties at current replacement cost values. The desired objective in the first instance is to achieve increased resilience through faster resumption of operations, and in the case of homeowners, to facilitate timely reconstruction by receiving claim settlements, closer to the value of their properties. Recent events i.e., hurricane, ash fall, lightning strikes, pandemic etc. have evidenced the true value of BCM. If not previously appreciated, companies now have a better understanding of the critical activities required to function even if not at full capacity. It is key in these times to share the message that despite these events, you are open for business. Global research suggests that customers lost due to an inability to provide products/services, especially in highly competitive industries, will be customers who are unlikely to return after your business resumes operations fully.
BCM allows companies to proactively manage disruptive events by:
- Identification of vulnerabilities/critical risk factors.
- Identification of critical business functions.
- Development of resilience strategies based on risk appetite.
- Training and development of human resources.
- Development of a culture of resilience.
The development of a culture of resilience should be the end game! While the development of Business Continuity Plans is an integral element in the BCM process. I wish to caution business leaders against simply developing plan documents. Rather, I encourage and strongly endorse demonstrative leadership commitment to building a resilience culture – one where BCM is understood across the organisation, and ownership for sustainability of the company is the responsibility of employees at all levels. A failure to do this may result in the development of fantastic Business Continuity Plans which sit on a shelf and are not reviewed or updated regularly. Unfortunately, when these Plans need to be activated, they may no longer be relevant, due to changes to the business operations and key personnel.
To assist companies in building more resilient operations, the framework below outlines a 12-step process recommended for achieving success.
| Establish continuity programme. | Create communication plan. |
| Create oversight committee | Conduct training. |
| Develop policy and procedure | Test the programme |
| Establish documentation system | Perform internal audits. |
| Perform risk assessment and business impact analysis | Schedule management reviews |
| Develop recovery plan | Implement corrective actions and continuous improvement measures as needed. |
It is important to appreciate that this concept of contingency planning can and should be equally applied in our personal lives. We cannot reasonably expect individuals tasked with key emergency response roles, to be available to execute at work if they are suffering significant impacts in their own personal circumstances. Remember this is a holistic process, let’s work together to make our island a more resilient one!
[1] Source: iRisk Consulting Group