A business continuity plan is a significant part of any business. It should be discussed and actioned during the planning of the business. There are many risks that are involved when running a business and you need to have a strategy in place in case of an emergency.
What is Business Continuity Plan?
A business continuity plan is a contingency plan for a business to minimise the risk in the event of any natural disasters human errors or any other unforeseen incidents. It can include backup facilities, technologies and a plan for restoring operations. In times of emergency, Business Continuity Plan acts as a backup measure to set the business back into place.
What is the Purpose of a Business Continuity Plan?
The purpose of a Business Continuity Plan (BCP) is to make sure that a company can continue its operations and function normally as usual even after a major disruption. A BCP is a document that outlines how a company will respond to a major disruption, such as a fire, a natural disaster, a cyber-attack etc.
The key to business continuity planning is to ensure that all staff members know what their role is if an emergency were to occur. There are numerous ways in which you can do this; you could hold a meeting with all staff and present the plan, send out emails to all staff or even run a workshop. Once staff understand their role in an emergency you need to ensure everyone has a copy of this plan at their disposal. It is important that all staff members know where their important documents are kept, such as invoices, contracts and customer details. If this information is lost then it may impact the business’s ability to continue trading and profit-making.
A BCP typically contains the following:
1. Business Impact Analysis:
This identifies the critical business functions and processes that need to be maintained in order for the company to survive. It also identifies the potential risks and vulnerabilities that could disrupt these functions.
2. Risk Management:
This section outlines the steps that the company will take to reduce the risk of a major disruption. This may include steps such as installing fire alarms and sprinkler systems, creating backup plans for critical data, and training employees on how to respond to a major disruption.
3. Disaster Recovery Plan:
This includes the steps that the company will take to recover from a major disruption. This may include steps such as setting up a backup office location, restoring data from backups, and hiring temporary employees to help with the recovery process.
What are the steps involved in Business Continuity Plan?
A business continuity plan (BCP) is a process to assure that a company can continue to operate usually even after a disaster. The BCP should include a plan for recovering data and restoring business operations. It should also include a plan for communicating with employees and customers.
- The initial step in a BCP is to assess the risks that the company faces. This includes assessing the risks caused due to natural disasters such as hurricanes and earthquakes, as well as the risks of man-made disasters such as external attacks or terrorist attacks etc. The company should also identify the critical functions that need to be maintained in order to continue to stay operating.
- The company should develop a recovery plan to cope with a disaster next to assessing the risks of the emergency. This plan should include procedures for restoring data and for restarting business operations. The company should also identify the personnel responsible for carrying out these procedures.
- The company should also develop a plan for communicating with employees and customers. This plan should include information on how to contact employees and customers and how to update them on the company’s status.
What does the Business Continuity Plan include?
The major part of business continuity planning is identifying the risks that could potentially disrupt your business and putting a plan in place to deal with them. This plan should involve all employees and figure out the persons responsible for each task in an emergency situation. It is essential that everyone is aware of the plan and knows their role in executing it; otherwise, the chances of successfully weathering an emergency greatly decline.
There are several ways you can make sure employees are familiar with the Continuity Plan, such as holding meetings or workshops, sending emails, or posting it in a visible location within the workplace. By following these precautions, you can shield your business from any potential disruptions.
This document with the Plan will outline the steps that need to be taken to ensure that the business can continue to operate in the event of a disaster.
The plan includes:
- Description of the major disruptions that could affect your business
- Plan to respond to each type of major disruption.
- Plan to restore business operations after a major disruption.
- Steps to take to ensure continued operations.
- A description of the key personnel and resources you will need to restore business operations
- Resources required for the implementation of the plan.
- Timeline for taking these steps
- Procedures for communicating with employees, customers, and vendors
- The Procedures for tracking and reporting the progress of the plan.
- Procedures for updating the plan
For instance, let’s see an emergency fire has broken out in the building and the smoke is making it difficult to breathe. The steps to ensure continued operations are as below:
- Evacuate the building and call the fire department
- Notify employees, customers, and vendors of the emergency and the steps that need to be taken
- Secure the premises
- Relocate to an alternate location
- Restart operations at the alternate location
However, the above-stated incident is an instance to explain the kind of emergency that would affect the organisations where the Business Continuity Plan need to be put into action. But, the business continuity plan should be reviewed and updated regularly to ensure that it is up to date. Else, the plan does not work out in the required situation and ends in vain.
When is Business Continuity Plan actually required?
Determining whether or not a Business Continuity Plan is necessary requires careful consideration of a number of factors. One of the most important factors is the potential impact of an interruption or disaster on the business. If the impact would be severe, then a Business Continuity Plan is likely necessary.
Another important factor to consider is the likelihood of an interruption or disaster occurring. If there is a high likelihood that one will occur, then a Business Continuity Plan is again likely necessary. Consideration of these and other factors will help businesses determine whether or not a Business Continuity Plan is right for them.
Once it has been determined that a Business Continuity Plan is necessary, it is important to tailor the plan to the specific needs of the business by the Business Continuity Planner.
However, the plan should be reviewed and updated regularly to ensure that it remains effective. By taking these steps, businesses can be better prepared to handle disruptions and keep operations running smoothly during difficult times.