Business Continuity Plan

Business continuity planning refers to analyzing and evaluating an organization’s weaknesses and threats, externally as well as internally. In addition, it includes synthesizing strengths and opportunities of the organizations in order to keep the business competitive and to provide for it a protective shield from such forces.

The basic aim for Business Continuity Plan (BCP) is to plan for a methodology that aims for the continuity of the business in regards to how the business needs to be governed and how the needs and of the business can be fulfilled. It aims at evaluating the long term continuity of the business in line with business goals.

Every organization faces the risk of disaster, may it be a natural disaster like an earthquake or a tsunami, or a policy implication like a decrease in the interest rate by the central bank. These interruptions are expected to cause fluctuations and disruption in business activity, which if not accounted for can cause serious implications for the organization. These business continuity plans play the role of a rescuer during times of crises caused by natural or manmade disasters and ensure the continuity of the business and help the organization to keep its functions operative. These plans facilitate quick and smooth transition in case of any disruptive event. These plans call for testing, training and maintenance.

Formulating a business continuity plan depends on the organization making it. It varies from business to business. Although, it is an essential component for any organization if continuity of the business has to be maintained or rather prolonged. For example, policy announcement of a decrease in interest rates may come down like lightening for the business that is involved in stock trading. Some businesses might go bankrupt while others may make the fortune of their lives. If the business has a backup plan only then can it ensure its survival. In addition, power failure at the nuclear plant in Japan this year posed serious threats to the country itself and nations worldwide. It was expected to cause serious damages to the world if the nuclear reactors have had exploded due to heat, this is because power cut down had halted the cooling process of reactors. However, it was their alternative planning which can be put forth as business continuity planning that helped them to cool off the reactors at the same time ensuring electricity provision in the country. Thus, such planning prevented them from a disaster that could have caused have catastrophe globally.

What a Business Continuity Plan Aims ?

A business continuity plan should firstly aim for reducing the risk and secondly for resumption of business activity in case of a disaster. The core operations of the business should be identified and should be set on the priority list to ensure continuity. Moreover, emergency plans need to be formulated so that the organization is managed even during crisis time. Targets and limits should be identified and supporting activities and operations should be devised that can be put to use in case. For a business continuity plan to work successfully, it should be appropriately constructed and should involve all levels of management.

Business Continuity Plan Sources:

• Preparing a Business Continuity Plan by emd.wa.gov

• Disaster Recovery & BCP by phs.pima.gov

• IT Business Continuity Plan by ffiec.gov

• Policy of BCP for Trading Markets by sec.gov

• BCP Forms and Examples by oregon.gov