Need For
Business Continuity Management
Companies
should have good business continuity management
techniques in place. These would help
companies to identify, assess and manage
both external as well as internal risk
factors that may hinder business continuity.
Business continuity management strategies
will help keep the company working no
matter what kind of risk threatens its
operations. This will be helped greatly
if they have implemented well-developed
and customized enterprise risk management
strategies. The 9/11 attacks on the twin
towers reinstated the need for business
continuity management plans. It helped
create awareness at how unpredictable
risks can be and how nothing can prepare
us to deal with risks such as the attack
but an effort has to be made, to ensure
that a business can continue even after
such disasters strike.
If
companies have good business continuity
management plans, they may reduce potential
damages by as much as 90%. Due to poor business
continuity, management plans. About 150
companies went out of business during the
World Trade Center bomb attack. Bad insurance
coverage selection, inadequate risk management
guidelines and its implementation have resulted
in the closure of several businesses due
to fire attacks.
Business
Continuity Management Strategies:
Companies
can set up committees to structure business
continuity management strategies that are
customized to suit the needs of the business.
The committee should be given a budget and
a timeframe to develop the core plan, which
will then be implemented. They have to identify,
classify, assess and device strategies to
deal with the risks. They have to analyze
the impact the risks will have on the business
and take necessary action to minimize technical,
internal, external, economic, human, natural,
credit, market and operational risks etc.
Taking preventive measures such as getting
the right insurance coverage, implementing
safeguards and constant monitoring will
help companies become aware of risk indicators
and how to manage the risks to ensure business
continuity.
They
should make business continuity management
plans, which are logical, easy to implement
when the company has a need to implement
them and be written in a systematic fashion
so that it is execution and who needs to
do what is easily comprehended. These plans
have to be tested under realistic conditions
and assessed. The success of any business
continuity management plans is in its careful
execution and implementation. The employees
have to be informed and made to implement
these plans by introducing procedures and
policies to ensure they take preventive
measures against risks and deal in the prescribed
way if there be a need for it. They have
to plan how to deal with the media too if
need be.
Business
continuity management plans are necessary
to ensure the business suffers minimal losses
in case disaster strikes to ensure they
begin operating as soon as possible. There
are firms that offer their help and services
to help run a business smoothly.
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