Summary

In summary, this article has the purpose to explain to the reader, the importance of Business Continuity Management (BCM) to ensure resilience. The article starts by explaining what a BCM is and the various concepts that it encompasses. With this context, it will be explained in more detail how a BCP should be implemented, tested and improved. Emphasis is placed on regular updates, risk assessments, and employee training to maintain the BCP’s effectiveness. By following these guidelines, organizations can better navigate disruptions, safeguard critical operations, and ensure long-term stability and success.

Introduction

The complexity of today’s digital landscape represents a big challenge for organizations seeking to protect their systems and assets, as threats are not only becoming more numerous but also increasingly complex and varied. These threats can range from natural disasters and cyber-attack (such as AI-enhanced phishing) to issues stemming from faulty code or configurations due to a lack of quality control.

The repercussions of these threats can be severe, leading to significant financial losses. These losses not only include revenue lost during downtime but also the damage inflicted on the organization’s reputation. According to IBM, the global average cost of a data breach in 2023 was 4.45 million dollars. Furthermore, breaches of data protection laws can result in hefty fines and court fees, exacerbating financial losses. Service outages can disrupt supply chains, paralyze vital operations and can erode customer trust.

Even with the latest software and security frameworks, achieving 100% protection is exceedingly difficult. No system can be completely safe from threats like cyber-attacks, given the rapid evolution of cyberthreats and the complexity of not only this cyberthreats but also of digital infrastructures. Therefore, it is crucial to address the threat of disruptions to business activities through Business Continuity Management (BCM).

The Role of Business Continuity Management (BCM)

The primary goal of Business Continuity Management (BCM) is to ensure that critical business functions continue to operate during and after a disaster, thereby minimizing the impact on the organization and its stakeholders. BCM encompasses a comprehensive approach to identifying potential threats and developing strategies to mitigate their effects.

A key component of BCM is conducting a Business Impact Analysis (BIA). The BIA identifies and evaluates the potential effects of disruptions on business operations. It helps to determine which business functions are critical and what are the underlying resources required to support them. By understanding the impact of various disruption scenarios, organizations can prioritize recovery efforts and allocate resources more effectively. The BIA also assists in identifying dependencies between different business functions and systems, ensuring an effective approach to continuity planning.

Another crucial element of BCM is the development of a Business Continuity Plan (BCP), which outlines the procedures and processes needed to maintain and restore critical operations during a disruption. This plan includes strategies for resource allocation, communication plans, and specific recovery steps to ensure that essential business activities can continue with minimal interruption.

Understanding Business Impact Analysis (BIA)

A Business Impact Analysis (BIA) is a crucial document that identifies critical functions and evaluates the impact of various disruptions on business operations. The BIA helps prioritize these critical functions to ensure business continuity.

The first step in creating a BIA is to identify critical functions. This involves meeting with stakeholders and examining all aspects of the business and their functions to determine which operations are essential for the organization’s survival and what are the underlying critical functions that support them.

Once these functions are identified, the next step is to assess the consequences of disruptions. This involves determining the Maximum Allowable Outage (MAO) for each critical function, which is the maximum time that function can be unavailable before it severely impacts the organization. It is important to note that the MAO can vary not only from function to function but also depending on the time of day due to varying levels of need for specific functions, for example if banking company has more activity during the day than by night than the MAO will be bigger during the night than the day.

Establishing the MAO allows us to set the Recovery Time Objectives (RTO), which is the maximum allowable time to restore a business process or system after a disruption. The RTO ensures minimal impact on operations and helps maintain continuity.

By collecting and analysing this data, organizations can develop a comprehensive Business Continuity Plan (BCP) that addresses the critical functions and outlines the steps needed to restore them in the event of a disruption. This ensures that the organization is prepared to handle emergencies effectively and continue operations with minimal interruption.

What is a BCP

The purpose of a Business Continuity Plan (BCP) is to minimize damage to an organization’s revenue and reputation by anticipating an unforeseen event and already having a plan to recover from them. It is essential to distinguish between a BCP and a Disaster Recovery Plan (DRP). While a BCP assesses potential risks, considers how disasters might impact various organizational activities, and offers a set of procedures to quickly continue or restore crucial processes, a DRP focuses more on the technological side of the business and aims to recover the organization’s digital infrastructure following a crisis.

A cohesive Business Continuity Plan (BCP) necessitates the cooperation of several teams and roles, each with distinct duties. The Crisis Management Committee (CMC), a group of senior executives in charge of making strategic choices during a crisis, is the highest-level body. The CMC makes sure that the organization’s reaction minimises the impact on crucial activities and is in line with its overall objectives. In the meanwhile, to guarantee that critical functions may continue or be quickly restored, the Business Continuity Management Team (BCMT) team concentrates on the operational side of continuity planning, creating and maintaining the BCP, and putting recovery methods into practice.

In addition, there will be a Business Continuity Coordinator (BCC) who serves as the primary link between the BCM team and the CMC, which makes them an essential part of this system. Through coordination and unambiguous communication, the BCC makes sure that the BCM team is aware of and able to carry out the strategic choices made by the CMC. By ensuring that an organization’s reaction to interruptions is both strategically smart and operationally successful, the CMC, BCM team, and BCC provides a strong hierarchy for business continuity.

The BCPs should also be clearly and concisely documented, with specific instructions for every critical task and clearly defined roles and responsibilities to ensure a coordinated and efficient response. Documenting the BCP in this manner ensures that everyone involved understands their duties and the steps necessary to maintain continuity during a disruption.

By following these steps, organizations can develop an effective BCP that safeguards their operations, revenue, and reputation against potential threats.

How to Implement and maintain BCP

The efficacy of a Business Continuity Plan (BCP) during a crisis depends on proper implementation. The plan must be shared with every employee, and their specific tasks and duties must be clear. Training is essential; frequent sessions ensure everyone is knowledgeable and ready to respond. It is also crucial to establish various communication channels for use during power outages and keep contact lists updated.

Regular reviews and monitoring of the BCP implementation are critical to identify flaws and areas for improvement. Regular evaluations and audits help maintain the plan’s relevance and effectiveness, ensuring that it continues to meet the organization’s needs.

To maintain the BCP’s efficacy, regular testing and improvement are necessary. Test scenarios should be realistic and challenging, simulating potential obstacles like natural disasters and cyberattacks. During testing, monitor performance and document all activities, noting what works well and areas needing attention.

After testing, produce a thorough report detailing findings, observations, and issues. Highlight discrepancies between expected and actual performance, such as downtime, to identify weaknesses and areas for improvement. Use this report to refine and enhance the BCP.

By taking these actions, businesses can ensure their BCP remains effective and ready for any disaster, maintaining continuity and minimizing disruptions. This proactive approach helps safeguard the organization against potential threats, ensuring a swift and coordinated response during emergencies.

Conclusion

In conclusion, the significance of being ready for unexpected interruptions cannot be emphasised enough. In a world where unforeseen occurrences may significantly disrupt corporate operations, having a solid strategy in place for these situations is critical. This is where BCM comes in, offering a systematic strategy to guaranteeing that vital services can continue or be quickly restored during a crisis. A well-developed BCM framework not only protects an organization’s income and reputation, but it also builds trust among stakeholders.

As threats and business environments evolve, regularly reviewing and updating the BCP ensures that it remains effective and relevant. By staying prepared, embracing BCM, and keeping the BCP current, businesses can navigate disruptions with greater resilience, securing their long-term success and stability.

Authors

Ricardo Rodrigues – CEO

João Videira – Cybersecurity Architect

References

AXA, 2021. AXA. [Online]
Available at: https://www.axa.co.uk/business-insurance/business-guardian-angel/how-to-write-a-business-continuity-plan/

continuity2, 2022. continuity2. [Online]
Available at: https://continuity2.com/blog/what-is-bcp-testing

IBM, 2024. [Online]
Available at: https://www.ibm.com/reports/data-breach

investopedia, 2024. investopedia. [Online]
Available at: https://www.investopedia.com/terms/b/business-continuity-planning.asp
[Accessed 2024].

MSPcorp, 2023. MSPcorp. [Online]
Available at: https://www.mspcorp.ca/the-cost-of-being-unprepared-why-every-business-needs-a-disaster-recovery-and-business-continuity-plan/