When discussing a business’s health, we often think of the financials or profit and loss, but we should think of it on a broader scale. A business continuity plan helps in that effort to keep the business running at its best at all times and, if necessary, implement the items in the plan. Bottom line: Your business needs to be taken care of, whatever may come, so prepare with a solid business continuity plan.
A recent report from Zendesk found that 73 percent of customers will switch to a competitor after multiple bad experiences. Customers have empathy and understanding to a point, so having a business continuity plan will help erase some of those potential issues.
Do you know what will happen if there’s a fire in your building and you need your entire business to work remotely for an unknown time? Well, if that question gives you a pit in your stomach, this post should help you. Let’s get into it.
What is Business Continuity Planning?
First, business continuity planning is a strategic process that helps organizations prepare and respond to disruptions thereby minimizing the impact on critical business functions.
Understanding and assessing key business processes is crucial for developing effective business continuity plans to reduce downtime and maintain essential operations during crises. Continuity planning involves identifying potential risks, developing mitigation strategies, and creating a plan to ensure business continuity in case of disaster or disruption. One of the benefits of a business continuity plan is that organizations of all sizes can use it to help defend against financial loss, reputational damage, and loss of customer trust.
The most relatable way to describe a business continuity plan is to think of it like you would a disaster recovery kit or plan for your home. You work through the evacuation plan and the place to meet in case of a fire. Additionally, this plan includes what happens when the power goes out or if a family member is unresponsive. There’s a balance between preparation and living in fear, but ultimately, you’d rather have a plan just in case, right?
Business Continuity Plans
A business continuity plan (BCP) is a comprehensive document that outlines procedures and instructions for responding to disruptions such as natural disasters, cyberattacks, or equipment failure.
A BCP should have a business impact analysis, risk assessment, and strategies for mitigating those risks and maintaining business continuity. It should also include detailed disaster recovery procedures, which are essential for defining clear recovery goals, outlining responsible personnel, and specifying backup and restoration processes. These plans should be widely available within your organization and shouldn’t be held by one person or just a small group.
Business continuity plans should be reviewed and updated regularly to ensure they’re effective and relevant. Additionally, new employees should be trained on the plan whenever hired.
Business Continuity vs. Disaster Recovery Plan
Business continuity planning and disaster recovery planning are related but different concepts.
Disaster recovery plans specifically target IT infrastructure and technology downtimes, focusing on restoring IT systems and data after a disaster. At the same time, business continuity planning encompasses broader organizational aspects, ensuring overall business operations. A disaster recovery plan is a piece of the overall business continuity plan. According to the Federal Emergency Management Agency (FEMA), 40 percent of SMBs never reopen after a natural disaster, and an additional 25 percent reopen but fail within a year.
When hammering out the details of the disaster recovery plan, you should create a scenario and test it. For instance, if the office power goes out, can everyone log in remotely to the communication platform and continue to help customers? With a trusted partner like Centratel, you’ll get a remote-capable UCaaS phone system from day one, so testing your various plans will be a breeze. A study from G2 found that using the cloud reduces downtime by 57 percent.
How to Create a Business Continuity Plan
Creating a business continuity plan involves several steps, including business impact analysis, identifying critical functions, and developing risk mitigation strategies.
The plan should have procedures for emergency response, communication, and decision-making, as well as a plan to restore business operations. The goal will be to get the business up and running as quickly as possible, but it will differ in how that’s completed. It all depends on what happened and what needs to occur to start operations again.
Business continuity plans should be tailored to the organization’s specific needs and risks, and the process will take time to be done correctly.
Business Continuity Impact Analysis
A business impact analysis (BIA) is crucial, definitely one of the benefits of a business continuity plan. It identifies the potential impact of disruptions to business operations, including financial loss, reputational damage, and loss of customer trust. The BIA should guide the development of the business continuity plan and ensure it is focused on the most critical business functions.
Testing and Updating
Testing and updating the business continuity plan is important to ensure its effectiveness. Testing should include tabletop exercises, simulations, and other forms of testing to ensure the plan is workable and effective. What needs to be done can’t be a secret. All team members should know all aspects of the plan.
For example, if your accountant is out of the office and the business bank accounts are hacked, someone needs to be authorized to speak on their behalf to the bank and start the recovery process with them. You don’t have the luxury of waiting until the accountant returns. The plan should be reviewed and updated regularly to ensure it’s relevant and practical.
Governance and Business Continuity Management
Governance and business continuity management are critical components of business continuity planning. Governance ensures that the business continuity plan is aligned with the organization’s goals and objectives, while business continuity management implements and maintains the plan. Effective governance and business continuity management are key to the success of the business continuity plan.
A Successful Company Needs an Equally Successful Business Continuity Plan
Utilizing the benefits of a business continuity plan is a critical component of organizational resilience and risk management. Organizations can develop effective plans that protect against disruptions and ensure business continuity by understanding the benefits and challenges of business continuity planning. It’s simple: for a business to survive, it must plan for disruptions, and how it manages those disruptions will determine its survival.
Centratel has your business’s back. Although your business continuity plan covers more than your IT infrastructure, we’re experts in helping companies avert complete disasters and get back up and running quickly. Contact us today, and let’s start mapping out your plans together.