What Are the Benefits of Business Continuity Planning?
Why Business Continuity During Disruption is Crucial
Business disruptions due to incidences like fire, power faults, flooding, terrorist activities and burglary among other factors are common. When such disruptions occur, it is necessary to bring back operations to normal within the quickest time possible. Having a flexible plan, therefore, becomes indispensable as part of a response strategy. It is a critical asset to any organizations as it clearly sets outs strategies and arrangements of bringing operations back to normal. It identifies the essential resources like machinery, human resource and other crucial elements that will maintain regular and routine activities in the organization.
When designing it, assets, processes, and resources critical to the business are identified. It is commonly done during risk assessment exercises. It may include roles of individuals, equipment needed and how long it will take before restoring full operations. Also, central departments that sustain the organization, suppliers, and other parties integral to daily routines are factored. It will, therefore, outline all the steps that the staff will follow to restore normal routine. Having a resilient continuity plan as part of a recovery strategy from the disaster has some benefits.
- Maintains services delivery: in the case of any disruptions, the organizations will be able to continue serving its clients and providing its services and products without necessarily halting operations as it runs the recovery process.
- It reduces the cost of disruptions by having activities run as normal as compared to shutting down due to disruptions.
- It demonstrates the company’s commitment and ability towards risk management and preparedness. Insurers will, therefore, lower the premiums the company pays towards risks and accept to cover extraordinary risks which may not be acceptable in normal circumstances.
- Ensures that the organization identifies the impact of an operational disruption.
- In the event of a disruption, it will enable the management to make haste decisions to restore normal routine and operations.
- It ensures the organization has an effective response plan which minimizes the impact of disruption on its operations.
- It will build and boost customer confidence as they will still enjoy the services despite a disturbance when others just fail and shut down.
- It helps boost the workers’ morale and trust in the management’s ability to deal with such cases knowing that their jobs are not at risk due to disruptions, and something is done to protect their livelihood.
- It provides an opportunity to save lives in case of a fatal incident.
- It gives the company’s products a competitive advantage and maintains and protects the image of the enterprise. The customers are likely to prefer your product leading to increased demand and prevent loss of clients. Also, the confidence of partners, shareholders and investors are tremendously improved.
- It helps the firm meet its regulatory, compliance and legal requirements by statutory bodies.
- It cuts down the potential financial loss and prevents possible devaluation of assets during accounting procedures if there is a positive continuity risk.
- It helps the company to be more resilient in the event of a disaster, gathers crucial information about the enterprise, enhances health and safety and develops proper organization’s culture.
- It’s instrumental in preserving brand value and company reputation.