Managing business environment is one of the challenges which organizations have no control over. There has been escalation in crisis, disasters, and emergencies as many companies enter into the market. Moreover, it is essential for organizations in either the public or private sector to develop a suitable and effective Business Continuity Management (BCM). According to ISO 22301, BCM is a holistic management method of identifying potential threats to organizational activities. BCM also provides a framework for which organizations build resilience to the identified threats and effectively respond. Business Continuity Management (BCM) plays an important role in risk management within the company.
Key Drivers of Business Continuity Management (BCM)
There it is important to understand the driving factors of Business Continuity Management (BCM), which ensure effective and reliable execution of the organizational plans. The key drivers of Business Continuity Management (BCM) include are highlighted below.
- Corporate Governance – With the changing legal requirements globally, business entities must adjust to comply with outlined laws and regulations. In order to run smoothly and efficiently, the organizations must meet the increasing demands of legislations and requirement by the industrial regulators. Under corporate governance, business entities must also comply with regulations relating to contract management. Before business activities commence, it is important to ensure the organization registers its activities to acquire a license of operation. BCM must integrate corporate governance in its plans to ensure that its organizational strategies fully complies with the outlines laws to eliminate possibility of closure or interruption of activities.
- Supply Chain and Customers – All businesses must prove their ability to satisfy the needs of their customers. External factors such as the demand and supply might affect the operation of the business. It is important that the business maintain continuous supply of the products and services to the customers. Supply chain involves a series of processes involved in manufacturing and distribution of commodities. In order to manage risks resulting from supply chain, it is important to involve the third party in planning, executing, and monitoring continuity strategies. The supply chain must concentrate on outsourcing duties that the service provides can offer at lower cost. Moreover, this ensures improvement in the performance and effectiveness.
- Environmental Issue – Globally, all businesses are integrating environmental issue into the production process. While producing, businesses must ensure sustainability of natural resources. Certain activities have negative impact on the environment. Pollution is one of the environmental issues, which many businesses experience. Moreover, many organizations are utilizing techniques that reduce environmental damage; as a result, there is reduction in the cost of sustainability management. To ensure improvement in the brand image, business organizations must ensure their product fully complies with environmental requirements in order to acquire international recognition.
- Communication and Public Relations – All organizations are vulnerable to crises thus, preparation to handle the risks is crucial. The business must freely interact with both the stakeholders to anticipate proactively the crises. Inadequate information and poor public relations increases the chances of the business to experience crisis. Upon realization of a gap in production process, it is importance to communicate with the management team to address the issue before it begins posing threats. Reacting to a crisis without adequate and credible information is likely to result in negative outcome and a waste of time.
Business Continuity Management (BCM) Life Cycle
This is an interactive process tool, which guides the implementation of effective Business Crisis Management process. Organizational assessment techniques vary from one organization to another.
An effective assessment ensures implementation of good practices that improves organizational level of competition and ability in the market. There are six stages involved in BCM life cycle, which include:
- Understanding the Business – In this stage, it is important to identify all the business activities and challenges faced. Understanding the strengths, weaknesses, opportunities, and threats of the business are important in planning as these factors determine the efficiency and effectiveness of business activities. Moreover, understanding factors that influence the operation of the business like political environment, economic and socio-economic factors, technological changes, and environmental issues affects the general operations of the business. Analyzing the business impacts, risk assessment, and control measure are some of the ways of understanding the business.
- Analyzing BCM Strategies – The main objective of BCM is to reduce the crisis resulting from failure of the organization to integrate economic determinant in the management process. BCM strategies are approaches used by business entities to ensure their recovery and continuity while experiencing disasters or activities, which interrupt the business. It is crucial the organizations analyze strategies related to audits like financial, Information Technology, human resources, and environment to improve accountability and efficiency. This stage also focuses on resources recovery technique.
- Developing and Implementing BCM Response – Planning is a process that requires time in order to meet its objectives. While developing a strategic response, it is important to consider both external bodies and relevant organizations. Proper planning allows the organization to identify the crises at an earlier stage and formulate methods of handling the crisis that is likely to occur. Communication, public relations, and media are some of the techniques organizations use to acquire information on the crisis to be handled. It is also crucial to note the methods that external organizations use in handling related crises. Poor implementation of the response often results due to under-estimation of the impact. As a result, this only gives a short-term solution to the problem.
- Creating and Implanting BCM Culture – BCM focuses on acquiring information from the public. Therefore, it is important to educate the management team on how to recognize crisis, which organizations are likely to experience. Awareness creation among the employees also plays a key role in ensuring sustainability of BCM culture within the organization. It is also important to integrate organizational culture in BCM while planning in order to reduce probability of occurrence of internal crisis.
- Exercising, Maintain, and Conducting Audits – Practicing BCM within an organization guarantees the management reduced or minimum levels of crisis. Therefore, it is significant to apply BCM technique at all the levels of the business. Even with implementation, crises still occur; thus, monitoring and evaluating implemented decision on methods of reducing the levels of crises. This step also involves testing of various technologies and staff rehearsal and ways they influence the occurrence crisis.
- The BCM programme – Considered a tool of managing crisis and reducing the likelihood of their occurrence, BCM requires the commitment of the management and their proactive participation. This ensures efficiency and effectiveness of the decision made. Moreover, management participation creates a sense belonging thereby. For proper implementation, the management must outline the roles for each member of the response team. The members must take up their responsibilities in ensuring the strategy complies with the outlined legal requirements.