The International Organization for Standardization, in ISO 22300, defined “business continuity” as the capability of an organization to continue the delivery of its products or services, at acceptable predefined levels, following a disruptive incident.
It implies the responsibility of the business owners and management for the business in ensuring that it stays afloat and “on course” despite any obstacles or stumbling blocks it encounters along the way.
Thus, more attention is put on business continuity planning (BCP), which puts the company in a proactive position in planning how to ensure that it will still be able to deliver its critical products and services safely and smoothly, while meeting its legal, regulatory, and other obligations.
We can probably enumerate more than a dozen reasons why businesses should create and maintain BCP initiatives but, at the end of the day, there is only one ultimate goal or purpose for it, and that is to help ensure that the organization, business or company has the required resources, information, and capabilities to deal with emergencies and similar unexpected events, particularly their aftermath.
Incidentally, if the factory workers are paid on a monthly basis instead of on an output basis, they will still be paid their regular compensation rates.
This, on top of the lost revenue, will further cause a drop in the profits of the business.For example, if the disruption is caused by a blizzard leading to the closure of manufacturing facilities, there is a high chance that the facilities have been damaged, and will require some major repairs.Salvaging remaining equipment and machinery will also entail spending on transportation and hauling services.Of course, if profitability gets a major hit, this will also have adverse effects on business growth strategies.Business disruptions usually lead to the company spending more on incidental expenses in order to do some damage control.The moment it is unable to deliver the products and services that it promised, the trust levels of customers, stakeholders and other industry players for the company will suffer greatly.Lending institutions will think twice before granting any loans.Organizational resilience means that the business can weather any storm and withstand any hits, and still remain operational, productive and profitable.Being resilient means that the business is still able to recover and grow, bigger and stronger than ever.BCM is clearly described by the ISO to provide a framework for building organizational resilience, which will allow the organization to respond accordingly, in a way that protects the business, its reputation, and all other stakeholders.As a management process, BCM involves several key activities: In recognition of the reality of the economic and business landscape being unpredictable and volatile, businesses are now taking a lot of precautions to ensure that their operations will still stand a chance against unexpected disruptions.