Around the globe, views on Business Continuity Management (BCM) vary, but quite often there is an idea that if a business is doing well, why would they need to invest time and money preparing for something that might never happened? Some businesses have a limited understanding of what BCM actually is, which usually leads them to ask why they need to have BCM in place at all.
Opinions also range from “It’s just common sense, isn’t it?” to “Where do we start?”.
In this blog, we look at the key reasons why a business should consider implementing a Business Continuity Management strategy.
When a business is under threat, the priorities become clear: maintain the cash flow, communication links, and protect the staff and premises.
Business continuity planning starts with a thorough analysis of the business to decide which parts are vital. Typically the questions asked include:
- Is that product or service really essential to what we do?
- Why do we need two of those, not one?
- If this person didn’t come back to the office again what would happen?
When viewed like this, the non-critical parts reveal themselves, including all of the procedures and resources that have appeared over the years, but might not be necessary. This allows you to tidy up your operation to improve efficiency – regardless of whether an incident occurs down the line.
One Step Ahead
Having a BCM plan in place can give you the edge over your competitors. For your customers, it shows your commitment to deliver no matter what happens.
To find and keep excellent staff you need to inspire confidence and maintain loyalty. When something goes wrong, they expect the business to have a plan and manage the situation effectively. A BCM plan can help you do this.
Insurance is an important aspect of addressing business risks, but it comes at a price. A robust BCM plan will demonstrate your commitment to managing risks and your insurer should consider this when calculating how much your insurance premium will be.
A good business continuity plan ensures compliance with your suppliers and vendors, especially if a crisis occurs.
A business continuity plan relies upon communication; being able to give the right person, the right info, and at the right time, in order to fix the problem or manage the incident. It’s also requires the ability to keep talking to customers, suppliers and staff even if your office or warehouse is inaccessible.
Normal day-to-day business can surely benefit from better communication, and so developing and improving these skills will be an asset across the wider business, beyond the BCM aspects and processes.
A business that has the power to handle any situation and still make money is a more valuable and reliable investment than a business that could potentially struggle to stay afloat in the event of a disaster of any scale.
A Negotiation Tool
Knowledge is power, and understanding the principles of BCM means you can spot weaknesses in other businesses, from your competitors, to your suppliers.
The fact is that there are a hundred and one things that can disrupt a business, and potentially damage it beyond repair. A well thought out, practical plan can mean the difference between coping with a disaster and having to close your doors.
Peace of Mind
While other business people lie awake at night, you can sleep peacefully knowing your business has planned ahead, and is ready, should the worst happen.