Business Continuity Management (BCM) is a systematic approach to identify, assess and mitigate the potential impacts of disruptive events on an organisation. The goal of BCM is to ensure that an organisation can continue to operate and provide essential services in the event of a crisis or disruption. BCM encompasses a wide range of activities, including risk assessment, business impact analysis, crisis management, and testing & maintenance.
BCM is important in every organization, as it helps to ensure that the organisation can continue to operate and provide essential services in the event of a crisis or disruption. Disruptive events can have a significant impact on an organisation’s ability to provide services to customers, maintain revenue streams, and protect critical assets. Without effective BCM, an organisation may be unable to respond effectively to a crisis – resulting in significant financial losses, damage to reputation, and even legal and regulatory penalties.
Additionally, BCM also helps organisations to comply with various laws, regulations and industry standards, including those related to data protection, privacy and emergency management. Many organisations are also required to demonstrate compliance with BCM standards as a prerequisite for certain certifications, contracts and tenders.
In today’s fast-paced business environment, organisations are facing an increasing number of disruptions – whether natural disasters, cyberattacks or pandemics. Effective BCM is essential to ensure that an organisation can continue to operate and provide essential services in the face of these disruptions. By identifying potential risks, assessing the potential impact of disruptive events, and developing plans to mitigate the impact, organisations can reduce the likelihood of disruptions and minimise the impact when they do occur.
The key areas of BCM for any organisation type are:
- Risk assessment and management: Identifying potential risks to the bank’s operations and developing plans to mitigate or respond to them.
- Business impact analysis: Identifying which functions and processes are critical to the bank’s operations and determining the potential impact of a disruption on those functions and processes.
- Continuity planning: Developing plans and procedures for maintaining or quickly restoring critical functions and processes in the event of a disruption.
- Crisis management: Having a team in place to manage a crisis and communicate with stakeholders, such as customers and regulators.
- Testing and maintenance: Regularly testing and updating continuity plans to ensure they are effective and relevant.
- Compliance: Ensuring that the bank’s continuity management efforts comply with relevant laws and regulations.
- IT disaster recovery: Having a robust IT disaster recovery plan to ensure the bank’s IT systems can be restored quickly in the event of a disruption.
In the next part of this series, I will be providing details on how to conduct Risk Assessments for BCM purposes.
>>>The writer is a certified ISO 22301 Lead Implementer with 13+ years Banking experience in Enterprise Risk Management, Modeling & Portfolio analytics. She can be reached via email at [email protected]
