Business Continuity Plans (BCPs) denote processes for outlining the potential consequences disaster situations may have on the overall operations of an organization. As such, they create policies and practices that ensure that businesses respond effectively to crises. Byers, Slack and Parent (2012) provide two reasons why BCPs are important in the life cycle of any business. First, they guarantee the protection of people, property, and assets in the business. Secondly, they incentivize the organization to recover effectively from financial loss, operational disruptions, and property damage in the event that an emergency occurs. In other words, it is vital to prepare businesses to handle the unexpected effectively. Indeed, safeguards must be put in place to ensure that organizations bounce back from any operational setback. These safeguards come in the form of BCPs. They create a template of acceptable service that ensures that organizations protect their corporate images and revenue streams in an emergency situation.
Various steps must be followed in the development of BCPs; a key point to note is that formulating a successful BCP lies in robustly understanding the extent to which a disaster situation may adversely impact a business. According to Fisher (1998), the first step in developing a BCP involves conducting thorough risk assessments. In other words, executives must first evaluate the risks the business faces. The second step incorporates designing a Business Impact Analysis (BIA), where information on critical business processes is gathered. The third step includes the development of the actual BCP, where the risk assessment and BIA findings are synthesized and processed to build an actionable blueprint. Finally, the organization and its executives conduct simulations to determine whether the plan meets identified needs. In a nutshell, a BCP requires intensive planning to ensure that all organizational needs are adequately protected.
References
Byers, T., Slack, T., & Parent, M. (2012). Key concepts in sport management (1st ed.). New York: SAGE Publications Limited.
Fisher, J. (1998). Contingency theory, management control systems and firm outcomes: Past results and future directions. Behavioral Research In Accounting, 10(1), 47–64.
