What is business continuity?
Put simply, business continuity is about anticipating the events or circumstances that could hinder the running of a business, and planning to make sure that the business responds swiftly and continue to function in the event of an emergency.
A business continuity plan sets out clear roles and responsibilities, for example those assigned to manage all liaison with customers, employees and the emergency services. It lists a series of contingencies that enable key business activities to continue in the most difficult circumstances. Some examples of threats to a business are:
- a vital computer system is unavailable;
- critical process machinery is damaged;
- loss of key employees;
- the building, or part of the building, cannot be accessed, and;
- suppliers are unable to deliver.
Importantly, it also details clear emergency procedures to ensure that the safety and well-being of employees is a top priority. Because it requires an assessment of all critical areas of a firm, business continuity planning is a valuable management tool.
There is also the commercial benefit to consider, as companies with business continuity plans are more attractive to do business with. For example, large businesses that rely on the outsourced services of third parties will prefer to work with suppliers who have a Business Continuity Plan in place.