Business Continuity Management (BCM) should be fundamental to any organisation’s risk management framework. It focuses on strategies to ensure operational continuity and swift recovery from disruptions, including disaster recovery for IT infrastructure and data access. While some organisations have successfully integrated BCM into their risk management framework, others may need to enhance their approach to stay ahead of evolving risks and challenges.
Disruptions over the past few years, such as the COVID-19 pandemic and the recent CrowdStrike technology outage, combined with ongoing risks like increasing cyber threats, geopolitical instability, regulatory changes, climate-related risks, and vendor risks, underscore the need for robust and adaptable business continuity strategies. Organisations that adopt holistic, flexible, and resilient management approaches often outperform their peers, demonstrating quicker recovery times, reduced operational downtime, enhanced customer trust, and a stronger ability to adapt to unforeseen events.
Evolving from Traditional to Future-Fit
To effectively address emerging risks, businesses must transition from traditional BCM practices to a more dynamic, future-fit approach. Unlike conventional methods focused primarily on IT and data recovery, a future-fit strategy embraces a broader view, extending beyond essential regulatory compliance. Key strategic insights include:
- Proactive Approach: Emphasize anticipating and preventing disruptions through regular risk assessments, monitoring emerging threats, and developing pre-emptive action plans. Ensure effective communication and coordination, integrating both BCM and crisis management. While BCM focuses on ensuring operational continuity and recovery from disruptions, crisis management addresses immediate responses to high-impact events. Together, they ensure preparedness for both expected and unexpected challenges.
- Automation: Leverage modern BCM tools to automate plan creation, updates, and execution, ensuring plans are current and comprehensive. Regularly review and update technology investments based on risk assessments.
- Holistic View: Consider all aspects of the business, including IT, supply chain, and human resources, to ensure that all critical functions are covered, and interdependencies are managed effectively. Integrate crisis management strategies to address high-impact, low-frequency events that could disrupt business operations.
- Continuous Improvement: Regularly test and refine plans based on real-time feedback and evolving business conditions. Prioritise BCM as a strategic function, allocate necessary resources, and secure board and top management backing.
In summary, adopting a future-fit strategy enables your organisation to proactively manage vulnerabilities and turn uncertainties into opportunities. Seamlessly integrate BCM into your enterprise risk management framework to enhance strategic coordination and alignment, ensuring your organisation is well-positioned to navigate future challenges.
Compiled by Carla Bester, Head of Risk and Compliance
