The Value of Business Continuity Planning

It is proven that there are no companies that are so big and powerful that nothing bad can happen to them. According to Federal Emergency Management Agency (FEMA) regarding the success of business that have experienced a major disaster that has become a business continuity/disaster recovery version, 40% of businesses do not reopen following disaster. On top of that, another 25% fail within one year. Yet, when there is no direct return on investment, it can be challenging to define the value of Business continuity planning, which is the process to develop, implement, and maintain strategies and procedures to ensure that key operations and essential business functions can continue or quickly be restored in the event of a disaster, major emergency, or significant threat to the organization and its operations.

Below are just few examples, not visible on P&L statement, of the value of business continuity that cannot be tied directly to the bottom line:

1.      Customers are increasingly adding business continuity capability as a factor in the procurement selection process

2.      Some if not all of your competitors are using fact that they have a comprehensive business continuity program as part of their marketing approach, especially if they believe you don’t have such a program. Business continuity is assurance to the client that products will be delivered as agreed.

3.      Most of the regulatory requirements today impose business continuity as practice for the organization. This is mainly applicable for financial institutions and other financial services providers that in any way, shape, or form handle or physically or electronically process other people’s money, as well as for healthcare businesses and pharmaceutical companies.

4.      In extreme situations, it just may be that the survival of your business, at least as you know it today, depends on the success of your business continuity program.

5.      Business continuity program protect interests of employees, owners, stockholders, customers, clients and all stakeholders including the general public.

6.      A deniable truth: Customers expect products and services to be available and delivered as agreed upon, and they expect that you will meet your contractual obligations even when disaster occur. Developing and implementing a business continuity program is the vehicle for meeting those expectations.

7.       In manufacturing systems, transition to smart manufacturing concept is crucial in today environment to exist and to meet the demand of clients. Developing, implementing and maintaining a comprehensive business continuity program enables your organization to have continued operations in the face of any threat of disasters, thereby avoiding damage to the company and brand name image, avoiding loss of market share, protecting the bottom line, retaining corporate net worth, helping to ensure the continuation of the business, assuring meeting client needs on-time and thus leading to continued operations efficiency and growth.

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