What is Business Continuity Management (BCM)?
The main goal of business continuity management (BCM) is to give the organization the ability to respond effectively to threats such as data breaches or natural disasters while also protecting the company’s business data. In general, it is a framework for determining a company’s internal and external threats.
Business recovery, disaster recovery, crisis management, emergency management, incident management, and contingency planning are elements of business continuity management (BCM).
The benefits of a business continuity management system is as follows:
- Continuous improvement based on objective metrics.
- Comprehension of the need for continuity and awareness of establishing business continuity management policy and its objectives.
- Putting in place and maintaining controls and measures to manage an organization’s overall continuity risks.
- The performance and effectiveness of the business continuity management system are monitored and reviewed.
Values involved in Business Continuity Management Program:
There are numerous reasons why a strong Business Continuity Management program is necessary. Here is a list of some of the most important reasons why Business Continuity Management should be prioritized:
Organizational demands for their vendors
Businesses benefit from a resilient supply chain that responds to disruptions faster than the competition. This capability will make the prepared company more appealing to larger organizations, which will benefit from the smaller company’s increased dependability. Requests for Proposals or RFPs now require potential vendors to show that they have Business Continuity Management programs in place.
For example, The FFIEC and the OCC (Office of the Controller of the Currency), which charters, regulates, and supervises all national banks and federal savings associations, as well as federal branches and agencies of foreign banks, are in charge of federally chartered banks. The Health Insurance Portability and Accountability Act is the primary regulatory consideration in the healthcare supply chain. All of these regulations necessitate continuous monitoring of the third party’s activities and performance.
Compliance with the law and regulations:
Regulation:Over 120 regulations instruct Business Continuity Management across a wide range of industries, including but not limited to energy, healthcare, and financial services. For example:
- For Energy – North American Electric Reliability Corporation (NERC).
- For Finance – Financial Industry Regulatory Authority (FINRA), and the Financial Services Authority (FSA).
- For Healthcare – Joint Commission on Accreditation of Healthcare Organizations (JCAHO) and Health Insurance Portability and Accountability Act (HIPAA).
- For International – Managed by International Regulatory Framework for Banks (BASEL III)
Management of Reputation and Resilience:
Business Continuity Management can assist organizations in protecting their reputation and increasing their resilience in the face of adversity, whether internal or external. Business Continuity Management can assist in protecting the brand from a variety of risks, including cyberattacks, delivering on promises to customers, and reducing downtime and recovery costs in the event of an incident.
To Increase Insurance Coverage:
Business Continuity Management improves an organization’s capability to transfer risk information. Companies that conduct a business impact analysis will be able to calculate the profit losses and the number of fixed costs that must be paid in the event of an incident that triggers an insured risk. This analysis will help you determine how much Business Interruption Insurance you need. It also aids in reimbursing lost profits caused by a business disruption at the premises of a customer or supplier.
Business Continuity Management Frameworks
Validation and testing: Risks and their consequences must be monitored, measured, and tested continuously. Following the completion of mitigation plans, they should be evaluated to ensure that they are functioning properly and cohesively.
Policies and Strategies: Managing continuity entails additional support from cyber-attack or natural disasters. It all begins with the policies and procedures that are tested, designed, and implemented after an incident occurs. Businesses must be clear about what a strategy covers, whether it is revenue-generating elements of the company or external-facing aspects of an organization.
Incident Identification: It is critical for business continuity. In policy records, occurrences should be monitored. These triggering actions should prompt the deployment of the defined business continuity plan and mobilize the team.
Risk Evaluation: Risk manifests itself in a variety of ways. A Business Impact Analysis as well as a Threat and Risk Assessment should be carried out. A crucial component of your strategy is to conduct a risk assessment to identify potential threats to the enterprise. A risk assessment identifies the various risks that may affect the enterprise.
Business impact assessment: It is a cataloging process that recognizes the data your company has, which can be collected, stored, and accessed. It also determines which data or applications are critical and how much downtime is acceptable if those data or apps are unavailable or down. Most enterprises strive for 100 percent uptime with redundant systems and storage capabilities. It also elevates the maximum amount of time required to restore applications to a functional state in the event of a sudden loss of service.