Except for time-bound enterprises, or business ventures that are started with the intention of terminating operations and liquidating the business at the end of a year or two, businesses are established with a long-term outlook.
Except for time-bound enterprises, or business ventures that are started with the intention of terminating operations and liquidating the business at the end of a year or two, businesses are established with a long-term outlook.Tags: Argumentative Thesis Statement On TerrorismResearch Papers On Employee EngagementUniversity Of California Irvine Creative WritingMsc Research ProposalGraphics Aqa CourseworkCauses Civil War EssayProquest Dissertations Uk2b Or Not 2b EssayEditing Thesis PapersHelp With Homework Questions
This responsibility is incorporated into the greater management process of the business, and what is also referred to as “Business Continuity Management”or BCM.
The Business Continuity Institute hit the nail right on the head when it described business continuity to be about “building and improving resilience in the business”.
You will probably be able to appreciate BCP even more if you have a clearer idea of what the business can gain from it.
All these threats must be taken seriously by companies, considering their various effects or impacts when they result in the disruption of business operations.
In a study of mid-sized companies that suffered a major disaster and had no contingency planning in place, it was revealed that, on average, their downtime cost amounted to $70,000 per hour. When their usual source of a specific product or service becomes unavailable, or unable to deliver their goods, customers will naturally look elsewhere for other sources.
Even the most loyal customers may be swayed out of their loyalties if the business fails to rise to the occasion.Of course, if profitability gets a major hit, this will also have adverse effects on business growth strategies.Business disruptions usually lead to the company spending more on incidental expenses in order to do some damage control.The International Organization for Standardization, in ISO 22300, defined “business continuity” as the capability of an organization to continue the delivery of its products or services, at acceptable predefined levels, following a disruptive incident.It implies the responsibility of the business owners and management for the business in ensuring that it stays afloat and “on course” despite any obstacles or stumbling blocks it encounters along the way.If we are to take the phrase “business continuity” for its surface value, the most obvious meaning would be the ability of the business or enterprise to continue operating as a going concern for a very long time.But the term actually means more than what the words literally mean.Organizational resilience means that the business can weather any storm and withstand any hits, and still remain operational, productive and profitable.Being resilient means that the business is still able to recover and grow, bigger and stronger than ever.Some of the most likely effects are: When a retail store does not open for a week, the potential income that it usually earns in a one-week period is gone.Similarly, when a manufacturing plant is unable to operate even for a couple of days, the company will not be able to produce the average output of finished goods for distribution.