Business Continuity Management

Benefits Of Business Continuity Management

There are real business benefits to be gained from the implementation of business continuity management within any organisation. For example:

• Regulatory requirements
• Positive marketing of contingency capabilities
• Competitive advantage
• Insurance

Regulatory Requirements

In some industries a recovery capability is becoming a mandatory requirement. For example, regulators stipulate that financial organisations must have sufficient continuity and security controls to meet the business requirements. Failure to demonstrate tested recovery facilities could result in heavy fines.

Within the service community, there is also an obligation to provide continuous services, for example, hospitals, emergency services and prisons.

Positive Marketing of Contingency Capabilities

An organisation that can demonstrate effective business continuity management capabilities will provide high service levels to clients and customers, and thus win business.

Competitive Advantage

The ability to demonstrate contingency provision for systems failure is an increasing requirement when inviting service organisations to tender for business.

A sound business continuity management plan can prove a good incentive for customers to continue a business relationship, and becomes part of the competitive advantage used to win or retain customers.

Insurance

Effective business continuity management process can help organisations demonstrate to underwriters or insurers that they are proactively managing their business risks.

The ability to recover the business and mitigate losses is often a requirement of insurance policies. As such, organisations with comprehensive business continuity plans are lower risk, and premiums should reflect this. Alternatively, the organisation may feel comfortable in reducing cover or even self-insuring certain areas as a result of limiting potential losses.