What is Business Continuity Plan

August 3, 2014 1 Comment

Business continuity plan is otherwise known as disaster recovery plan or a business resumption plan. Business continuity plan is made while the business is running successfully. Crises can be natural (Hurricane, tsunami, earth quick, etc.) or man-made like political unrest, fire, labor strike. The end result of the plan is identification of the risks and the required actions, personnel.

Business ContinuityBusiness continuity plan is needed to support the organisational survival. It estimates that 25% of the businesses, especially small ones, do not service most of the crises that affect their operations because they are not ready. Business continuity plan not only ensure the organisation’s survival but also minimise the crises impact on the business. Employees and customer will be more loyal to the organisation and its brand knowing that the organisation will always deliver its products or services during difficulties and crises.

Expert in risk management with experienced employees in the organisations uncover the potential risks sounding the organisation’s operations. Each risk is classified according to its severity and likelihood. The risk is later treated according to its ranking. Organisation appetite toward the risk will decide to either avoid, control, accept or transfer the risk. The risk treatment is intended to find the principal actions, personnel and services needed to manage the incident and the recovery process after the incident. Continue reading …

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Risk Management And Communication Network

June 13, 2010 1 Comment

Lightning bolt struck Philips electronics manufacturing plant on March 2000. Small fire caused little damage but the smoke contaminated millions of chips ready for shipment to Nokia and Ericson. Through daily mentoring, Nokia estimated the damage and anticipated more losses from the delay in its cell phone production. Nokia sent an executive team to Philips to develop alternative production plans and setup another team to redesign the chips so as Philips and non-Philips manufactures can produce them. Another team was organized to look for additional manufacturers to produce the chips (Mukherjee, 2009). Ericsson and Nokia use 40% of the Philips’ plant production but Ericsson did not anticipate the risk in the plant’s production delay so Ericsson reported a major loss in that financial year while Nokia reported good profitability for the same year (Mukherjee, 2009). Risk management and excellent communication thorough a well establish business network helped Nokia overcome the delay and manage the risk efficiently.

References:

Mukherjee, A. (2009). The spider’s strategy: Creating networks to avert crisis, create change, and really get ahead. New Jersey, NY: Person Education.

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