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What is a business continuity plan (bcp), and how does it work.

uses of business continuity plan

Investopedia / Ryan Oakley

What Is a Business Continuity Plan (BCP)? 

A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster.

Key Takeaways

  • Business continuity plans (BCPs) are prevention and recovery systems for potential threats, such as natural disasters or cyber-attacks.
  • BCP is designed to protect personnel and assets and make sure they can function quickly when disaster strikes.
  • BCPs should be tested to ensure there are no weaknesses, which can be identified and corrected.

Understanding Business Continuity Plans (BCPs)

BCP involves defining any and all risks that can affect the company's operations, making it an important part of the organization's risk management strategy. Risks may include natural disasters—fire, flood, or weather-related events—and cyber-attacks . Once the risks are identified, the plan should also include:

  • Determining how those risks will affect operations
  • Implementing safeguards and procedures to mitigate the risks
  • Testing procedures to ensure they work
  • Reviewing the process to make sure that it is up to date

BCPs are an important part of any business. Threats and disruptions mean a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition. It is generally conceived in advance and involves input from key stakeholders and personnel.

Business impact analysis, recovery, organization, and training are all steps corporations need to follow when creating a Business Continuity Plan.

Benefits of a Business Continuity Plan

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic. Business continuity planning is typically meant to help a company continue operating in the event of major disasters such as fires. BCPs are different from a disaster recovery plan, which focuses on the recovery of a company's information technology system after a crisis.

Consider a finance company based in a major city. It may put a BCP in place by taking steps including backing up its computer and client files offsite. If something were to happen to the company's corporate office, its satellite offices would still have access to important information.

An important point to note is that BCP may not be as effective if a large portion of the population is affected, as in the case of a disease outbreak. Nonetheless, BCPs can improve risk management—preventing disruptions from spreading. They can also help mitigate downtime of networks or technology, saving the company money.

How To Create a Business Continuity Plan

There are several steps many companies must follow to develop a solid BCP. They include:

  • Business Impact Analysis : Here, the business will identify functions and related resources that are time-sensitive. (More on this below.)
  • Recovery : In this portion, the business must identify and implement steps to recover critical business functions.
  • Organization : A continuity team must be created. This team will devise a plan to manage the disruption.
  • Training : The continuity team must be trained and tested. Members of the team should also complete exercises that go over the plan and strategies.

Companies may also find it useful to come up with a checklist that includes key details such as emergency contact information, a list of resources the continuity team may need, where backup data and other required information are housed or stored, and other important personnel.

Along with testing the continuity team, the company should also test the BCP itself. It should be tested several times to ensure it can be applied to many different risk scenarios . This will help identify any weaknesses in the plan which can then be corrected.

In order for a business continuity plan to be successful, all employees—even those who aren't on the continuity team—must be aware of the plan.

Business Continuity Impact Analysis

An important part of developing a BCP is a business continuity impact analysis. It identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis. The worksheet should be completed by business function and process managers who are well acquainted with the business. These worksheets will summarize the following:

  • The impacts—both financial and operational—that stem from the loss of individual business functions and process
  • Identifying when the loss of a function or process would result in the identified business impacts

Completing the analysis can help companies identify and prioritize the processes that have the most impact on the business's financial and operational functions. The point at which they must be recovered is generally known as the “recovery time objective.”

Business Continuity Plan vs. Disaster Recovery Plan

BCPs and disaster recovery plans are similar in nature, the latter focuses on technology and information technology (IT) infrastructure. BCPs are more encompassing—focusing on the entire organization, such as customer service and supply chain. 

BCPs focus on reducing overall costs or losses, while disaster recovery plans look only at technology downtimes and related costs. Disaster recovery plans tend to involve only IT personnel—which create and manage the policy. However, BCPs tend to have more personnel trained on the potential processes. 

Why Is Business Continuity Plan (BCP) Important?

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic and business continuity plans (BCPs) are an important part of any business. BCP is typically meant to help a company continue operating in the event of threats and disruptions. This could result in a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition.

What Should a Business Continuity Plan (BCP) Include?

Business continuity plans involve identifying any and all risks that can affect the company's operations. The plan should also determine how those risks will affect operations and implement safeguards and procedures to mitigate the risks. There should also be testing procedures to ensure these safeguards and procedures work. Finally, there should be a review process to make sure that the plan is up to date.

What Is Business Continuity Impact Analysis?

An important part of developing a BCP is a business continuity impact analysis which identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis.

These worksheets summarize the impacts—both financial and operational—that stem from the loss of individual business functions and processes. They also identify when the loss of a function or process would result in the identified business impacts.

Business continuity plans (BCPs) are created to help speed up the recovery of an organization filling a threat or disaster. The plan puts in place mechanisms and functions to allow personnel and assets to minimize company downtime. BCPs cover all organizational risks should a disaster happen, such as flood or fire.  

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15 - 17.

Ready. “ IT Disaster Recovery Plan .”

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15-17.

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What Is A Business Continuity Plan? [+ Template & Examples]

Swetha Amaresan

Published: December 30, 2022

When a business crisis occurs, the last thing you want to do is panic.

executives discussing business continuity plan

The second-to-last thing you want to do is be unprepared. Crises typically arise without warning. While you shouldn't start every day expecting the worst, you should be relatively prepared for anything to happen.

A business crisis can cost your company a lot of money and ruin your reputation if you don't have a business continuity plan in place. Customers aren't very forgiving, especially when a crisis is influenced by accidents within the company or other preventable mistakes. If you want your company to be able to maintain its business continuity in the face of a crisis, then you'll need to come up with this type of plan to uphold its essential functions.

Free Download: Crisis Management Plan & Communication Templates

In this post, we'll explain what a business continuity plan is, give examples of scenarios that would require a business continuity plan, and provide a template that you can use to create a well-rounded program for your business.

Table of Contents:

What is a business continuity plan?

  • Business Continuity Types
  • Business Continuity vs Disaster Recovery

Business Continuity Plan Template

How to write a business continuity plan.

  • Business Continuity Examples

A business continuity plan outlines directions and procedures that your company will follow when faced with a crisis. These plans include business procedures, names of assets and partners, human resource functions, and other helpful information that can help maintain your brand's relationships with relevant stakeholders. The goal of a business continuity plan is to handle anything from minor disruptions to full-blown threats.

For example, one crisis that your business may have to respond to is a severe snowstorm. Your team may be wondering, "If a snowstorm disrupted our supply chain, how would we resume business?" Planning contingencies ahead of time for situations like these can help your business stay afloat when you're faced with an unavoidable crisis.

When you think about business continuity in terms of the essential functions your business requires to operate, you can begin to mitigate and plan for specific risks within those functions.

uses of business continuity plan

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Manage, plan for, and communicate during your corporate crises with these crisis management plan templates.

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  • Post-Crisis Performance Grading Template
  • Additional Crisis Best Management Practices

You're all set!

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Business Continuity Planning

Business continuity planning is the process of creating a plan to address a crisis. When writing out a business continuity plan, it's important to consider the variety of crises that could potentially affect the company and prepare a resolution for each.

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5 Step Guide to Business Continuity Planning (BCP) in 2021

A business continuity plan provides a concrete plan to maintain business cohesion in challenging circumstances. Click here for the key steps that can help you formulate a formidable BCP.

A business continuity plan (BCP) is defined as a protocol of preventing and recovering from potentially large threats to the company’s business continuity. This article explains what a business continuity plan is today, its key benefits, and a step-by-step guide to creating a formidable plan.

Table of Contents

What is a business continuity plan (bcp), key benefits of having a business continuity plan, step-by-step guide to building a formidable business continuity plan (bcp) in 2021.

A business continuity plan (BCP) is a protocol of preventing and recovering from potentially large threats to the company’s business continuity. Such a plan often aims to address the need for updated business norms and operational standards in unpredictable circumstances such as natural disasters, data breach/ exposures, large scale system failures etc. The goal of such a plan is to ensure continuity of business with no or little damage to regular working environments, including job security for its employees.

It covers everything from business processes, human resources details, and more. Essentially a BCP provides a concrete plan to the organization to maintain business continuity even in challenging circumstances. 

Below are key reasons why businesses need to have a BCP today:

  • BCP’s relevance has gone up considerably after the outbreak of the COVID-19 pandemic and was also a major testing time for organizations that did have such a plan in place. The organizations which had a business continuity plan in place were better able to cope during these unprecedented circumstances better than those who did not have any such plans.
  • The recorded number of natural disasters has increased from 375 in 2016 to 409 in 2019 Opens a new window . Globally, the loss because of natural disasters was $232 billion in 2019, according to a study by Aon Opens a new window .
  • The number of cyberattacks has also increased in all geographies and all business verticals. MonsterCloud reported that cyberattacks have skyrocketed during the COVID-19 pandemic. All this means that the organizations have to be better prepared to fight disasters. The importance of BCP can hardly be exaggerated in this context. Preparing a BCP is imperative for any enterprise, big or small, today. 

The end goal of a BCP is to ensure that the essential services continue to run in the event of an incident. For instance, if there is an earthquake where your customer service representatives operate from, your BCP will be able to tell you who will handle customer calls until the original office is restored.

Also Read: What Is Disaster Recovery? Definition, Cloud and On-premise, Benefits and Best Practices

Difference between a business continuity plan (BCP) and disaster recovery plan (DCP)

A BCP is often confused with a disaster recovery (DR) plan. While a DR plan is primarily focused on restoring the IT systems and infrastructure, a BCP is much more than that. It covers all areas and departments of the organization, including HR, marketing and sales, support functions. 

The underlying thought behind BCP is that IT systems can hardly work in silos. Other departments also need to be restored to cater to the client or for meeting the business demands. 

“Many people think a disaster recovery plan (DRP) is the same as a business continuity plan, but a DRP is only a small, yet essential, a portion of a full BCP. A DRP focuses solely on restoring an organization’s IT infrastructure while minimizing data loss. On the other hand, a BCP is a comprehensive guide on how to continue the mission and business-critical operations during a time of an unplanned disruption (natural disasters, pandemics, or malware),” says Caleb Pipkin, a security expert at Logically . 

Whether a business is small, big, or medium-sized, it needs a ‘plan B’ to recover quickly in the event of a natural disaster or a crisis and can survive the disruption. BCP helps you dust yourself and get back to business quickly and easily. It means that the enterprise will be better placed to address their customers’ needs even in the wake of a disaster. 

On the other hand, the lack of a plan means that your organization will take longer to recover from an event or incident. It could also lead to loss of business or clients. Let’s look at some key benefits of BCP.

1. It is a roadmap to act in a disaster

A well-defined business continuity plan is like a roadmap during a disruption. It allows the firms to react swiftly and effectively and maintain business continuity. In turn, this leads to a faster and complete recovery of the enterprise in the shortest possible timeframe. It brings down the business downtime and outlines the steps to be taken before, during, and after a crisis and thus helps maintain its financial viability. 

2. Offers a competitive edge

Fast reaction and business continuity during a disruption allow organizations to gain a competitive edge over its business rivals. It can translate into a significant competitive advantage in the long run. Further, your clients will be more confident in your ability to perform in adverse circumstances allowing you to build a long and sustainable relationship with your business partners.

Developing competence to act and handle any unfavorable event effectively has a positive effect on the company’s reputation and market value. It goes a long way in enhancing customer confidence. 

Also Read: Top 8 Disaster Recovery Software Companies in 2021

3. Cuts down losses

Disasters have a considerable impact on all types of business, whether big or small. Business disruption can lead to financial, legal, and reputational losses. Failure to plan could be disastrous for businesses. You may lose your customers while trying to get your business on track. In the worst circumstances, you may not be able to recover at all. A well-defined business continuity strategy minimizes the damage to an organization and allows you to bring down these losses as much as possible. 

4. Enables employment continuity and protects livelihoods

One of the most significant consequences of a disaster is the loss of employment. The loss of livelihood can be curtailed to an extent if the business continues to function in the event of a disaster. It leads to greater confidence in the workforce that their jobs might not be at risk, and the management is taking steps to protect their jobs. It helps build confidence in senior management’s ability to respond to the business disruption in a planned manner. 

5. Can be life-saving

A regularly tested and updated BCP can potentially help save the lives of the employees and the customers during a disaster. For instance, if the BCP plan for fire is regularly tested, the speed with which the workforce acts can help save lives. 

6. Preserves brand value and develops resilience

Possibly the biggest asset of an organization is its brand. Being able to perform in uncertain times helps build goodwill and maintain its brand value and may even help mitigate financial and reputational loss during a disaster. 

BCP curtails the damage to the company’s brand and finances because of a disaster event. This helps bring down the cost of any incident and thus help the company be more resilient. 

Also Read: 10 Best Practices for Disaster Recovery Planning (DRP)

7. Enables adherence to compliance requirements

Having a BCP allows organizations to have additional benefits of complying with regulatory requirements. It is a legal requirement in several countries.

8. Helps in supply chain security

A precise BCP goes a long way in protecting the supply chain from damage. It ensures continuity in delivering products and services by being able to perform critical activities.

9. Enhances operational efficiency

One of BCP’s lesser-known benefits is that it helps identify areas of operational efficiency in the organization. Developing BCP calls for an in-depth evaluation of the company’s processes. This can potentially reveal the areas of improvement. Essentially, it gathers information that can benefit in enhancing the effectiveness of the processes and operations. 

Also Read: 7 Ways to Build an Effective Disaster Recovery and Business Continuity Plan  

The COVID-19 pandemic has put the spotlight on preparing for a disaster like never before. We make the job easier for you by listing out the key steps in building a formidable business continuity plan: 

How to Build a Business Continuity Plan

How to Build a Business Continuity Plan

Step 1: Risk assessment 

This phase involves asking crucial questions to evaluate the risks faced by the company. What are the likely business threats and disruptions which are most likely to occur? What is the most profitable activity of your organization? It is vital to prioritize key risks and operations, which will help mitigate the damage in the event of a disaster. 

Step 2: Business impact analysis

The second step involves a thorough and in-depth assessment of your business processes to determine the vulnerable areas and the potential losses if those processes are disrupted. This is also known as Business Impact Analysis . 

Essentially, Business impact analysis (BIA) is a process that helps the organization define the impact if critical business operations are interrupted because of a disaster, accident, or emergency. It helps in identifying the most crucial elements of the business processes. For instance, maintaining a supply chain might be more critical during a crisis than public relations.

While there is no formal standard for a BIA, it typically involves the following steps: 

  • Collating information: As a first step, a questionnaire is prepared to find out critical business processes and resources that will help in the proper assessment of the impact of a disruptive event. One-on-one sessions with key management members may be conducted further to gain insights into the organization’s processes and workings.
  • Analysis: This is followed by analyzing the collected information. A manual or computer-assisted analysis is conducted. The analysis is based on an interruption in which crucial activities or resources are not available. Typically it works on the assumption of the worst-case scenario, even when the chances of a risk likelihood are low. This approach is followed to zero in on the systems that, when disrupted or interrupted, threaten the organization’s very survival. This way, these processes are prioritized in the business continuity plan. 

The analysis phase helps identify the minimum staff and resources required for running the organization in the event of a crisis. This also allows the organizations to assess the impact on the revenue if the business is unable to run for a day, a week, or more. There might be contractual penalties, regulatory fines, and workforce-related expenditure which need to be taken into account while finding out the impact on the business. Further, there might be specific vulnerabilities of the firm, and they need to be considered in the BIA. 

  • Preparing a report: The next step is preparing a BIA report, which is assessed by the senior management. The report is a thorough analysis of the gathered information along with findings. It also gives recommendations on the procedure that should be followed in the event of a business disruption. The BIA report also shares the impact on the revenue, supply chain, and customer delivery to the business in a specific time frame. 

The business impact analysis report may also include a checklist of all the resources, such as the names of key personnel, data backup , contact information, emergency responders, and more.

  • Presenting the report: Usually, this report goes through several amendments before being cleared by the senior management. The involvement of senior management is crucial to the success of the business continuity plan. It sends out a strong signal in the organization that it is a serious initiative. 

Also Read: Will Extreme Weather Events Affect Your Business? Lessons From the Texas Winter Storm

Step 3: BCP Testing

Several testing methods are available to test the effectiveness of the BCP. Here are a few common ones: 

  • TableTop test: As the name suggests, the identified executives go through the plan in detail to evaluate whether it will work on not. Different disaster types and the response to them are discussed at length. This type of testing is designed to make all the key personnel aware of their role in the event of a disaster. The response procedure is reviewed, and responsibilities are outlined, so everybody knows their roles.
  • Walk through: In this type of testing, the team members go through their part in the plan with a specific disaster in mind. Drills or a simulated response and disaster role-playing are part of this. This is a more thorough form of testing and likely to reveal the shortcoming in the plan. Any vulnerabilities discovered should be used to update the BCP accordingly.
  • Disaster simulation testing: In this type of testing, an environment that simulates an actual disaster is created. This is the closest to the actual event and gives the best case scenario about the plan’s workability. It will help the team find gaps that might be overlooked in the other types of tests. Document the results of your testing so you can compare the improvement from the previous tests. It will help you in strengthening your business continuity plan. 

Frequency of testing – Typically, organizations test BCP at least twice a year. At the same time, it depends on the size of your organization and the business vertical you operate in.

Step 4: Maintenance

A business continuity plan should not be treated as a one-time exercise. It needs to be maintained , so the organization’s structural and people changes are updated regularly. The key personnel might move on from the firm, and this would need to be updated in the Business Impact Analysis and BCP. The process for regular updating of the documentation should be followed to ensure that the organization is not caught on the wrong foot in case of a business disruption. 

Also Read: Offsite Data Replication: A Great Way To Meet Recovery Time Objectives

Step 5: Communication

Sometimes executives tend to ignore communication while preparing a BCP. It is a crucial aspect, and your BCP should clearly define who will maintain the communication channels with the employees, regulators, business partners, and partners during the crisis. The contact information of the key people should be readily accessible for the BCP to work without any trouble.

In the end, the organizations should accept that despite preparing a formidable business continuity plan, several factors beyond your control may still affect its success or failure. The key executives might not be available in the event of a crisis; both the primary and the alternate data recovery sites might have been affected by the event; the communications network might be damaged, and so on. Such factors are common during a natural disaster and may lead to the limited success of the business continuity plan. 

The success of a business depends on it acting swiftly and efficiently when confronted with an unanticipated crisis. Any failure to do so results in a financial and reputational loss, which takes up a long time to recover. It can be avoided if the organization quickly gathers itself during a disaster. A business continuity plan is then of paramount importance for a business of any size. At the same time, it is crucial to ensure that the BCP is not a one-time exercise. It needs to be continuously evaluated, tested, amended, and maintained so it doesn’t let you down when you need it the most. 

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How to craft an effective business continuity plan

uses of business continuity plan

Let me take you back in time to the United Kingdom in the 1970s. Punk music was gaining popularity, and the Sex Pistols entered the punk rock scene with the force of a shooting star, capturing fans’ attention.

How To Craft An Effective Business Continuity Plan

But as quickly as they arrived, they quickly left the scene. When they broke up in 1978 after a period of internal conflicts, legal troubles, and their frontman’s imprisonment, fans were left both shocked and surprised.

Just like the Sex Pistols, plenty of companies experience rapid growth and success, only to face unexpected challenges and internal conflicts that result in their downfall.

In this article, we’ll draw inspiration from the Sex Pistols’ turbulent journey to explore the concept of business continuity planning (BCP). We’ll look at what a BCP is, why you need one and delve into the strategies and contingency measures that can help you maintain your rhythm and continuity, even when faced with the inevitable storms that can disrupt your operations.

What is a business continuity plan?

A business continuity plan describes how you’ll continue your business when disaster hits. It is a structured strategy outlining how your organization will maintain essential functions when disaster strikes, to ensure minimal downtime and guarantee that operations continue.

Why do you need a BCP in place?

The BCP is crucial and revolves around ensuring your resilience and ability to continue operating in the face of unexpected disruptions, such as natural disasters, cyberattacks, or other emergencies.

Let’s look at it a bit closer, and understand some of the key reasons to have a BCP better:

Minimize downtime

Protect revenue and reputation, compliance and legal requirements, resource allocation, maintain customer service, employee safety.

A BCP helps you minimize downtime. It does this by providing a structured approach to quickly recover and resume your critical business functions.

Example: You’re a retail company with an extensive online presence. If your website experiences a cyberattack that takes it offline, a well-prepared BCP outlines the steps to take to mitigate the attack, get your website back up in no time, and allow you to continue serving your customers.

No one likes disruptions as they result in revenue loss and can damage your reputation. A BCP helps you protect against financial losses and keep customer trust.

Example: You’re the owner of a restaurant chain with multiple locations and one of your branches has a food safety crisis. A BCP can guide you in managing the crisis, ensuring food safety compliance, and communicating effectively with customers to maintain trust in the brand and other locations.

Some industries, like the financial, and pharma industries, have regulatory requirements that mandate businesses to have BCPs in place. Failure to do so has legal and financial consequences.

Example: You’re the owner of a FinTech company. You are required by regulators to have robust BCPs to ensure customer data security and financial system stability.

When a crisis hits you need the right resources to get you back up and running. A BCP helps allocate resources effectively during a crisis, ensuring that personnel, equipment, and materials are used efficiently to address the most critical needs.

uses of business continuity plan

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uses of business continuity plan

Example: You’re a manufacturing company hit by a sudden supply chain disruption because the Suez Canal is blocked again. You use your BCP to allocate available resources to meet customer demands and minimize production delays.

When all hell breaks loose you want to make sure customer experience takes a minimum blow. A BCP outlines measures to maintain customer service and communication, so customers receive timely updates and support.

Example: You run an airline and there is a labor strike. Your BCP tells you how to manage customer inquiries, rebook affected passengers, and maintain a level of service.

Let’s not forget about the well-being of your employees. During a crisis, this is a top priority. A BCP includes procedures for evacuations, remote work arrangements, and employee support.

Example: There is a fire at your workplace. The BCP outlines evacuation routes, assembly points, and contact information for employees to report their safety status.

Business continuity planning: Steps for success

That’s a lot of reasons, right? Now that we addressed the necessity and urgency of having BCP, let’s look at 5 steps to creating a successful one:

  • Analyze your company
  • Assess the risk
  • Create the procedures
  • Get the word out
  • Iterate and improve

1. Analyze your company

In this phase you conduct an analysis to identify critical activities, determine which activities must continue, which can be temporarily paused, and which can operate at a reduced capacity.

You then assess the financial impact of disruptions. This involves asking yourself the question, “How long can I operate without generating revenue and incurring recovery costs?”

As this step covers your whole company, it’s important to get key stakeholders involved from the beginning.

2. Assess the risk

Now you have a good overview of your critical processes and the impact of disruption. At this point, pivot your attention to the risks they face, how well you can handle when things don’t work as usual, and how long you can manage if things go wrong.

The goal here is to understand what could go wrong and find ways to avoid, reduce, or transfer them. This assessment will help you strengthen your preparedness and resilience.

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Think about risks specific to your industry and location

It’s important to consider both internal (e.g. an IT system failure or employee shortage) and external threats (e.g. a natural disaster or supply chain disruption) to your critical business activities.

3. Create the procedures

Once you analyze and assess, you need to create procedures.

Develop detailed, step-by-step procedures to minimize risks to your organization’s people, operations, and assets. This can include changes to your operating model, such as using alternative suppliers or implementing remote work options.

4. Get the word out

A plan is just a plan and no one will know how to act if you don’t communicate.

This step is all about communication. Integrate the BCP into your operations, policies, and company culture, and train, test, and communicate with your employees.

And don’t forget that communication is not limited to your company only. Communicate with external stakeholders, customers, suppliers, and so forth.

5. Iterate and improve

Before implementing your BCP ensure its effectiveness.

Don’t worry there are plenty more options to test your BCP. Consider involving external stakeholders or vendors as it makes exercises more realistic. Frequently train those who are accountable for executing the BCP.

After experiencing a real incident or conducting a training exercise, update your plan to improve its ability to protect your business. Keep in mind that both your organization’s development and the circumstances you operate in change, so a regular review isn’t a luxury but a necessity.

How to structure your continuity plan

Now you have a high-level understanding, let’s look at how to structure your business continuity plan.

You can find a copy of the template I use here .

Make sure to include the following sections in your BCP:

Version history

Executive summary, functions and process prioritization, plan activation, governance and responsibilities, recovery plans, crisis communication plan, emergency location and contents, review and testing.

This section shows the revision history. It includes the version numbers of the changes made, by whom, when, and who approved the changes. The revision history allows anyone reading the BCP to understand how it has evolved over time.

The executive summary provides a brief summary of the key objectives, goals, scope, and applicability of the BCP.

This chapter outlines the critical functions and processes in scope of continuation in case of a disastrous event.

This section refers to the risk and business impact assessment outcome. Its aim is to set out what triggers the activation of the plan.

Governance and responsibilities talks about who has to act when the BCP is activated. It includes the members, a description of their responsibilities, contact details of the BCP team, and the chain of command during a crisis.

This section builds upon the business continuity strategies, specifically the one chosen when a disaster occurs. It describes the detailed recovery plans for each critical function, the procedures for restarting operations, resource allocation, and recovery time objectives (RTOs).

Here you cover the internal and external communication strategies. You also address employee awareness and training activities.

Now there is a good chance the disaster will require your crucial activities to temporarily continue at a different location. This section covers all details about the location and what needs to be available at the location.

The BCP is to be tested to reduce the risk of missing things or even worse failing. Here jot down the testing procedures and document results and lessons learned.

This section includes all appendices. Think about the following

  • Supporting documents, such as contact lists, maps, and technical specifications
  • References to external standards, guidelines, or regulations
  • Training programs for BCP team members
  • Review of insurance policies
  • Financial reserves and funding for recovery efforts
  • Procedures for keeping the BCP documentation up to date

Business continuity plan example

Earlier this year, the Koninklijke Nederlands Voetbal Bond (KNVB), which is the Royal Dutch Football Association, was hit by ransomware. The cyberattackers threatened to share personally identifiable information captured and the KNVB paid over one million euros to avoid this from happening.

What could have been done to mitigate the ransomware attack risk?

The Risk of the attack to succeed could have been mitigated with:

  • Regular data backups
  • Segmentation of networks
  • Intrusion detection systems

How to ensure business continuity in case of ransomware?

In response to the ransomware incident, and to allow for continued business as usual as soon as possible, steps could include:

  • Isolating affected systems
  • Activating backups
  • Notifying law enforcement
  • Engaging with a cybersecurity incident response team

Key takeaways

A business continuity plan (BCP) is like a safety net for your business when things go haywire. It helps you keep going, avoiding downtime, revenue loss, and reputation hits. On top of that, it’s a legal must in certain industries.

To make a solid BCP, just follow five steps: figure out what’s crucial for your business, spot the risks, plan how to bounce back, make sure everyone knows the plan, and keep fine-tuning it.

Structurally, your BCP should have sections like history, a quick guide, what’s most important, when to activate it, who’s in charge, the nitty-gritty recovery plans, how communication is done, where to go in a crisis, how to test the BCP works, and some extra info.

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Business Continuity Planning

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Organize a business continuity team and compile a  business continuity plan  to manage a business disruption. Learn more about how to put together and test a business continuity plan with the videos below.

Business Continuity Plan Supporting Resources

  • Business Continuity Plan Situation Manual
  • Business Continuity Plan Test Exercise Planner Instructions
  • Business Continuity Plan Test Facilitator and Evaluator Handbook

Business Continuity Training Videos

The Business Continuity Planning Suite is no longer supported or available for download.

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Business Continuity Training Introduction

An overview of the concepts detailed within this training. Also, included is a humorous, short video that introduces viewers to the concept of business continuity planning and highlights the benefits of having a plan. Two men in an elevator experience a spectrum of disasters from a loss of power, to rain, fire, and a human threat. One man is prepared for each disaster and the other is not.

View on YouTube

Business Continuity Training Part 1: What is Business Continuity Planning?

An explanation of what business continuity planning means and what it entails to create a business continuity plan. This segment also incorporates an interview with a company that has successfully implemented a business continuity plan and includes a discussion about what business continuity planning means to them.

Business Continuity Training Part 2: Why is Business Continuity Planning Important?

An examination of the value a business continuity plan can bring to an organization. This segment also incorporates an interview with a company that has successfully implemented a business continuity plan and includes a discussion about how business continuity planning has been valuable to them.

Business Continuity Training Part 3: What's the Business Continuity Planning Process?

An overview of the business continuity planning process. This segment also incorporates an interview with a company about its process of successfully implementing a business continuity plan.

Business Continuity Training Part 3: Planning Process Step 1

The first of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “prepare” to create a business continuity plan.

Business Continuity Training Part 3: Planning Process Step 2

The second of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “define” their business continuity plan objectives.

Business Continuity Training Part 3: Planning Process Step 3

The third of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “identify” and prioritize potential risks and impacts.

Business Continuity Training Part 3: Planning Process Step 4

The fourth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “develop” business continuity strategies.

Business Continuity Training Part 3: Planning Process Step 5

The fifth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should define their “teams” and tasks.

Business Continuity Training Part 3: Planning Process Step 6

The sixth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should “test” their business continuity plans. View on YouTube

Last Updated: 12/21/2023

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How to Write a Business Continuity Plan Step-by-Step: Our Experts Provide Tips

By Andy Marker | October 21, 2020 (updated August 17, 2021)

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In order to adequately prepare for a crisis, your company needs a business continuity plan. We’ve culled detailed step-by-step instructions, as well as expert tips for writing a business continuity plan and free downloadable tools.  

Included on this page, find the steps to writing a business continuity plan and a discussion of the key components in a plan . You’ll also find a business continuity plan quick-start template  and a disruptive incident quick-reference card template for print or mobile, and an expert disaster preparation checklist .

Step by Step: How to Write a Business Continuity Plan

A business continuity plan refers to the steps a company takes to help it continue operations during a crisis. In order to write a business continuity plan, you gather information about key people, tools, and processes, then write the plan as procedures and lists of resources. 

To make formatting easy, download a free business continuity plan template . To learn more about the role of a business continuity plan, read our comprehensive guide to business continuity planning . 

  • Write a Mission Statement for the Plan: Describe the objectives of the plan. When does it need to be completed? What is the budget for disaster and recovery preparation, including research, training, consultants, and tools? Be sure to detail any assumptions about financial or other resources, such as government business continuity grants.
  • Set Up Governance: Describe the business continuity team. Include names or titles and role designations, as well as contact information. Clearly define roles, lines of authority and succession, and accountability. Add an organization or a functional diagram. Select one of these free organizational chart templates to get started.
  • Write the Plan Procedures and Appendices: This is the core of your plan. There's no one correct way to create a business continuity document, but the critical content it should include are procedures, agreements, and resources.Think of your plan as lists of tasks or processes that people must perform to keep your operation running. Be specific in your directions, and use diagrams and illustrations. Remember that checklists and work instructions are simple and powerful tools to convey key information in a crisis. Learn more about procedures and work instructions . You should also note who on the team is responsible for knowing plan details.

Michele Barry

  • Set Procedures for Testing Recovery and Response: Create test guidelines and schedules for testing. To review the plan, consider reaching out to people who did not write the plan. Put together the forms and checklists that attendees will use during tests.

Alex Fullick

A business continuity plan is governed by a business continuity policy. You can learn more about creating a business continuity policy and find examples by reading our guide on developing an effective business continuity policy .

How to Create a Business Continuity Plan

Creating a business continuity plan (BCP) involves gathering a team, studying risks and key tasks, and choosing recovery activities. Then write the plan as a set of lists and guidelines, which may address risks such as fires, floods, pandemics, or data breaches.

According to Alex Fullick, your best bet is to create a simple plan. “I usually break everything down into three key categories: people, places, and things. If you focus on a couple of key pieces, you will be a lot more effective. That big binder of procedures is absolutely worthless. You need a bunch of guidelines to say what you do in a given situation: where are our triggers for deciding we’re in a crisis and we have to stop doing XYZ, and just focus on ABC.” 

“Post-pandemic, I think new managers will develop more policies and guidelines of all types than required, as a fear response,” cautions Michele Barry. 

Because every company is different, no two approaches to business continuity planning are the same. Tony Bombacino, Co-Founder and President of Real Food Blends , describes his company’s formal and informal business continuity approaches. “The first step in any crisis is for our nerve center to connect quickly, assess the situation, and then go into action,” he explains. 

Tony Bombacino

“Our sales manager and our marketing manager might discuss what’s going on, and say, ‘Are we going to say anything on social media? Do we need to reach out to any of our customers? The key things, like maintaining stock levels or what if somebody gets sick? What if there's a recall?’ Those plans we have laid out. But we're not a 5,000-person multi-billion-dollar company, so our business continuity plan is often in emails and Google Docs.” 

Mike Semel

“I've done planning literally for hundreds of businesses where we've just filled out basic forms,” says Mike Semel, President and Chief Compliance Officer of Semel Consulting . “For example, noting the insurance company's phone number — you know, on the back of your utility bill, which you never look at, there's an emergency number for if the power goes out or if the gas shuts off. We've helped people gather all that information and put it down. Even if there's no other plan, just having that information at their fingertips when they need it may be enough.”

You can also approach your business continuity planning as including three types of responses:

  • Proactive Strategies: Proactive approaches prevent crises. For example, you may buy an emergency generator to keep power running in your factory, or install a security system to prevent or limit loss during break-ins. Or you may create a bring-your-own-device (BYOD) policy and offer training for remote workers to protect your network and data security.
  • Reactive Strategies: Reactive strategies are your immediate responses to a crisis. Examples of reactive methods include evacuation procedures, fire procedures, and emergency response strategies.
  • Recovery Strategies: Recovery strategies describe how you resume operations to produce a minimum acceptable level of service. The recovery plan includes actions to stand up temporary processes. The plan also describes the longer-term efforts, such as relocation, data restoration, temporary workaround processes, or outsourcing tasks. Recovery strategies are not limited to IT and data recovery.

Quick-Start Guide Business Continuity Plan Template

Business Continuity Quick Start Guide and template

If you don’t already have a business continuity plan in place, but need to create one in short order to respond to a disruption, use this quick-start business continuity template. This template is available in Word and Google Docs formats, and it’s simply formatted so that you can focus on brainstorming and problem-solving. 

Download Quick-Start Guide Business Continuity Plan Template

Word | PDF | Google Docs | Smartsheet

For other most useful free, downloadable business continuity plan (BCP) templates please read our "Free Business Continuity Plan Templates" article.

Key Components of a Business Continuity Plan

Your company’s complete business continuity plan will have many details. Your plan may differ from other companies' plans based on industry and other factors. Each facility or business unit may also conduct an impact analysis and create disaster recovery and continuity plans . Consider adding these key components to your business plan:

  • Contact Information: These pages include contact information for key employees, vendors, and critical third parties. Locate this information at the beginning of the plan. 
  • Business Impact Analysis: When you conduct business impact analysis (BIA), you evaluate the financial and other changes in a disruptive event (you can use one of these business impact templates to get started). Evaluate impact in terms of brand damage, product failure or malfunction, lost revenue, or legal and regulatory repercussions.
  • Risk Assessment: In this section, assess the potential risks to all aspects of the organization’s operations. Look at potential risks related to such matters as cash on hand, stock levels, and staff qualifications. Although you may face an infinite number of potential internal and external risks, focus on people, places, and things to keep from becoming overwhelmed. Then analyze the effects of any items that are completely lost or need repairs. Also, understand that risk assessment is an ongoing effort that works in tandem with training and testing. Consider adding a completed risk matrix to your plan. You can create one using a downloadable risk matrix template . 
  • Critical Functions Analysis and List: As a faster alternative to a BIA, a critical functions analysis reveals what processes are critical to keeping your company running. Examples of critical functions include payroll and wages, accounts receivable, customer service, or production. According to Michele Barry, with a values-based approach to critical functions, you should consider who you really are as a company. Then decide what you must continue doing and what you can stop doing. 
  • Trigger and Disaster Declaration Criteria: Here, you should detail how your executive management will know when to declare an emergency and initiate the plan.
  • Succession Plan: Identify alternate staff for key roles in each unit. Schedule time throughout the year to observe alternates as they make important decisions and complete recovery tasks.
  • Alternate Suppliers: If your goods are regulated (i.e., food, toy, and pharmaceutical manufacturing), your raw resources and parts must always be up to standard. Source suppliers before a crisis to ensure that regulatory vetting and approval do not delay supplies. 
  • Operations Plan: Describe how your organization will resume and continue daily operations after a disruption. Include a checklist with such items as supplies, equipment, and information on where data is backed up and where you keep the plan. Note who should have copies of the plan. 
  • Crisis Communication Strategy: Detail how the organization will communicate with employees, customers, and third-party entities in the event of a disruption. If regular communications systems are disabled, make a plan for alternate methods. Download a free crisis communication strategy template to get started on this aspect. 
  • Incident Response Plan: Describe how your organization plans to respond to a range of likely incidents or disruptions, and define the triggers for activating the plan. 
  • Alternate Site Relocation: The alternate site is the location that the organization moves to after a disruption occurs. In the plan, you can also note the transportation and resources required to move the business and the processes you must maintain in this facility.
  • Interim Procedures: These are the critical processes that must continue, either in their original or alternate forms.
  • Restoration of Critical Data: Critical data includes anything you must immediately recover to maintain normal business functions.
  • Vendor Partner Agreements: List your organization’s key vendors and how they can help you maintain or resume operations.
  • Work Backlog: This includes the work that piles up when systems are shut down. You must complete this work first when processes start again.
  • Recovery Strategy for IT Services: This section details the steps you take to restore the IT processes that are necessary to maintain the business.
  • Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO): RTO refers to the maximum amount of time that a company can stop its processes and the length of time without access to data before productivity substantially drops. Determine RTOs for each unit, factoring in people, places, and things. 
  • Backup Plans: What if plans, processes, or resources fail or are unavailable? Determine alternatives now, so you don't have to scramble. Decide on a backup roster for personnel who are unavailable.
  • Manual Workarounds: This section details how a business can operate by hand, should all failsafe measures break down.
  • External Audit Details: For regulated organizations, external audits may be compulsory. Your scheduled internal audits will prepare you for external audits.
  • Test and Exercise Plan: Identify how and when you will test the continuity plan, including details about periodic tabletop testing and more complex real-world scenario testing.
  • Change Management: Note how you will incorporate learnings from tests and exercises, disseminate changes, and review the plan and track changes.

Key Resources for Business Continuity

To fix problems, restore operations, or submit an insurance claim, you need readily available details of the human resources and other groups that can assist with business continuity. (Your organization's unique situation may also require specific types of resources.) Add this information to appendices at the back of your continuity plan.

Fullick suggests broadening the definition of human assets. "People are our employees, certainly. But we forget that the term ‘people’ includes executive management. Management doesn't escape pandemics or the flu or a car crash. Bad things can happen to them and around them, too." 

Use the following list as a prompt for recording important information about your organization. Your unique situation may require other types of information.

  • Lists of key employees and their contact information. Also, think beyond C-level and response team members to staff with long-term or specialized knowledge
  • Disaster recovery and continuity team contact names, roles, and contact information
  • Emergency contact number for police and emergency services for your location
  • Non-emergency contact information for police and medical
  • Emergency and non-emergency contact numbers for facilities issues
  • Board member contact information
  • Personnel roster, including family or emergency contact names and numbers for the entire organization
  • Contractors for any repairs
  • Client contact information and SLAs
  • Insurance contacts for all plans
  • Key regulatory contacts.
  • Legal contacts
  • Vendor contact information and partner agreements and SLAs
  • Addresses and details for each office or facility
  • Primary and secondary contact and information for each facility or office, including at least one phone number and email address
  • Off-site recovery location
  • Addresses and access information for storage facilities or vehicle compounds
  • Funding and banking information
  • IT details and data recovery information, including an inventory of apps and license numbers  
  • Insurance policy numbers and agent contact information for each plan, healthcare, property, vehicle, etc.
  • Inventory of tangibles, including equipment, hardware, supplies, fixtures, and fittings (if you are a supplier or manufacturer, include an inventory of raw materials and finished goods)
  • Lease details
  • Licenses, permits, other legal documents
  • List of special items that you use regularly, but don't order frequently
  • Location of backup equipment
  • Utility account numbers and contact information (for electric, gas, telephone, water, waste pickup, etc.)

Activities to Complete Before Writing the Business Continuity Plan

Before you write your plan, take these preliminary steps to assemble a team and gather background information. 

  • Incident Commander: This person is responsible for all aspects of an emergency response.
  • Emergency Response Team: The emergency response team refers to the group of people in charge of responding to an emergency or disruption.
  • Information Technology Recovery Team: This group is responsible for recovering important IT services.
  • Alternate Site/Location Operation Team: This team is responsible for maintaining business operations at an alternate site.
  • Facilities Management Team: The facilities management team is responsible for managing all of the main business facilities and determining the necessary responses to maintain them in light of a disaster or disruption.
  • Department Upper Management: This includes key stakeholders and upper management employees who govern BCP decisions.
  • Conduct business impact analysis or critical function analysis. Understand how the loss of processes in each department can affect internal and external operations. See our article on business continuity planning to learn more about BIAs.
  • Conduct risk analysis. Determine the potential risks and threats to your organization.
  • Identify the scope of the plan. Define where the business continuity plan applies, whether to one office, the entire organization, or only certain aspects of the organization. Use the BIA and risk analysis to identify critical functions and key resources that you must maintain. Set goals to determine the level of detail required. Set milestones to track progress in completing the plan. "Setting scope is essential," Barry insists. "You need to define the core and noncore aspects of the business and the minimum requirements for achieving continuity."
  • Strategize recovery approaches: Strategize how your business should respond to a disruption, based on your risk assessment and BIA. During this process, you determine the core details of the BCP, add the key components and resources, and determine the timing for what must happen before, during, and after a disruptive event.

Common Structure of a Business Continuity Plan

Knowing the common structure should help shape the plan — and frees you from thinking about form when you should be thinking about content. Here is an example of a BCP format:

  • Business Name: Record the business name, which usually appears on the title page.
  • Date: The day the BCP is completed and signed off. 
  • Purpose and Scope: This section describes the reason for and span of the plan.
  • Business Impact Analysis: Add the results of the BIA to your plan.  
  • Risk Assessment: Consider adding the risk assessment matrix to your plan.
  • Policy Information: Include the business continuity policy or policy highlights.
  • Emergency Management and Response: You can detail emergency response measures separately from other recovery and continuity procedures.
  • The Plan: The core of the plan details step-by-step procedures for business recovery and continuity.
  • Relevant Appendices: Appendices can include such information as contact lists, org charts, copies of insurance policies, or any supporting documents relevant in a crisis.

Keep in mind that every business is different — no two BCPs look the same. Tailor your business continuity plan to your company, and make sure the document captures all the information you need to keep your business functioning. Having everything you need to know in an emergency is the most crucial part of a BCP.

Disruptive Incident Quick-Reference Card Template

Disruptive Incident Quick Reference Cad Template

Use this quick-reference card template to write the key steps that employees should take in case of an emergency. Customize this template for each business unit, department, or role. Describe what people should do immediately and in the following days and weeks to continue the business. Print PDFs and laminate them for workstations or wallets, or load the PDFs on your mobile phone. 

Download Disruptive Incident Quick-Reference Card Template 

Expert Disaster Preparation Checklist

Business continuity and disaster planning aren’t just about your buildings and cloud backup — it’s about people and their families. Based on a document by Mike Semel of Semel Consulting, this disaster checklist helps you prepare for the human needs of your staff and their families, including food, shelter, and other comforts.

Tips for Writing a Business Continuity Plan

With its many moving parts and considerations, a business continuity plan can seem intimidating. Follow these tips to help you write, track, and maintain a strong BCP:

  • Take the continuity management planning  process seriously.
  • Interview key people in the organization who have successfully managed disruptive incidents.
  • Get approval from leadership early on and seek their ongoing championship of continuity preparedness.
  • Be flexible when it comes to who you involve, what resources you need, and how you achieve the most effective plan.
  • Keep the plan as simple and targeted as possible to make it easy to understand.
  • Limit the plan to practical disaster response actions.
  • Base the plan on the most up-to-date, accurate information available.
  • Plan for the worst-case scenario and broadly cover many types of potential disruptive situations. 
  • Consider the minimum amount of information or resources you need to keep your business running in a disaster. 
  • Use the data you gather in your BIA and risk analysis to make the planning process more straightforward.
  • Share the plan and make sure employees have a chance to review it or ask questions. 
  • Make the document available in hard copy for easy access, or add it to a shared platform. 
  • Continually test, review, and maintain your plan to keep it up to date. 
  • Keep the BCP current with organizational and regulatory changes and updates.

Empower Your Teams to Build Business Continuity with Smartsheet

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The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

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What Does a Business Continuity Plan Typically Include? [Complete Guide]

Last Updated: September 19, 2023

Introduction

A business continuity plan (BCP) is your first line of defense against any challenge that threatens the core functionalities of your organization’s operations. When disaster strikes, your BCP should be there to reduce the time it takes to get things back up and running as usual again – as quickly as possible.

If you’re not able to react quickly to these types of incidents, your company could suffer physical harm, monetary losses, reputational damage, data integrity loss, litigation and much more.

Designing a BCP can feel overwhelming, as it’s such a critical document; where should you start? Who should be involved in the process? How should it be disseminated? These are all questions we’ll answer in this guide, including what is typically included in a BCP.

Bonus Material: Free BCP Checklist

How to Create a Business Continuity Plan

It’s important to actively invest time and energy into preparing for any potential risk before a potential event of a disaster so that if or when it does, your BCP directs you to the necessary resources to return to business as usual. That’s why creating and developing your BCP needs to involve a great deal of strategy and intention.

Taking a risk-based approach is the best way to go about developing your business continuity plan and avoid the need to use implement a disaster recovery plan. Through a risk-based approach, you follow the following steps: identify, assess, mitigate, monitor, connect and report. Here’s how to apply each of these steps during the lifecycle of your BCP:

  • Start by identifying your most critical processes. When a business continuity event occurs, taking a risk-based approach ensures that you understand what the most critical processes to your organization are that need to be prioritized first to get back up and running to minimize any impacts.
  • Next, assess your various risks. By evaluating all of the various types of risks that an incident could bring up – such as financial, reputational, customer, legal or strategic impact – you’re able to adequately determine which steps must be included in your BCP to minimize those impacts.
  • Be sure to implement strategic mitigations as part of your business impact analysis. Building a business continuity plan through a risk-based lens empowers you to design more effective policies and procedures that simultaneously minimize the impact of the disruption at hand.
  • Monitor the effectiveness of your controls over time. Otherwise, your BCP won’t align with your risks, leaving you likely to be caught off guard next time a business continuity event occurs.
  • Your BCP does not exist in isolation, so be sure to connect departmental efforts. This allows you to identify interdependencies that must be known if an event occurs to ensure all steps are taken.
  • Reporting is a key step in the risk-based approach, as it reveals patterns over time so that you can improve your BCP development where needed and keep your organization protected from any future disruption.

What Should my Business Continuity Plan Include?

Your BCP should include:

  • An analysis of all critical functions within your business. This will allow for preparation of resources.
  • A prioritized list of risks that pose a severe or even catastrophic threat to your business. These can be prioritized through risk tolerances and risk appetite so you can visualize which ones fall farthest out of that range.
  • A list of specific strategies (or mitigation activities) that help protect the critical components you identified earlier in the BCP.
  • Evidence that the strategies have been tested across critical business functions, using key metrics, indicators and financial scenarios.
  • Dashboards and reports that uncover challenges and allow you to update the plan and your business processes over time.

Examples of Potential Unforeseen Risks

Naturally, your BCP will include risks that you deem a threat to your business. It can be difficult to begin writing that list when you’re not sure exactly what should be on it. In Risk Management, it’s important to consider potential risks that others may not have ever predicted to become reality (many people today say they never imagined in their lifetime that they would experience a pandemic).

Here is a list of potential unforeseen risks that pose a threat to business continuity:

  • The sudden unavailability of a key vendor-provided service
  • A regional power outage
  • Abandonment in leadership
  • Data protection issue
  • Supply chain issues
  • Privacy policy issues
  • Getting sued
  • An industry strike
  • Pest infestation
  • Natural disasters
  • Winning the lottery
  • Receiving a life-threatening diagnosis
  • Getting in an accident
  • A threat to national security, such as a terrorist attack
  • Collapse of infrastructure
  • And perhaps the most timely example of all, a pandemic (check out our complete guide to building a BCP for COVID-19 here )

BCP Best Practices

Like we mentioned earlier in this guide, it’s important to take a risk-based approach when creating your BCP. This will help you better preserve your business reputation, build up customer confidence and allow you to gain a competitive advantage. It will also ensure that you can avoid situations of disaster recovery. (Read our full guide on Business Continuity vs. Disaster Recovery )

To receive these benefits, it’s best practice to leverage robust business continuity planning software . This enables you to inherently take a risk-based approach and demonstrates to customers and stakeholders that you are prioritizing business continuity planning. This is especially true today amidst our ever-evolving disruptive business environment and the See-Through Economy.

Your business continuity plan will be different from anyone else’s, which is why it’s important to dedicate time and resources to creating one that fits your unique needs and risk factors. Working with a professional risk consultant is just one added benefit that’s included with your partnership with LogicManager. With their help, you’ll be able to better leverage the tools and resources included in our integrated ERM software, as well as our solution package for business continuity development .

BCP Checklist

Complimentary Download: BCP Checklist

Download our free BCP checklist to ensure that you are on the right track with your business continuity planning.

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Business Continuity Planning: Ensuring the Resilience of Your Organization

Let’s explore the intricacies of business continuity planning, from understanding its importance to implementing a robust strategy that safeguards your enterprise.

Published by Orgvue   November 20, 2023

Home > Resources > article > Business Continuity Planning: Ensuring the Resilience of Your Organization

In an unpredictable world, the ability to sustain your business’s essential functions and operations, even in the face of disruptions, is paramount.

uses of business continuity plan

Business continuity planning is the framework that ensures your organization can weather storms, both literal and metaphorical.

What is Business Continuity Planning?

At its core, business continuity planning is the process of developing a proactive strategy to ensure an organization’s critical functions and operations can continue in the face of unforeseen disruptions.

It encompasses a range of activities, from risk assessment to the creation of detailed recovery plans, with the ultimate goal of minimizing downtime and ensuring the organization’s resilience.

The Importance of Business Continuity Planning

The importance of being prepared for various external and internal factors cannot be overstated. While many businesses have a standard business plan, not all of them consider the potential disruptions caused by natural calamities, economic downturns, or other unexpected events. Business continuity planning is the key to ensuring a company’s sustained operation, regardless of the challenges it may face.

Business continuity planning goes beyond the traditional business plan. While a business plan outlines goals and strategies for growth, a continuity plan focuses on how the organization will continue to function in the face of adversity. It involves identifying potential risks and developing strategies to mitigate and recover from them. Whether it’s a natural disaster, a cyberattack or an economic recession, having a well-thought-out strategic plan is essential for business survival.

One of the most significant threats to businesses is an economic downturn, such as a recession. During these challenging times, consumer spending often decreases, and businesses may face financial instability. A recession can have a ripple effect on companies of all sizes, causing decreased revenue, layoffs, and even closures.

For a detailed look at the impact of recessions on businesses, read how to prepare for a recession , which delves into strategies for navigating these challenging economic conditions.

Business strategy planning is not just about surviving during tough times; it’s also crucial for capitalizing on periods of growth. When businesses experience an upturn, they often need to scale rapidly to meet increased demand. Having a continuity plan in place allows for a smoother transition during periods of growth, ensuring that the infrastructure, resources and workforce can adapt effectively.

The financial consequences of not having a business continuity plan can be devastating. Without a plan in place, businesses are more vulnerable to unexpected disruptions, which can result in significant financial losses. These losses may come from increased downtime, lost revenue, legal liabilities, reputational damage and the costs associated with recovery efforts.

Considerations for Business Continuity Planning

Creating a robust business continuity plan is a complex task that involves a multitude of factors. Among these considerations, three key aspects stand out: cultural differences, limited resources and alignment with business objectives. A successful business strategy plan takes these factors into account to ensure that an organization can effectively respond to disruptions while maintaining its core values and strategic direction.

1. Cultural Differences

Cultural diversity is a significant consideration in business strategy planning, especially for multinational companies or organizations with a diverse workforce. Cultural differences can influence how employees perceive and respond to crises. When developing a business continuity plan, it is important to consider the following aspects:

  • Communication Styles : Different cultures have varying communication norms and hierarchies. Understanding how employees from various cultural backgrounds communicate during a crisis can help in crafting effective crisis communication strategies.
  • Decision-Making Processes : Some cultures prioritize consensus-driven decision-making, while others lean towards hierarchical authority. A business continuity plan should acknowledge these differences and provide flexibility in decision-making approaches during disruptions.
  • Crisis Response Expectations : Cultural expectations can shape how employees expect the organization to respond to a crisis. Your business strategy plan should be sensitive to these expectations and ensure that response strategies align with cultural norms.

2. Limited Resources

For many businesses, resource constraints are a reality. When developing a business continuity plan, it’s crucial to consider the organization’s resource limitations, such as budget, personnel and technology. Here are some key considerations:

  • Resource Allocation : Prioritize critical functions and allocate resources accordingly. Not all business processes are equally important, and a business continuity plan should identify and protect the most essential ones first.
  • Efficiency and Scalability : Develop strategies that focus on efficiency and scalability. Efficient resource use is critical, and a business strategy plan should outline how to adapt to changing resource constraints during a crisis.
  • Collaboration : Collaboration with external partners, such as suppliers, can be a resource-saving strategy. Establishing relationships with partners who can provide support during disruptions is a valuable aspect.

3. Business Objectives

A business continuity plan should align with the broader business objectives to ensure that it doesn’t hinder growth or innovation. Consider the following aspects:

  • Market Expansion:  If the organization’s objective is to expand into new markets, the business strategy plan should accommodate this goal. It should address the challenges and opportunities that come with market expansion, including regulatory compliance and logistical considerations.
  • Relocation or Migration : If there are plans to relocate or migrate operations, the business continuity plan should include strategies for a seamless transition. This may involve considerations such as data migration, employee relocation and continuity of customer service.
  • Competitive Landscape : Changes in the competitive landscape, such as the emergence of new competitors, can impact the organization’s continuity. The business strategy plan should be flexible enough to adapt to shifts in the competitive environment.
  • The COVID-19 pandemic forced companies to adapt rapidly, with remote work becoming the norm for many, reshaping entire industries like healthcare and e-commerce.
  • The global recession of 2008 had long-lasting effects on financial institutions and prompted regulatory changes that influenced business operations.
  • The rise of the internet transformed countless businesses, from retail to media, and required adaptation to online platforms.
  • Looking ahead, emerging technologies like artificial intelligence have the potential to disrupt industries in unprecedented ways, with automation and data-driven decision-making reshaping the future of work. These events emphasize the critical importance of adaptable and comprehensive business continuity planning to navigate the unpredictable landscape of our ever-evolving world.

Developing a Strategic Business Plan

A well structured business plan serves as a roadmap for your organization, guiding actions and decisions while enabling effective response to a dynamic business environment.

  • Conduct a comprehensive assessment of the current state of the business.
  • Review financial statements, market positioning and operational performance.
  • Identify strengths, weaknesses, opportunities and threats.
  • Evaluate the company’s internal resources and capabilities.
  • Analyze micro-environment factors such as competitors, customers, suppliers and regulatory changes.
  • Examine macro-environment factors like economic trends, technological advancements and political factors.
  • Use tools like PESTEL analysis and Porter’s Five Forces to assess the external business environment.
  • Clearly define short-term and long-term business objectives.
  • Make objectives specific, measurable, achievable, relevant and time-bound (SMART).
  • Align objectives with the company’s mission and vision.
  • Identify key operational processes that drive business success.
  • Evaluate the efficiency and effectiveness of these processes.
  • Prioritize improvements in critical areas to align with strategic objectives.
  • Plan for potential risks and uncertainties that could impact the business.
  • Create contingency and crisis management strategies.
  • Establish a risk management framework to mitigate and respond to unforeseen events.
  • Implement key performance indicators (KPIs) to track progress.
  • Regularly review and revise the business plan based on changing market conditions.
  • Adapt to emerging opportunities and challenges.
  • Ensure that the strategic plan is communicated effectively throughout the organization.
  • Secure buy-in and commitment from employees at all levels.
  • Ensure that all team members understand their roles in achieving the plan’s objectives.
  • Allocate resources, including finances and manpower, in alignment with the strategic priorities.
  • Develop a budget that reflects the financial requirements of the plan.
  • Monitor spending and adjust budgets as needed.
  • Develop a timeline and action plan for the execution of the strategic initiatives.
  • Assign responsibilities to specific teams or individuals.
  • Regularly review progress and make adjustments to stay on track.
  • Periodically evaluate the effectiveness of the strategic plan.
  • Solicit feedback from employees, customers and stakeholders.
  • Use feedback to make continuous improvements and refine the plan.
  • Establish a system for measuring and reporting progress.
  • Create dashboards or reports to communicate key metrics to stakeholders.
  • Ensure that performance data aligns with the defined objectives.
  • Incorporate sustainability and responsible growth practices into the plan.
  • Address social and environmental impacts as part of corporate responsibility.
  • Seek opportunities for sustainable growth and innovation.
  • Develop scenarios that explore alternative future situations.
  • Consider various outcomes and their implications on the business.
  • Prepare for different scenarios to enhance adaptability.
  • Leverage technology for data analytics, automation, and efficiency.
  • Stay updated on emerging technologies that can support the strategic plan.
  • Integrate technology solutions to enhance business processes.

Implementing a Business Continuity Plan

uses of business continuity plan

 Importance of Training and Awareness:

  • Awareness:  Create awareness about the business continuity plan across the organization to foster a culture of preparedness. This includes educating employees on the potential risks and the importance of the plan.

 Consistent Review of the Plan:

  • Conduct post-incident reviews to assess the BCP’s performance after a real event and make necessary adjustments.

 Address Cultural and Technological Issues:

  • Technological Challenges: Recognize and mitigate technological hurdles that can hinder the plan’s execution, such as infrastructure limitations or cybersecurity threats. Ensure that IT systems are resilient and can support the plan.

 Software Integration:

  • Organizational design software like Orgvue can assist in visualizing and optimizing the organizational structure, enabling efficient allocation of resources and responsibilities during a disruption.

Business continuity planning is not merely a precaution but a strategic imperative for any organization. It provides a structured approach to safeguarding business operations in the face of unforeseen disruptions, thereby minimizing downtime and potential financial losses.

By fostering a culture of preparedness, training employees, regularly reviewing and adapting the plan, addressing cultural and technological issues, and leveraging software solutions like Orgvue for organizational design, businesses can ensure their resilience and adaptability in an ever-changing landscape.

For businesses with specific 1-5 year plans, the integration of business strategy planning is paramount. It aligns seamlessly with forward-looking strategies by fortifying the organization’s ability to execute those plans in the face of unexpected events.

By weaving business continuity considerations into your strategic framework, you not only protect your investments but also demonstrate your commitment to long-term success, customer trust and stakeholder confidence. The benefits of such foresight extend far beyond mitigating risk; they empower your business to thrive in an increasingly unpredictable world. Therefore, it is recommended that businesses of all sizes prioritize and integrate business continuity planning as an integral part of their strategic vision and ongoing operations.

Business Continuity Plan FAQs

● where does business continuity planning belong in an organization.

Depending on the organization’s culture, the department your business continuity plan falls under varies. IT is usually one of the most vital components of any business strategy plan, in which case it could belong under the IT department. Or, if financial impacts are your organization’s main concern, the finance department may need to run the plan.

● Who Is Responsible For the Business Continuity Plan?

The business continuity plan usually falls under the responsibility of a dedicated role or department, often led by a Business Continuity Manager, who reports to senior leadership. This individual or team is responsible for creating, implementing, and regularly updating the plan to ensure the organization’s resilience in the face of disruptions.

● Is Business Continuity Planning a Legal Requirement?

It is not always a legal requirement, but certain industries and jurisdictions may have regulations or standards that mandate organizations to have such plans in place to ensure operational resilience and preparedness for emergencies.

● What Role Can Business Continuity Planning Play In Recovering From an Incident?

It plays a crucial role in helping organizations recover from incidents by providing a structured framework to assess, respond to and mitigate the impact of disruptions, minimizing downtime and financial losses. It outlines clear procedures and responsibilities, ensuring that essential operations can resume swiftly and efficiently, thus safeguarding the organization’s reputation and maintaining stakeholder trust.

● When Should a Business Continuity Plan Be Activated?

A business continuity plan should be activated as a preventative measure in the event a disruptive incident occurs. Triggers may include natural disasters, cyberattacks, supply chain disruptions or any event that threatens the continuity of critical business functions.

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Understanding the Essentials of a Business Continuity Plan

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In the face of unforeseen disruptions, a robust business continuity plan (BCP) is essential to preserve the trust of stakeholders. If you are able to seamlessly continue operations even in the face of sudden challenges, stakeholders are reassured of the company’s resilience and commitment to their interests.

In this blog post, we offer a comprehensive guide to business continuity planning, how it can benefit organizations and share key insights into Developing and Maintaining an Effective business continuity plan.

What is a Business Continuity Plan?

A business continuity plan (BCP) is an essential blueprint that outlines how a company will continue operating during an unplanned disruption in service. It’s more than just a reactive strategy; it’s a proactive measure to ensure that critical business functions can continue during and after a crisis. The purpose of a BCP is to provide a systematic approach to mitigate the potential impact of disruptions and maintain business operations at an acceptable predefined level.

The role of a BCP is crucial in maintaining operations during unforeseen events such as natural disasters, cyber-attacks, or any other incident that could interrupt business processes. By having a well-structured business continuity plan, organizations can:

  • Minimize downtime and ensure that essential functions remain operational
  • Protect the integrity of data and IT infrastructure
  • Maintain customer service and preserve stakeholder trust

Why is a Business Continuity Plan Important

Immediate Response : A BCP ensures that there is a predefined action plan, minimizing downtime and demonstrating control over the situation.

Transparent Communication : Keeping stakeholders informed during a crisis promotes transparency and maintains confidence in the company’s management.

Inclusive Planning : Involve stakeholders in the business continuity plan development process. Their insights can enhance the plan’s effectiveness and ensure their needs are addressed.

Consistency in Service : By prioritizing critical operations, a BCP helps maintain the quality and consistency of services or products, which is important for customer retention.

The absence of a business continuity plan can lead to a domino effect of negative outcomes, including a tarnished reputation and the potential loss of future business. Stakeholders remember how a company responds in a crisis, and a well-executed BCP can be the difference between a temporary setback and a long-term impact on the company’s image and relationships.

Elements of a Business Continuity Plan

When exploring various business continuity plan examples, certain common elements emerge as critical for their effectiveness. These elements serve as the backbone for a robust BCP plan, ensuring that businesses can maintain operations and protect their reputation during unforeseen events. Here are some of the key components found in successful BCP examples:

Risk Assessment and Business Impact Analysis : Identifying potential threats and assessing their impact on business operations is a foundational step in any BCP plan.

Crisis Communication Plan : A clear communication strategy is essential to manage stakeholder expectations and maintain trust.

Recovery Strategies : Detailed procedures for restoring business functions and services post-disruption are indispensable.

Employee Training and Awareness : Ensuring staff are well-prepared and knowledgeable about the BCP plan is crucial for its successful implementation.

Case studies of successful BCP implementations often highlight how these elements are tailored to fit specific business models and industries. For instance, a financial institution may focus heavily on data security and regulatory compliance within their BCP, while a manufacturing business might prioritize supply chain alternatives and on-site safety protocols. Regular testing and adjustment of these plans are also a common thread, underscoring the importance of adaptability and continuous improvement in business continuity planning.

Business Continuity Plan Toolkit

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Business Continuity vs. Disaster Recovery

It’s important to distinguish between a business continuity plan and a disaster recovery plan. While both are vital, a BCP is broader and focuses on the continuity of the entire business, whereas a disaster recovery plan is more technical and concentrates on the recovery of specific operations, such as IT services. Understanding these differences helps organizations allocate resources effectively and ensures comprehensive preparedness for any type of disruption. Understanding when to activate a business continuity plan (BCP) versus a disaster recovery plan is crucial for maintaining operational resilience.

To ensure a comprehensive crisis management strategy, consider the following integration points:

Pre-emptive Planning : Establish clear triggers for when each plan is activated. For instance, a BCP might be initiated in the face of a supply chain disruption, while disaster recovery would come into play during a data breach or server failure.

Unified Communication : Both plans should have a coordinated communication strategy to inform stakeholders and employees about the status and steps being taken.

Regular Testing : Conduct joint drills that test both the BCP and disaster recovery plans to identify any gaps or overlaps in procedures.

Continuous Improvement : Use insights from drills and actual incidents to refine both plans, ensuring they evolve with the changing business landscape and technological advancements.

By integrating both plans, organizations can navigate crises with agility and confidence, minimizing downtime and protecting their reputation. Tools like Creately, with features such as real-time collaboration and visual project management, can help create and maintain these critical plans, ensuring that all stakeholders are on the same page and ready to act when necessary.

Crisis Communication Strategies within Business Continuity Planning

A business continuity plan (BCP) is not just about responding to the crisis at hand, but also about how you communicate during the disruptions and the decisions you make. Here are some best practices to ensure your crisis communication and decision-making processes effective:

Clear Communication Channels : Establish predefined channels for internal and external communication. This ensures that messages are consistent and reach all stakeholders promptly.

Designated Spokespersons : Identify individuals who are authorized to speak on behalf of the company during a crisis. This helps maintain a unified voice and message.

Factual Updates : Provide regular, factual updates to keep stakeholders informed. Avoid speculation and commit to transparency.

Decision-Making Protocols : Implement decision-making protocols that are clear and allow for swift action. This includes having a chain of command and predefined criteria for making critical decisions.

Training and Simulations : Regularly train your crisis management team and conduct simulations to prepare for potential scenarios. This ensures that when a crisis does occur, your team is ready to act effectively.

By integrating these best practices into your BCP plan, you can maintain control during a crisis, make informed decisions, and communicate effectively with all parties involved. Remember, the goal is to protect your company’s operations, reputation, and stakeholder relationships during unexpected events.

Utilizing Business Continuity Plan Templates and Tools

When it comes to developing a robust business continuity plan (BCP), leveraging templates can offer a significant head start. These templates serve as a foundational framework that can be customized to align with the specific requirements of your business. Here’s why using BCP templates is advantageous:

Efficiency in Development : BCP templates provide a structured approach, ensuring that all critical elements are considered without starting from scratch. This saves valuable time and resources.

Consistency Across the Organization : Templates help maintain a uniform response strategy, which is crucial for coherent and coordinated action during a crisis.

Ease of Customization : While templates offer a general outline, they are designed to be adaptable. This means you can tailor them to reflect your business’s unique operational processes, risk profile, and recovery objectives.

Incorporating features like crisis response directions into your BCP template is essential. With Creately you can,

  • Visualize these procedures on an infinite canvas, ensuring clarity and accessibility for all team members.
  • Easily modify the plan as your business evolves, with the drag-and-drop functionality, making regular testing and adjustment a seamless process.
  • Create a central repository of information by having docs, links and attachments in the notes panel of any shape in your diagram.

Key Insights for Developing and Maintaining an Effective Business Continuity Plan

A robust business continuity plan (BCP) is not a ‘set it and forget it’ document; it requires ongoing attention and refinement. Here’s why regular testing, updates, and staff training are non-negotiables in business continuity:

Financial Protection : By regularly testing your BCP, you can identify and rectify gaps that could otherwise lead to significant financial losses during a crisis. It’s not just about having a plan, but ensuring it works effectively when you need it most.

Reputational Safeguarding : Your company’s reputation is on the line when disaster strikes. A well-rehearsed BCP means your team can respond swiftly and competently, preserving stakeholder trust and customer loyalty.

Customization for Evolving Threats : The threat landscape is constantly changing. Regular BCP reviews allow you to tailor your plan to new types of risks, ensuring your business remains resilient against the unforeseen.

Empowered Employees : Training staff on the BCP turns theory into practice. When every team member knows their role in a crisis, response times improve, and confusion is minimized.

Remember, a BCP is a living document. It thrives on the feedback loop created by regular drills and updates, ensuring that when a crisis does occur, your business is prepared not just to survive, but to continue operations with minimal disruption.

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What Is Business Continuity?

What is business continuity

Business continuity is an organization's ability to maintain or quickly resume acceptable levels of product or service delivery following a short-term event that disrupts normal operations. Examples of disruptions range from natural disasters to power outages.

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Is business continuity the same as business resilience or disaster recovery?

Business continuity, disaster recovery, and business resilience are not the same, but they are related.

  • Business continuity is a process-driven approach to maintaining operations in the event of an unplanned disruption such as a cyber attack or natural disaster. Business continuity planning covers the entire business—processes, assets, workers, and more. It isn't focused solely on IT infrastructure and business systems.
  • Business resilience encompasses crisis management and business continuity. It requires a response to all types of risk that an organization may face. An organization that is business resilient is essentially in a constant state of "expecting the unexpected." It means continuously preparing to meet disruptions head-on, including events of extended duration that may affect more than one facility or region.
  • Disaster recovery focuses specifically on how to restore an enterprise's IT infrastructure and business systems following a disruption. It is considered an element of business continuity. A business continuity plan (BCP) might contain several disaster recovery plans, for example.

What is a business continuity strategy?

A business continuity strategy is a summary of the mitigation, crisis, and recovery plans to be implemented after a disruption to resume normal operations. "Business continuity strategy" is often used interchangeably with "business continuity plan." Both consider the broader goals, legal and regulatory requirements, personnel, and even the business's clients and partners.

What does a business continuity plan mitigate?

A relevant and well-tested BCP can help ease the negative impacts of an unexpected business disruption in many ways.

  • Financial impact: Disruptions to product supply chains and critical services to customers can directly affect sales and revenue. Downtime caused by unplanned disruptions can also result in higher costs for a business as it looks to repair operations and mitigate previously unidentified threats.
  • Reputation and brand impact: Failure to resume operations quickly and supply customers with the products or services they expect can prompt customer defections and tarnish the brand. Damage to reputation can in turn cause investors and capital sources to pull back funding, exacerbating the financial impact of a business disruption.
  • Regulatory impact: Customers and vendors are likely to complain when businesses fail to respond appropriately to disruptions, which may result in regulatory scrutiny or even censure. In highly-regulated industries, such as energy and financial services, business continuity planning is mandatory to ensure regulatory compliance.

Business continuity planning activities

A well-crafted and tested BCP can go a long way toward helping a business recover swiftly from a disruption. These are key steps a business may want to take.

Identifying critical business areas and functions

Business continuity planning begins with identifying an organization's key business areas and the critical functions within those areas. A business needs to determine and document the acceptable downtime for each area and function considered vital to operations. Then a plan to restore operations can be established, documented, and communicated.

Analyzing risks, threats, and potential impacts

Creating appropriate response scenarios requires knowing what disruptions the business could experience. An upfront analysis of risks and threats is necessary in order to prepare contingency responses to events. Organizations can also conduct a back-end analysis after an event to gather metrics and assess lessons learned. This information can drive improvements in how the business responds to disruptions.

Outlining and assigning responsibilities

A BCP details which personnel will be responsible for implementing specific aspects of the plan. It also identifies key decision-makers and a chain of command. The plan should include alternative options in case primary personnel are incapacitated or unavailable to respond to the disruption.

Defining and documenting alternatives

A business continuity plan should define and document alternative communication strategies in case telephone services or the internet are down. Enterprises should also have alternatives for mission-critical spaces such as data centers or manufacturing facilities in case buildings are damaged.

Assessing the need for critical backups

Essential equipment may be damaged or unavailable during a disruptive event. A business should consider whether it has access to backup equipment and uninterruptible power supplies (UPS) during extended power outages. Business-critical data needs to be backed up regularly, and is mandatory in many regulated industries.

Testing, training, and communication

Business continuity plans need to be tested to ensure they will be effective. (Disaster recovery plans should be tested as well.) A best practice is to conduct a plan review at least quarterly with leadership and key team members who are responsible for executing the plan.

Many companies use role-playing sessions, simulations, and other types of exercises several times per year to test their BCPs. This approach helps to identify gaps, develop strategies for improvement, and determine if more resources are needed. Targeted staff training and communicating to the whole workforce the benefits of having a business continuity plan are also vital to its success.

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The Backbone of Resilient Organizations: Demystifying Business Continuity

What is business continuity.

No matter what business you’re in, unexpected disruptions can happen. Outages, natural disasters, supply chain failures, cyber incidents, equipment failures, and other physical and technical issues can all disrupt your ability to function and thrive.

To ensure your business is ready for unexpected events, you need to know what to do when things go wrong—and this is where business continuity comes in. Read on to learn more about business continuity, including disaster recovery, and what to include in your business continuity plan. Also, find out about business continuity management and business continuity solutions.

What is business continuity and why is it important?

Business continuity is an organization’s readiness to continue functioning during times of disruption. Business continuity is important because it reduces the potential impact of a disruption on customers, employees, and partners.

Having a business continuity plan (BCP)—which includes the analysis, technology, documentation, training, key team members, and procedures involved in resolving potential crisis situations—is vital for ensuring business continuity. A BCP includes goals focused on minimizing the potential impact of a crisis on a company’s financials and reputation—and maintaining industry, regional, and global compliance standards and regulations.

What’s the difference between business continuity and disaster recovery?

While business continuity and disaster recovery are often used interchangeably, they’re not the same thing.

Disaster recovery is a key part of a business continuity plan and is focused specifically on systems, data, and IT infrastructures. It includes technology, strategies, and processes for saving, restoring, and recovering data and protecting against cyber threats.

For a BCP to be successful in reducing downtime, mitigating risks, and remediating issues like data loss and corruption, disaster recovery measures are crucial. While both involve processes, people, and technology, business continuity offers a much wider scope to encompass the steps necessary for maintaining operations across every part of a business.

What should be included in a business continuity plan?

There are three components of a business continuity plan to consider:

  • Resilience—developing business functions and infrastructures to be prepared for an unexpected situation.
  • Recovery—setting up backup and recovery solutions for your applications, systems, and networks; determining what systems should be prioritized in the event of a disaster; and choosing a third-party vendor for additional help and resources if necessary.
  • Contingency—creating steps for what to do if a disruption occurs. This includes setting up a chain of command with key people and defining their responsibilities when it comes to communication, technology, third-party contracting, and coordinating temporary spaces. Keep these in mind at every step in the planning process to help ensure your BCP covers the full scope of your business.

With these three key components in mind, take the following steps to start building your business continuity plan:

  • Run a business impact analysis (BIA), which examines your current business functions, processes, and technology. An analysis will uncover potential vulnerabilities, risks, and threats you might encounter. Doing so helps identify areas of improvement and what to prioritize. After an analysis, you may consider making additional technology investments as well.
  • Outline and assign responsibilities for who will delegate, act, and support in the event of a crisis. These individuals will execute any necessary steps, be points of contact, gather resources, and guide efforts to minimize downtime for affected business functions.
  • Determine alternative forms of communication in case your standard means of communication are impacted by an outage or downtime.
  • Prepare backup equipment in case of damage or outages to prevent business-critical functions from stopping.
  • Understand and follow business continuity standards, which are legal and regulatory requirements determined for an industry. These are helpful when determining what steps you need to take in scenarios such as a breach or data loss. Creating a plan isn’t the last step—to make business continuity an important part of your organization, you also need business continuity management.

What is business continuity management?

Business continuity management includes the processes you put in place to set up and maintain your business continuity plan. It should include the following:

  • Creating policies that define the scope, objectives, and principles of business continuity. These should always keep the customer in mind to ensure you’ve documented what business-critical functions may impact customers and who is involved in customer service communication in the event of an outage or disruption.
  • Assembling business continuity teams throughout your organization who can communicate and enforce policies and procedures that are put in place. These employees will take part in ongoing reviews and tests to make sure everything and everyone is properly prepared for an incident.
  • Supporting a culture of business continuity by educating your entire organization about risks, policies, and documentation available. Offering ongoing training is an important way to increase awareness and gather data to see if there are any gaps or areas in need of improvement.
  • Maintaining up-to-date compliance standards and best practices to make sure your processes, workflows, and employees all work within the correct industry standards as they relate to data. If a business doesn’t keep up and an unexpected disruption occurs, there’s the risk of increased financial damages, legal costs, and fines.

Keeping track of all the continuously developing parts of a business continuity plan can be daunting for a growing organization. To reduce the time and effort involved, many businesses invest in business continuity solutions.

What kind of business continuity solutions should I consider?

The business continuity solutions you choose should be based on your organization’s needs. Depending on the industry you’re in, the size of your company, and your business-critical functions, you’ll find a range of software and resources available. These options include:

  • Cloud-based storage solutions, which provide a secure, remote location to back up and run workflows and applications, as well as store data. If there’s a breach or error causing data loss, you can access what you need from the cloud.
  • Backup and recovery tools for making copies of the data, applications, and systems within your IT infrastructure. If anything is deleted, corrupted, or shut down during a disruption, you can restore them and minimize downtime. These solutions offer different options for running backups, including automatically on a schedule, instantly, or as needed.
  • Virtualization tools that replicate environments and workspaces. If there’s an outage or device issues, employees can still access their applications and run processes as normal, reducing downtime that may affect services.
  • Contracts with third-party providers, such as disaster-recovery-as-a-service (DRaaS) and backup-as-a-service. Based on your agreement, a provider can run data backups, host your IT infrastructure, and offer support in the event of a disaster. These services are typically offered with a subscription or a pay-as-you-use model and include support from IT and cybersecurity experts.
  • Unified communication tools to support collaboration across your entire organization. With one platform for connecting frontline workers, customer service agents, and other key members of your continuity teams, it’s easier to keep everyone up to date on disruptions and manage shifts and schedules to make sure the right people are available.

Business continuity should be a priority for any growing business looking to ensure the safety and security of their employees, technology, and data. To support the planning process, there are several solutions available to make business continuity planning easier. Though you can’t predict or prevent every disruption, with the right tools, a solid plan, and an educated team, business continuity can save you time, money, and resources across your organization.

Learn more • Developing your business continuity plan • Business continuity and disaster recovery

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Business continuity planning.

Business continuity planning enables you to create an easy-to-use, actionable business continuity planning solution to prepare for the impact of a broad range of threats including natural disasters, disease outbreaks, accidents and terrorism. In addition business continuity planning can help when you face technology-related hazards like the failure of systems, equipment or software. MEP Centers can assist you in developing a plan unique to your needs.

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Business disruption costs your company money. It can result in lost revenues and extra expenses. The worst part is that potential threats can come anytime and anywhere. A natural disaster or sudden illness can leave your company without a leader, supplier, or office space. A business continuity plan (BCP) ensures your organization can function during a crisis.

In 2020, more than 50% of companies worldwide didn’t have a business continuity plan. While many have since implemented one, others lag behind. Learn what a BCP is, how it benefits your company, and how to start.

What is a business continuity plan, and who needs one?

A business continuity plan is a written document that outlines the steps your organization takes during an emergency. On a basic level, your BCP explains who handles essential business operations and highlights time-sensitive tasks. You assign each person a role and describe operational processes so that you can fill empty positions with another team member or new employee as needed. It should be updated regularly and accessible to all staff in digital and paper forms.

All companies benefit from having a business continuity plan, even solo entities. After all, if you are a solopreneur, who will communicate with your clients if you can’t? Also, corporations in some industries must create a BCP. For instance, the Financial Industry Regulatory Authority (FINRA) requires member firms to keep plans according to Rule 4370 .

[ Read more: 5 Types of Organizational Structures for Small Business ]

Core components of business continuity plans

Although business continuity plans vary according to industry and company size, most include similar sections. A solopreneur without employees will have a less extensive guide than an entrepreneur with multiple locations and a large staff.

Your business continuity plan may include the following:

  • A list of roles and responsibilities.
  • Communication protocols for staff, vendors, and customers.
  • An outline of critical functions like payroll and revenue operations.
  • Your strategy for assessing risks, testing your plan, and updating it.

Assessing threats and having an actionable plan gives your company a competitive edge.

Business continuity vs. disaster recovery

A disaster recovery plan (DRP) helps your company move forward after an incident. It’s focused on returning to business as normal. In contrast, a business continuity plan prioritizes keeping your store open and running regardless of the circumstances. A DRP is often part of a more extensive business continuity plan; alternatively, it can be a stand-alone document. The key to creating a resilient business is having both strategies in place.

[ Read more: How to Write an Emergency Preparedness Plan ]

How small businesses benefit from having a BCP

Assessing threats and having an actionable plan gives your company a competitive edge. It ensures that you’re prepared to handle anything that comes your way while reassuring your customers, employees, and suppliers that your business will remain open during trying times.

Here are a few ways business continuity planning benefits your company:

  • Increases organizational awareness: Going through the planning process can alert you to insurance issues, unknown risks, or supply chain concerns . It also encourages your staff to take their roles seriously and understand what’s expected of them.
  • Reduces financial risks: Having strategies to resolve employee, supply chain, or location problems can decrease downtime, allowing you to continue to generate revenue during an emergency.
  • Prevents customer dissatisfaction: Communication issues and business disruption can lead to clients turning to your competitors. Remaining operational means you can fully support customers in their time of need.
  • Improves employee relations: Instability can lower worker retention rates. A BCP shows your staff how and when you will communicate during a crisis. Also, you can engage them during the process to demonstrate their importance to your small business.

Getting started: BCP tips and resources

Ready.gov provides top-notch resources to help you throughout the business continuity planning process. Along with guides and templates, you can view training and testing information or learn how to complete a risk assessment.

Check out free business continuity plan templates from the following agencies:

  • Federal Emergency Management Agency (FEMA).
  • Department of Homeland Security (DHS).

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Blog Business

7 Business Continuity Plan Examples

By Danesh Ramuthi , Nov 28, 2023

Business Continuity Plan Examples

A business continuity plan (BCP) is a strategic framework that prepares businesses to maintain or swiftly resume their critical functions in the face of disruptions, whether they stem from natural disasters, technological failures, human error, or other unforeseen events.

In today’s fast-paced world, businesses face an array of potential disruptions ranging from cyberattacks and ransomware to severe weather events and global pandemics. By having a well-crafted BCP, businesses can mitigate these risks, ensuring the safety and continuity of their critical services and operations.

Responsibility for business continuity planning typically lies with top management and dedicated planning teams within an organization. It is a cross-functional effort that involves input and coordination across various departments, ensuring that all aspects of the business are considered.

For businesses looking to develop or refine their business continuity strategies, there are numerous resources available. Tools like Venngage’s business plan maker and their business continuity plan templates offer practical assistance, streamlining the process of creating a robust and effective BCP. 

Click to jump ahead: 

7 business continuity plan examples

Business continuity types, how to write a business continuity plan, how often should a business continuity plan be reviewed, business continuity plan vs. disaster recovery plan, final thoughts.

In business, unpredictability is the only certainty. This is where business continuity plans (BCPs) come into play. These plans are not just documents; they are a testament to a company’s preparedness and commitment to sustained operations under adverse conditions. To illustrate the practicality and necessity of these plans, let’s delve into some compelling examples.

Business continuity plan example for small business

Imagine a small business specializing in digital marketing services, with a significant portion of its operations reliant on continuous internet connectivity and digital communication tools. This business, although small, caters to a global clientele, making its online presence and prompt service delivery crucial.

Business Consultant Continuity Plan Template

Scope and objective:

This Business Continuity Plan (BCP) is designed to ensure the continuity of digital marketing services and client communications in the event of an unforeseen and prolonged internet outage. Such an outage could be caused by a variety of factors, including cyberattacks, technical failures or service provider issues. The plan aims to minimize disruption to these critical services, ensuring that client projects are delivered on time and communication lines remain open and effective.

Operations at risk:

Operation: Digital Marketing Services Operation Description: A team dedicated to creating and managing digital marketing campaigns for clients across various time zones. Business Impact: High Impact Description: The team manages all client communications, campaign designs, and real-time online marketing strategies. An internet outage would halt all ongoing campaigns and client communications, leading to potential loss of business and client trust.

Recovery strategy:

The BCP should include immediate measures like switching to a backup internet service provider or using mobile data as a temporary solution. The IT team should be prepared to deploy these alternatives swiftly. Additionally, the company should have a protocol for informing clients about the situation via alternative communication channels like mobile phones.

Roles and responsibilities:

Representative: Alex Martinez Role: IT Manager Description of Responsibilities:

  • Oversee the implementation of the backup internet connectivity plan.
  • Coordinate with the digital marketing team to ensure minimal disruption in campaign management.
  • Communicate with the service provider for updates and resolution timelines.

Business Continuity and Disaster Recovery Plan Template

Business continuity plan example for software company

In the landscape of software development, a well-structured Business Continuity Plan (BCP) is vital. This example illustrates a BCP for a software company, focusing on a different kind of disruption: a critical data breach.

Business Continuity Plan Template

Scope and objectives:

This BCP is designed to ensure the continuity of software development and client data security in the event of a significant data breach. Such a breach could be due to cyberattacks, internal security lapses, or third-party service vulnerabilities. The plan prioritizes the rapid response to secure data, assess the impact on software development projects and maintain client trust and communication.

Operation: Software Development and Data Security Operation Description: The software development team is responsible for creating and maintaining software products, which involves handling sensitive client data. In the realm of software development, where the creation and maintenance of products involve handling sensitive client data, prioritizing security is crucial. Strengthen your software development team’s capabilities by incorporating the best antivirus with VPN features, offering a robust defense to protect client information and maintain a secure operational environment. The integrity and security of this data are paramount.

Business Impact: Critical Impact Description: A data breach could compromise client data, leading to loss of trust, legal consequences and potential financial penalties. It could also disrupt ongoing development projects and delay product releases.

The IT security team should immediately isolate the breached systems to prevent further data loss. They should then work on identifying the breach’s source and extent. Simultaneously, the client relations team should inform affected clients about the breach and the steps being taken. The company should also engage a third-party cybersecurity firm for an independent investigation and recovery assistance.

Representative: Sarah Lopez Role: Head of IT Security Contact Details: [email protected] Description of Responsibilities:

  • Lead the initial response to the data breach, including system isolation and assessment.
  • Coordinate with external cybersecurity experts for breach analysis and mitigation.
  • Work with the legal team to understand and comply with data breach notification laws.
  • Communicate with the software development team leaders about the impact on ongoing projects.

Business Continuity Plan Templates

Related: 7 Best Business Plan Software for 2023

Business continuity plan example for manufacturing

In the manufacturing sector, disruptions can significantly impact production lines, supply chains, and customer commitments. This example of a Business Continuity Plan (BCP) for a manufacturing company addresses a specific scenario: a major supply chain disruption.

Business Continuity Plan Template

This BCP is formulated to ensure the continuity of manufacturing operations in the event of a significant supply chain disruption. Such disruptions could be caused by geopolitical events, natural disasters affecting key suppliers or transportation network failures. The plan focuses on maintaining production capabilities and fulfilling customer orders by managing and mitigating supply chain risks.

Operation: Production Line Operation Description: The production line is dependent on a steady supply of raw materials and components from various suppliers to manufacture products. Business Impact: High Impact Description: A disruption in the supply chain can lead to a halt in production, resulting in delayed order fulfillment, loss of revenue and potential damage to customer relationships.

The company should establish relationships with alternative suppliers to ensure a diversified supply chain. In the event of a disruption, the procurement team should be able to quickly switch to these alternative sources. Additionally, maintaining a strategic reserve of critical materials can buffer short-term disruptions. The logistics team should also develop flexible transportation plans to adapt to changing scenarios.

Representative: Michael Johnson Role: Head of Supply Chain Management Contact Details: [email protected] Description of Responsibilities:

  • Monitor global supply chain trends and identify potential risks.
  • Develop and maintain relationships with alternative suppliers.
  • Coordinate with logistics to ensure flexible transportation solutions.
  • Communicate with production managers about supply chain status and potential impacts on production schedules.

Related: 15+ Business Plan Templates for Strategic Planning

BCPs are essential for ensuring that a business can continue operating during crises. Here’s a summary of the different types of business continuity plans that are common:

  • Operational : Involves ensuring that critical systems and processes continue functioning without disruption. It’s vital to have a plan to minimize revenue loss in case of disruptions.
  • Technological : For businesses heavily reliant on technology, this type of continuity plan focuses on maintaining and securing internal systems, like having offline storage for important documents.
  • Economic continuity : This type ensures that the business remains profitable during disruptions. It involves future-proofing the organization against scenarios that could negatively impact the bottom line.
  • Workforce continuity : Focuses on maintaining adequate and appropriate staffing levels, especially during crises, ensuring that the workforce is capable of handling incoming work.
  • Safety : Beyond staffing, safety continuity involves creating a comfortable and secure work environment where employees feel supported, especially during crises.
  • Environmental : It addresses the ability of the team to operate effectively and safely in their physical work environment, considering threats to physical office spaces and planning accordingly.
  • Security : Means prioritizing the safety and security of employees and business assets, planning for potential security breaches and safeguarding important business information.
  • Reputation : Focuses on maintaining customer satisfaction and a good reputation, monitoring conversations about the brand and having action plans for reputation management.

Business Continuity Planning Templates

As I have explained so far, a Business Continuity Plan (BCP) is invaluable. Writing an effective BCP involves a series of strategic steps, each crucial to ensuring that your business can withstand and recover from unexpected events. Here’s a guide on how to craft a robust business continuity plan:

Business Continuity And Disaster Recovery Plan Template

1. Choose your business continuity team

Assemble a dedicated team responsible for the development and implementation of the BCP. The team should include members from various departments with a deep understanding of the business operations.

2. Outline your plan objectives

Clearly articulate what the plan aims to achieve. Objectives may include minimizing financial loss, ensuring the safety of employees, maintaining critical business operations, and protecting the company’s reputation.

3. Meet with key players in your departments

Engage with department heads and key personnel to gain insights into the specific needs and processes of each department. This helps in identifying critical functions and resources.

4. Identify critical functions and types of threats

Determine which functions are vital to the business’s survival and identify potential threats that could impact these areas. 

5. Carry on risk assessments across different areas

Evaluate the likelihood and impact of identified threats on each critical function. This assessment helps in prioritizing the risks and planning accordingly.

6. Conduct a business impact analysis (BIA)

Perform a BIA to understand the potential consequences of disruption to critical business functions. It has to be done in determining the maximum acceptable downtime and the resources needed for business continuity.

7. Start drafting the plan

Compile the information gathered into a structured document. The plan should include emergency contact information, recovery strategies and detailed action steps for different scenarios.

8. Test the plan for any gaps

Conduct simulations or tabletop exercises to test the plan’s effectiveness. This testing can reveal unforeseen gaps or weaknesses in the plan.

9. Review & revise your plan

Use the insights gained from testing to refine and update the plan. Continual revision ensures the plan remains relevant and effective in the face of changing business conditions and emerging threats.

Read Also: How to Write a Business Plan Outline [Examples + Templates]

A Business Continuity Plan (BCP) should ideally be reviewed and updated at least annually. 

The annual review ensures that the plan remains relevant and effective in the face of new challenges and changes within the business, such as shifts in business strategy, introduction of new technology or changes in operational processes. 

Additionally, it’s crucial to reassess the BCP following any significant business changes, such as mergers, acquisitions or entry into new markets, as well as after the occurrence of any major incident that tested the plan’s effectiveness. 

However, in rapidly changing industries or in businesses that face a high degree of uncertainty or frequent changes, more frequent reviews – such as bi-annually or quarterly – may be necessary. 

A Business Continuity Plan (BCP) and a Disaster Recovery Plan (DRP) are two crucial components of organizational preparedness, yet they serve different functions. The BCP is aimed at preventing interruptions to business operations and maintaining regular activities. 

It focuses on aspects such as the location of operations during a crisis (like a temporary office or remote work), how staff will communicate and which functions are prioritized. In essence, a BCP details how a business can continue operating during and after a disruption​​​​.

On the other hand, a DRP is more specific to restoring data access and IT infrastructure after a disaster. It describes the steps that employees must follow during and after a disaster to ensure minimal function necessary for the organization to continue. 

Essentially, while a BCP is about maintaining operations, a DRP is about restoring critical functions, particularly IT-related, after a disruption has occurred​

It’s clear that having a robust and adaptable business continuity plan (BCP) is not just a strategic advantage but a fundamental necessity for businesses of all sizes and sectors. 

From small businesses to large corporations, the principles of effective business continuity planning remain consistent: identify potential threats, assess the impact on critical functions, and develop a comprehensive strategy to maintain operations during and after a disruption.

The process of writing a BCP, as detailed in this article, underscores the importance of a thorough and thoughtful approach. It’s about more than just drafting a document; it’s about creating a living framework that evolves with your business and the changing landscape of risks.

To assist in this crucial task, you can use Venngage’s business plan maker & their business continuity plan templates . These tools streamline the process of creating a BCP, ensuring that it is not only comprehensive but also clear, accessible and easy to implement. 

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A step-by-step guide to writing an effective business continuity plan.

Posted Aug 30, 2022

What is a business continuity plan?

A business continuity plan is a written document that describes the emergency procedures that should happen if a business-critical process fails.

Several sources can threaten businesses. Sometimes, disruption can take the form of Force Majeure circumstances, like extreme weather or political unrest. Other circumstances are less obvious, but just as disruptive: supply chain issues, web server downtime or power outages can leave permanent damage to a business’s finances after a certain amount of time.

Businesses must prevent unwanted downtime to ensure critical functions and services aren’t affected. The best way to ensure a consistent and effective response to potential issues is to implement a robust, documented business continuity plan.

Learn more with our in-depth guide to business continuity.

What is the purpose of a business continuity plan?

A strategically structured and rehearsed business continuity plan provides a number of benefits to both employees and the company itself.

With improvements to communication, technology and resilience, here are a number of examples of the positives that you can expect from a business continuity plan:

Helps your business to survive a disruptive event — Ensuring you have a robust plan in place will enable your business to recover in the shortest possible timeframe from an incident.

Protect your organisation’s reputation and brand — Whether it’s in the eyes of the public, suppliers and/or clients you work with, showing that you can respond well to the unexpected will instil confidence in your business and help to mitigate any negative feelings due to disruptions.

Strengthen your relationship with third parties and subsidiaries — With an effective business continuity plan, you’ll demonstrate that your company is being run well from the top down. By showing that you’re a reliable partner that can be depended on, you’ll attract new business and solidify your relationship with current clients and service providers.

Ensure staff safety — The well-being of your employees is a natural factor in a business continuity plan. By ensuring your team is looked after and knows what the procedure is during disruptions, you can establish clear roles and responsibilities to keep everyone under your care safe in an emergency.

Meet regulatory standards — Globally, there are corporate governance regulations that require directors and key stakeholders to exercise reasonable care, skill and diligence to mitigate risks facing an organisation. With an effective business continuity plan in place, you can ensure you’re meeting the requirements of a growing body of legislation.

What does a good business continuity plan look like?

The three key elements of a business continuity plan are:

1. Resilience

Businesses can increase their resilience by designing critical functions and infrastructures to protect against specific scenarios. Examples include; data redundancy, staffing rotations and maintaining a surplus of capacity. If implemented efficiently, resilience in business continuity can even keep essential services running on-site or remotely without interruption to daily operations.

2. Recovery

There’s no way an organisation can prepare for every eventuality. But with rapid recovery, you can future-proof your business by ensuring you have strategies in place to restore business functions in an emergency. With recovery time objectives for different systems, you can analyse and prioritise which needs recovering first.

3. Contingency

A contingency plan ensures that an organisation has procedures in place to distribute and delegate responsibilities for a range of external scenarios. These can include replacing hardware, sourcing an emergency workspace and contracting third-party vendors for assistance.

Who is responsible for a business continuity plan?

To ensure your organisation’s readiness, it’s important to designate who will be responsible for implementing and managing your business continuity plan. For small businesses, a single individual could be tasked with writing a business continuity plan. Or for larger organisations, a whole team could be involved with developing a business continuity plan.

In such cases, business unit leaders — such as payroll, corporate travel, human resources and security — will be given the responsibility of creating their respective unit’s business continuity plan with a program manager overseeing the process.

It is essential to make sure each person understanding their responsibilities and that there are clear lines of communication between employees and external stakeholders, in order to keep everything as smooth as possible during an disruptive scenario.

What is the first step in writing a business continuity plan?

The first step you should take when preparing to write a business continuity plan is to conduct a full Business Impact Assessment (BIA).

A BIA predicts the consequences of a significant disruption to your business processes. It clarifies the potential losses that could be incurred in each circumstance.

A BIA should include the following:

Potential losses — What would your lost sales and income look like for each hour of downtime, or each day?

Delayed sales — Could disruption create cash flow issues for you by delaying your sales or income? If so, to what extent? What lines of credit would you have to rely on?

Increased expenses — How much would you have to spend on resources to mitigate the issue? Think about things like overtime, outsourcing, and costs associated with expediting business-critical activities.

Regulatory fines — How much could you be fined by regulators for breaches to things like data privacy or health and safety?

Contractual penalties — Are there any charges you could incur for failing to meet SLAs with your business partners?

Customer satisfaction — How much damage to your public reputation could a disruption have? You can quantify by thinking of the number of additional negative reviews you could receive for each day of delays.

Delay of new business plans — Would you need to push back any planned launches or new business agreements while you deal with disruptions?

Writing your plan: Step-by-step instructions

Identify your business-critical processes — Critical business processes are those necessary for the survival of the company in the case of loss of revenue, customer service interruption or reputation damage. E.g. Manufacturing — what you would need to keep your production line going. Finance — how to recover important documents that contain sensitive information. IT — is home working feasible for your business?

Specify the target recovery time for these processes — How long would it take for the loss of a business-critical process to do irreparable damage to your business? Your target recovery time for each process you identified should be within this window. Determine how long you could tolerate a disruption: this is known as a recovery time objective (RTO). Your business continuity plan should enable you to mitigate disruptions within this time window.

Define the specific resources needed for each process — Once you’ve identified how long you’ll need to restore a process, you’ll need to outline everything you’ll need to do so, and plan within that time frame. You could split this into internal resources (key people in your organisation, passwords, office space, specialist equipment) and external resources (e.g. supplies, transportation). Along with identifying how readily available they can be, and for how long you’ll need them.

Describe the steps needed to restore each process — If your business is disrupted by an IT failure, fire, flood or an extreme weather event, what is your plan to address this? Devise a backup plan for each key operation you have, detailing who to contact, what resources you’ll need, and how much you might need to spend in order to restore each process.

Decide on a schedule to update the information — Once you’ve compiled the above 4 points, you’ll have a strong business continuity plan that you can action. But it won’t be bulletproof forever. As your business evolves, so will the technology it uses and the relationships it has. Therefore, you need to plan ways to keep the information up-to-date. It might be that you decide on a regular date that the whole plan needs to be revisited, whether that’s yearly, quarterly or even monthly. Alternatively, you might decide it’s better to update small elements of the plan as and when they change: e.g. if a password to a critical folder is changed, there’s someone in your organisation who is responsible for updating your business continuity plan accordingly.

What are the four P’s of business continuity planning?

The four P’s of business continuity are:

People — This covers your staff, customers and clients.

Processes — This includes the technology and strategies your business uses to keep everything running.

Premises — Covers the buildings and spaces from which your business operates.

Providers — This includes parties that your business relies on for getting resources, like your suppliers and partners.

You can use the four P’s when reviewing the initial draft of your business continuity plan to ensure you’ve considered the impact on each of them at every stage.

For example, how might your plan to recover important documents out of working hours impact your staff? How hard would it be to access the premises? When should you notify your clients and business partners?

What is the most important part of a business continuity plan?

Every element of your business continuity plan is important, but perhaps the most critical part to get right is how you plan to respond to potential issues. It’s advantageous to have precise calculations about potential losses and the impact of your business relationships, but without a clear and effective way of reacting to disruptions, your business will incur serious — and sometimes irreparable — financial damage.

Business continuity plan template

We’ve prepared an example business continuity plan to get you started.

1. Objective of the plan

Open with a short summary of the ‘why’ behind the how. Explain clearly and succinctly that the aim of your business continuity plan is to protect your business in the event of a disruption to business-critical processes.

2. Business-critical processes checklist

Your plan will need to contain a list of its most important processes. Below are a few examples:

3. Recovery plan

For each critical function you listed in step (2), you’ll need to specify a comprehensive, tailored recovery plan that should be followed in order to get the process back up and running within your RTO.

4. Contact list

Create lists of staff, suppliers and insurers that should be contacted in case of an emergency.

List of key staff: example

Supplier list: example

List of insurers: example

Ensure your business continuity

If you want to protect your business against all eventualities, putting in place reliable business continuity plans is a crucial step.

CMAC specialises in providing emergency assistance to businesses experiencing transport disruptions to keep things running smoothly and minimise potential losses. Learn more about CMAC’s full suite of industry-leading recovery solutions , from ground transport to emergency accommodation.

Other useful guides

What is Business Continuity and why is it important for your business? | CMAC Group

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How to Build an ERP Business Continuity Plan

William Jepma

  • Best Practices ,

How to Build an ERP Business Continuity Plan

The editors at Solutions Review have outlined the fundamentals of building an ERP business continuity plan to help companies ensure their systems can keep running if disruptions occur.

In today’s fast-paced and interconnected business environment, organizations rely on Enterprise Resource Planning (ERP) systems to streamline operations and drive efficiency. However, disruptions like natural disasters, cyber-attacks, or global crises can significantly impact the availability and functionality of these critical systems. To mitigate risks and ensure business continuity, companies must develop a comprehensive ERP Business Continuity Plan.

A business continuity plan is a strategy designed to outline how your company will maintain its operations during and after a disruption. While not a foolproof solution to unexpected challenges, having a business continuity plan helps companies proactively manage risks and minimize the downtime disruptions can cause. With that in mind, the Solutions Review editors have outlined the steps companies should take to create a business continuity plan to ensure their ERP system runs as smoothly as possible if (and when) disruptions occur.

1) Identify Critical ERP Components

The first step in creating an ERP Business Continuity Plan is relatively straightforward: identify the crucial components of the ERP system. This involves mapping out all the interconnected modules, integrations, and departments that rely on the solution. From there, you should outline the infrastructure the ERP relies on to continue functioning, as documenting those components will enable you to prioritize recovery efforts and allocate resources effectively during a disruption.

2) Conduct a Risk Assessment

A thorough risk assessment is crucial in understanding an ERP’s potential vulnerabilities and risks. This assessment should include internal and external factors that may impact your ERP, including everything from hardware failures and software glitches to security breaches, natural disasters, and more. By identifying potential risks, you can prepare strategies and countermeasures that, if needed, can mitigate the repercussions they cause.

3) Define Recovery Objectives and Strategies

The next step after developing the risk assessment involves establishing recovery objectives for your ERP system. These objectives should align with your organization’s overall business continuity goals. To do so, you should start by determining the maximum acceptable downtime for each ERP component, the recovery point objective (RPO), and the recovery time objective (RTO). Once these objectives are defined, develop strategies and contingency plans for each component to minimize downtime and restore functionality quickly.

4) Establish Data Backup and Recovery Procedures

Data is the lifeblood of any ERP system, and protecting it is crucial for business continuity. Implementing regular data backup procedures ensures that your company’s internal information is stored securely and makes it easier to recover if and when a disruption occurs. You should consider using offsite backups or cloud-based solutions for enhanced data redundancy and accessibility. And as always, test the backup and recovery processes periodically to validate their effectiveness.

5) Implement Redundancy and Failover Mechanisms

To minimize the impact of system failures, implement redundancy and failover mechanisms within your ERP architecture. This often means employing redundant servers, network infrastructure, and database systems, as these can provide seamless failover capabilities. Additionally, consider deploying load balancers and replication techniques to distribute workloads and maintain system availability during peak usage or failure scenarios.

6) Develop Incident Response and Communication Plans

A well-defined incident response plan is paramount in an ERP disruption as it can minimize the impact and ensure a swift recovery. Get started by establishing a dedicated team responsible for managing incidents and communicating with stakeholders. From there, define the roles, responsibilities, and escalation procedures to relevant departments to streamline incident response efforts. Clear communication channels should also be established with employees, customers, suppliers, and partners to provide timely updates and manage expectations.

7) Test and Update the Plan Regularly

Like any tool, a business continuity plan is only effective if regularly tested, updated, and refined. Conduct comprehensive testing exercises—tabletop simulations and full-scale mock recoveries—to evaluate the plan’s efficacy, identify gaps or weaknesses, and make the necessary adjustments. Additionally, ensure that the program stays up-to-date with your ERP system, infrastructure, or organizational structure changes.

Disruptions can happen anytime and come from anywhere—look at the repercussions countless industries experienced during the COVID-19 pandemic—so it’s critical to build and maintain an ERP business continuity plan to safeguard your organization’s critical systems. By identifying crucial components, conducting risk assessments, defining recovery objectives, implementing redundancy mechanisms, and developing robust incident response and communication plans, you can enhance the resilience of your ERP system in the face of unexpected disruptions.

Download Link to ERP Buyer's Guide

This article was written by William Jepma on July 13, 2023

  • Business Continuity Plan
  • Business Disruptions
  • Continuity Disruptions
  • Enterprise Resource Planning (ERP)
  • Risk Assessment
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William Jepma

Writer, editor, and analyst.

William Jepma is an editor, writer, and analyst at Solutions Review who aims to keep readers across industries informed and excited about the newest developments in Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Business Process Management (BPM), Marketing Automation, and other WorkTech categories. You can connect with him on LinkedIn or reach him via email at [email protected].

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COMMENTS

  1. What Is a Business Continuity Plan (BCP), and How Does It Work?

    Business Continuity Planning - BCP: The business continuity planning (BCP) is the creation of a strategy through the recognition of threats and risks facing a company, with an eye to ensure that ...

  2. What Is A Business Continuity Plan? [+ Template & Examples]

    A business continuity plan outlines directions and procedures that your company will follow when faced with a crisis. These plans include business procedures, names of assets and partners, human resource functions, and other helpful information that can help maintain your brand's relationships with relevant stakeholders.

  3. PDF Yale University Business Continuity Planning Quick Start Guide

    Business Continuity Planning - Quick Start Guide (Rev; Sept. 2019) Page 5 Helpful Definitions: Business Continuity (BC) is the framework for ensuring continued operations with little or no interruption regardless of the circumstances or events. It involves planning and preparation to ensure that an organization or

  4. Business Continuity Plan: Example & How to Write

    Step 3: Establish the business continuity plan objectives. Step 4: Evaluate the potential impact of disruptions to the business and its workers. Step 5: List actions to protect the business. Step 6: Organize contact lists. Step 7: Maintain, review, and continuously update the business continuity plan.

  5. 5 Step Guide to Business Continuity Planning (BCP) in 2021

    A business continuity plan (BCP) is a protocol of preventing and recovering from potentially large threats to the company's business continuity. Such a plan often aims to address the need for updated business norms and operational standards in unpredictable circumstances such as natural disasters, data breach/ exposures, large scale system ...

  6. What is a Business Continuity Plan (BCP)?

    A business continuity plan must be continually improved; updates should not wait for a crisis. Staff members involved in the plan must get regular updates and business continuity training. An internal or external business continuity plan audit should be used to evaluate the effectiveness of the BCP and highlight areas for improvement.

  7. How to craft an effective business continuity plan

    Get the word out. Iterate and improve. 1. Analyze your company. In this phase you conduct an analysis to identify critical activities, determine which activities must continue, which can be temporarily paused, and which can operate at a reduced capacity. You then assess the financial impact of disruptions.

  8. Business Continuity Planning

    Business Continuity Training Part 3: Planning Process Step 6. The sixth of six steps addressed in this Business Continuity Training, which detail the process of building a business continuity plan. This step addresses how organizations should "test" their business continuity plans. Organize a business continuity team and compile a business ...

  9. How to Write a Business Continuity Plan

    Here is an example of a BCP format: Business Name: Record the business name, which usually appears on the title page. Date: The day the BCP is completed and signed off. Purpose and Scope: This section describes the reason for and span of the plan. Business Impact Analysis: Add the results of the BIA to your plan.

  10. What Does a Business Continuity Plan Typically Include? [Complete Guide]

    Building a business continuity plan through a risk-based lens empowers you to design more effective policies and procedures that simultaneously minimize the impact of the disruption at hand. Monitor the effectiveness of your controls over time. Otherwise, your BCP won't align with your risks, leaving you likely to be caught off guard next ...

  11. What is business continuity and why is it important?

    A business continuity plan considers unpredictable events and potential threats, such as natural disasters, fires, disease outbreaks, pandemics, supply chain disruptions, cyber attacks and other external threats. A business continuity strategy is important for organizations of any size, but it might not be practical for any but the largest ...

  12. Business Continuity Planning: Why You Need It and Why It Is So Important

    Business continuity planning is the key to ensuring a company's sustained operation, regardless of the challenges it may face. Business continuity planning goes beyond the traditional business plan. While a business plan outlines goals and strategies for growth, a continuity plan focuses on how the organization will continue to function in ...

  13. Understanding the Essentials of a Business Continuity Plan

    A business continuity plan (BCP) is an essential blueprint that outlines how a company will continue operating during an unplanned disruption in service. It's more than just a reactive strategy; it's a proactive measure to ensure that critical business functions can continue during and after a crisis. The purpose of a BCP is to provide a ...

  14. What Is Business Continuity?

    A business continuity strategy is a summary of the mitigation, crisis, and recovery plans to be implemented after a disruption to resume normal operations. "Business continuity strategy" is often used interchangeably with "business continuity plan." Both consider the broader goals, legal and regulatory requirements, personnel, and even the ...

  15. What is Business Continuity?

    Business continuity is an organization's readiness to continue functioning during times of disruption. Business continuity is important because it reduces the potential impact of a disruption on customers, employees, and partners. Having a business continuity plan (BCP)—which includes the analysis, technology, documentation, training, key ...

  16. 7 Real-Life Business Continuity Examples You'll Want to Read

    No business continuity plan:Every business needs a BCP that outlines its unique threats, along with protocols for prevention and recovery. No risk assessment:A major component of your BCP is a risk assessment that should define how your business is at risk of various disaster scenarios. We list several examples of these risks below.

  17. Business Continuity Planning

    Business Continuity Planning. Business continuity planning enables you to create an easy-to-use, actionable business continuity planning solution to prepare for the impact of a broad range of threats including natural disasters, disease outbreaks, accidents and terrorism. In addition business continuity planning can help when you face ...

  18. PDF Creating a Business Continuity Plan

    The business continuity plan (BCP) is intended to be a dynamic plan and can be used in emergencies, disasters, and other catastrophic events where the technology, facility, or a department is severely impacted. BCPs are critical in keeping the facility open and providing care to the community. Having a BCP in place also reduces the economic

  19. Business Continuity: Small Business Planning and Considerations

    A business continuity plan is a written document that outlines the steps your organization takes during an emergency. On a basic level, your BCP explains who handles essential business operations and highlights time-sensitive tasks. You assign each person a role and describe operational processes so that you can fill empty positions with ...

  20. 7 Business Continuity Plan Examples

    Scope and objective: This Business Continuity Plan (BCP) is designed to ensure the continuity of digital marketing services and client communications in the event of an unforeseen and prolonged internet outage. Such an outage could be caused by a variety of factors, including cyberattacks, technical failures or service provider issues.

  21. A step-by-Step Guide to Writing an Effective Business Continuity Plan

    A business continuity plan is a written document that describes the emergency procedures that should happen if a business-critical process fails. Several sources can threaten businesses. Sometimes, disruption can take the form of Force Majeure circumstances, like extreme weather or political unrest. Other circumstances are less obvious, but ...

  22. 46 Best Business Continuity Plan Templates [Word & PDF]

    A business continuity plan sets forth your organization's plans that are put in place to help deal with a disaster. These plans might involve the process by which business is resumed if there is an interruption in provided services or operational function. Your BCP will also help to reduce downtimes and lost revenue.

  23. How To Ensure Business Continuity In The Face Of Internet ...

    In terms of business continuity, AI enables automated customer service outside regular business hours. Incorporating tools like digital voice and AI ensures businesses can operate more smoothly ...

  24. How to Build an ERP Business Continuity Plan

    The first step in creating an ERP Business Continuity Plan is relatively straightforward: identify the crucial components of the ERP system. This involves mapping out all the interconnected modules, integrations, and departments that rely on the solution. From there, you should outline the infrastructure the ERP relies on to continue ...