When business is disrupted, it can cost money. Lost revenues plus extra expenses means reduced profits. Insurance does not cover all costs and cannot replace customers that defect to the competition. A business continuity plan to continue business is essential. Development of a business continuity plan includes four steps:

  • Conduct a business impact analysis to identify time-sensitive or critical business functions and processes and the resources that support them.
  • Identify, document, and implement to recover critical business functions and processes.
  • Organize a business continuity team and compile a business continuity plan to manage a business disruption.
  • Conduct training for the business continuity team and testing and exercises to evaluate recovery strategies and the plan.

Information technology (IT) includes many components such as networks, servers, desktop and laptop computers and wireless devices. The ability to run both office productivity and enterprise software is critical. Therefore, recovery strategies for information technology should be developed so technology can be restored in time to meet the needs of the business. Manual workarounds should be part of the IT plan so business can continue while computer systems are being restored.

Resources for Business Continuity Planning

Business Continuity Impact Analysis

Business continuity impact analysis identifies the effects resulting from disruption of business functions and processes. It also uses information to make decisions about recovery priorities and strategies.

The Operational & Financial Impacts worksheet can be used to capture this information as discussed in Business Impact Analysis. The worksheet should be completed by business function and process managers with sufficient knowledge of the business. Once all worksheets are completed, the worksheets can be tabulated to summarize:

  • The operational and financial impacts resulting from the loss of individual business functions and process
  • The point in time when loss of a function or process would result in the identified business impacts

Those functions or processes with the highest potential operational and financial impacts become priorities for restoration. The point in time when a function or process must be recovered, before unacceptable consequences could occur, is often referred to as the “Recovery Time Objective.”