Production processes are becoming more and more complex, and networking between companies and their economic interdependencies are increasing. Today, a business interruption can also cause immense losses far from where it happens. Business Continuity Planning is therefore becoming more and more important – for small and medium-sized enterprises too.

A business interruption can even end up threatening a company's very existence. Damage to image, loss of customers and contract penalties can have a serious impact on enterprises. Ever more complex production processes as well as economic interdependencies are increasingly offering targets for disruptions of operations. People are aware of the risk but unfortunately still do not take it seriously enough. Many companies fail to protect themselves adequately. Solution concepts for site-specific contingency planning, crisis management and the resumption of operations are lacking.

Tasks

BCP – Business Continuity Planning – is a method that is now becoming established worldwide. BCP protects business functions against serious crises and minimises the consequential loss arising from a business interruption. BCP helps companies to manage human, operational, technical or environmental disruptions in such a way that operations are restricted as little as possible. BCP strategies may help prevent production discontinuities and maintain operations even under adverse conditions.

BCP involves more than the provision of classic safety measures like a mirror server or an emergency power generator. It includes a company's specific structures and business processes and describes their interactions and risks.

Its integrated structure highlights both internal factors, such as organisation, infrastructure and information and decision-making channels, and external factors such as customers, suppliers, environment and social setting.

Costs

BCP gives rise to costs. There is no rule of thumb for the level of costs involved, as they depend on the nature of the possible losses, the potential impact, and the probability of the risks occurring. In principle, the following applies: the tighter the safety net and the greater the availability, the higher the costs are. In the risk analysis that is carried out at the start of any BCP, the idle production costs and any damage to a company’s image as a result of business interruptions of typical duration are calculated. These costs are compared with the preventive and reactive expenses involved in BCP. A risk-aware company management will set great store by a BC strategy, the economic investment in which pays off within just a few hours in the event of an emergency.

From the point of view of shareholder value, BCP is therefore definitely to be seen as a competitive advantage. Like certifications of quality management and environmental management, guaranteeing business processes should also increasingly convince shareholders. As part of a Marsh-Oxford study, the effects of 15 man-made disasters on shareholder value were examined. 250 days after an incident, the shareholder value of companies with a disaster recovery concept was, on average, 25% higher than that of companies without.

	Telephone us and speak directly with one of our experienced staff:
	WOULD YOU LIKE US TO CONTACT YOU - please complete this simple form: