Business Continuity: Five Interesting Stats

10 Feb

Approximately 25% of businesses never reopen after a disaster.

Around 80% that don’t reopen within a month of a disaster are likely to go out of business.

Close to 75% of businesses without a Business Continuity Plan fail within three years.

These stats are found in the YouTube link below to an interesting clip on Business Continuity Management. It raises some important points about Business Continuity, even allowing for the biased stance the maker takes on Business Continuity Management.

A good Business Continuity Plan (here after BCP) should be actionable and seamless. It will reduce the risk of disruption, shorten the period of disruption, and limit impact should it occur [1]. It will focus on what is important to the business and, as time is of the essence in the event of a disruption, too elaborate or complicated a plan will cause unwelcome delay.

So, while this all sounds great in theory, how does one create a BCP that does all these things. The clip below outlines some key points in devising a good BCP;

  1. Analyse the business and know what the businesses priorities are.
  2. Identify the things that are essential and the things the business can manage without for a while.
  3. Know for how long these things can be managed without.
  4. Be sure the plan is properly in place and has been rigorously tested.
  5. All employees should know exactly what to do to ensure the plan is implemented correctly in the case of it being needed.

An additional important point that was not mentioned here and should be part of a BCP framework, is the need for reviewing. A business changes and evolves as it operates and a BCP put in place and not reviewed can become stale and ineffective. The initial BCP needs to be reviewed and updated as the need arises and must grow with the business. This needs to be an on-going occurrence and can be linked to testing so that any weaknesses can be addressed and corrected.

The final two stats of the five in the clip below relate to a business with a BCP in place. They are;

82% of businesses stated that a BCP mitigated the impact of a disruption.

74% said they were able to continue delivering key services to customers after such a disruption.

Again taking note of the bias that surely exists in this clip, the stats do raise some interesting thoughts all the same. The importance of Business Continuity is evident throughout and key points to consider when devising a BCP pointed out. These points will be looked at when considering a Business Continuity framework going forward.

http://www.youtube.com/watch?feature=player_embedded&v=3IXEYVxTy4E

[1] businesscontinuityireland.com

http://www.thebci.org/

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