The Business Benefits of Business Continuity

I get asked, occasionally “Why should we do Business Continuity? What are the business benefits?”

The business benefits of Business Continuity

OK. So why should we ‘do’ Business Continuity?

Business people, rightly look for a return on their investment, and Business Continuity must fight for its share of resources just as much as any other department in an organisation.

Below are a few of the reasons why you should consider Business Continuity.

1) Business continuity maintains continuity of operations and service delivery

Additional benefits of having a business continuity plan in place are:

• In the event of business disruption it provides the on-going ability to maintain a service or services to customers.
• Having a business continuity plan in place will keep businesses trading when they would have otherwise probably failed due to an incident.
• Business continuity plans can significantly reduce the cost of disruptions.
• Companies with business continuity plans benefit from insurance premium discounts, reduced excesses and doors opening to new insurance markets.
• Having a business continuity plan allows what would otherwise be unacceptable risks to be insured.
• Ensure that the organization is able to proactively identify the impacts of an operational disruption.
• Enables you to make the right decisions quickly.
• Ensures that the business has in place an effective response to disruptions which minimizes the impact on the organization.
• Knowledge of minimum levels and service delivery allows support resources from other parts of the business to be used to bolster disrupted areas.

2) Business continuity helps to build customer confidence

Additional benefits of having a business continuity plan in place are:

• Building customer trust and confidence.
• Appeal to customers in regulated markets.
• Increase the confidence of the customers over the organization’s capability and thus being more competent, when others fail to deliver.
• It gives clients the comfort they are looking for that we have put substantial effort into ensuring we can continue business under difficult circumstances.

3) Business continuity helps to build confidence within the organization / business

Additional benefits of having a business continuity plan in place are:

• Develops confidence in senior management’s ability in being able to respond to a series of incidents and events in a formal, planned and tested way.
• There is an increased confidence in the general workforce in that they understand their jobs are not at risk and that something is being done to protect their livelihood.
• Makes CEO sleep better at night.

4) Business continuity is potentially life saving

Additional benefits of having a business continuity plan in place are:

• Tested and updated business continuity plans can save lives.

5) Business continuity provides competitive advantage

Additional benefits of having a business continuity plan in place are:

• Ultimately customers prefer your product and service, leading to possible increase in demand.
• Maintaining or increasing competitive position by: preventing significant harm to your corporate image and reputation; preventing the loss of customers and/or shareholder confidence; maintaining contractual requirements from key customers, partners (no disruption to your supply chain); preventing reduction of market share.
• Gives you competitive advantage over those who don’t do it.
  

6) Business continuity provides compliance benefits

Additional benefits of having a business continuity plan in place are:

• Complying with regulatory requirements.
• Supports legal requirements (public records acts, companies acts, tax laws, anti-terrorist and anti-money laundering laws) to maintain records as well as compliance aspects.

7) Business continuity helps mitigate business risks and financial exposures

Additional benefits of having a business continuity plan in place are:

• Mitigating reputation & financial exposures.
• Preventing or minimising financial losses.

8) Business continuity helps preserve brand value and company reputation

• Preserves brand value – brand value is probably a company’s biggest financial asset.
• Ensuring reputation of the organization in uncertain times (crisis management -communication plan).
• Mitigating reputation & financial exposures.

9) Business continuity ensures supply chain security and order fulfilment

• Secures the supply chain.
• Ensuring continuity in delivering products and services (one or more disaster recovery plans).
• Ensure the delivery products and services, by being able to perform critical activities for the same.

10) Business continuity can help enhance or develop an appropriate organizational culture

• Can help to create or reinforce an appropriate risk culture.
• Can improve your operations by identifying areas of inefficiency or risk. 
  

11) Business continuity can help enhance health and safety

• Ensuring safety and health staff and visitors (safety and health plan).

12) Business continuity helps the organization / business to be more resilient

• It makes the business more resilience to shocks and events

13) Business continuity gathers information that is useful to the whole organization / business

• The analysis process that goes into building business continuity plans actually helps the business units know their business in more depth. By determining RTOs, inputs/outputs, dependencies, etc., there can be efficiencies gained through application of improved processes.
• Understanding what activities the business is involved in helps control the direction, and maintain focus on business objectives.
• Practice and exercising increases the awareness of risk and increases the chances of the plans actually being successful and that the organisation can continue to operate satisfactorily following an incident. The team get to know more about the company and the individuals that make decisions under pressure and how they cope.

Hopefully this gives you food for thought.

if you’re interested in finding out more: email me on rob@o-bc.uk.