You already know that risk management is vital to any competitive, responsible, and well-prepared company. But how does BCP fit into your risk management strategy? And what are the differences between BCP and risk management?
If you’re wondering how to improve your BCP (or create a BCP from scratch), check out our guide to learn the basics. We’ll answer your questions related to BCP and risk management for any size institution.
BCP stands for business continuity plan—a document that describes how an organization will carry on in the case of emergency, natural disaster, or other disruptions to typical operations.
A BCP is more extensive than a disaster recovery plan, outlining every possible situation that could occur in case of a disruption—and what the organization will do about it. The plan proposes ways to mitigate risks and details procedures to test all proposals.
BCP is an important part of risk management. From cyberattacks to fires and floods, all organizations are vulnerable to unforeseen disruptions. But having a thorough BCP in place protects the organization, allowing them to quickly resume the most critical functions and ultimately bounce back faster even when faced with disaster.
BCP is a sub-category of risk management, playing an important role in helping an organization get back up and running after a disruption.
While risk management focuses on mitigating problems from the outside, business continuity plans outline what a company should do in case they are faced with the worst possible outcome. Hence, organizations that invest in both risk management and BCP will be able to mitigate risk and be prepared for any scenario that may come their way.
A BCP helps to mitigate risk by making sure the organization is ready for any possible disruption to everyday operations. By having an outlined plan of how every department should respond to the disaster, the organization will be able to resume the most critical functions and return to typical business operations as quickly as possible, minimizing financial losses and other problems resulting from the disruption.
Organizations may hire continuity plan coordinators specifically tasked with the job of developing a BCPs. This job might also fall under the role of another administrative position that typically deals with risk management and mitigation.
Business continuity coordinators should work closely with all departments within the company to understand their unique processes and potential risks that could arise in case of a disaster or emergency. Once coordinators understand those risks, they should outline solutions and procedures to mitigate risk in the business continuity plan.
Business continuity planning offers many benefits to organizations, allowing them to be more agile, competitive, and prepared for any situation. But what is the primary goal of business continuity planning?
In short, the main focus of BCP is to allow organizations to continue operating as smoothly as possible when faced with any type of business disruption, such as a cyberattack or natural disaster. By keeping the organization running smoothly, a BCP could ultimately save the business a great deal of money, plus avoid serious short-term and long-term repercussions.
Ultimately, a BCP protects an organization’s main functions and assets, restores operations, and prevents and mitigates risk.
It’s time to make sure your organization is prepared for anything that comes your way. Kuali Ready makes it easy to create thorough, effective BCPs with intuitive continuity planning software.
Contact us today to learn more about how higher education institutions are using Kuali Ready to improve resilience and amplify risk management efforts.