© Ozara Insights 2 June 2020
What is a Business Continuity Management and How to do a Risk Assessment?
Business Continuity Management (BCM) is the process used to oversee and implement resilience, continuity, and response capabilities to safeguard employees, customers, and products and services. Disruptions such as cyber events, natural disasters, or man-made events can interrupt the operations and can have a broader impact on the business environment. Resilience incorporates proactive measures to mitigate disruptive events and evaluate recovery capabilities.
Managing the risk focuses on operational risk factors, against which capital and reserves alone may not protect the firm. The business impact analysis (BIA) and risk assessment represent the foundation of business continuity management (BCM). The BCM allows for the identification and management of risk across the entire firm, and allows management to set strategy to effectively mitigate risks posed by disruptive events.
Management use the business impact analysis (BIA) and risk management processes to identify and monitor continuity risks. There are four common strategies to address that risk:
You will find an example format for a Risk Assessment within the template plan at the back of this document (Appendix F - Risk Assessment). This will take you through considering the impact and likelihood of each risk, what arrangements you currently have in place to reduce the risk and what additional activities you could carry out.
By using the Risk Matrix below, and the information you have in your BIA, you should be able to score the risk for both impact and likelihood.
In relation to Business Continuity Management, the Business Impact Assessment looks at the likelihood and impact of a variety of risks that could cause business disruption.
You need to consider what risks could disrupt the key functions and services that you have identified within your BIA. These could include:
Loss of staff
Loss of systems (IT or telecommunications)
Loss of utilities e.g. water, gas or electricity
Loss of, or access to premises
Loss of key suppliers / partners
Disruption to transport
Considering the impact and likelihood of each risk, what arrangements you currently have in place to reduce the risk and what additional activities you could carry out. By using the Risk Matrix below, and the information you have in your BIA, you should be able to score the risk for both impact and likelihood.
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