Practical approach to achieving the difficult task of keeping your business continuity plans up to date.
When a business continuity management system (BCMS) has been established and implemented, a serious managerial challenge evolves: the BCMS has to be maintained and put into a continuous improvement process. In this article, Alberto Alexander. Ph.D, MBCI, looks at the activities that need to be performed to maintain and improve a BCMS.
Any organization that establishes and implements a BCMS needs to follow the BCMS processes and deliverables, which are depicted in figure one. The BCMS processes, also known as the BCMS process life cycle model, (Alexander, 2009), consist of six phases.
The stages of the BCMS process life cycle model are the following:
Stage one: business impact analysis
The business impact analysis (BIA), which is conducted during the first stage, analyzes the financial and operational impact of disruptive events on the business areas and processes of an organization. The financial impact refers to monetary losses such as lost sales, lost funding, and contractual penalties. Operational impact represents non–monetary losses related to business operations, and can include loss of competitive edge, damage to investor confidence, poor customer service, low staff morale, and damage to business reputation.
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