Business Vulnerabilities: How to address and tackle them
NIG emphasises the importance of understanding your business vulnerabilities and assessing risks. Recognising weaknesses is the first step to creating strategies that protect your organisation from internal and external threats.
Business Impact Analysis
A Business Impact Analysis (BIA) forms the foundation of Business Continuity Management (BCM). It examines the potential impacts of loss, interruptions, or disruptions on business processes, and provides the information needed to develop continuity strategies. By analysing operational functions, including the delivery of products or services and internal and external activities, organisations can prepare more effectively for unexpected events.
Assessing and Managing Risk
To assess risk, consider both the likelihood of an event occurring and its potential impact. Once this is understood, a strategy can be developed with agreement from senior management. The approach may vary depending on whether the business focuses on reducing risks or is prepared to respond with a recovery plan. Effective strategies take into account both financial costs and staff resources, ensuring that everyone knows their responsibilities.
Developing a Business Continuity Plan
A strong plan is clear, concise, and actionable. Tasks should be prioritised for immediate response, and responsibilities assigned with deputies to ensure continuity if key personnel are unavailable. The plan should remain flexible, updated regularly to reflect organisational changes, and easy for all employees to understand.
Many organisations adopt a Gold, Silver, Bronze (GSB) structure to clarify roles. Gold sets the strategic direction, Silver coordinates and plans, and Bronze handles operational execution. Proper communication and coordination are essential to ensure the plan works in practice.
Incorporating External Support
No business operates in isolation. Effective planning often includes external input from emergency services, neighbouring businesses, utility providers, suppliers, and insurers. Leveraging external expertise strengthens the overall resilience of your business continuity approach.
Testing and Reviewing the Plan
A plan is only as effective as its execution. Testing can include reading through scenarios as a team, running telephone cascades to verify communication channels, or conducting full-scale rehearsals to simulate real incidents. Monitoring and reviewing performance ensures the plan remains effective and allows for continuous improvement. Audits, both internal and external, help identify gaps and verify compliance with standards, while also highlighting opportunities to improve processes.
Continuous Improvement
Regularly reviewing performance and learning from both successes and setbacks is key. Policies should be revisited, staff involved in audits, and improvements implemented based on findings. This approach aligns closely with quality management systems used by successful companies, helping to protect people and control losses.
