Failure and disasters can happen, as the ongoing pandemic corona virus has proved, that it is important for business to be capable of continuing to run in the event of any unanticipated events/ disruption.
Business Continuity Planning is a process whereby business ensure the recovery of critical business operations, organization resiliency, business recovery, disaster recovery, emergency management, crisis management. The main motive is to decrease the likelihood of a disruptive incident in preparing your business to deliver its services through a major disruption. Major objective of Business continuity planning is to minimize loss by minimizing the cost associated with disruptions.
The steps in the process to develop a Business continuity Plan commonly noted required:
- Business Impact Analysis
- Business continuity plan development training and testing of the plan.
The businesses need to have a backup plan for all emergency situations and an internal auditor as an advisor can well monitor and advise upon the viability and strength of the plan by an all-round review and audit.
Assessment of risk and impact Analysis
During this initial phase, a company has to understand all the exposure risks and have to foresee every possible kind of risk specific to the company itself by preparing business impact analysis (BIA), this would lead to clarity about every potential threat to the business. It will also enlighten about the core team that a company should keep in place in the face of potential catastrophe.
Business continuity plan development
A draft document should be prepared to present it to the senior management for approval and the business continuity plan is essentially the answer to questions about how a business can continue with its regular operations and should there be any crisis or disaster to stop this plan ,the plan strategized should be able to remain intact from the macro to the micro level. Consideration and review should move through the entire company, including every division and into each department role and function.
Testing and maintenance of BCP
For finance, operations marketing and sales team frequently work to understand what are minimum metrics which must become for business to continue. However, the role of the business continuity plan is an essential aspect of information security in order to protect sensitive information, avoid compliance fines, and security threats. Good Business Continuity Plan will keep the business up and running even in any kind of interruptions and helps to establish to manage plans, procedures and policies to avoid any business uncertainties.
Internal auditor would give expert insights as a third-party reviewer which eventually will enable the company to establish and maintain a BCP which is rational, feasible and will protect the company to enable itself from any unexpected events or disruptions and let the business flow remain smooth and undisturbed from the external factors affecting the harmony of the business continuity and flow. As companies have faced serious questions and consequences on their continuity due to the pandemic, experts / consultants like internal auditors are an essential element to strengthen the BCP.
-Shubham Pal, Audit Associate, ShineWing India