Business continuity management: how companies remain capable of acting even in crises
Today more than ever, companies are exposed to various risks. Cyber attacks, natural disasters or technical failures can have a massive impact on operations and serious consequences. The question is: how does a company remain capable of acting even in such crisis situations and maintain its operational resilience?
The answer is provided by business continuity management (BCM). This systematic approach ensures that critical business processes can be maintained even in difficult times through preventive measures and emergency plans.
What is Business Continuity Management (BCM)?
Business Continuity Management (BCM) is a holistic process that aims to strengthen a company's resilience to disruptions and crises. Through a combination of risk analysis, strategic planning and regular testing, organizations can ensure that their essential business processes continue to function in the event of an emergency.
The most important objectives of BCM include several aspects:
- Business interruptions should be avoided and minimized
- People, assets and data should be protected
- Business-critical processes should be able to be restored quickly
- Compliance with all regulatory requirements should be ensured
- The trust of customers and partners should be maintained
Ultimately, disruptions to business operations, which in the worst-case scenario can result in the loss of sensitive data, can lead to a company's reputation suffering. BCM is designed to counteract this.
The special feature of BCM is that it is not just about emergency concepts. Rather, the focus is on developing a long-term strategy that ensures the continuity of business operations through appropriate plans and actions.
Why is BCM important?
In an increasingly networked and digitalized world, companies are not only exposed to many external and internal risks, but also to complex, interrelated threats. These risks can not only lead to business interruptions, but can also cause serious long-term damage to the company. A preventative approach through BCM is crucial to strengthen the company's resilience and maintain the ability to respond quickly and effectively to unexpected disruptions.
A well-implemented BCM ensures that companies are not only prepared for acute crises, but are also able to ensure business continuity during and after a crisis. This includes identifying potential threats at an early stage, taking preventive protective measures and responding to disruptions in a planned manner. The aim is to resume operations as quickly as possible and limit the damage to the company to a minimum. The greatest risks to which companies are potentially exposed include the following
Cyberattacks: In today's digital age, ransomware attacks, data theft, phishing and targeted hacking are some of the biggest threats to businesses. A successful cyberattack can not only lead to IT system failures, but also compromise sensitive business data, which not only causes high financial losses, but can also destroy the trust of customers and partners. In addition, companies in many sectors are required by law to secure their IT infrastructure against such threats in order to be able to act immediately in the event of an attack.
Technical failures: Technical failures such as power outages, server problems, network failures or software errors are among the most common causes of business interruptions. Such failures can result in employees no longer being able to work, important data being lost or critical business processes being paralyzed. Especially in an increasingly digitalized working world, technical disruptions can have a far-reaching effect on various business areas, leading to inability to act or damage.
There are also numerous other risks apart from IT or technical causes. These include natural disasters such as earthquakes, floods or storms, which can destroy production facilities, make transport routes impassable and interrupt supply chains. Without solid BCM strategies, companies are then barely able to maintain their activities or resume them quickly.
Supply chain problems due to global crises or economic tensions can also threaten the stability of companies. Staff absences and the loss of service providers or partners are further risk factors.
A well-planned business continuity plan must therefore also include solutions for maintaining operations in the event of such failures.
No business continuity management? 4 Effects of a lack of precautions
A company without business continuity management exposes itself to a high risk. If critical business processes are not safeguarded by contingency plans, an unexpected incident can have serious consequences. This includes these 4 effects:
- Business interruption and loss of production: Without clear contingency plans, it can take weeks or even months to fully resume operations.
- High financial losses: Every day that a company is unable to operate results in a loss of revenue. Costs may also be incurred for damage limitation or recovery measures.
- Loss of trust and reputational damage: Customers and business partners expect security and reliability. Companies that get caught unprepared in a crisis risk long-term image problems.
- Legal and regulatory consequences: In many industries, companies are required to provide evidence of emergency plans and security measures. This applies, for example, to FINMA-regulated companies or companies with ISO certification. Those who fail to do so risk sanctions or the withdrawal of licenses.
Cyber attacks: The biggest risk for companies?
Cyber attacks are one of the biggest risks to which companies are exposed. This makes a special cyber emergency plan all the more important. Companies should use appropriate monitoring tools to detect threats at an early stage. If an attack occurs, immediate measures should be taken. These include, for example, isolating systems, shutting down affected servers and activating emergency communications.
And the work continues even after the attack. The attack must be analyzed, security gaps closed and the affected systems restored. One particularly useful way of regulating access to systems from the outset is to integrate a zero-trust architecture that critically assesses every access and detects suspicious activities at an early stage.
The 5 phases of business continuity management
BCM can be divided into 5 phases:
1. establishment phase
BCM begins with anchoring it in the company. BCM guidelines are drawn up, responsibilities defined and resources made available. The management must support BCM and integrate it into the corporate culture. This is followed by the identification of critical business processes (Business Impact Analysis, BIA); after all, not all company processes are equally important. In this phase, the processes that have the highest priority in the event of a crisis are identified. These include, for example
- IT systems and databases
- Payment processing and financial transactions
- Production and delivery processes
Companies must ask themselves which IT systems are business-critical and which minimum requirements must also be met in an emergency, for example with regard to payment transactions, customer communication or logistics systems.
A detailed risk analysis can be used to show which dangers threaten a company. This involves assessing which risks exist for the identified business processes and looking at how likely these risks are. The potential impact of a failure is also considered.
Two key figures are crucial in BCM:
- Recovery Time Objective (RTO): the maximum time in which a system must be restored after a failure.
- Recovery Point Objective (RPO): This refers to the maximum amount of data that may be lost during a recovery.
Depending on which RTO is defined, different recovery systems must be established, for example. These definitions are essential for the subsequent implementation phase, as they form the basis for emergency measures such as backup strategies or redundant systems.
2nd implementation phase
Based on the risk analysis, business continuity strategies (also known as business continuity plans or BCPs) are then developed. These include, for example
- Backup and recovery solutions for IT systems
- Alternative work locations or home office strategies
- Contingency plans for emergencies
A crisis management team is also set up during this phase. In emergency situations, it steers the company through the crisis and manages the operational procedure. As the managing directors of companies or board members are usually held liable for mistakes, the implementation of BCM should also start at this level. In the long term, it makes sense to appoint a dedicated business continuity manager who is responsible for all processes and communication relating to this topic.
3. optimization phase
Now comes the optimization phase, in which the focus is on the strategic further development of BCM strategies. The existing business continuity plans are systematically evaluated in order to take into account findings from previous tests, real incidents or changes in the company. The aim is to identify weaknesses and make processes more efficient. Analyzing lessons learned, obtaining feedback from the field and continuously adapting plans to new business requirements are all part of this phase.
4. test and training phase
In the test and training phase, the focus is on practical implementation: regular emergency exercises, tests, simulations and training courses familiarize employees with the procedures in the event of an emergency so that BCM remains effective and so that they act correctly in crisis situations. They train the correct behavior in specific crisis scenarios, which creates confidence in their actions. This also includes improving internal and external emergency communication, which is a key factor for smooth processes in a crisis. The focus here is on applying and consolidating the BCM already developed in practice.
5. maintenance and review phase
In the final step, BCM must be firmly integrated into the corporate culture. This involves various steps:
- A regular update of emergency plans
- The adaptation and further development of security guidelines to new threat situations and new technical measures
- Integration into risk management in order to further develop BCM strategically
Continuity is an important keyword in BCM and even without cyber attacks or IT failures occurring on a weekly basis, testing, developing and adapting is essential. After all, crises often happen without warning and when they do, companies should be prepared and know what to do.
Conclusion: Using crisis security as a competitive advantage thanks to BCM
Companies with a functioning BCM are more resilient to crises and can react more quickly to emergencies. They have prepared for the worst-case scenario and know what to do in an emergency. BCM not only helps to minimize damage, but also creates trust among customers, partners and employees.
Effective BCM means preventive measures, regular tests and clearly defined crisis management. Those who use BCM strategically secure a long-term competitive advantage.
With Dinotronic's Managed Digital Workplace, BCM strategies can be implemented efficiently. Secure cloud solutions, data protection concepts and resilient IT infrastructures enable companies to optimally safeguard their business continuity.
By investing in BCM now, you are creating a secure future for your company.
