...

When should you invoke a business continuity plan?

by | Nov 25, 2023 | ENTREPRENEURSHIP

At what time you should invoke a business continuity plan is one of the most important stages in the
the business life of any entrepreneur.

A Business Continuity Plan is defined by Investopedia as an arrangement put in place to prevent and
recover from potential risk to your business.

There are various risks that a business might be prone to. Risks might include cyber-attacks, floods, client
retention, fire, or other natural disasters. It might as well include what and where you invest profit. As
soon as you can identify those risks, the next step is:

  1. Determine the effect of those risks on your business.
  2. Come up with a strategy to mitigate the risks.
  3. Determine how effective is the strategy.
  4. Keep the process up to date.

 

Distinguishing a Disaster Recovery Plan from a Business Continuity Plan, the former might involve, for
example, the recovery of the organization’s IT framework after a crisis. The latter involves how to
keep a business going when a disaster happens.

Many businesses do not know when to invoke a Business Continuity Plan. Each business will have
different requirements for and when to put into place a BCP, based on their level of risk. A risk that
will affect profitability and revenue must be surveyed in advance so the business is not affected
suddenly. It is needed because Insurance has a limit to the losses it can cover.

Thus, business owners and investors must consider and develop a strategy around business threats and invoke a continuity
plan.

You must plan and analyze risk properly to know whether such is of the magnitude
that requires invoking your Business Continuity plan.

References

Seraphinite AcceleratorOptimized by Seraphinite Accelerator
Turns on site high speed to be attractive for people and search engines.