The Importance Of Business Continuity Planning

Natural disasters which came unexpected and often paralyzing business activity in an area, which then potentially spread to other areas. Nowadays, there are many natural disasters that struck the entire world. Therefore, needed a disaster risk management in the business world.

Why do we need a disaster risk management?

First, a disaster do not know when it comes. Natural disasters are now happening more and more, ranging from earthquakes, tsunamis, floods, landslides, and others. On the other hand, the growing world population, resulting in the potential impact of the disaster also produced greater. Disaster risk management is essential thing to do for country which located in earthquake prone areas.

Second, large-scale disasters often cripple economic activity of a region. Buildings were destroyed, many lives and injuries stolen, damaged factories, businesses blocked and even total halt, thus disturbing the business performance to paralyze the economy.

Third, globalization is now making its risks are now global, not just local residents. Disaster experienced in some areas, also affect other areas as well. This not only applies to natural disasters, but also in the case of financial crisis, climate change, to terrorism. For example, if the business stops operating, the operation resulted from business partners are also affected.

Therefore, every business also should have a business continuity planning (BCP). BCP is a comprehensive plan designed to ensure business continuity in case of disaster stricken or other disturbance. BCP helps businesses to stay despite facing major events such as earthquakes, tsunamis, fires, floods, terrorism to pandemic; or more minor events such as the loss of key staff, supply chain problems and more.

Business leaders must both identify and measure the impact of an event for business, to further create a BCP. This plan covers not only the location / physical building, but also the process and the people in it. BCP is then must be communicated and trained with all employees, so when it does occur can be prepared and responsive. This plan is continuously evaluated, taking into account factors that might be a real happening.

The world realize the importance of BCP, especially after the terrorist events of 9 / 11 that resulted in many business activities paralyzed. In fact, more than half of businesses affected are now no longer in operation. One of the lessons learned from these events is the company must have a data center back-up remote from the main data center.

Merrill Lynch is one company that does the decentralized system of its information technology after the attacks of 9 / 11. The attack resulted in them losing two data centers. Now, their data centers located in Staten Island, while the back-up in New York.

Similarly, business continuity planning is essential in facing the uncertainty risk. With the business continuity planning, the disaster can be effectively addressed, and helping businesses survive and carry on its operations.