Common challenges in BCM
Manoj Kumar, Partner
A huge number of business organizations are struggling to implement BCM or Business Continuity Management. But ideally, this should not be the case, since a standard BCM is not that complicated as it may sound. The goals of BCM program are simple and clear, and can be easily identified. Still, there are umpteen organizations that fail to implement BCM program.
A strong problem arises in terms of the habits of a business organization and the thinking pattern. The symptoms that reflect this particular problem are following:
- Miscalculation and underestimation of risk
- Improper understanding of roles and responsibilities
- Slowness in terms of reacting or collecting information
- Inability to understand insurance limitations and contractual boundaries
- Improper balance of business requirements and insurance recovery
The common challenges in BCM are being discussed below in more detail.
- When a business firm fails to visualize the bigger picture and think critically, it ends up in underestimating risk. Sticking to the patterns that have been followed since long often makes a business entity fail when it comes to thinking critically. On the contrary, in case of an incident of business continuity management, the long-followed practices are simply eradicated such as existing resources, people and even buildings.
- Many firms fail to prepare an effective project charter or the governance of a project. Inadequacy in handling this task results in a number of loopholes. Hence, the goal of business recovery does not get properly defined. This results in an overall misunderstanding of roles and responsibilities.
- Being slow in reacting results from uncertainty in the way of reacting. Being slow in gathering information is also a big challenge in BCM. It is a true fact that governance is very important; but a plan needs to be tested before being implemented.
- Often times, BCM is considered to be of less priority since it does not generate revenue. Thus, proper allocation of time and money is rarely done for BCM. The unclear mission statement does not generate commitment from the different levels of an organization for driving the BCM program. The absence of executive support, strategic alignment and senior management support results in failure of BCM program. Thus, the governance model should include the involvement of senior management.
In order to overcome the challenges in BCM, continuous up gradation in program is necessary. An efficient BCM team needs to have procedures, which should be incorporated in the management life cycle for covering all possible risks.
Ready for the Challenge
BCM, the acronym for Business Continuity Management is a process which helps in identifying the threats, risks, and vulnerabilities that could possibly hit the continued operation of a business firm and so provides a guideline for constructing organizational flexibility and the ability for a sound response. The main purpose of BCM is to make the business firm more elastic to potential threats and let it continue with its functions and operations under such threatening situations and all sorts of adversities. This can only be possible with the implementation of the right kind of resilience strategies that could possibly alleviate the impact of a potential treat and encourage the development of business as per its plans. Such strategies also help to recover from the threats, which apparently cannot be lessened.
It is because of the stupendous increase in the number of man-made incidents in the past few years that requirement for a strong emergency response and recovery process has gone on a sharp rise in a number of organizations. Thus, it can be rightly said that it is no longer wise to keep Business Continuity Management program on files. Since studies reveal that 40% of businesses going through a disaster get wiped out of business within five years, customers, regulators and prospects these days are rightly demanding greater management of BC programs. This gives result to the concept of an ongoing maintenance of plan and augmented employee awareness. We also harp on exercising greater dynamic testing of our BCM program.
Being well-versed about the current market trends and the regulatory guidelines, we partner with our esteemed clients and ensure serving the best kind of risk management work. We understand how crucial it is to maintain security and that compliance is a continuous task. So we are there at every step to assist our clients. Our services in this regard include the following:
- Planning and assessment of audit
- Development of business continuity plan
- Maintenance of business continuity plan
- BIA or Business impact analysis
- Maximization of personnel safeguarding
- Alleviating the threat of loss of data
- Effective management of synchronized
- Assistance in terms of business continuity and disaster recovery
- Effective virus planning
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