Except for time-bound enterprises, or business ventures that are started with the intention of terminating operations and liquidating the business at the end of a year or two, businesses are established with a long-term outlook.They would want their business to earn profits, and to continue operating profitably for an indefinite, but long period of time.If we are to take the phrase “business continuity” for its surface value, the most obvious meaning would be the ability of the business or enterprise to continue operating as a going concern for a very long time.Tags: Research Paper PurposeMba Assignment WritingProgramming Homework HelpResearch Paper Rubric CollegeProfessays ReviewIas Essay Syllabus
Some of the most likely effects are: When a retail store does not open for a week, the potential income that it usually earns in a one-week period is gone.
Similarly, when a manufacturing plant is unable to operate even for a couple of days, the company will not be able to produce the average output of finished goods for distribution.
Incidentally, if the factory workers are paid on a monthly basis instead of on an output basis, they will still be paid their regular compensation rates.
This, on top of the lost revenue, will further cause a drop in the profits of the business.
Thus, more attention is put on business continuity planning (BCP), which puts the company in a proactive position in planning how to ensure that it will still be able to deliver its critical products and services safely and smoothly, while meeting its legal, regulatory, and other obligations.
We can probably enumerate more than a dozen reasons why businesses should create and maintain BCP initiatives but, at the end of the day, there is only one ultimate goal or purpose for it, and that is to help ensure that the organization, business or company has the required resources, information, and capabilities to deal with emergencies and similar unexpected events, particularly their aftermath.
We usually hear of these precautions in the form of disaster recovery planning, which is primarily focused on the restoration of a firm’s IT infrastructure and IT operations.
This view is rather limited, when you look at the bigger picture, since a business and its operations are more than just its IT infrastructure.
The worst case scenario for businesses without BCP is the permanent end of operations.
According to Agility Recovery’s Paul Sullivan, 80% of companies that have no plans whatsoever and were subsequently hit with a crisis or major disaster had to call it a day without having gone past 18 months of operations.