A business continuity plan outlines the instructions and procedures a business should follow after a natural disaster or disruptive event so it can resume its operations. Events like floods and fires can interrupt your business practices, so it’s essential to have a plan in place to handle these situations and effectively get back to work.
- What Is a Business Continuity Plan?
- When to Use a Business Continuity Plan
- Benefits of a Business Continuity Plan
- Elements of a Business Continuity Plan
- Different Types of Business Continuity Plans
- Activities to Complete Before Writing a Business Continuity Plan
- How to Write a Business Continuity Plan
- Business Continuity Plan Sample
What Is a Business Continuity Plan?
A business continuity plan is a document establishing your organization’s strategies for dealing with a disaster. These procedures help you resume business quickly and reduce downtime and lost revenue.
It covers essential processes like protecting assets, handling human resources issues, and dealing with business partners.
Business Continuity Planning vs. Disaster Recovery Planning
An effective business continuity plan helps a company continue its overall operations after a catastrophe, while a disaster recovery plan focuses on reviving a business’s IT-related functions.
When to Use a Business Continuity Plan
Creating a business continuity plan before you need it can help you prepare for the unexpected. It helps you be proactive so you don’t have to devise a plan amidst a disaster.
Once your continuity plan is in place, you may need to implement it during disasters like:
- Cyberattacks
- Natural disasters like hurricanes, earthquakes, tornados, and floods
- Major IT or internet disruptions
- Pandemics or health crises
- Supply chain disruptions
- Man-made disasters or times of social unrest
While a business plan guides your company’s everyday operations, a business continuity plan helps you resume company activities after severe disturbances.
Benefits of a Business Continuity Plan
Explore the benefits of a business continuity plan for your company:
Better Decision-Making
A BCP offers a structured framework for employees to make decisions during high-stress situations. Clear protocols and communication methods help your business continuity management team make rational decisions, which can promote confidence and encourage action among employees.
A More Efficient Return to Normal Business Operations
A BCP could make the difference between continued operations and further turmoil in an emergency. Returning to business operations quickly can prevent customers from seeking out competing businesses.
A business continuity plan template makes planning for contingencies in various scenarios easy and addresses the most critical roles and responsibilities necessary for keeping your company running.
Above all, a BCP limits confusion during critical situations and orients employees to the primary focus.
Increased Employee Safety
BCPs prioritize employees’ safety and well-being during emergencies. These plans include guidelines for remote work so employees don’t have to be near the disaster site. They also contain protocols for communicating with one another and evacuating plans in case a disaster happens during work hours.
A Reduction in Lost Time and Revenue
Unmitigated disruptions can financially weaken an organization quickly. Business continuity plans account for all factors necessary for continued operations. The more effort you put into planning, the more time and money you can save.
So, ensure a reliable backup plan for essential systems and enable remote access to customer, product, and company data to keep the revenue stream flowing.
Ability to Quickly Implement IT Fixes
Natural and manufactured disasters typically involve system disruptions. To remain functional, build redundancy into your critical systems. This proactivity will allow you to implement essential fixes to hardware and software assets.
Increased Organizational Resilience
A BCP prepares a company to encounter any challenges it may face. It lets the company’s employees adapt strategies as necessary and work towards continuous improvements, allowing the company to experience long-term success no matter the obstacles it encounters.
Elements of a Business Continuity Plan
Explore some essential elements in a business continuity plan:
- Business Impact Analysis: Determine how a disaster would impact your business’s operations.
- Risk Assessment: Identify the risks that may disrupt your business’s processes.
- Business Continuity Strategy: Detail the steps you’ll take to keep your company running if an interruption occurs. Tailor this strategy to your business’s needs.
- Recovery Team: Include members from across key departments in your recovery team.
- Training: Define training procedures to ensure all members have sufficient knowledge relating to emergency protocols.
- Business Continuity Exercises: Create simulations to practice how your business continuity team would react in an emergency.
- Communication: Establish methods for distributing information internally and externally.
- Backup Locations and Physical Assets: List backup locations for conducting business operations if the primary location isn’t usable. Summarize the equipment you’ll need to continue operations.
- Periodic Review and Recommendations: Include policies for reviewing and updating your plan. Accept recommendations from employees to improve the plan’s efficiency.
- Technology: Describe the processes for retaining access to technology systems. Detail the importance of having emergency power and data backup procedures in place.
Different Types of Business Continuity Plans
While a business continuity plan can cover various recovery strategies for specific events, it prioritizes one event. Explore some of the types of business continuity plans:
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Emergency Response Plans
- Scope: Emphasize the restoration of normal business activities.
- Objective: To prepare for an unforeseen emergency.
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IT Disaster Recovery Plans
- Scope: Focus on the recovery of IT data, systems, and infrastructure.
- Objective: To reduce downtime and data loss by quickly restoring IT services if they go down.
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Crisis Communication Plans
- Scope: Address communication methods and strategies after a crisis.
- Objective: To provide clear and timely communication to internal and external stakeholders, ensuring the accurate sharing of information.
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Supply Chain Continuity Plans
- Scope: Involve the supply chain’s continuity, including procurement, manufacturing, and distribution.
- Objective: To limit supply chain disruptions and maintain the availability of services and goods.
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Facility Continuity Plans
- Scope: Address the continuity of physical facilities, including warehouses, manufacturing plants, and offices.
- Objective: To ensure the availability of operational facilities or other locations during critical events.
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Employee Continuity Plans
- Scope: Focus on employees’ well-being and safety.
- Objective: To maintain workforce availability and set up guidelines for remote work if possible.
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Third-Party Continuity Plans
- Scope: Involve continuity plans for key third-party parties, including partners, suppliers, and vendors.
- Objective: To account for the company’s dependencies on external parties and minimize associated disruptions.
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Regulatory Compliance Plans
- Scope: Address regulatory requirements relating to business continuity.
- Objective: To ensure compliance with industry standards and legal regulations.
Activities to Complete Before Writing a Business Continuity Plan
Explore some activities to complete before writing a business continuity plan so you can create a more effective document:
1. Decide on a Writing Team
Decide on a team to write the plan. Find employees knowledgeable about various business processes so they can assign tasks accordingly.
Ask for employees’ input to create control and command teams. Appoint several people to be in charge during a crisis so they can have one another’s support. Establish a clear chain of command to minimize arguments and promote efficiency.
Nominate a team leader and a backup team leader for each department within your company. Consider recruiting third-party representatives to assist with coordinating specific activities during disasters.
2. Conduct Critical Function Analysis
Analyze your company’s critical business functions. Determine which functions it can and can’t exist without. This way, you can more easily determine what to prioritize in an emergency.
Determine how losing these functions across different departments might impact external and internal operations.
3. Analyze Potential Risks
Analyze potential risks depending on the nature of your business. Specific threats might be more imminent than others, so you can create visual representations, such as risk maps, to show the relationship between the impact and likelihood of your proposed risks.
From here, you can pinpoint high-priority risks that will require immediate attention.
4. Determine the Plan’s Scope
Determine whether the plan applies to specific departments, one location, or your entire company. Figure out what resources and critical functions you must maintain to successfully implement the plan.
5. Brainstorm Recovery Procedures
Use your risk assessment and critical function analysis to brainstorm how your team should react to a business disruption. Think about the timing for what must occur before, during, and after the business continuity planning process.
How to Write a Business Continuity Plan
Step 1 – Write Your Company’s Information
Write your company’s information, including its name, address, and phone number. Include the name of the person writing the plan and the date you last revised it.
Step 2 – Define the Document’s Purpose
Define the document’s purpose, restating that the document is to establish procedures for the execution and recovery of business activities for your specific company. Check off the specific events you want to plan for.
Step 3 – Outline the Applicability
Clarify the applicability of the document. State which operations the document applies to, including the operation’s name, description, and impact on the business.
Step 4 – Define the Recovery Strategies
Define the recovery strategies for all the events you’ve outlined. Explain the recovery procedure and resource requirements for each event, such as a natural disaster, fire, epidemic, pandemic, technical issue, cyberattack, supply chain disruption, business site disruption, labor strike, or civil unrest.
Step 5 – Name Your Recovery Team
Name your recovery team, including a team and an alternate team lead. These individuals will restore and maintain business continuity and ensure the document’s compliant execution. Include each member’s name, role, email, phone number, and responsibilities.
Step 6 – Detail Processes for Vendor Communication
Designate a person who will be responsible for contacting vendors and partners. This way, external parties key to the business’s functions will know what’s going on and the plan for continued operation.
Step 7 – Name an Internal Communicator
Name an internal communicator, providing their name, email, phone number, and roles within the organization. This person will provide all employees with business-wide updates as the appropriate teams implement the continuity plan.
Step 8 – Describe Relocation Procedures
Describe relocation procedures, including backup offices and methods for obtaining equipment and assets for relevant business activities. Provide an estimated timeline for a transition back to normal operations.
Step 9 – Write Testing Procedures
Write testing procedures to occasionally examine the BCP’s effectiveness. This way, the company can make updates to improve the plan’s effectiveness.
Step 10 – Outline Deactivation Procedures
Outline deactivation procedures so your team knows when your company has officially restored its normal operations.
Step 11 – Provide Exceptions
Write exceptions so your team knows when the business continuity plan doesn’t apply. For example, the plan might not apply if business operations can restore themselves within a certain number of hours.
Business Continuity Plan Sample
Download a business continuity plan template below in PDF or Word format: