Business Continuity and the Economy
The current unsettled economy can impact business continuity in many ways. Even though there are signs that the economy is beginning to recover, businesses are still failing at a high rate. Organizations have been forced to adjust their business model and operating costs by reducing workforce, seeking other cost-saving opportunities, and developing business contingency plans for changing economic conditions. As the economy continues to stall, however, companies are now focused on managing emerging risks that could have an impact on long-term sustainability. It's clear that mitigation or contingency plans need to be developed for their ongoing survival.
Traditional hazards certainly have not gone away in the current economic climate, but newer disruptions have gained prominence.
In many businesses, managers are reluctant to release funding for this activity due, at least in part, to current economic difficulties.
Recessions amplify risks; the absence of a tested plan is therefore much more dangerous in a recession.
Are you worried about the impact of the economy on your business?
Until times are flush and money flows freely, it seems to be economically sound to maintain the business continuity function.
Gone are the days when the days when an organization's business continuity planner could tick off a set of standard risks such as power failure, fire, flood, and perhaps vendor failure.
As always, we look forward to hearing your comments & insights regarding business continuity.
If you have a topic you'd like us to cover, email me at
Bob Mellinger, President
1. The economic downturn and business continuity management
In the current economic downturn the loss of a day's business is felt even more acutely then in normal economic conditions. It is this that has driven business continuity up the management agenda. In a serious economic downturn, some specific Business Continuity challenges need to be considered.
2. Business Continuity Planning In Difficult Economic Times
In these challenging economic times, many companies are choosing to postpone or eliminate business continuity planning from their budgets, even though they may have no plan at all in place. This being the case, security professionals may want to try a more modular approach to safeguarding the company's assets. A Critical System Recovery Plan documents each step required to recover an application deemed vital to the well being of the organization.
3. Business Continuity during a Recession
In a bad economy, if there is a business disruption, it may be difficult or impossible to arrange temporary financing against a non-operational business; customers may be few and far between and intolerant of delay. Investors will be unwilling to invest extra money. The expectation that a company may fail could easily turn into a self-fulfilling prophesy.
4. Don't Let Your Business Sink with the Economy
This article gives you advice to protect your business, including a review of William B. Conerly's book, "Businomics," and a discussion of his advice on managing a business during a recession.
5. ERM-BC in down economy
The economy goes down the tubes and, for foolish organizations, takes business continuity with it ... assuming, of course that the foolish organization even HAS business continuity. Why not?
6. Economy, H1N1 provide lessons for risk management practitioners
The worldwide economic woes and the World Health Organization's (WHO) escalation of H1N1 influenza to "pandemic" level teach risk management practitioners that they must look beyond their organizations and beyond their national borders if they intend to truly manage risks. The days when InfoTech staff could hunker down behind the data center doors and feel safe are long gone.
Quote of the Week:
"Working out what keeps a business running and who and what it relies upon is the
first stage of developing that crucial realistic and workable plan that could help
any business survive what could be the biggest economic downturn."
-- Lee Glendon
The Business Continuity Institute