What is BCP? Role and process of developing a standard continuity plan

During the difficult period of the epidemic, businesses will encounter many obstacles in the process of working and exchanging work. Therefore, BCP was born as the optimal solution in keeping business operations stable and limiting related risks. So what specifically is BCP ? What is the role and process of implementing BCP in an enterprise? Let's clarify with 1C Vietnam in the article below.

1. What is Business Continuity Plan (BCP)?

Business Continuity Plan (business continuity plan) is a description or outline that shows how a business will handle and operate when faced with potential external threats. Therefore, BCP is considered an effective solution to help businesses overcome periods of crisis, as well as minimize risks and support future economic recovery.

For example: During the Covid - 19 pandemic, many businesses have applied remote working and conducted remote employee management and training through social networking platforms. This helps ensure work efficiency even during periods of separation.

2. The role of a business continuity plan

A perfect BCP model not only helps businesses handle potential dangers, but also brings many great benefits to employees, partners, organizations and businesses. Specifically:

2.1 For employees

Implementing BCP helps build trust for staff, maintain stable business operations, and minimize risks leading to bankruptcy or being on the brink of bankruptcy. Additionally, continuous planning increases employee confidence in the business's ability to address and respond.

2.2 For partners and customers

In difficult times like today, a business's lack of a business continuity plan can lead to the loss of customers and loss of competitive advantage. This BCP plan not only helps businesses overcome crises but also ensures that customers will always have confidence in their ability to operate as well as their ability to resolve and recover from emerging risks.

By preparing a business continuity plan, customers can feel more secure in collaborating and finding effective solutions to specific problems. In this way, BCP not only facilitates a long-term partnership but also creates opportunities to develop and expand this relationship in the future.

2.3 For businesses

BCP helps businesses maintain stable development, creating multidimensional benefits for customers, partners and even internally within the organization. Thereby, businesses demonstrate their readiness and ability to coordinate with leaders in a crisis context.

This helps businesses affirm their competitive position and be ready to face future challenges. In addition, BCP also helps strengthen post-crisis recovery, thereby enhancing the reputation and visibility of the brand in the eyes of customers and partners.

3. Process of building a detailed BCP business continuity plan

3.1 Analyze and evaluate enterprise operations

The first step in the process is to determine the operating context, then the administrator must understand the overall process and links in the organizational structure, and at the same time know what are the decisive factors in the ability to operate. business practices. Specifically:

• Determine the type of business of the enterprise to prepare an appropriate BCP. Each type of business will have its own way of operating. There are businesses that allow remote work, but there are also specific professions that require in-person work or even temporary suspension of operations.
• Understand the corporate organizational chart and departmental processes closely linked to the organizational chart.
• External factors impact the process of providing products and services such as: Political situation, socio-economic situation, technology, law, and environment.

After analyzing and understanding what the business needs to promote in order for the business process to proceed normally, managers need to determine the level of risk when a crisis occurs.

For example: In a stressful epidemic situation, businesses determine risks based on the organization's risk of infection (N) and the level of vulnerability of the business to risks (X). All will be presented through the following table:

Through the table determining the context and risk level, the BCP department will conduct an assessment and propose a response strategy corresponding to each level through the following table:

3.2 Business Impact Analysis (BIA)

This is the process of collecting, measuring the level of impact and arranging information in order of priority for handling risks. To analyze business impact effectively, administrators need to identify the following important factors:

• Human resources: Enterprises should record the number of employees ready to work, including position information, jobs held and contact information.
• Supply: Businesses need to clearly understand the contact information and ability to supply goods of third parties.
• Data: Businesses need to store and create summary files of important documents such as records, research/reports, forms, accounting - financial documents, backups...
• Facilities: Businesses need to list the number of usable machines such as printers, computers, fax machines, etc.
• Inventory: Enterprises need to record the quantity and expiry date of equipment, supplies, and goods in inventory.

3.3 Prepare a response plan

Risk response planning helps businesses respond promptly and ensure business continuity when risks occur. To create a complete risk response plan, administrators need to follow the following sequence:

• Identify existing or potential risks that have the potential to affect the organization's work processes.
• Consider the likelihood and impact of risks on business activities to conduct analysis and assessment.
• From initial analysis and assessment, businesses will prioritize risk levels, accompanied by timely treatment measures.

3.4 Make an action plan

After creating a response plan, managers need to devise specific strategies that closely follow reality and are appropriate to each level of risk. Administrators will rely on the following bases to plan the most accurate actions:

• How are resources allocated, and do those resources respond to impending levels of risk?
• What are the costs and benefits of taking risk response actions?

3.5 Evaluate and measure improvements

Evaluation and measurement are responsible for helping businesses determine whether the BCP strategy is truly effective compared to reality. Criteria required to be included in the plan include:

• Which elements in the BCP need to be measured and evaluated?
• Which measurement and evaluation methods are considered effective in ensuring the effectiveness of BCP?
• How long does it take to carry out assessment and measurement?
• Who is responsible for implementing assessment and measurement tasks?
• What is the consistent process for putting the plan into action after each review?

In addition, businesses also need to meet the following requirements in assessment and measurement:

• Record and store information related to assessment results and assessment processes in writing to serve as a basis for implementing related programs.
• There needs to be a timely solution if the evaluation process has shortcomings, ensuring the business operations of the enterprise.

In the process of implementing a business continuity plan, there will inevitably be limitations that prevent the plan from being effective. To solve that, businesses need to pay attention to timely remedial measures such as:

• Quickly review and control behaviors that do not comply with the BCP model, then find solutions to overcome the consequences to avoid severe impacts on the business.
• Analyze to know the causes leading to non-compliance with BCP.
• Anticipate and manage potential non-compliance risks.
• Businesses should understand what the risk level is if they do not comply with the BCP and what gaps the model has in place that affect implementation, then provide timely solutions.

4. Factors determining the success of BCP

4.1 Support and commitment from the board of directors

The Board of Directors is the person who directly operates, monitors implementation and keeps business activities under control. Therefore, the leadership team needs to commit to the following:

• The policies and goals of the BCP must comply with the business goals and orientation of the enterprise.
• Allocate and provide adequate resources during the implementation of the BCP plan.
• Synchronize the requirements of the BCP and the internal apparatus so that the implementation of the business plan continuously achieves practical results.
• Manage communication strategies so that all employees are aware of the importance of BCP.
• Set directions and provide timely support to the human resources department implementing the business continuity plan.

4.2 Effective internal communication

An internal communication plan is a solution to help staff be aware of what needs to be done, and work with the business to handle risks affecting business operations. Communication content must help personnel be aware of the BCP policy, regarding the benefits of implementing the BCP, the consequences of not complying with the BCP, as well as what personnel need to do before, during and after business operations. business interrupted?

At the same time, in order for the internal communication plan to be complete, businesses need to specifically identify and assign the correct roles of each individual in the organization such as: Who is the direct communicator? Who needs to be communicated and in what form? Therefore, an internal communication plan is only truly effective if all employees pay attention and strictly follow it.

4.3 Applying technology to improve BCP

The use of technology is an effective solution to help businesses find convenient solutions to work and communicate work progress effectively. For example: Perform timekeeping via surveillance cameras and facial recognition instead of traditional fingerprint timekeeping.

Thus, 1C Vietnam has explained what the concept of BCP is , the role of BCP as well as the factors that determine the success of business continuity planning. Hopefully with the above sharing, administrators can successfully apply it to the management process and business development of their enterprises. In addition, don't forget to follow updated administrative information at 1C Vietnam!