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Business Resilience Program Overview
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| Organizations
in today’s business world are facing increasingly difficult and changing conditions that threaten their profitability
and existence. Many factors have contributed to these challenging conditions including: - Perpetual threats of natural disasters, human related disruptions, and technical
failures;
- Threats of pandemic such as
SARS and Avian Flu;
- Increasing dependence
on technology;
- Rapid regional and global
expansion;
- Competitive pressures and
increasingly high customer expectations;
- Stricter
regulations and increasing requirements for accountability
- Supply chain concerns such as “just-in-time” delivery; and
- Market penetration opportunities in developing countries.
The financial success of business depends upon its ability to be resilient
so as to take the fullest advantage of its constantly changing business environment and surroundings, full of anticipated
as well as unexpected events and risks, bringing opportunities to increase shareholder values and gain competitive advantage. A business resilience program enables a business to protect itself from
untoward events and capitalizes on opportunities. A business resilience program has three main resilience objectives
for dealing with anticipated and unexpected events: - Protect
critical operations, services, and resources to maintain business continuity
- Develop resilient business strategies that exploit opportunities to gain competitive
advantage
- Overcome enterprise-wide risks
and vulnerabilities to protect shareholder values
An effective business resilience program requires a concerted effort to achieve resilience objectives from different
areas of expertise with an organization. The following three areas are essential for establishing a business resilience
program:
Business continuity planning (BCP),
Business
resilience strategy planning (BRSP), and Enterprise
risk management (ERM).
BCP
is considered a part of disaster recovery and business continuity management function. BCP is a critical component for
achieving the first resilience objective of protecting critical operations, services and resources. BRSP component is
considered a part of corporate business strategy planning function, and it is focused primarily on achieving the second objective.
The ERM component is considered a part of risk management function, and it is aimed at achieving the third objective.
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Evolution from Disaster Recovery to
Business Continuity to Business Resilience Planning The
fields of business continuity planning and disaster recovery planning have played critical roles in helping businesses achieve
parts – but not all – of the business resilience objective. The primary objective of disaster recovery planning
has been limited to protecting IT infrastructure and services from unexpected events and disasters.
Business
continuity planning extended the boundaries of disaster recovery planning to protection of business operations and processes.
However, the objective of a business resilience program is larger than both business continuity planning and disaster recovery
planning. A business resilience program extends the boundaries of protection from beyond unexpected events and disasters
to include any changes from normal business activities.
Business Resilience Program Objective:
The business resilience program objective is to empower the organization with the ability to rapidly
adjust and transform business in response to any change in order to prevent and mitigate hazards, capture opportunities, create
competitive position, and improve shareholder value. The program enables organizations to become resilient by proactively
adapting and adjusting to any changes resulting from either unexpected events, such as disasters, or normal business demands
and activities such as mergers, downsizing, or market changes.
Business Resilience Program Requirements:
The requirements are expressed in terms of capabilities and characteristics that
allow a business resilience program to achieve its resilience objectives. The business resilience program has five high-level
requirements. The program needs to be comprehensive, methodical, adaptable, proactive, and reactive.
- Comprehensive – This characteristic requires that a business
resilience program is based on a comprehensive scope that covers organization’s end-to-end business and operational
aspects. The scope includes business resilience strategies, business processes, people, IT assets and resources, non-IT
assets and resources, product and services, supply-chains, laws and regulations, etc.
- Methodical – This ensures that a business resilience program
is built on a structured, systematic and analytical approach for achieving resiliency objectives.
- Adaptable – This characterizes the ability of a business resilience
program to adapt quickly to changing threats, circumstances, and business demands.
- Proactive – This is the ability of the business resilience program
to anticipate future business changes, impacts, and discontinuities, and take preemptive actions to protect the resilience
goals. The proactive business resilience program also has the ability to take advantage of opportunities to increase
the shareholder values.
- Reactive
– A business resilience program needs to have a strong reactive capability – in addition to the proactive capability
to defend or protect the organization from unexpected situations that can lead to disastrous consequences.
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