The Importance of Business Continuity Planning
Business continuity planning is about having tested backup plans that will allow the business to continue to operate even if the current information systems become unavailable due to natural disasters, technical issues, or human error. For example, Chase Bank may contract IBM to have its information systems in Ohio roll over to IBM’s systems in Texas. Ohio suffers a natural disaster that causes a system outage on Chase’s information systems there. Although it sounds simple, it is a challenging task. An organization needs to plan, test, and re-test its business continuity plan, so it can continue to operate without disruption in the event of a major business information systems failure. In this Discussion, you will consider the importance of business continuity planning for an organization.
To prepare for this Discussion:
Review the following video on the Business Skill for Good of planning:
Walden University, LLC. (2021). Business skills for good: Planning [Video]. Walden University Canvas. https://waldenu.instructure.com
Think about an organization with which you are familiar. It should be an organization that relies on information technology in some way to conduct business.
Then imagine that you have been hired as a consultant by this organization to demonstrate the value of business continuity planning. Your first task is to identify the risks of not having a plan in place for how to handle a crisis or other unforeseen incident that could shut down the organization’s operations for a period of time (or even permanently).
Time Estimate: 2 minutes
Post an analysis of the risks to your selected organization of not having a business continuity plan in place. In your analysis, include the following:
Briefly describe the organization you selected, being sure not to reveal the name of the company or any individuals involved. Include whether this is a business that provides services or products (or both) to its customers, how big the company is (small business, midsized company, large corporation), where it operates (locally, regionally, nationally, and/or internationally), and (generally) how it uses information technology to conduct its business.
Then identify at least seven risks, based on how the organization functions and conducts business, of not having a plan in place in the event of an IT shutdown. Explain which of these you think is the most significant risk to the company and why.
Respond to Peers:
Peer 1/JTJR:
The company that I am consulting for, and will refer to as ABC, is a small-business that employees 4 people and is based locally, in Bermuda. ABC sells kids clothing, shoes and accessories. It relies on information technology by way of advertising (social media), POS systems (in-store) and a website (e-commerce). Although you can shop online, international shipping is not offered.
One might think that because Bermuda is so tiny, and ABC is a small local business, they typically would not be a target for cyber security attacks. However, anyone who uses networks, computers or devices should have cybersecurity protection in place. (Carlton & Delesline III, 2022) A driving factor for anyone to have continuity plan in place should be the fact that being unprepared results in a direct impact that could ultimately be the end all, be all of the company. (ProServeIT, 2017) The risks include:
Reduced productivity – if IT systems were to shut down, the business nor the website can function because the employees cannot access the resources needed to do their job. (korteksolutions, 2021)
Loss of income – if the employees cannot access the resources, there is no income. (korteksolutions, 2021)
Permanent closure/business failure – if there is no plan in place for a crisis, what will happen when you get a crisis? Some businesses are totally blindsided and have no way to recover, thus the business fails.
Reputational damage – it is equally as important to be transparent as it is to be prepared. (korteksolutions, 2021) Many businesses face crises, but the handling of it makes all the difference. (korteksolutions, 2021)
Injury/death – not only is this company susceptible to cyber threats, but also to natural disasters because they have a storefront. Not having a continuity plan in place in terms of bad weather or employee safety means that the company will be unable to communicate during an emergency posing a huge risk to their employees. (Horvath, 2023)
Complete loss of data – if there are no backup plans in place for storing data or inventory, then the business can lose all data collected. (Rogers, 2020)
Loss of clients – keeping customers happy is of utmost importance. (Rogers, 2020) Being involved in a crisis with no plan on how to rectify it means that you will undoubtedly lose clients. (Rogers, 2020)
I think that the most significant risk is loss of clients which directly relates to reputation, loss of income and permanent closure. Considering that the business is a small business on a small island with no international shipping, it will be very difficult for them to bounce back from any type of crisis in the local market. If the crisis involves data leakage or fraud, they would’ve damaged the trust built between them and their customers. Once one person starts to talk about it, it will spread like wildfire in Bermuda and many people will stop supporting the business because it would be too risky. Having a proper plan in place could help to mitigate the risks and potentially save the company.
Peer 2/ SI:
The organization I selected is a financial institution. It is a wholesale mortgage company that provides both services and products to its customers. These products and services help the clients to refinance their current mortgages and purchase new homes. It is a very large corporation with over 9,000 employees. It operates out of Pontiac, Michigan, but works with companies all over the country. It uses information technology to promote its services and brands to different brokers locally and internationally all over the state and country.
Seven risks, based on how the organization functions and conducts business, of not having a plan in place in the event of an IT shutdown are cybersecurity stacks, more hackers, loss of clients, mistrust, loss of revenue, the company’s reputation is in jeopardy, loss of employees, and more confusion and chaos amongst the staff. I feel the most significant risk to the company is loss of revenue, because the amount of profit being generated is what keeps the company running and thriving. When it starts to decline all of the other aspects of the company will start to decline as well when there isn’t any consistent cash flow.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
