ENT104 - Business Continuity Map

Module 01 -DEFINITION AND SCOPE OF BUSINESS

CONTINUITY MANAGEMENT (BCM)

Week 2 -3 : September 3 - September 16, 2022 | 1st Semester, S.Y. 2021-2022

Introduction
In the 21st Century,organizations that fail to define and implement
effective responses to disasters will be defined by their ineffective responses
to disasters. Among leading companies,an IT-centric approach to disaster
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recovery is giving way to business continuity management (BCM).BCM

capabilities enable organizations to restore their businesses to normal
operations following business interruptions,which range from a simple
power outage to a Category 4 hurricane. The finance and accounting
managers — along with the senior-level executives, functional and
operational managers and corporate directors — who read this guideline
will learn how to define BCM and its essentials and processes;identify the
BCM-related roles of corporate managers and directors;work through a
BCM framework for developing and maintaining effective business
continuity management processes;and see examples of leading BCM
capabilities in practice.advances,progressing globalization and the
extension of the supply chain.Companies of all sizes are “connected” to
their suppliers and customers to a much greater degree today than ever
before.When a disaster occurs,its effects quickly ripple up and down the
supply chain.

Intended Learning Outcomes

ILO 1.1 Defining business continuity management;
ILO 1.2 Identifying and defining the key components of viable BCM
framework;and
ILO 1.3 Placing BCM in the context of organizational risk management.

Topic 1 - BCM Defined

Business Continuity Management (BCM) is a holistic management
process that identifies potential impacts that threaten an organization, and
provides a framework for building resilience and the capability for an
effective response that safeguards the interests of its key
stakeholders,reputation, brand and value-creating activities.

This guideline defines stakeholders as employees, customers, suppliers,

investors, and the community or communities in which an organization
operates.

Business continuity planning is the process through which

organizations establish the capabilities necessary to protect their assets
and continue key business processes after a disaster — an unexpected
business interruption caused by natural or man-made events — occurs.The
following framework (see Exhibit 1) illustrates the components of business
continuity planning:

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Although the discipline still has a long way to go,organizational business

continuity management has evolved significantly over the past two
decades.In the past,“disaster recovery” was usually centered in data
processing or information technology (IT) departments.These early efforts
primarily focused on getting hardware,software and data up and running
again after a disruption. These days,it is generally recognized that business
continuity planning efforts require a crosscompany perspective and
therefore should not be limited to the IT department.That said,many
effective continuity tactics have emerged from disaster recovery efforts that
arose in the IT function during the past decade.For example, many of the
same principles that apply to data and systems backup also apply to
facilities management and backup.

More recently,disaster recovery has expanded into “business continuity

planning,” a phrase that was primarily used to emphasize the need to move
continuity efforts beyond the IT department and weave them throughout
the organization. Most recently,the use of terms like “business continuity
management” and “business resiliency” have increased,emphasizing the
proactive nature of current continuity efforts. A business continuity plan,as
the chart above illustrates,begins with executive-level assessments of an
organization’s continuity objectives.That assessment is followed by the
identification of the organization’s most important business
processes.Then,finance managers and other business managers analyze the
critical components of those processes:people, facilities,technology systems
and the data the systems contain.The analysis should also consider how an
unexpected business interruption might affect suppliers and customers.

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 The ensuing response processes ensure that all of the components that
enable a critical business process are restored within a prudent amount of
time.Defining what is prudent demands input from the finance and
accounting function because it requires a comprehensive understanding of
(a) each process’ value to the business;and (b) the cost of restoring the
process within a given amount of time. The resulting plan should then be
monitored, tested and,when necessary,adjusted or improved.

Topic 2 - BCM and Organizational Risk Management

Business continuity management is a subset of companywide or
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enterprise risk management (a topic addressed in the Management

Accounting Guideline “Identifying,Measuring,and Managing Organizational
Risks for Improved Performance.”)
BCM’s rising importance and IT-based history have caused internal
debates about who owns the BCM function and how BCM relates to a
company’s existing risk management efforts. Again,business continuity
management is a subset of a larger risk management strategy. The most
significant difference between risk management and business continuity
management relates to the output of each process.Risk management
strategies (either risk avoidance,risk acceptance,or risk mitigation —
through risk reduction,risk sharing or transfer of the risk) are “pre-event”
responses to perceived risks.Most BCM strategies and tactics focus on the
processes that need to take place after an event or disaster occurs;the
objectives of those processes are to restore the business to normal
operations as efficiently and effectively as possible.
The Business Continuity Institute’s “Good Practice Guidelines (2005)”
present a partial,but useful, comparison of the two disciplines;a portion of
this comparison follows (see Exhibit 2).

Activity - 1
1. Create your own business organization (1 Leader, 4 members). If there
are any organizations that are identical to the groupings, points will be
subtracted. Answer the following below: (20pts)
i. Name of your Business
ii. Type of Business (Service Business, Merchandising Business, or
Manufacturing Business)
iii. The main function of the business
iv. Your desired location of your business (Provide a Google Map
image)

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 2. Individual task:
a) List at least 10 type of events that may cause significant business
interruption. (20pts)
b) What are the 8 steps for planning your emergency and disaster
plan?(20pts)

Key terms:

Business Continuity Management (BCM):

Management's capability to identify potential impacts that threaten an
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organization and toprovide a framework for building resilience and an

effective response that safeguards the interests of its key stakeholders,
reputation,brand and valuecreating activities.Stakeholders include
employees,customers, suppliers,investors,and the community or
communities in which an organization operates.

Business Continuity Planning (BCP):

The process through which an organization establishes and maintains
business continuity management capabilities.This process includes
assessments and objective setting,critical process identification,business
impact analysis,and continuity response strategies,as well as
monitoring,testing and improving these areas.

Disaster Recovery Planning:

Often used as a synonym for BCP,but also a term associated more with IT-
related responses to business interruptions.

Business Impact Analysis:

The process of identifying how a specific business process,or set of
business processes,would likely be affected by an unexpected interruption.

Crisis Management:
A term that refers to the processes enacted after a business interruption
has occurred to limit the negative effects of the interruption while returning
the business to normal operating mode as effectively and efficiently as
possible.

References

 Business Continuity Management by Eric Krell pages 5-8

 https://www.accountingverse.com/accounting-basics/types-of-
businesses.html
 https://www.infoentrepreneurs.org/en/guides/crisis-management-
and-business-continuity-planning/
 https://www.bdc.ca/en/articles-tools/business-strategy-
planning/manage-business/business-continuity-8-steps-building-plan

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