Business Continuity Management – An Integrated Approach to Disaster Recovery

Business Continuity Management and Risk Management

Business interruptions can have serious consequences. One in every four businesses that is forced to close because of a disaster never reopen.

We can’t control natural or man-made disasters — but we can control how we prepare for and respond to them through risk management solutions.

What is Business Continuity Management?

Business continuity management, or the pairing of business interruption insurance and business continuity planning, is the only way to prevent a disaster from having a detrimental impact on your business. It combines the principles of emergency response, crisis management, disaster recovery and business continuity.

Business interruption insurance is a financial assistance and risk management program used to help get a company back on its feet quickly following a business interruption. Originally designed for the manufacturing industry, business interruption insurance transfers risks and provides resources that aid in recovery in all industries and get your business back up to speed as soon as possible.

How Do I Keep My Business Safe?

First, assess your total cost of risk. Next, in order to protect your business, use business continuity planning toolkits to identify vulnerabilities and create a risk management plan to minimize their impact. These toolkits will give you the best chance of survival during, and after, a disaster. A business continuity plan usually involves:

  1. Identifying the plan’s scope
  2. Identifying fundamental business areas
  3. Identifying critical operations
  4. Identifying dependencies between business areas and operations
  5. Determining the acceptable amount of downtime for each critical operation
  6. Creating a plan to maintain and sustain operations

Combined with business interruption insurance and your general risk management knowledge, your business will be protected and your team will know how to recover quickly in the event a disaster does occur. Do you need help with your risk management processes? Feel free to contact a risk management consultant at Cornerstone Insurance Group if you’d like any more information.

Watch our webinar on business continuity management, hosted by Cornerstone’s Loss Control Consultant Tom Scherrer