A risk management process designed to ensure the continuity of a business's key activities in the case of a major disruptive event (e.g. an IT systems breakdown or an epidemic of illness among staff). It involves identifying the key activities of a company, the resources needed to deliver them (e.g. personnel, systems, plant and machinery), and the major risks affecting these resources; a strategy must then be developed to restore key activities as soon as possible after any disruption. Once in place, a business continuity plan should be reviewed frequently in the light of any changes. Scenario analysis can be used to test a BCM plan but should not be used to drive its formulation, because of the near-infinite number of possible scenarios.
Subjects: Business and Management.