How to Perform Business Continuity Risk Assessment
Businesses, both old and new, must withstand the test of time. This could get difficult when there are so many risks that endanger any business. Business continuity is a term used in the context of disasters or incidents that can disrupt your business operations temporarily or even permanently.Planning business continuity means that you ensure that your business remains operational or is at least capable of being restored to an operational state rather quickly. For this to be possible, risk assessment is essential.
Here are some tips on how to perform a business continuity risk assessment.
Identify the risks to your business
The first step of any risk assessment, including a business continuity risk assessment, is to identify what factors threaten your business operations.It could be anything from a natural or a man-made disaster to embezzlement or robberies toan overnight slump in your organization’s reputation. List out all factors that could put your business at risk.
Analyze the impact to your business
Your business may be at risk due to the factors that you identified above. How will these risks impact your business? Think of all possible scenarios specific to your business. Could there be a financial impact? Could the risk affect your staff? Or perhaps your supply chain will be affected?Could an event affect your organization’s reputation and goodwill? Even if only a part of your operation is affected by an incident, the impact could still be huge. Each risk factor should be considered separately when performing a business impact analysis.
Check your current risk management plan
Think of ways to restore your operations
Prepare a contingency plan
All businesses should design their physical and digital infrastructure in a way that it is resistant to potential continuity risks. However, in case your business is not resistant or even restorable upon an adverse impact, you must always have a contingency plan.Think of the critical components of your business operations and how you can reestablish these operations in case of business continuity mishap.
Businesses, just like life, are unpredictable. The next time you feel that the continuity of your business may be threatened, follow our tips to assess the risks your business is facing.