Knowledge

Ensuring Business Resilience with a Business Continuity Plan (BCP)

The Impact of Pandemics on Business Continuity Since the COVID-19 pandemic swept across the globe in 2020, various industry sectors have faced significant challenges in their operations. With restricted workplace activities, many companies encountered substantial business disruption risks. Some even had to halt partial or entire operational processes due to resource limitations and supply chain disruptions. To ensure business runs smoothly amidst a crisis, companies need to develop a Business Continuity Plan (BCP) as an anticipatory measure against uncertainty. With meticulous planning, organizations can maintain business continuity without compromising workforce safety.

What is a Business Continuity Plan (BCP)?

According to ISO 22301, a Business Continuity Plan (BCP) is documented information that guides an organization in responding to disruptions and ensuring operational continuity until recovery. The primary objective of developing a BCP during a pandemic is to ensure business operations continue without jeopardizing employee health and safety.

Below are key steps for developing an effective BCP:

1. Establishing a Crisis Management Team

The first step is to establish a Crisis Management Team responsible for managing the business amidst the pandemic. This team is led by a director or chief executive, with members from various departments such as operations, finance, and HR. The main tasks of the Crisis Management Team include:

Identifying the most crucial business aspects.
Developing appropriate emergency policies.
Coordinating with stakeholders for risk mitigation.

2. Identifying Critical Business Aspects

Companies must determine the most vital processes, assets, and resources for maintaining business operations. Several crucial aspects include:

Core functions that cannot be halted, such as customer service and banking operations.
Critical infrastructure like servers, data centers, and financial systems.
The need for Personal Protective Equipment (PPE) for employees to ensure their safety in the workplace.

3. Developing Emergency Policies

In a pandemic situation, several emergency policies that can be implemented include:

Work from Home (WFH) to reduce exposure risk.
Shift working systems to limit the number of employees in the office.
Restrictions on business travel in accordance with local government regulations.

4. Establishing Effective Communication Channels

Communication is a key factor in business continuity during a crisis. All stakeholders, both internal and external, must receive the latest information regarding changes in company policies or operations.

Some effective communication strategies include:

Utilizing digital platforms for remote coordination.
Transparency in communicating policies to employees and business partners.
Collaborating with medical personnel or authorities for health risk mitigation.

5. Conducting BCP Simulations and Evaluations

Companies must conduct test implementations of their BCP to ensure the effectiveness of the strategies developed. These simulations help in:

Identifying weaknesses in the plan.
Refining risk mitigation strategies based on occurring scenarios.
Optimizing the company’s response to potential disruptions.

6. Developing Business Recovery Strategies

After a crisis subsides, companies must have a recovery strategy to return to normal operations. Several steps that can be taken include:

Maintaining good relationships with customers and suppliers.
Identifying alternative suppliers in case of supply chain disruptions.
Protecting and recovering company assets, including important data and documents.

Conclusion

Facing crises like a pandemic requires a well-structured business strategy. With a robust Business Continuity Plan (BCP), companies can ensure operational continuity, protect their workforce, and mitigate detrimental financial impacts.

✅ Has your company developed an effective Business Continuity Plan?

^{Muhammad Arief Nurhidayat}^{Business Development Manager
Robere & Associates (Indonesia)}