Business Continuity is dependent upon effective risk management
If sustainability were guaranteed, management would be easy not least because reacting to change but have an autopilot.
Clearly life as a manager at any level is not that simple, each day is different and calls for specific action to remedy the challenges being faced. Understanding those threats which may cause catastrophic failure is therefore vital from a Board perspective, as not only does this help to prepare for those events which may disrupt business continuity, but it also delivers upon the organisation’s obligations to internal and external stakeholders.
Embedding effective risk management is therefore critical. Establishing an understanding of those so-called ‘Never Events’ within the risk appetite of the DNA of the organisation is essential if Boards and Executive Teams are to prepare for implementing a Plan B should potential disasters or negative circumstances occur.
Recognition therefore of the links between effective risk management, undertaking a thorough Business Impact Analysis and implementing a robust Business Continuity Plan where appropriate is a fundamental aspect of good governance that Boards ignore at their peril.