The BCP ensures the business can continue in case of (un)foreseen circumstances. To motivate top-level management to support the BCP, the best way is to set up a risk/reward overview and use examples to show what can happen when you do not have a BCP in place. The most important question to ask is: .If we (partially) shut down the business for x amount of time, how much money would this cost, both short (direct business loss) and long term (indirect business loss from reputational damages)?.. Losing critical systems, processes or data because of an interruption in the business could send an organization into a financial tailspin.
The main concern of a BCP is to ensure availability of the business is maintained. Confidentiality and integrity should also be addressed within the Business Continuity Plan. In terms of availability the risk to business continuity is often explained as a service interruption on a critical system, e.g. a payment gateway of a bank goes down, preventing transactions from occurring. The short- and long-term impact are financial losses due to the bank not being able to process transactions, but also clients becoming more and more dissatisfied. Confidentiality in BCP could for example be the transfer of personal data during a disaster recovery. An objective of disaster recovery is to minimize risk to the organization during recovery. There should be a baseline set of documented access controls to use during recovery activities. They are necessary to prevent intrusions and data breaches during the recovery. The impact here can be one of reputation but also of financial nature. If a competing company can for example obtain a set of investment strategies, it could assist the competing company to invest against them, resulting in significant financial losses and even bankruptcy.
Integrity of information means that it is accurate and reliable and has not been tampered with by an unauthorized party. For example it is important that the integrity of each customer.s data, but also information originating from third parties, can be ensured. An example of the impact of integrity violation: when a bank cannot rely on the integrity of data, for instance if it authorizes transactions to a nation or person on a sanctions list (originating from a third party), they could be heavily fined, but also might lose their banking license. A BCP goes wider than just impacts, it also addresses risks. A business impact analysis is performed to understand which business processes are important. These .critical. business processes are provided with special protection in the framework of business continuity management, and precautions are taken in case of a crisis. .Critical. in the sense of business continuity management means .time-critical., which means that this process must be restored to operation faster because otherwise a high amount of damage to the organisation can be expected. While the BIA answers the question of what effects the failure of a process will have on the organisation, it is necessary to know what the possible causes of the failure could be. Risks at process level as well as risks resource level need to be examined. A risk at the process level could be the failure of one or more (critical) resources, for example. A risk analysis at the resource level only looks for the possible causes of the failure of these critical resources.
BCP relies on both impact and risk assessments, but making a risk assessment without an impact assessment is difficult. ISO 22301 requires a risk assessment process to be present. The goal of this requirement is to establish, implement, and maintain a formal documented risk assessment process that systematically identifies, analyses, and evaluates the risk of disruptive incidents to the organization.
I want to conclude with stating that risk analysis and business impact analysis (BIA) are cornerstones in understanding the threats, vulnerabilities and mission-critical functions of the organization and are thus required if one wants to discover the business’s critical processes and make a correct prioritization.