Business Continuity and Crisis Management Essay

Business Continuity and Crisis Management - Essay Example As the study outlines most comments that arise in the use of business continuity and crisis management is that people tend to confuse its role with that of insurance companies. The manner in which business continuity and crisis management are also explored by providing an example from the City of London Resilience Forum. Introduction Business continuity management helps to ensure continuity of a business by focusing on the critical business process within and outside the organization. Unplanned events have a very devastating effect on both small and big businesses and they range from fire, damage to illness of key staff, IT system failure that makes it impossible to carry the smooth running operations of a business. The negative impact of business crisis is that it can make business loose customers who make an important component of the business and prevent the closure of businesses. Good planning of the business process helps minimize the potential impact of disaster thus prevent it from happening and spoiling for the business. Business continuity is an all-inclusive management process that recognizes potential effects that impends a business and gives an agenda for building elasticity and the ability for the organization to safeguard the interest of various stakeholders. According to Blyth, business continuity involves the management approving a strategic and tactical approach to dealing with emergency disasters that are unforeseen and may pose a negative effect to the company. In addition, business continuity can be defined as a cost-justified method aimed at reducing risks that may hinder the continuity of a business in the event of a disaster. Elliot, Swartz and Herbane in their book define business continuity as responding to a business interruption in such a way as to achieve the lowest level of inconvenience possible for the continued stability of the business. According to Regester and Larkini business continuity involves identifying the potential issu es that threaten to interfere with the existence of a business and formulate a framework that can effectively handle such issues whenever they arise. According to Kadam, business continuity management aims at managing risks in order to guarantee that the company endures in operating at the lowest prearranged risk level. An organization applies business continuity and crisis management practices to ensure continuity in the ways a business handles various crises. From this paper it is clear that the need for businesses to apply business continuity and crisis management strategies is conceived from the need to provide assurance for the continuity of the business process. The management should ensure that their business continuity and crisis management framework is able to restore a business to its earlier position and preserve all sectors of the business. Business continuity management is thus more than a crisis management since it is a comprehensive program that helps a business react quickly and effectively when faced with unplanned interruptions.