Business Continuity and Compliance - Literature review Example

By (Name) The Name of the Class (Course) Professor (Tutor) The Name of the School (University) The City and State where it is located The Date Contents Contents 2 Introduction 3 Underlying concepts and backgrounds 3 Information system response 7 Disaster recovery 7 Continuation of operations 8 Critical infrastructure protection 8 Crisis Communications and Information system contingency 9 Environmental regulation 9 Current situation and position 10 Conclusion and recommendations 10 Introduction Business continuity mainly entails identification development, acquisition, documentation, and subsequent testing of the inherent procedures and resources that will ensure constant continuation of the business or firm’s main key operations. There are numerous threats to businesses, and, therefore, the establishment of the business continuity mechanism is highly relevant. Critical challenges for firms include the recurrent or instantaneous events of an emergency, accident, disaster or threat that is mostly unpredicted in business and has the power to plummet the business operations. Business continuity mainly entails risk mitigation planning that hugely aims at eradicating the likelihood of occurrence of eminent adverse events in businesses. The application of both qualitative and quantitative methodologies is imperative in analysis of the business continuity segments. The main players and people who have compliance with business continuity are mainly business administrators and owners worldwide who seek to ground their business in the most stable manner. Every segment of the business continuity relate to each other with main aim of expanding the adaptability of the business. Underlying concepts and backgrounds Business continuity has been continuously been associated with ccertain underlying concepts and backgrounds like PESTLE which aims at expanding extents of business continuity. The letters have a representation of political, economic, social, technological, legal and environmental which form the main evaluation tools for a new business zone. The second relevance is placed on the business recovery planning which mainly ensures that there is continued operations following the aftermath of any business disasters and thus critically aid in enhancing the Ability of the main operations of the business to continue without stoppage. Disasters are common in management of businesses. According to new statistics 70 percent of most business owners do not anticipate the similar disaster, and therefore virtually half of the people normally have no plan to evaluate the ensure business continuity (Trupin & Flitner, 2012, P251). Fig (a): Mind map on business continuity Common business continuity models touch on the main segments of the business. These are employee (human resource), long term and short term assets, land on which the business is stationed and many other fine details regarding the business. In finer segmentation the parts includes the employee continuity, crisis communication management, infrastructure protection, occupant emergency, Information system contingency, cyber incident response, disaster recovery, environmental regulation, formation of mergers and continuity of operations. Consistent with (Trupin & Flitner, 2012, P231), firms lose staffs through various ways. Death emerges out of illness, accidents, retirement and many other ways. Retraining and enhancement of flexibility of skills amongst the staff are highly championed for reduction of employee or skill loss risks. Most companies prefer assigning certain roles to certain individuals. However, the company risks closure or fall in case such people are by any men incapacitated to work. Flexibility and interchange staffs ensure acquisition of skills by many staffs in the company. Business continuation on employee sector demands promotion of people staffs according to experience and expanse of skills they have amassed in the business sector. Recurrent recruitment of new staff members helps in refilling of the lost or departed members of the workings. There is a massive use of incentives and morale boosting ways to promote retention of excellent skills in the company so that maximum skills needed are not lost to the ambience. High remunerations also attract the outside people with inherent talents and skills that are important in improving the level of productivity in the company in the continuance manner (Dorfman, 2014, P362). Information system response According to (Rejda, 2011, P325), internet and cyber communication response helps in reduction of risks notable in the computer and internet communication sector. Big companies have been knocked down by crucial incidents like hacking and theft of the crucial document for the company. Cyber protection mechanism is a model placed by companies to shun data thieves and hackers who attacks internet systems. Most international companies have critical systems and professional well-versed with the modern technology in averting the inherent risks in the internet sector. The process further proceeds to related tools like money transfer cards and system used by the company as they have massive roles in failing the company. Business continuation and the risk evasion in internet management system entail purchasing of the updated software from software vendors that aimed at easy and effective control of the business and its online trade roles. Disaster recovery According to (Trupin & Flitner, 2012,P231), disaster recovery procedures for business continuity purpose include the setting aside sufficient finances for resuscitation of the business in case of failure. Normally the business with huge investment in tangible assets like machines must ensure that there are huge chunks of liquid cash that promotes the running of the machines in terms of repairs and servicing. Failures of machine can be calculated and determined by excellent mathematical applications. Risks of machine failing are very probable as compared to collapse of houses or building of company buildings. Disaster recovery also compels the business to invest in diverse sector so as to reduce the loss to the business in case of dangers, for instance, communication companies have investments in data, money transfer, internet provider services and call services which highly reduce the risk of the communication firms (Dorfman, 2014, P132). Continuation of operations Continuation of operations for business relates the expanse or the region of the area affected by the risk or failure of the business. International companies may face risks in certain countries but are safe in certain neither countries nor states. These may be caused by changes in climate, country regulation variations or any other strong business environmental factors. Continuation of operations also depends on the risk assessment and evaluation for every region selected by the affected international company. Firms operating in zones with terrorist hostilities like Middle East may fail to continue their business operations in those zones following emergence of hostilities (Rejda, 2011, P325). Critical infrastructure protection Current situation of Business continuation also notes investments in protection or safeguarding of the vital infrastructure relevant to the firm for continued production purpose. Insurance and other tools are used to ensure proper assurance against certain risks. Commons risk prevented or protected against includes fire and theft. Critical machine destruction may result in massive loss companies thus increasing risk exposure. Premiums paid to protect the essentials machine vary with the price of the machine and other inherent factors that are consequently calculated by insurance companies. Buying of the long term and durable assets is equally undertaken to reduce on the substandard and counterfeit products that typically fail before their anticipated date and are riskier to use or handle (Harrington & Niehaus, 2013, P376). Crisis Communications and Information system contingency Consistent with (Dorfman, 2014, P32), Crisis communication and information system contingency are highly relevant for the management and avoidance of business falls. Communication system mainly refers to the telephone, computer and other communication gadgets for the company. Customer care department has the sole role of ensuring high level respect and reputation on the company image at any time by using the communication system. There huge or massive losses that can invade a firm trough rumor mongering and other obstructive or destructive communications. Excellent communication lines are placed in placed to avert or correct such issues in their best desired time. These factors mainly apply to companies with large of consumers over wider region area. It both includes the services and goods consumers. Environmental regulation Business should continue even after change of the external governing rules. Most rules are aimed streamlining and laying rules for the business but not to stop the business unless it is declared illegal. Business mainly adapt to the new rules by creating a new structure to counter the new trends. The eminent changes in regulations include variation production standards, stringent environmental standards and other detailed issues in the production process that highly impact business in negative ways. Long-term issues that influence profitability regions of the business are highly considerable while setting up business. The long-term issues mainly entail recurrent expenditures like energy in a manufacturing company that may result in huge losses to the company or firm. Dealing with such risk is mainly undertaken during prefeasibility tests, and therefore huge gains can be collected from such investments (Trupin & Flitner, 2012,P281). Current situation and position The current situation and position of business continuity in the world aims at elevating the practice of business in the spirit of averting various crises eminent in the different industries. Various companies have been felled by various factors relatable to financial, employees and event infrastructural abilities. Failure of companies leads numerous challenges in the society and therefore must be stopped at all counts. Nations globally have taken up measures to shun failure of companies through incorporation of regulation systems which help in reduction of the same risks to the companies in the locality. Various industries have also find a new way of incorporating the teachings of the topic in managing its on issues. Conclusion and recommendations Conclusion and recommendations in business continuation model depend on the listed seven criteria. Each segment helps in a version of every risk to the company that is highly relevant for control in case the business must succeed. Main risk contributors to the business are acknowledged at every stage business. The groups are summarily placed in categories of employee continuity, cyber/ internet incident response, disaster recovery, continuation of operations, critical infrastructure protection, crisis communications and information system contingency. In finality, development of an excellent emergency preparedness plan crucial as a strategic decision or plan for a business. Every step aimed at averting a crisis is promoted recognition of the main cause of the problem. Recommendations entail purchase of the essential safety equipment, for instance, Standard items expounding to fire extinguishers or even typical smoke detectors. Other relevant tools for this purpose include the, first-aid kits or even defibrillators that are highly important for any firm to have or building owners. Fire and accidents come as the major cause for worry in long term investment sectors. References Harrington, S. E., & Niehaus, G. R. (2013). Risk Management And Insurance. Boston, Mass. [U.A.], Mcgraw-Hill. Rejda, G. E. (2011). Principles Of Risk Management And Insurance. Boston [Etc.], Pearson. Trupin, J., & Flitner, A. L. (2012). Commercial Property Risk Management And Insurance. Malvern, Pa, American Institute For Chartered Property Casualty Underwriters/Insurance Institute Of America. Dorfman, M. S. (2014). Introduction To Risk Management And Insurance. Harlow, Prentice Hall. Read More