
BCM: Business continuity management definition & concept
What is BCM?
What is BCM?
Emergencies and crises that strike companies unprepared can quickly threaten the continuation or even the existence of such companies.
Glass manufacturers are a good example: The equipment used in glass manufacturing is extremely expensive and can be irreparably damaged by a single outage. An existence-threatening scenario and highly relevant due to last year's energy crisis.
This is where BCM, or Business Continuity Management, comes into play. The goal of BCM is to ensure that a business remains as operational as possible during an emergency through preventive measures.
After all, no matter how long a company has been around or how established it is, unforeseen events such as natural disasters, power outages, cyber attacks or even pandemics can occur at any time. The COVID pandemic is a prime example: supply shortages, staff shortages, and a lack of infrastructure for mobile working caught many companies off guard and accumulated to major economic damage.
In this article, we look at BCM: What is it? What does it do? How does it work? Plus, we'll show you how BCM and emergency management relate.
Business continuity management describes a management system and is part of information security.
The objective of BCM is to prevent or limit outages and disruptions to business operations through preventive or prepared reactive measures. As a result, the company has better chances to maintain operational continuity, critical business processes and the ability to act in case of an emergency.
To do this, it is first necessary to determine which business processes are critical, assess the associated risks and then derive appropriate preventive measures.
But that's not enough: When an emergency occurs, it must also be professionally managed (= response).
This is where emergency management comes into play: crisis or emergency management describes the response to non-preventable incidents with significant financial or legal consequences for business operations, reputation or the physical well-being of people.
Learn more about emergency and crisis management here.
BCM is usually a management responsibility and is often set up as part of an ISMS (Information Security Management System). Nevertheless, it's important to note that BCM is a holistic concept that must also be supported and implemented by employees. More on this later.
When creating a BCM system, it is common to proceed in several phases, starting with the identification of critical business processes and assets, evaluating them in the context of risk management, and then deriving preventive and reactive measures.
Here's an overview of how to build a BCM step-by-step.
Which business processes exist at all? The first step is to get an overview of all business processes.
As part of a "Business Impact Analysis" (BIA) an assessment is made of how critical a failure would be for the respective business processes. The result is an overview of all the critical business processes.
In this step, only the critical business processes and their dependencies are considered. Specifically, this is about which "assets" need to be available to enable a certain critical process. Assets can be, for example, personnel, systems or facilities.
Now considering the critical assets and business processes: How can the company prevent various failure scenarios (power outage, cyber attack, etc.) or respond to them in the inevitable emergency? Education and training on BCM and cyber security is an important aspect of prevention.
BCM is as dynamic as everyday business. Therefore, the critical business processes and their risk assessment, as well as the measures should be regularly reviewed and adjusted if necessary.
Get a demo account and let's talk about your needs in a web meeting. We'll show you how to effectively train your workforce on BCM.
An effective BCM has many advantages.
First of all, there are some mandatory regulations that require a BCM. Especially in the area of critical infrastructure. In addition, BCM is a must for companies seeking certain certifications such as ISO 27001.
Even beyond regulations and certification BCM is a rewarding practice, because a well thought-out BCM will protect critical business processes and ensure continuity of operations in the event of an emergency. And this can make or break the existence of a company, if we recall the initial example of a glass manufacturer.
A functioning BCM not only serves the company's own operations, but also its customers, who depend on a functioning operation. This applies in particular to operators of critical infrastructure such as power plants or waterworks, but also to software providers, without whose software a company cannot accept payments or make reservations, for example.
Managers and crisis teams are responsible for preventing failures (= BCM). Yet in the event of an emergency they must also manage the response in a way that limits damage as much as possible (= emergency and crisis management). No easy task - but possible if well prepared.
Even though managers and crisis teams bear a great responsibility for business continuity: In an emergency, it's often onto each individual. That's why we a IS-FOX have created an e-learning that teaches all employees in an easy-to-understand way, what BCM is and what it is important for.
Employees also learn, how they can support in case of an emergency and in preparing for a possible emergency:
By implementing a BCM professionally and conscientiously, and by communicating and training employess and managers regularly, companies are well prepared for a wide range of incidents and emergency situations. We can help you to make the topic of BCM easy and understandable for everyone involved. Feel free to contact us at any time with questions or for a demo access.