Business continuity management becomes an increased priority in the crisis
LONDON - The risk of failed business continuity management (BCM) is set to increase in the recession, as some firms collapse and others discover unforeseen interdependence due to outsourced areas such as technology and supply chains.
UK consultancy the Business Continuity Institute (BCI) estimates that UK firms lost approximately £11.1 billion - 0.8% of UK GDP - in 2008 due to major disruptions caused by BCM failures. As more interconnected firms go out of business, this cost is expected to rise.
"In the current economic downturn, customers and suppliers will inevitably go out of business and it is vital that an organisation understands its dependency on critical suppliers," says Lyndon Bird, technical director of the BCI. "Disruptions to the supply chain will be one of the main business continuity concerns for 2009 and will run way into 2010."
UK standards institution BSI British Standards this week released its new self-assessment tool for firms seeking BSI accreditation for their business continuity management.
"In tough economic times such as these, it is more important than ever for businesses to have the business continuity management systems in place that will help them stay afloat should operations be disrupted," says Mike Low, director of BSI British Standards. "BCM can be used to determine and invest in critical areas of the organisation, protect reputation and enhance stakeholder confidence."
More on Technology
Internal teams' concerns around data security hinders adoption, Sibos attendees told
Intraday liquidity reporting underpins rulebook created by the Liquidity Implementation Task Force to support BCBS compliance
'Ethical hacking' seeks to develop people as a point of a system's strength
Wipro's Sukant Paikray offers advice on how firms can better address the increasing demand for higher data quality
Sign up for Risk.net email alerts
Sponsored video: BAE Systems Applied Intelligence
Catch up with the debate at OpRisk's flagship London conference
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.