Business continuity plan

Definition

A Business Continuity Plan (BCP) is a documented strategy that helps an organization maintain operations during and after unexpected disruptions. It outlines the steps required to keep essential business functions running in the event of incidents such as natural disasters, cyberattacks, supply chain failures, or pandemics.

The purpose of a BCP is to reduce downtime, minimize financial losses, and protect employees, customers, and assets. Unlike a disaster recovery plan, which focuses mainly on IT systems, a BCP takes a broader view and ensures that all core operations continue. It includes assigned responsibilities, recovery processes, and communication strategies. A strong BCP is tested regularly and updated to reflect changes in business needs, risks, and regulations.

Advanced

A Business Continuity Plan integrates risk assessment, business impact analysis, and recovery strategies into a unified framework. It often aligns with international standards such as ISO 22301 or guidance like NIST SP 800-34. These standards provide structured methodologies for identifying critical assets, setting recovery time objectives, and ensuring business resilience.

An advanced plan covers communication protocols, alternate work arrangements, IT redundancy, vendor dependencies, and compliance requirements. It includes governance policies, scenario-based exercises, and resilience metrics. Many organizations now integrate cloud solutions, automation, and real-time monitoring into their continuity strategies to improve recovery efficiency.

Why it matters

• Reduces downtime and loss of revenue during disruptions.
• Helps organizations comply with regulatory and contractual requirements.
• Protects brand reputation and customer confidence.
• Provides a structured approach to employee safety and crisis management.
• Strengthens organizational resilience and adaptability.

Use cases

• A financial institution keeping its trading platforms operational during a cyberattack.
• A hospital maintaining patient services during a prolonged power outage.
• A manufacturing company preserving supply chain operations during a natural disaster.

Metrics

• Recovery Time Objective (RTO).
• Recovery Point Objective (RPO).
• Accuracy of the Business Impact Analysis (BIA).
• Percentage of critical functions successfully tested.
• Frequency of plan updates and training exercises.

Issues

• Outdated or untested plans can lead to operational breakdowns.
• Lack of employee awareness and training reduces effectiveness.
• Non-compliance with regulations can result in penalties.
• Dependence on a single vendor or system increases vulnerability.

Example

A global retail company created a business continuity plan that included alternate logistics partners and cloud-based backup systems. When floods shut down a major distribution center, the company quickly redirected operations through backup facilities. Deliveries continued with minimal disruption, helping to protect revenue and maintain customer trust.