In the present generation all company and organisations that have an value in society for practicing its major activities in a profitable or non-profitable manner should have an ability to confront in the difficult situations to preserve the position and maintain its activities. Moreover, building a response to negative events from day to day basis, from the expected to the unanticipated has become a heart of organisations and governments around the globe. This essay will discuss on risk management and business continuity management in a distinctive perspective, applying theories and practices relating with organisational examples and finally the differences and similarities.
Undertaking these risks require an unified and holistic framework with the ability to classify appropriate responses to the circumstances. For further organisations, this means complying with an Enterprise risk management model. ERM approaches to evaluate all threats inclusive of strategic, financial, market, personnel, technology, legal, geopolitical, environment and compliance that would sceptically effect an organisation.
For having an efficient management and resisting issues, this guides into two distinctive roles recognised as Business continuity management and risk management.
Business continuity management is an integrated management process that analysis the critical impacts that intimidates an organisation and contributes a structure for maintaining a flexible and effective response that secures the concerns of its stakeholders, position, brand and potential activities ( Elliott, Swartz and Herbane, 2010). As a matter of fact, BCM supports the possibility of an entity under coercion. According to (. gov ) to implement the business continuity in the organisation, it is vital to understand the key products and services, the critical functions and resources required to deliver, the risk of these critical functions and finally the process to maintain these critical functions in an unpredictable incident to have access to premises and essential utilities.
In response of BCM process there is an crucial concern with the growth and application of pertinent business continuity plans and preparation to secure the management of an incident for the continuity and recovery of critical activities that reinforce general products and services. In this manner the BCM plans have a distinctive number of plans and content which vary from disparate organisations and should reflect the culture and structure of the organisation and the intricacy of its critical functions. Complying with these factors, it is fundamental to adopt a separate incident management, business continuity and business recovery plans which cover a particular segment of the organisation.
Following a preceding legitimate cyber-attack case of business continuity from Talk Talk a telecommunication company in the UK, discussing the contempt of computers forming issues into most sectors of the businesses over the last two decades. Similarly, it mentioned that majority of organisations does not have an business continuity planning and suffer from long term issues in its operations. The former CEO Baroness Harding of talk talk provided a essential keynote at the Info Security Europe event on 2018, explaining the cyber-attack (hack) on the telecom company 2 years ago. This attack had triggered the Talk Talk technical team to be cautious and sure if the issues was resolved to be back on its daily operations.
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This case had an outcome for Talk Talk to transform their activities with a business continuity management plan, whereby the non-technical business leaders participating in technical issues that are essential to deliver business satisfaction.
Recent activities around the globe have seen risks in higher circumstances. These circumstances include terrorism, weather conditions and financial issues globally. This links with higher number of risks confronting the society and commerce in its daily operations. In a general overview, all organisations have projects, portfolios, and programmes that are genetically risky in terms of its mission and vision. This is because they are based on expectations, performed by people and matter the external influences. Risks can distress the goals of an organisations achievement either positively or negatively, in a further definition risks consist of an equal opportunities and threats, which are believed to be managed over the risk management process.
In addition, Risk management is a set of exercises to safeguard the most appropriate result after the event or attain the best predictable consequences. by considering this approach risk management operations will. Make an enormous participation to the accomplishment of an organisation with enclosing in its strategic, tactic, operations and compliance activities. Mentioning a crucial consideration for risk management is to minimise the scope of potential outcomes, proceeding with an example demonstrating by ( ) Volkswagen lost its investment opportunity because it consumed more playing within the markets than manufacturing cars.
In this example overviewed, risk management can play a major role in risk assessment and serving the organisation to achieve a particular profit margin for a trading occasion, whereby the organisation will manage measures that could derive a possibility in lower predictable profit line along with sustaining the profit within a convinced collection. Risk management tools and technique such as hedging exchange rates can help worthy investments in a profit volatility.
According to multiple researches, business continuity and risk management are acknowledged as distinctive functions, subsets of each other or some similarities which reside. For instance the prevention, preparedness, response and recovery approach to risk management or PPRR is conferred as risk management. Nonetheless, when all roles are combined they put results together, which conclude presenting a business continuity plan. Certainly, they have an relevant difference in applying the risk identification and business impact analysis to form a long-term business continuity.
In this manner, the term business continuity had emerged on acknowledgement after risk management. Risk management can be compiled as evade, pacify, deliver or accepting risk. Business continuity harmonizes to evade, pacify, deliver risk more than pacifying or accepting it. In this anticipation, it is viewed as a subset of risk management. However, there is a counter controversy that risk management is not limited to protect an organisation as a whole, it is mainly possible in a case of individual plan and transactions. In a organisation perspective the risk management examples are credit check on borrowers, and exchange rate hedging. In general every check and hedge are parts of risk management process, but it is implausible to influence the continuity of the organisation.
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