Business continuity management (BCM) is always considered a critical operation for corporations, but even though awareness around plans is growing, many are still not completely prepared.
A recent study from both Continuity Insights and KPMG LLP, found that while some organizations are using business continuity management plans, many are still facing issues with development, successful governance and more in depth incorporation of other regulations.
The Continuity Insights survey reached out to 434 corporate executives through 22 different countries throughout 2013 and 2014, and 71 percent of respondents said they had some sort of business continuity management system in place with either senior management or with an advisory committee.
The total number of businesses saying they had a BCM plan was up 6 percent since the report was completed between 20011 and 2012. Even though the slight upward tick of companies instituting BCM, 30 percent of respondents still admitted to having no governance of the capability for a plan in their business.
"Having a formal oversight function, like a steering committee, that is visible and provides guidance in the development and maturity of the BCM Program is a key success factor for organizations that get BCM right," explained Tony Buffomante, principal of information, protection and business resilience at KPMG.
Rising number of incidents putting more businesses at risk
The growing cyber security threat is putting businesses at risk in the wake of the Heartbleed virus and the massive data breaches that affected Target and Neiman Marcus through the winter, The Associated Press reported. One such incident, be it digital or physical, can affect overall business operations or significantly damage supply chain management when BCM plans are not instituted.
"More frequently than ever before, organizations are experiencing incidents or interruptions that require activation of one or more business continuity plans, particularly around IT or cyber security, social media and data privacy, requiring they remain vigilant in the development, maintenance and monitoring of their business continuity programs," Buffomante added in his KPMG report.
Of all the respondents in the survey, only 16 percent admitted using a third-party business continuity strategy that monitored business operations at a high level, and 20 percent had no idea how a five-day outage would affect their organization.
More companies are turning to risk management software to closely monitor the possible risks that could affect business continuity in their organization.