A well-crafted business continuity plan (BCP) can safeguard an organization's operations, reputation, and financial stability, as it serves as a roadmap for dealing with disruptions or unexpected challenges, such as natural disasters, cyberattacks, or other emergencies.
Failing to establish an effective plan can have devastating consequences. For example, 40% of businesses do not reopen after a disaster, and 90% fail within a year if they cannot resume operations within five days.
Organizations must identify and deal with such mistakes. This article will look at the 7 major mistakes that businesses frequently make when creating business continuity plans and provide workable solutions.
7 common mistakes in business continuity planning
Many organizations fall short by making common yet significant mistakes.
For instance, a 2024 survey by the Business Continuity Institute found that 60% of businesses experienced disruptions due to inadequate planning.
Here are seven critical mistakes to avoid:
1. Failing to keep the plan updated and tested
Many businesses create a business continuity plan but rarely revisit it, leading to outdated protocols. This neglect can result in a disconnect between the plan and the current operational landscape, including changes in technology, personnel, or regulatory requirements.
Recommendations:
- Evaluation plans: Plan to assess your business continuity plan annually or semi-annually.
- Frequent tests: Test often, using both complete simulations and tabletop activities.
- Plan updation: Update the plan following each test in light of the lessons discovered and any modifications to operations (e.g., new sites and personnel changes).
2. Overlooking critical business functions and processes
Not all business functions are equally essential; failing to identify and prioritize key functions can leave gaps in your business continuity plan.
In 2024, 93% of companies that experience a disaster without a recovery plan go out of business within a year, highlighting the importance of recognizing critical processes.
Recommendations:
- Conduct a business impact analysis (BIA): This involves assessing which processes are critical to your operations and setting Recovery Time Objectives (RTOs) for each.
- Use a risk assessment matrix: Map out processes based on their impact and the likelihood of disruption. This matrix helps visualize and prioritize risks.
3. Lacking a clear crisis communication strategy
Without a clear communication plan, crises can lead to confusion, panic, and delayed responses.
For example, during the Equifax data breach, the company faced severe criticism for its delayed and unclear communication, which damaged its reputation.
Recommendations:
- Establish a communication chain of command: This helps prevent misinformation and ensures that accurate updates are disseminated promptly.
- Use mass notification tools: Implement tools like AlertMedia or Everbridge to automate updates and ensure all stakeholders receive timely information. These tools can send alerts via multiple channels, including SMS, email, and voice calls.
- Prepare templates for common scenarios: Develop pre-written templates for various crisis scenarios, such as power outages or cyberattacks.
4. Ignoring risks related to third-party vendors and suppliers
Many companies rely heavily on third-party vendors and suppliers, but these partners may not have adequate business continuity plans, creating vulnerabilities.
In 2024, 62% of organizations reported experiencing supply chain disruptions related to cybersecurity.
A notable example is the 2024 Finastra breach, where attackers exploited compromised credentials from a third-party vendor, exposing sensitive data.
Recommendations:
- Conduct a third-party risk assessment: This assessment should include reviewing their business continuity plans, cybersecurity measures, and their ability to recover from disruptions.
- Add clauses in vendor contracts: Include specific clauses in contracts that require vendors to notify you of any disruptions in their business continuity plans.
5. Neglecting regular employee training and drills
A business continuity plan is only as effective as those executing it. If employees are unaware of their roles or response protocols, the plan can fail when it is needed most.
Recommendations:
- Hold regular training sessions: Regular training ensures that all employees are up to date with the latest protocols and understand their specific roles in the business continuity plan.
- Include remote and hybrid workers: Ensure they understand the protocols and have the necessary tools and resources to respond effectively from any location.
- Run unannounced drills: Conducting such drills can test the preparedness of employees in real-world scenarios.
6. Underestimating cybersecurity threats
Cyber threats are among the most frequent and damaging risks businesses face today, yet many business continuity plans fail to cover them in sufficient detail.
For instance, the 2021 ransomware attack on Ireland's Health Service Executive (HSE) disrupted healthcare services for months and cost over $100 million in recovery efforts.
With cyber incidents up 38%, integrating cybersecurity into a business continuity plan is crucial.
Recommendations:
- Integrate a disaster recovery plan (DRP): This plan should outline procedures for data backup, recovery, and restoration to minimize downtime and data loss during a cyber incident.
- Implement cybersecurity measures: Using multi-factor authentication (MFA) adds an extra layer of protection by requiring multiple forms of verification.
- Conduct regular cybersecurity training: Regular training helps employees recognize and respond to cyber threats, such as phishing attacks.
7. Not accounting for remote and hybrid workforces
Many business continuity plans assume that employees will work in-office, overlooking the unique challenges posed by remote and hybrid work environments.
This oversight can lead to vulnerabilities, as demonstrated during the COVID-19 pandemic when many organizations struggled to adapt to sudden shifts to remote work.
According to McKinsey, as of 2023, nearly 58% of American organizations have at least some employees working remotely.
Recommendations:
- Update business continuity plans for remote work: This includes secure access to systems, reliable internet connections, and the necessary resources to perform their duties effectively.
- Use cloud storage solutions and secure VPNs: Implement cloud storage solutions to enable access to important data from anywhere, such as using secure VPNs (Virtual Private Networks).
- Provide backup internet solutions or stipends: This ensures they have reliable internet access, which is important for maintaining productivity.
Why Rocket.Chat is an ideal tool for business continuity planning
Rocket.Chat is an open-source collaboration and communication platform designed with flexibility and security in mind, making it a strong choice for reliable communication during business continuity planning.
Here are some key features that highlight its suitability:
- End-to-end encryption and self-hosting options: Rocket.Chat offers end-to-end encryption and the ability to self-host, ensuring data security and privacy.
- Customizable user roles and permissions: The platform allows for customizable user roles and permissions, helping to keep communication organized and maintain clear command during data breaches.
- Multi-channel communication: The tool supports voice, video, and text communication, enabling teams to stay connected quickly and efficiently, regardless of their location.
- Offline accessibility: In times of limited connectivity, Rocket.Chat provides offline access to critical plans and communications, ensuring that teams can stay coordinated even during network disruptions.
- Role-based access control (RBAC): Advanced RBAC ensures that sensitive information is shared only with the right team members, maintaining data security and clarity in high-stress situations.
- Instant notification system: Rocket.Chat can send instant alerts to stakeholders, ensuring they receive important updates and instructions without delay, no matter where they are.
- Data backup and restoration: The platform includes data backup and restoration features, ensuring that critical information is securely retained and can be quickly recovered in the event of a crisis.
- Comprehensive stakeholder engagement: The platform connects all stakeholders, from internal teams to external partners, enabling real-time updates and secure collaboration.
- Comprehensive compliance: Rocket.Chat ensures compliance with major data protection regulations, such as GDPR and HIPAA, through features like data encryption and access controls.
End note
Avoiding these common mistakes in business continuity planning is important for creating a resilient and effective plan. Regular reviews, testing, and updates are essential, as are strong vendor assessments and comprehensive employee training.
For seamless team communication during emergencies, tools like Rocket.Chat are the right choice. With features such as end-to-end encryption, multi-channel communication, and offline accessibility, the tool ensures that your team and stakeholders stay securely connected, minimizing confusion and downtime.
Take action to strengthen your business continuity plan and protect your organization's future.
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