The moment it is unable to deliver the products and services that it promised, the trust levels of customers, stakeholders and other industry players for the company will suffer greatly.
Lending institutions will think twice before granting any loans.
Except for time-bound enterprises, or business ventures that are started with the intention of terminating operations and liquidating the business at the end of a year or two, businesses are established with a long-term outlook.
They would want their business to earn profits, and to continue operating profitably for an indefinite, but long period of time.
For example, if the disruption is caused by a blizzard leading to the closure of manufacturing facilities, there is a high chance that the facilities have been damaged, and will require some major repairs.
Salvaging remaining equipment and machinery will also entail spending on transportation and hauling services.We usually hear of these precautions in the form of disaster recovery planning, which is primarily focused on the restoration of a firm’s IT infrastructure and IT operations.This view is rather limited, when you look at the bigger picture, since a business and its operations are more than just its IT infrastructure.BCM is clearly described by the ISO to provide a framework for building organizational resilience, which will allow the organization to respond accordingly, in a way that protects the business, its reputation, and all other stakeholders.As a management process, BCM involves several key activities: In recognition of the reality of the economic and business landscape being unpredictable and volatile, businesses are now taking a lot of precautions to ensure that their operations will still stand a chance against unexpected disruptions.Organizational resilience means that the business can weather any storm and withstand any hits, and still remain operational, productive and profitable.Being resilient means that the business is still able to recover and grow, bigger and stronger than ever.Incidentally, if the factory workers are paid on a monthly basis instead of on an output basis, they will still be paid their regular compensation rates.This, on top of the lost revenue, will further cause a drop in the profits of the business.You will probably be able to appreciate BCP even more if you have a clearer idea of what the business can gain from it.All these threats must be taken seriously by companies, considering their various effects or impacts when they result in the disruption of business operations.