Wake-up Call for an ERM Approach to Business Continuity
Steven Minsky | May 5, 2009
Corporations have a false sense of security about risk management due to a silo approach in assessing the threats they face. Simply run a Google search for business continuity and swine flu and you will find links to mostly IT related issues. What about the impact to all the other areas of the business?
A pandemic will impact each business process area in a different way. For example, how will a pandemic impact your customers and your supply chain? Has your organization reviewed the business continuity plan of your key vendors? What are the dependencies heightened by the current recession? None of these questions can be addressed by traditional disaster recovery or business continuity approaches.
1) Go to www.rims.org/rmm for a free online assessment of your Enterprise Risk Management readiness including business resiliency and sustainability.
2) Use an ERM approach to identify and assess the impact, likelihood and effectiveness of your business controls for all your risks with the same objective criteria to make all the results comparable on an apples-to-apples basis.
3) Implement an ERM infrastructure that allows you to update and aggregate business continuity information from all of your business processes in real time. (This becomes even more critical as a rapidly deteriorating business environment requires stronger change management)
4) Use an ERM approach to understand the overlap and dependencies between your pandemic risks and your other operational risks. start with business continuity software.