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[Q4Ab] Business Continuity Plan (BCP) for Mizz Textiles - Coggle Diagram
[Q4Ab]
Business Continuity Plan (BCP) for Mizz Textiles
(iii) Plan Design and Development
Next, Mizz Textiles need to develop a plan framework so that it can be implemented when the disaster happens and it should be tested before finalised.
Then, the teams will need to implement and develop the recovery plans approved by the management of Mizz Textiles. (Plan Framework)
Business Recovery: The business recovery stage outlines the procedures and activities necessary to restore critical functions and services. These may not be restored to pre-crisis levels and may involve skeletal or contingency resources and procedures.
Emergency Response Procedures: The main focus at this stage is to ensure the safety of all personnel and the security of the Mizz Textiles’s assets.
Crisis Management Response: This stage involves the first critical decisions about what the crisis is and what the Mizz Textiles's response should be.
Business Resumption: This stage involves returning the business to a pre-crisis operational level. This stage will be dependent on the nature of the crisis and a whole range of other variables.
Next, write business continuity and IT disaster recovery procedures and document it.
Lastly, the teams assemble all plans, validate and gain management approval on the framework.
First, Mizz Textiles need to organize recovery teams.
Recovery Team is a group of individuals responsible for maintaining the recovery procedures and coordinating the recovery and resumption of business functions, processes or systems.
This team generally comprises of management in key decision making roles and who can provide the organisation with leadership and direction during the business disruption.
(i) Business Impact Analysis (BIA)
The first step needs to be done by Mizz Textiles when developing a BCP which is to conduct the BIA process.
BIA is a process in which Mizz Textiles will predict the consequences of disruption of a business function and gathers information needed to develop recovery strategies.
Completing a BIA will assess the risks of a disaster on Mizz Textiles.
It will allow for each department within Mizz Textiles to explain and discuss how an unexpected event would affect its business function.
The example of impacts which may need to be considered by Mizz Textiles.
Lost and delayed sales and income
Increased expenses
Regulatory fines
Loss of contractual bonuses
Customer dissatisfaction
Delay of new business plans
Mizz Textiles may need to prioritize their essential functions which to determine the recovery time based on the priority of that functions. The company can use the Recovery Time Objectives (RTO).
For example, the most critical function is the stock available, so the company should recover this function as soon as possible maybe in 1 day time.
RTO is the duration of time and a service level within which a business process must be restored after a disaster in order to avoid unacceptable consequences associated with a break in continuity.
(iv) Testing and Exercises
Once Mizz Textiles's business continuity plan is finished, they will need to test it to be sure all the departments are familiar with it.
First, Mizz Textiles will need to develop testing, exercise and maintenance requirements for the BCP.
Set a situation and exercise it to have a real time testing.
Set the expected results and requirements before testing, so after that can compare the outcomes.
Then, before testing with all departments, Mizz Textiles should conduct training for business continuity team which is the recovery teams mainly in charges on this BCP.
To ensure all the members of the team are familiar with their own responsibility and what are the requirements need to focus, so that the process of testing can be conducted effectively.
Next, when all are ready, then conduct testing with all departments and document test results.
The result should be documented so that the teams can refer at any time and do a comparison.
The teams also should collect the feedback from all departments to know the issues or challenges they faced during the testing stages and document it.
Lastly, Mizz Textiles's BCP should be updated according to the lessons learned from testing and exercises, so that in real practices the same issues can be avoided.
(ii) Recovery Strategy
After the process of BIA, Mizz Textiles need to identify and document resource requirements based on BIA result.
For example people, facilities, equipment, inventory and information technology.
Next, Mizz Textiles need to conduct gap analysis to determine gaps between recovery requirements and current capabilities.
For example, if the stocks damaged but Mizz Textiles got other stocks in the other warehouse and are readily available to make up lost supply, then there is no resource gap.
Then explore and select recovery strategies with management approval.
Example
Reallocating existing inventory, repurchase or buyback of inventory.
Limiting orders (e.g., maximum order size or unit quantity).
Contracting with third parties.
Purchasing business interruption insurance.
Lastly, after getting approval then implement the strategies.