Your Business Continuity Plan: A Step-By-Step Guide

What is Business Continuity Plan?

A Business Continuity Plan (BCP) is an essential plan that helps businesses keep running during and after unexpected disruptions. It’s a comprehensive approach that includes risk assessment, resource management, and employee safety. The goal is to ensure operations can quickly resume after a crisis, protecting both people and assets.

The purpose of a BCP, or a business continuity strategy, is to outline a recovery strategy from emergencies, to reduce losses and fix systems fast. The scope of a BCP includes dealing with disasters, technological malfunctions, market downturns, and supply chain disruptions.

Why do you need a Business Continuity Plan?

  • Dealing with unpredictable events: A BCP helps your business continue its operations during events like natural disasters, technology problems, or big world crises, reducing the chance of losing money and work time.
  • Managing business reputation and trust: It ensures your business stays operational and reliable in a crisis, which can improve your reputation and make you stand out from competitors.
  • Learning from past crises: The COVID-19 pandemic showed that businesses with a BCP can quickly adapt to changes, like working from home or changing service delivery methods.
  • Building resilience and adaptability: With a BCP, you get a disaster recovery strategy, through which your business can anticipate potential problems and lessen their impact, helping you not just survive the problem but also thrive after it.
  • Better crisis management: With a BCP, you have a clear plan for tough times, which means you can make better decisions instead of rushing and possibly making mistakes. This leads to quicker recovery and fewer long-term issues.

Importance of having a Continuity Plan

A BCP is important for enhancing a business’s resilience and competitive edge. It is a critical component of business risk management and resilience planning. As a business continuity strategy, the BCP ensures quick recovery during crises, protects resources, builds customer trust, and makes sure business operations continue.

A comprehensive BCP covers everything including risk management, resource allocation, communication planning, and employee safety. It also makes sure the business complies with legal requirements and industry regulations. All of these elements are essential for a holistic approach to business continuity and disaster preparedness.

Benefits of a BCP

Extending beyond risk mitigation
Having a BCP offers a multitude of benefits that go well beyond just avoiding risks. A core component of a BCP is its disaster recovery strategy, which helps keep the business running smoothly during problems like natural disasters, technology issues, or market upheavals. A BCP provides a structured response. This preparedness is important for preventing interruptions that can lead to significant revenue losses, ensuring that the business remains financially stable and operational even under challenging circumstances.

Enhancing market reputation and client confidence
A well-developed BCP can really improve a company’s reputation in the market. Clients and partners value reliability and preparedness. A strong BCP demonstrates a company’s commitment to continuity and reliability, which builds trust and confidence among clients and business partners. This is really valuable, especially in sectors where it’s crucial to keep services going without interruption.

Boosting employee morale and engagement
A BCP also helps make employees feel better and more involved. Knowing there’s a plan for crises makes them feel secure and confident. This can lead to them being more committed and engaged, as they feel important and safe. Getting employees involved in making and using the BCP can also make them feel more responsible and boost their morale.

Attracting investor confidence
Investors look for businesses that handle risks well. A BCP shows that a business has strategic foresight and is ready for different kinds of business problems. Investors are more likely to put money into businesses that are committed to long-term stability and growth, shown by having a comprehensive BCP.

Meeting legal obligations
In many industries, regulations say you must have a BCP in place. By following these rules, a business can avoid legal trouble and stick to the best practices in managing risks and continuing operations. This adherence to regulatory standards also makes the business more credible and respected in its field.

Securing the future of the business
Ultimately, having a BCP is about securing the future of the business. It’s a proactive approach to managing potential risks and ensuring the company’s longevity. In a landscape where business interruptions can have serious and lasting impacts, a BCP serves as a critical tool for safeguarding the business’s future, protecting its assets, and ensuring its ongoing success in the face of adversity.

Developing a BCP

To develop a BCP, you need a deep understanding of the business’s operations, risks, and resources. Start by putting together a team of key stakeholders to oversee the development and implementation of the plan. This team should do a detailed business analysis, identifying critical business functions and conducting thorough crisis response planning.

Part of BCP best practices is to include key stakeholders from different parts of the business, like IT, human resources, operations, and finance. Their input helps take care of specific needs in each department and aligns the plan with the business’s overall goals.

Key elements of a Business Continuity Plan

A comprehensive BCP covers several crucial elements, each playing an important role in ensuring the business stays resilient in the face of disruptions. A good BCP must have:

  • risk assessment and management 
  • Business Impact Analysis (BIA)
  • recovery strategies and solutions
  • communication plan
  • employee safety and wellbeing
  • compliance and legal considerations
  • testing and training
  • continuous monitoring and review.

Steps in making a BCP

Developing a comprehensive BCP involves a series of strategic steps. Each step is critical to ensuring the plan is effective in different scenarios. The following steps are in line with BCP best practices, and prepare businesses to face disruptions with resilience and agility.

 1. Risk assessment and analysis

The first step in BCP development is conducting a risk assessment and analysis. This involves identifying potential threats to the business, such as natural disasters, cyber-attacks, market fluctuations and supply chain vulnerabilities. This step also involves assessing the likelihood of these risks and their potential impact. 

2. Identifying critical business functions 

The next critical step in creating a BCP is identifying your critical business functions. What parts of your business are most important? This can be determined through a Business Impact Analysis (BIA). A BIA looks at the financial and operational impacts of interruptions, making it easier to prioritise recovery efforts. By prioritising these functions, the BCP ensures that the most essential operations continue during disruptions. 

3. Developing BCP objectives and strategies

This step focuses on setting clear objectives for the BCP and formulating strategies to achieve these goals. It involves determining your objectives in recovery times and recovery points, and finding the right balance between cost, complexity, and effectiveness. 

 4. Creating an Emergency Response Plan

An Emergency Response Plan (ERP) is another key component of the BCP. The ERP outlines immediate actions to be taken in the event of a crisis, such as evacuation plans, communication strategies, and first aid procedures. The ERP ensures a coordinated and fast response during emergencies, safeguarding both employees and assets.

5. Establishing recovery procedures and resources

Based on the risk assessment and Business Impact Analysis, the BCP must establish clear recovery procedures to be taken after a disruption. This includes establishing backup processes and planning for the restoration of IT systems, physical facilities, and other critical resources. It’s also important to identify alternative operational methods (like remote work sites) and backup suppliers in this stage. Basically, the strategies should address how to maintain or quickly resume critical functions in the business following a disruption.

 6. Communication plan

Effective communication is vital during a crisis. The BCP should detail how the business will communicate with employees, customers, suppliers, and all other stakeholders during and after an incident. This plan includes predefinitions of what to say, which channels to say them, and protocols to make sure information is disseminated in a timely and accurate manner.

7. Employee safety and wellbeing

Ensuring the safety and well-being of employees is paramount in any BCP. The plan should include procedures for evacuation, sheltering, and remote working arrangements, along with guidelines to support employee well-being during crises.

 8. Compliance and legal considerations

The BCP should meet all legal and regulatory requirements specific to the industry and region. This includes data protection laws, industry-specific regulations, and contractual obligations with clients and suppliers.

 9. Testing and exercising your BCP

A BCP is only as good as its implementation. That’s why, after crafting the BCP, it must be regularly tested and exercised to make sure it is as effective as it can be. Testing the BCP helps identify gaps and areas for improvement, ensuring that the plan is always ready for activation. Some effective ways to test the BCP and prepare employees include conducting drills and simulations. Then the business can refine the BCP based on feedback and identified gaps.

10. Continuous monitoring and updates

A BCP should not be static or a one-time effort. It needs ongoing monitoring, periodic reviews and adaptations to stay up-to-date and effective. Continuous monitoring ensures that the plan can keep up with the rapidly changing business environment, emerging risks, and advancing technology. As the business evolves and new risks emerge, the BCP must be updated to reflect these changes, keeping it relevant and effective.

Testing a Business Continuity Plan

Testing a BCP is crucial for evaluating its effectiveness. It’s not enough to have a plan in place; businesses must rigorously test and simulate various scenarios to ensure that the BCP can effectively respond to disruptions.

It’s important to test a BCP to check its effectiveness and pinpoint hidden gaps and weaknesses. It not only prepares and trains teams for swift and efficient action during actual disruptions but also ensures the plan evolves with changing business risks. Plus, regular testing makes sure it meets industry standards and boosts stakeholder confidence in the business’s resilience.

Methods to test a BCP include:

  • walkthroughs
  • simulation drills
  • full-scale drills
  • surprise simulations
  • technology tests.

Walkthroughs: Team members physically walk through the steps of the BCP. This can include checking the availability of resources and the functionality of backup systems.

Simulation Drills: These are more elaborate tests where a hypothetical scenario is enacted. This can include things like mock evacuations, system shutdowns, or recovery procedures.

Full-Scale Drills: This is the most comprehensive form of testing, where the business simulates a full-blown disruption. It often involves external agencies and can be very resource-intensive.

Surprise Simulations: These tests are conducted without prior notice to assess the readiness of the team and the effectiveness of the BCP under unexpected conditions.

Technology Tests: Specifically for IT-related contingencies, these tests involve backup systems, data recovery protocols, and cybersecurity measures.


Creating and maintaining a BCP is not just best practice but an essential safeguard for businesses in today’s unpredictable world. A well-crafted BCP is more than a contingency arrangement; it’s a reflection of a business’s commitment to resilience, operational stability, and the welfare of its employees and customers.

Businesses in Australia and worldwide must see Business Continuity Planning as a necessary part of their main strategy, not just something extra. By embracing this approach, you will not just survive; you will set yourself up to soar in an ever-changing business world. To get started on your continuity plan, speak to one of our business coaches today!

Frequently asked questions

Who should create a Business Continuity Plan?

A BCP should be made by a cross-functional team of key stakeholders in the business. This ensures the plan is well-rounded, as it involves ideas from various departments, aligning the plan with the overall business strategy.

When is a Business Continuity Plan invoked?

A BCP is used whenever there is a significant disruption that impacts normal business operations. This could range from natural disasters to cyber-attacks, necessitating a planned response to maintain or quickly resume business functions.

How to test a Business Continuity Plan?

Testing a BCP involves a variety of methods, including full-scale drills and surprise simulations. These tests are critical for assessing the effectiveness of the plan and identifying areas that need improvement.