LATEST RESEARCH - 2006 Business Continuity Management Survey

Category Business Continuity Management BCM - RESEARCH - BCM Continuity Forums

Complacency puts UK organisations at risk as emergency planning takes backstage role

We are pleased to announce the findings of the longest running research series in the Industry. Now in its 7th year, this study shows that despite the raised profile of BCM and emergency planning there is still a huge amount to do.

This years' study, undertaken with the Cabinet Office, is the largest yet and shows that organisations are still not planning effectively. Many UK organisations are failing to prepare for disruption, despite evidence outlining the business benefits of disaster planning, says the survey published today by the Chartered Management Institute and supported by the Cabinet Office and Continuity Forum.

The 2006 Business Continuity Management Survey highlights the significant impact of disasters at home and abroad, including a potential influenza pandemic, and uncovers worrying signs of inactivity and complacency. The research findings, collected from 1,150 public and private sector managers, uncover a worrying gap between perception and reality. Key findings include:

Too little action: Although a majority of managers (77 per cent) believe business continuity is viewed as important by their senior management teams, less than half (49 per cent) say their organisation has a business continuity plan (BCP) in place. Organisations are also failing to rehearse plans as often as they should - only 37 per cent of those with plans test them at least once a year, compared to 52 per cent in 2005. This is made more worrying by the fact that where rehearsals have taken place, the majority (79 per cent) have revealed shortcomings in their plans.

Possessions, not people: Inanimate objects still dominate business continuity management (IT is covered by 67 per cent of plans) despite organisations admitting a fear of losing people and skills. For example, almost all (92 per cent) believe they would suffer disruption caused by higher levels of absenteeism and illness in an influenza pandemic, yet the majority (83 per cent) do not have robust plans to cope with this absence.

Big picture ignored: Less than half (45 per cent) perceive terrorist damage or environmental incidents (42 per cent) as a major threat to business. This is despite one third of organisations experiencing disruption after the London bombings in July 2005, 14 per cent facing problems as a result of the Buncefield oil explosion and some (9 per cent) feeling the impact of the Asian Tsunami.

Shortcomings in communication: Only 1 in 10 with plans share these with suppliers and shareholders, while just 1 in 5 communicate this information to customers - despite being cited as key drivers for creating BCPs. And only 7 per cent require all suppliers to have a BCP with one third (37 per cent) of organisations requiring only business-critical suppliers to have plans.

Jo Causon, Director, Marketing and Corporate Affairs, Chartered Management Institute, says: “We are now in the seventh year of conducting this research and it is disappointing to see that organisations still fail to manage business continuity effectively. There appears to be a mismatch between perception of the need for business continuity and the reality of little action to prepare and plan. Unless appropriate and effective business continuity processes are thoroughly considered, organisations leave themselves wide open to a variety of threats and potential disruption." The research suggests that managers would particularly benefit from guidance on creating a plan, case studies illustrating others experiences and guidance on the potential disruptions they face.

The Cabinet Office websites, www.pfe.gov.uk and www.ukresilience.info, provide valuable resources for organisations wanting this sort of advice. They also have links to the Government guidance document, Contingency Planning for a Possible Influenza Pandemic, to help organisations consider the risks and plan more effectively for such an eventuality. Russell Price of the Continuity Forum says: “This research highlights the need for organisations to benchmark and assess their business continuity management processes against nationally-recognised standards and frameworks so that any readjustments can be made and potential room for error is minimised.

NOTES TO EDITORS

The Continuity Forum is a not-for-profit organisation committed to building the resilience of organisations internationally, regardless of size or sector, through education and the promotion of best practice in Business Continuity Management and its related disciplines. The Forum is dedicated to aiding the growth and the development of the Continuity sector and appropriate standards.

As the champion of management, the Chartered Management Institute shapes and supports the managers of tomorrow, helping them deliver results in a dynamic world. The Institute helps set and raise standards in management, encouraging development to improve performance. Moreover, with in-depth research and regular policy surveys of its 71,000 individual members and 450 corporate members, the Institute has a deep understanding of the key issues. The Chartered Management Institute came into being on 1 April 2002, as a result of the Institute of Management being granted a Royal Charter.

The Civil Contingencies Secretariat (CCS) sits within the Cabinet Office at the heart of central government. It works in partnership with government departments, the devolved administrations and key stakeholders to enhance the UK's ability to prepare for, respond to and recover from emergencies.

If you would like to know more about how your organisation can get involved and benefit from working with the Continuity Forum, please email us HERE! or call on + 44 (0) 208 993 1599.