What is the connection between business continuity and risk management?

Risk management professionals deal with personnel safety and workers’ compensation.

Business continuity and risk management are two of the most important disciplines in managing business operations. Business continuity professionals are responsible for disaster planning and ensuring operations continue after a catastrophe. Risk management professionals are also responsible for disaster preparedness, but they also have many other roles, such as purchasing insurance, minimizing contracts and legal liabilities, and workers’ compensation. The subjects are very similar. In some organizations, business continuity and risk management are part of the same department.

In general, business continuity focuses on the many different catastrophes that can disrupt an organization’s operations. After listing these threats to business operations, business recovery professionals detail plans for disaster recovery should any of these catastrophes happen. The objective is to continue running the business during the disaster or to restart business operations as soon as possible after the disaster.

Business turnaround specialists are not responsible for just one facility as large entities may have facilities across the country or even the world. This means that these specialists have to worry about continuing operations in more than one location. They should be concerned about disaster recovery in multiple locations. When an organization also has a chain of suppliers and partners around the world, top business turnaround experts are concerned with the turnaround of each link in the chain.

Risk management professionals are often tasked with the same business recovery tasks. This is often the case where disaster recovery specialists are part of an organization’s risk management department. Other professionals in the department handle personnel safety and workers’ compensation, purchasing property and casualty insurance, emergency response, and employee benefits. In small entities, the risk management department may have only one member. This professional would then be responsible for all these business continuity and risk management tasks.

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Larger national and international organizations may be large enough, however, to have separate departments for business continuity and risk management. Depending on the company’s business operations, business continuity specialists such as IT business recovery personnel may be located in each individual department. Coordination between business continuity and risk management is still essential. Enterprise risk management is the practice of overseeing and managing all risk across the organization, no matter the size. Business continuity and risk management can be the responsibility of enterprise risk management.

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