Measure Resilience Versus Business Continuity Management

Measure Resilience Versus Business Continuity Management

Organizations need to make BCM programs measurable to enable useful oversight and accountability. Too often, however, measuring BCM becomes unnecessarily complex, time-consuming and onerous, diverting resources and sapping engagement and commitment.

More importantly, the measurement process can evolve to focus increasingly on the implementation and management of the program, producing less actionable data that maximizes resilience.

How can you optimize and focus measuring your BCM program?

Put glibly to make a point, don’t measure the program. Measure the program’s result. Measure organizational resilience. The objective should be data that drives effective decision-making and meaningful positive change for enhanced resilience.

Of course, BCM programs can and should be measured to a reasonable extent, using quantitative criteria but avoiding marginally useful granularity. The majority of effort should be measuring resilience.

Here are some key measures you can include when measuring organizational resilience.

  • Continuity Events - Number of continuity events that required implementation of incident management and recovery plans
  • Recovery Expenses – Direct expenses to recover after continuity events
  • Safety – Injuries and deaths resulting from live events; key Health and Safety program investment specific to preparedness, and expenses resulting from live event recovery
  • Productivity – Changes in productivity following emergency and continuity events
  • Workforce – Investment in preparedness training and functional cross-training
  • Cyber – Number of cyber events, and both their direct and indirect costs
  • Supply Chain – Number of supply chain events requiring recovery; number of critical suppliers with their own current business continuity plans
  • Insurance – Number of claims; loss-driven increases in business interruption and liability insurance
  • Risk Mitigation Investment – Proactive expenditures to reduce risks identified by risk assessment and business impact analysis
  • Operational Efficiency Improvements – Estimated savings from improved business practices, modernization and risk mitigation
  • BCM Program – Total direct costs to implement and maintain the annual BCM lifecycle

Each organization should subtract or add measures to align with organizational objectives and industry. All resilience measures should be quantitative, easy to compile and present in dashboards, laser-focused on quantifying resilience and identifying opportunities for resilience improvements.

Measuring resilience should be cost-effective and add to organizational value, not be a tedious, academic process.
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