Crisis and Business Continuity Management
Topic: Evaluate the Evidence to support the adoption of business continuity management by small and medium sized enterprises.
Full name: Yi Liu
Student ID number: P11001694
Module code: CORP3364
Recent years, all sizes of organizations have an increasing concern about business continuity management. Especially such organizations, like big business government and insurers facilitate it strongly which covered all sectors and scales of activity. However, small and medium sized enterprises still play a vital role in the global economy. Compared with some large multinational companies, the “ small and medium size” of these enterprises just mean their scale and scope. In almost particular regions, these enterprises always exist like large organizations, in terms of idea strategy, innovation, flexibility，and growth (Liu, 2008). Though small and medium sized enterprises have numbers of potential risks as well. And interrupts of any work link will have influences on theses companies on some level (Zhang, 2010). According to status quo, business continuity management in these sized enterprises becomes obviously important. This essay will explain why the adoption of business management is necessary to small and medium sized enterprises. In the first part, it will describe the situation about small and medium sized enterprises and business continuity management. Then, it will consider common risks in these enterprises and give the advantages of business continuity management respectively. Finally, I will draw some conclusions as to evident the necessity of business continuity in these enterprises.
At present, European Union governments view small and medium enterprises (SMEs) as a crucial field for its economic policy and growth. Therefore, business continuity management is considered to be of key importance to SMEs, especially when there are certain risks. Firstly, SMEs, whose business systems are often heterogeneous and independent, are frequently built with entrepreneurial passion and numbered investment. Furthermore, the definition of tangible and intangible assets in SMEs is basic, and only parts of the value of their availability are known (Enisa, 2010). Then, Elliott. Swartz and Herbane (2012) defined business continuity management (BCM) as“ planning which identifies an organization’s exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization. Whilst maintaining competitive advantage and value system integrity”. In another word, enterprises utilize BCM to guard their staff, assets, reputation and ultimately the bottom line. Actually，Chartered Management Institute (CMI) (2012) reported that awareness and use of BCM is increasing which can be showed by an upward trend in the adoption of BCM (Appendix 1). Nevertheless there are obvious differences among different sized organizations. According to the research has been done by CMI (2012), approximately three quarters of managers from large organizations claim they adopt a business continuity plan and 48% managers from small organizations and 61% managers from medium organizations also report they have a BCP in place (Appendix 2). More specifically, BCM should become part of the way business is performed as the scarce resources makes small and medium enterprises need recover operation in time and guarantee the availability of essential resources when they face risks. This point also can be confirmed by ENISA (2010), operating BCM framework and applying business continuity plan will motivate companies survive from a crisis or business interruption as well as will make sure most critical asset and people safe and protected in SME. SMEs, because of its nature, inherit certain features, they face enormous risks in today’s...
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