In the current turbulent disaster landscape, the requirement for organizations to have a comprehensive business continuity management (BCM) framework in place has never been greater. While it may be too soon to assess the impact of COVID-19 on the economy, the study of prior pandemics offers some useful statistics. In a Globe and Mail article published November 12, 2009, the ‘worst case scenario’ impact of the H1N1 pandemic was discussed.
In the 2009 H1N1 virus outbreak for example, the existence of BCM plans and remote-working models were credited with an overall minor disruption in economic activity. Considering the much more pronounced impact of the Coronavirus, world trade has been estimated to contract by 13% to 32% in 2020, according to the World Trade Organization.
A shift in demand. Predictably, consumers have been reconfiguring their spending on discretionary purchases towards digital options. The study indicates that those jurisdictions that have reopened prior to the peak of the infection curve have experienced greater volatility in consumer spending.
A shift in the workforce. As consumers and businesses transition to ‘remote working’ models, an erosion of culture and a greater ‘siloing’ effect has been observed. The report authors predict that the potential for two ‘cultures’ – one for those onsite, another for those virtual – could form. In assessing all the risks to which your organization may be vulnerable, it’s important to ask what role corporate culture plays.
A shift in expectations. The pandemic has highlighted the need for a stable, resilient supply chain. These needs have been demonstrated by the greater expectation for suppliers to demonstrate the presence and implementation of a BCM framework.
A shift in regulatory uncertainty. The pandemic has resulted in increased political pressure to enact protectionist regulations and legislation. What risk does this present to businesses and organizations relying on cross-border trade? What ripple effects on government policy, supply chains and consumer behaviours need to be taken into account in developing an effective BCM plan?
A shift in virus intelligence. As safety interventions and tools continue to evolve to protect citizens, exhaustion is setting in – demonstrated by those refusing to follow public health guidelines. Paradoxically, this exhaustion is likely to lead to additional ‘waves’ of transmission and the capacity of authorities to contain it.
A comprehensive BCM framework is needed by all organizations, including specialized mechanisms for assessing risk. Exercise and evaluation programs are critical to ensuring the efficacy of the plan. By exercising the BCM in a low risk environment, challenges and improvements can be identified while avoiding losses to critical data and infrastructure. As an accredited Business Continuity Professional, I can help your organization answer and develop these frameworks.
What do you think? How has COVID-19 impacted your organizations’ BCM planning efforts? As always, I welcome your comments and feedback.