The most important BCM terms briefly explained

The most important BCM terms

The most important BCM terms briefly explained

Laura Nägeli e-mergency
Laura Nägeli Lead Product & Customer Success Management
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The most important business continuity management terms briefly explained

Unforeseen events can significantly disrupt an organization's mission-critical processes and cause financial or personal damage. These potential threats must be minimized as far as possible with targeted measures and the best possible precautions must be taken in the event of an incident in order to strengthen the organization's resilience. This is a complex challenge for business continuity management (BCM), which affects practically all areas of an organization.

Business Continuity Management (BCM)

Business continuity management is a holistic management process that aims to ensure the continuation of critical business processes in the event of an incident. The aim is to identify potential risks and their impact on business processes and to define the necessary measures to safeguard and resume business activities.

Below you will find a brief and simple explanation of some of the key BCM terms (not exhaustive):

Business Impact Analyse (BIA)

Business impact analysis is used to determine possible direct and indirect consequential damage to an organization caused by the occurrence of an emergency and the failure of one or more business processes.

Golden Hour

Golden hour refers to the first few minutes after the occurrence of an event. The efficient use of this period is crucial in order to minimize the impact of the event.

Maximum tolerable downtime (MTA)

MTA is a parameter that defines when a process must be back in emergency operation at the latest so that the survival of the organization is not jeopardized.

Maximum tolerable emergency operating time (MTN)

MTN defines the maximum time that may elapse between the start of emergency operation and the complete restoration of the business process.

Emergency operation

Restricted operation of a business process after the occurrence of an event. Often only limited resources are available due to the interruption. The minimum resources required for critical business processes are defined as part of the BIA.

Resilience

Resilience refers to an organization's ability to withstand disruptions and maintain or restore critical business processes. Resilient organizations are resilient and can cushion critical events in order to ensure business continuity.

Restart time (WAZ)

Duration from the occurrence of the loss event to the start of emergency operations. The WAZ must be shorter than the MTA in order not to jeopardize the survival of the organization.

Effective BCM also includes targeted risk management and comprehensive emergency and crisis management. Due to increasing networking, it can be seen that the increased complexity in the environment of organizations also leads to a noticeable increase in complexity with regard to risk management, BCM or emergency and crisis management. It is therefore crucial to pursue a cross-organizational and holistic approach and to combine the individual management systems. The holistic approach pursues the goal of achieving the highest possible organizational resilience. Ultimately, business continuity management is also a component of an overarching governance, risk and compliance approach (GRC for short), which includes the most important levels of action for an organization's successful management. This also includes the protection of the organization.

As a tool, e-mergency therefore offers a simple way to support modern emergency and crisis management and thus make a significant contribution to targeted and effective business continuity management in order to protect your own organization.

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Literature used:

  • BCMnet.CH - The BCI Swiss Chapter (2013). Glossary version 1.1 (n.d.): BCMnet.CH - The BCI Swiss Chapter.
  • Kersten, H., Klett, G. (2017). Business continuity and IT emergency management: basics, methods and concepts. Wiesbaden: Springer.
  • Spörrer, S. (2018). Business Continuity Management: ISO 22301 and other standards in the context of information technology. Wiesbaden: Springer.
  • Swissbanking (2013). Recommendation for Business Continuity Management (BCM). Basel: Swiss Bankers Association.