A Brief Note On Risk Management And Business Management

FERGUS PATERSON RISK MANAGEMENT BUSINESS CONTINTUITY MANAGEMENT M3N211756 SMEs and BCM in the UK (2483) There is a perception in the UK that Small – Medium Enterprises (SMEs) generally don’t implement Business Continuity Management (BCM). BCM is becoming more and more standard but its benefits aren’t always clear. SME is an acronym of Small – Medium Enterprises. An enterprises size is defined, in EU Law, by its number of employees and either the turnover or balance sheet total. A small enterprise has 50 employees or fewer and a turnover of â‚ ¬ 10 million or less or a balance sheet total of â‚ ¬ 10 m or less. A medium organisation has 250 employees or less and a turnover of â‚ ¬ 50 million or less with a balance sheet total of†¦show more content†¦Business Continuity Management (BCM) is the framework in an organisation for recognising possible threats and ensure there is capability within the organisation to deal with them efficiently. (Musgrave, B; Woodman, P, 2013) BCM should be a holistic process, embedded and embraced by each part of an organisation. When Using BCM organisations should develop a Business Continuity Plan. A BCP should be the collection of information and documents needed to ensure that an organisation can achieve the stages needed to continue its operations in the event of an incident. (Hiles, A. (ed), 2010). Rightly or wrongly, SMEs don’t appear to be embracing BCM. AXA asked SME’s across the globe about what contingency plans they had in place. 40% of responding companies stated they had no contingency plans in place. The highest given reason for this was ‘my business is too small’ (36% of respondents who didn’t have a BCP) followed by ‘don’t see the need’ (28%) and ‘never really thought about it (22%) (AXA International, 2011). Businesses may choose to risk not having a BCP. Assuming a business wants to estimate whether putting a BCP in place is worthwhile or not, they may examine the cost of when a BCP becomes ineffective. C = P x I C = Cost of developing a BCP P = Probability on invoking BCP after an incident I = Cost of