There are many aspects of business continuity planning including operational risk management. However, one basic function has to do with succession leadership after the founders and / or current Chief Executive Officer of a particular business retire or have otherwise exited. Knowing who will step into the leadership role and grooming candidates for that role is an important step in ensuring the continuing viability of the business.
It is especially important for small businesses that were founded and run by one person for the duration of the life of the business up to the point of that person’s retirement. Many lenders will require, with such a business, that business succession, and thereby its continuity, be firmly established before they will consider extending credit.
Understandably, planning for the continuity of the business by looking ahead and establishing a pool of leadership talent within its ranks is as important an aspect of planning for the business as planning how to manage any other potential disruption of business operations.
In recent years the idea of business continuity planning has been expanded to include risk management planning for other internal and external interruptions of business operations of shorter durations, like disruptions to internet services and technology, and even physical disruptions like earthquakes, fires and other natural disasters.