Business impact analysis for business continuity: Evidence from Romanian enterprises on critical functions

Open access

Abstract

Organizations are increasingly subject to hazardous events and threats, which can be critical for their business operations and performance. Any natural, accidental, or deliberate incidents that happen to the organization can cause major disruptions to it. The present paper aims to examine the prerequisites for a sound business impact analysis necessary to build the organization’s business continuity management capability and ensure business resilience. It is meant to discover those critical functions and resources which are vital to business operations in a sample of small and medium-sized enterprises from a certain geographic area in Romania, in order to maintain their core operations and ensure business continuation. The research results rely on the data collected through face-to-face interviews from 119 Romanian companies. The research findings of the multiple linear regression employed indicate that, in undertaking business impact analysis for business continuity, it is vital for enterprises to identify the skills and level of expertise required from staff to carry out organization’s critical activities. Also it is critical for companies to identify alternative premises and systems and means of voice and data communication, as well as the priority suppliers/partners whom they depend on, necessary to undertake their critical activities. The study contributes to the literature by providing empirical evidence on the prerequisites of the organization’s business impact analysis that are critical to build a strong business continuity management capability. It also offers new insights to companies meant to generate a better understanding of current practices of undertaking a business impact analysis for business continuation in their organizations.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Asnar Y. and Giorgini P. (2008) “Analyzing business continuity through a multi- layer model” in M. Dumas M. Reichert and M.-C. Shan (Eds.): BPM 2008 LNCS 5240 pp. 212–227 Springer-Verlag: Berlin Heidelberg.

  • Baba H. Adachi I. Takabayashi H. Nagatomo N. Nakasone S. Matsumoto H. and Shimano T. (2013) “Introductory study on disaster risk assessment and area business continuity planning in industry agglomerated areas in the ASEAN” Journal of Integrated Disaster Management Vol. 3 No 2 pp. 184-195.

  • Baba H. Watanabe T. Nagaishi M. and Matsumoto H. (2014) “Area business continuity management a new opportunity for building economic resilience” Procedia Economic and Finance Vol. 18 pp. 296-303.

  • Bjerga T. and Aven T. (2016) “Some perspectives on risk management: A security case study from the oil and gas industry” in Proceedings of the Institution of Mechanical Engineers Part O: Journal of Risk and Reliability Vol. June pp. 1-14.

  • Blos M.F. Hoeflich S.L. and Miyagi P.E. (2015) “A general supply continuity management framework” Procedia Computer Science Vol. 55 pp. 1160-1164.

  • Cerullo V. and Cerullo M.J. (2004) “Business continuity planning: a comprehensive approach” Information Systems Management Vol. 21 No. 3 pp. 70-78.

  • Charoenrat T. and Harvie C. (2014) “The efficiency of SMEs in Thai manufacturing: a stochastic frontier analysis” Economic Model Vol. 43 pp. 372-393.

  • Comfort L.K. (1994) “Risk and resilience: International learning following the Northridge Earthquake of January 17 1994” Journal of Contingencies and Crisis Management Vol. 2 No. 3 pp. 174-188.

  • Faertes D. (2015) “Reliability of supply chains and business continuity management” Procedia Computer Science Vol. 55 pp. 1400-1409.

  • Fischbacher-Smith D. (2017) “When organizational effectiveness fails: Business continuity management and the paradox of performance” Journal of Organizational Effectiveness: People and Performance Vol. 4 No. 1 pp. 89-107.

  • Giacchero A. Giordano F. and Schiraldi M.M. (2013) “From business continuity to design of critical infrastructures: ensuring the proper resilience level to datacenters” International Journal of Engineering and Technology Vol. 5 No. 4 pp. 3544-3553.

  • Hollnagel E. Woods D.D. and Leveson N. (2006) “Resilience Engineering – Concepts and Precepts.” Ashgate Publishing: Aldershot pp. 9-17.

  • International Organization for Standardization (2012) “ISO 22301 Societal security – business continuity management systems–requirements” Switzerland: Geneva.

  • Jingye L. and Takehiro T. (2016) “Practical process for introducing smart business continuity management of smart city in Japan” Procedia Engineering Vol. 146 pp. 288-295.

  • Kato M. and Charoenrat T. (2018) “Business continuity management of small and medium sized enterprises: Evidence from Thailand” International Journal of Disaster Risk Reduction Vol. 27 pp. 577-587.

  • Maruya H. and Torayashiki T. (2017) “Damage of enterprises and their business continuity in the 2016 Kumamoto earthquake” Journal of Disaster Research Vol. 12 Special Issue pp. 688-695.

  • Mcilwee P. (2013) “Business continuity management” in Penuel K.B. Statler M. and Hagen R. (Eds) Encyclopedia of Crisis Management Sage Publications: Thousand Oaks CA pp. 74-76.

  • Ota S. (2011) “An empirical study of bankruptcy and turnaround in post-March 11 Northeastern Japan: Corporate risk management for natural disasters” Management Journal Vol. 4 pp. 23-44.

  • Păunescu C. (2017) “How prepared are small and medium sized companies for Business Continuity Management?” Quality. Access to Success Vol. 18 No. 161 pp. 43-48.

  • Ruiz-Martin C. López-Paredes A. and Wainer G. (2018) “What we know and do not know about organizational resilience” International Journal of Production Management and Engineering Vol. 6 No. 1 pp. 11-28.

  • Speight P. (2011) “Business continuity” Journal of Applied Security Research Vol. 6 No. 4 pp. 529-554.

  • Tan T. and Takakuwa S. (2011) “Use of simulation in a factory for business continuity planning” International Journal of Operational Risk Vol. 2 No. 4 pp. 79-96.

  • Tibay V. Miller J. Chang-Richards A. Egbelakin T. Seville E. and Wilkinson S. (2017)”Business resilience: A study of Auckland hospitality sector” Procedia Engineering Vol. 212 pp. 1217-1224.

  • Tracey S. O’Sullivan T.L. Lane D.E. Guy E. and Courtemache J. (2017) “Promoting resilience using an asset-based approach to business continuity planning” Sage Journals Vol. 7 No. 2 pp. 1-15.

  • Tucker E. (2015) “Business continuity from preparedness to recovery. A standards based approach” Elsevier: Amsterdam.

  • Wildavsky A. (1988) “Searching for safety” New Brunswick NJ: Transaction Press.

  • Zeng Z. and Zio E. (2017) “An integrated modeling framework for quantitative business continuity assessment” Process Safety and Environmental Protection Vol. 106 pp. 76-88.

Search
Journal information
Impact Factor


CiteScore 2018: 0.70

SCImago Journal Rank (SJR) 2018: 0.203
Source Normalized Impact per Paper (SNIP) 2018: 0.351

Cited By
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 426 426 35
PDF Downloads 456 456 33