Business Continuity Planning - BCP

What is the 'Business Continuity Planning - BCP'

The business continuity planning (BCP) is the creation of a strategy through the recognition of threats and risks facing a company, with an eye to ensure that personnel and assets are protected and able to function in the event of a disaster. Business continuity planning (BCP) involves defining potential risks, determining how those risks will affect operations, implementing safeguards and procedures designed to mitigate those risks, testing those procedures to ensure that they work, and periodically reviewing the process to make sure that it is up to date.

BREAKING DOWN 'Business Continuity Planning - BCP'

Businesses can face a host of disasters that range from minor to catastrophic. BCP typically will help a company to continue operating in the case of many disasters, such as fires, but may not be as effective if a large portion of the population is affected, such as in the case of a disease outbreak. One example of BCP would be a finance company based in a major city backing up its computer and client files offsite, so that if something would happen to the corporate office, satellite offices would still have access to important information.

RELATED TERMS
  1. Disaster Relief Act

    A United States federal law passed in 1974 that laid down the ...
  2. Business Recovery Risk

    A company's exposure to loss as a result of damage to its ability ...
  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty ...
  4. Accounting Control

    Methods and procedures that are implemented by a firm to help ...
  5. Operational Risk

    A form of risk that summarizes the risks a company or firm undertakes ...
  6. Chief Risk Officer - CRO

    The executive responsible for identifying, analyzing and mitigating ...
Related Articles
  1. Investing

    Asset Manager Ethics: Risk Management and Compliance

    Managers should create a compliance and risk function that is integral to the investment function in order to plan for the increasingly more common market dislocations that occur in the global ...
  2. Professionals

    Brokerage Office Procedure

    Series 62
  3. Personal Finance

    How to Reduce Risks In Small Business

    Small business owners have better tools to control risk than ever before, making the whole concept of running your own business a little less daunting.
  4. Economics

    The Financial Effects of a Natural Disaster

    We're all subject to Mother Nature's whims - and the damage can have far-reaching effects.
  5. Professionals

    Risk Management Framework (RMF): An Overview

    A company must identify the type of risks it is taking, as well as measure, report on, and set systems in place to manage and limit, those risks.
  6. Entrepreneurship

    Identifying And Managing Business Risks

    There are a lot of risks associated with running a business, but there are an equal number of ways to prepare for and manage them.
  7. Entrepreneurship

    Why Companies Need Risk Management

    Implementing risk management strategies can save an entire organization from failure. Is yours up to snuff?
  8. Retirement

    Risk And Diversification

    Safeguarding your portfolio involves a few simple steps.
  9. Investing Basics

    Understanding Market Risk

    Market risk is the chance that an investment’s value will decrease due to a factor that affects all investments across the market.
  10. Entrepreneurship

    The 4 Most Common Reasons a Small Business Fails

    Discover the most common reasons small businesses fail, including capital formation, management concerns, planning issues and marketing missteps.
RELATED FAQS
  1. What are some examples of risk management techniques?

    Understand what risk management is in business and why it is a necessary component of ongoing business planning, and review ... Read Answer >>
  2. How do companies identify and manage business risk?

    Learn what risks businesses can be exposed to during any phase of the business life cycle, and how these risk can be identified ... Read Answer >>
  3. What are the major categories of financial risk for a company?

    Examine four major categories of financial risk for a business that represent potential problems that a company may have ... Read Answer >>
  4. What are the key differences between financial risk and business risk to a company?

    Understand the difference between a company's financial risk and its business risk, along with some of the factors that affect ... Read Answer >>
  5. What are the different sources of business risk?

    Explore the various sources of business risk for companies and learn how critical risk management is to a company's financial ... Read Answer >>
  6. Why should investors be concerned with risk management?

    Learn what risk management is, the difference between systematic and unsystematic risk, and why investors should be concerned ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center