Business Continuity Planning - BCP

AAA

DEFINITION of 'Business Continuity Planning - BCP'

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.

INVESTOPEDIA EXPLAINS '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. Event Risk

    1. The risk due to unforeseen events partaken by or associated ...
  2. Disaster Relief Act

    A United States federal law passed in 1974 that laid down the ...
  3. Country Risk

    A collection of risks associated with investing in a foreign ...
  4. Political Risk

    The risk that an investment's returns could suffer as a result ...
  5. Risk

    The chance that an investment's actual return will be different ...
  6. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty ...
Related Articles
  1. Protecting Your Financial Documents ...
    Home & Auto

    Protecting Your Financial Documents ...

  2. Deducting Disaster: Casualty And Theft ...
    Taxes

    Deducting Disaster: Casualty And Theft ...

  3. Preparing Your Finances From Natural ...
    Home & Auto

    Preparing Your Finances From Natural ...

  4. A Disaster-Protection Plan For Your ...
    Fundamental Analysis

    A Disaster-Protection Plan For Your ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center