Incidentally, if the factory workers are paid on a monthly basis instead of on an output basis, they will still be paid their regular compensation rates.This, on top of the lost revenue, will further cause a drop in the profits of the business.
Incidentally, if the factory workers are paid on a monthly basis instead of on an output basis, they will still be paid their regular compensation rates.This, on top of the lost revenue, will further cause a drop in the profits of the business.Thus, more attention is put on business continuity planning (BCP), which puts the company in a proactive position in planning how to ensure that it will still be able to deliver its critical products and services safely and smoothly, while meeting its legal, regulatory, and other obligations.
Reduced finished goods inventory means reduced number of products to be sold, which will ultimately result to reduced sales and revenues.
What the company is looking at is a profit level that is much lower than their usual level of earnings.
When drawing up their business plans, they see their business continuing to exist and operate in the many years to come.
Thus, they make every decision with continuity of the business in mind, while taking into account the possible effects of unexpected events that may lead to disruptions and interruptions in business operations.
The International Organization for Standardization, in ISO 22300, defined “business continuity” as the capability of an organization to continue the delivery of its products or services, at acceptable predefined levels, following a disruptive incident.
It implies the responsibility of the business owners and management for the business in ensuring that it stays afloat and “on course” despite any obstacles or stumbling blocks it encounters along the way.
Some of the most likely effects are: When a retail store does not open for a week, the potential income that it usually earns in a one-week period is gone.
Similarly, when a manufacturing plant is unable to operate even for a couple of days, the company will not be able to produce the average output of finished goods for distribution.
This responsibility is incorporated into the greater management process of the business, and what is also referred to as “Business Continuity Management”or BCM.
The Business Continuity Institute hit the nail right on the head when it described business continuity to be about “building and improving resilience in the business”.