A business continuity plan is a document that identifies the key vulnerabilities of a business that can impact its operations, and how to mitigate them so that the organization can continue functioning. The main steps in developing a business continuity plan are as follows:
Define the types and severity of risks.
Determine how these risks may impact the operations of the business.
Formulate and implement safeguards that can mitigate these risks.
Test the safeguards to ensure that they function properly.
Periodically review the plan to ensure that it still addresses the organization's key risks.
For example, a business might be located in a flood plain, and so develops a plan to shift its operations to an alternative location in the event of a shutdown due to water damage.
A business continuity plan is also known as a disaster recovery plan.