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 zone, 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.