Further, the probability, potential duration and impact of these events are evaluated. Economic assessment includes: Identification of 4 severity levels (from negligible to disruption of more than 80% of EBIT); Identification of critical cyclicities; Qualitative evaluation of event probability.
As the next step, a risk monitoring model is implemented and operational and organizational solutions are defined. The goal is to maintain operational continuity in terms of prevention, emergency rescue and mitigation of the effects. The operational criteria of action/reaction strategies for each event are the following:
● Preventive actions
● Mitigating actions
● Resolutive actions
● Risk-transfer compensatory actions
Response strategies must be consistent with the assessment of the impacts on business continuity.
● Inclusion in the Business Continuity Plan for restoring the discontinued activities.
● Particular focus is on the critical issues with an impact on more than 5% of EBIT
● Creation of ad hoc teams for the implementation of response strategies
Components of the Business Continuity Action Plan:
● Location Vulnerability Assessment Emergency Procedure Suite (how to act)
● Business Recovery Profile (actions to undertake)
● Plan Invocation Procedure (team)
● Plan maintenance, monitoring and review
The plan is updated with the collaboration of all parties involved either on an annual basis or in the face of significant events such as risk manifestation, introduction of new products and/or processes; change of suppliers; change of seat; internal company reorganization etc.