Making a Profit Centre out of Business Continuity Management

Hands up all those in favour of a cost centre. Nobody – just as we thought! Now, hands up all those who’d like a new profit centre. Ah, much better! With the trend to define business operations in terms of the net profit they generate, instead of the expense to be funded, your next clear contributor to a healthy bottom line could be business continuity management. The general benefits have always been there, for example, better risk management and enhanced organisational reputation. However, it’s not always been easy to put a figure on their effect. The factors below open up new possibilities.

The key message to get across is that a robust, well-planned approach to business continuity can yield significant return on investment, whether or not you have to cope with any disruptions or disasters. Some of the first opportunities to exploit are those of lower insurance premiums and reduced loan interest rates. In both instances, insurers and bankers measure the risk of doing business with you and adjust their charges accordingly. Show them your business continuity plan and relevant business continuity certification, such as professional BC certification of managers and ISO 22301 compliance: then ask them for your discount.

Further opportunities are in winning and retaining customer accounts. Even for keeping customers who now insist on formal business continuity management from you, your BCM isn’t a ‘cost of doing business’: it’s the chance to increase process efficiency and make better margins without having to increase prices. For winning new business, the case is even clearer. Every new, profitable transaction your organisation does thanks to its demonstrable levels of BCM represents tangible, financial return on your investment. In summary, your BCM has not one, but several ways of helping your enterprise put more money into its accounts.