How do you define the scope and objectives of a business continuity audit?

Plan-Do-Check-Act (PDCA) is the four stage audit model adopted by audit management systems (such as ISO 19011) where Plan mainly comprises of establishing various functions including audit purpose. It is highly crucial to establish the purpose of the audit programme to ensure planning and execution is delivered to assess effectiveness and organizational capability towards the management system. The purpose of the audit is established and directed to determine the efficiency and organizational effectiveness of the management system along with to provide opportunity to improve organizational capability for the management system. It also determines the spectrum of satisfying the audit criteria.

First, clarify the purpose. Is it for compliance, assessing effectiveness of plans, or benchmarking against best practices? This guides defining scope, objectives, criteria, methods and resources. Will it cover the whole program or focus on specific plans or processes? Ensure objectives are clear, like evaluating recovery timeframes or testing response procedures. Use standards like ISO 22301 as criteria. Take an independent, systematic approach with interviews, document reviews and drills. Assemble experienced auditors with business continuity expertise. With planning and clear direction, the audit will provide an accurate appraisal to enhance resilience.

Defining the scope and objectives of a business continuity audit is crucial for evaluating an organization's resilience. This involves specifying the audit scope, setting clear objectives aligned with stakeholder expectations, and developing a comprehensive audit plan covering risk assessment, criteria establishment, and key areas such as Business Impact Analysis and incident response plans. The audit should focus on document reviews, and the reporting should communicate findings with actionable insights. Follow-up procedures ensure issue resolution, and a commitment to continuous improvement drives ongoing enhancements to the business continuity program, ensuring a robust evaluation of preparedness for disruptions.

My Top Tips: 1) look at the scope of the BCMS - that is your first guide to define the scope of the BCMS Audit 2) ask the client (internal/ external) - the objective. Many auditors get carried away with ISO 22301. If my BCMS is not aligned to ISO 22301 (i.e. I didnt intend to align to this standard), then you (as the auditor) should not focus your audit around teh requirements of ISO 22301. 3) The scope may be refined based on resources available - including at the auditor's end but at he client's end as well e.g. time and money that the program sponsor wishes to invest in the BCMS Audit.

One area worth expanding is the role of stakeholder analysis. Identifying and engaging key stakeholders early can provide insights into critical business functions and potential vulnerabilities. Additionally, incorporating a risk-based approach in defining the scope can ensure that the audit addresses the most significant threats to continuity. Lastly, integrating emerging technologies, such as AI and predictive analytics, can offer innovative ways to assess and strengthen your business continuity plans. By leveraging these technologies, audits can become more dynamic and forward-looking.

In my experience of certifying multiple organizations on ISO 22301 certification, clearly defining scope is the key to a successful audit. There are still some confusions in the market when it comes to what can be certified and what cannot. For e.g. I have come across auditors who do not agree in certifying one department of an organization. This is not the case with ISO 27001 where one can certify a single department.

The audit scope determines which parts of the continuity program will be examined and how deeply. Consider organization size, complexity, maturity and audit purpose. Options include auditing the entire program or focusing on specific elements like policies, procedures, roles, resources, training, testing or incident response. Scope should be realistic, manageable and support stated objectives. Can't boil the ocean so prioritize auditing mission critical components. Clearly define boundaries to keep efforts targeted, like one division or a single plan. Detail locations, assets, systems to be audited. Confirm scope allows appropriate assessment within resource constraints. Right-sizing the scope leads to an effective, actionable audit.

Audit Scope determines the extent and boundaries of the audit programme. It primarily comprises of various factors such as location (physical/virtual), functions, organizational units, business activities, processes, duration, etc. in accordance of the audit programme and objective. It should identify the organization, functions and processes to be audited. From my experience, I would ensure that the audit scope comprises of all business activity processes. However, exclusions can be permitted for non-critical business operations and the exclusions need to investigated, clarified and reported during audit planning.

Tailoring the audit to your organization’s size, complexity, and maturity ensures relevance and depth. For greater impact, align the audit scope with strategic business objectives and risk appetite. For instance, if cybersecurity is a top concern, focus on incident management and recovery protocols. Regularly revisiting and adjusting the scope can address evolving threats and changes, enhancing resilience. Additionally, integrating stakeholder feedback can uncover overlooked areas, ensuring a comprehensive evaluation.

Again some auditors get carried away. Good to explain this with a live example. I had joined the organisation as the Global Business Continuity Manager. The organisation was certified to ISMS (BS7799 at that time) and used to go through surveillance audits every year. BCM was not part of the certification. But, the auditor included this in the audit scope (incorrectly). My Quality group (who used to coordinate this certification) could have contested and won to exclude BCM, but we continued just because I was open to having any improvement inputs identified by a third party.

Audit objectives determine the level of conformity to ISO 22301 BCMS as well as evaluate the organizational capability and effectiveness in achieving regulatory compliance with ISO 22301 and other management systems. Audit objectives identifies opportunities for improvement as well as assess and review the delivery and execution of ISO 22301 in effectively addressing risks & opportunities as per SMART. From my knowledge, the audit objectives should comprise of both qualitative & quantitative aspects such as KPI, KRI, RTO, MTPD, etc. By identifying appropriate and concise objectives, BCP's will reflect the audit objective and outcomes for documenting and maintaining the business continuity management framework across the enterprise.

The objectives describe expected learning and outcomes. Make them specific, measurable, achievable, relevant and timebound. Possible objectives: assess compliance with standards; evaluate readiness to resume critical operations post-disruption; identify continuity plan strengths and weaknesses; recommend improvements. Keep objectives clear, concise, and aligned among stakeholders. Prioritize vital areas. Quantify targets like recovery time and key performance indicators. Consider weighting objectives by importance and risk. Distinguish conformity assessments from value-add consultative objectives. Well defined objectives provide focus, meaningful results, and actionable recommendations to enhance resilience.

Objectives typically include some of the following: -Verifying Compliance: Ensuring that the BCP adheres to industry standards, legal requirements, and organizational policies. -Assessing Effectiveness: Evaluating the efficiency and effectiveness of the strategies and procedures outlined in the BCP. -Identifying Gaps: Uncovering any deficiencies or gaps in the current plan that could hinder the organization's ability to respond to and recover from a disruptive event. -Recommendations for Improvement: Providing actionable recommendations to enhance the BCP's effectiveness.

Many audit objectives are very objective (i.e. bc plans need to be tested annually) however, assessing the value of the test is not so easy.

The audit criteria are the standards, guidelines or requirements used for assessment. Derive criteria from internal sources like organizational policies, objectives and expectations or external sources such as industry standards, regulations and best practices. Ensure criteria directly relate to the audit purpose, scope and objectives. Documentation, validation, communication and agreement on criteria by all parties is key. Well-defined, relevant criteria allow for an objective, fact-based assessment of the continuity program against measurable metrics and expected performance levels. Appropriate criteria are crucial for a meaningful audit.

Audit criteria are references utilized to determine conformity during an audit. It mainly includes policies, procedures, key performance indicators, regulatory obligations, management systems, etc. It is a highly critical aspect of an audit as the audit programme is to be modified if there are changes made to the audit criteria. It is essential to determine the audit criteria to provide a context on organization commitment with respect to management system arrangements, regulatory requirements, etc.

Using standards, guidelines, or requirements as benchmarks ensures an objective and structured assessment. For a more impactful approach, consider blending internal and external criteria. For example, combine your organization's policies with ISO 22301 standards and industry best practices. This holistic perspective can highlight gaps and opportunities for improvement. Additionally, involving cross-functional teams in selecting criteria can ensure they are relevant and comprehensive, addressing diverse aspects of business continuity.

Similar to question 3 - if your organization has a requirement that bc plans are exercised annually - and the plans all have a "last exercise" date for the auditors to see - is that adequate? Usually the audit stops at this point and "checks the box" regardless of the exercise results.

It is critical to determine the audit methods necessary to perform the audit systematically and efficiently, in accordance with the audit programme, audit scope, criteria, etc. From my experience, there can be communication lapses when the audit method is not communicated between stakeholders responsible for the audit programme. Audits are performed on-site, remote, hybrid, etc. in coordination between auditee and auditor. Audit methods are mainly determined in consideration of associated risks & opportunities.

tilizing diverse techniques like document reviews, interviews, and simulations ensures a comprehensive assessment. For added insight, consider tailoring methods to specific audit objectives. For instance, simulations can effectively test incident response plans, while surveys can gauge staff awareness and preparedness. Ensure methods align with data availability and resource constraints. Combining qualitative and quantitative approaches can provide a balanced view, enhancing the audit's depth and reliability.

One thing I have found helpful is identifying and engaging relevant stakeholders that are part of the audit process. Stakeholders may include management, employees, customers, suppliers, and other parties who could be impacted by the organization’s response to a crisis. Their input can provide valuable insights into the practical aspects of the BCP and its implementation.

Assume you have done all in copybook style as mentioned in the article, but the identified auditee did not report for audit meeting - what will you do? My To Tips: a) display patience and maturity - wait for a reasonable time - 5 minutes or so. b) inform your contact point, ask for a replacement. The challenge is that you may be told that there is no replacement and the audit meeting needs to be rescheduled. At this moment, wearing my auditor's hat, I will make a serious note - this is audit of the BCMS and you are telling me that there is no replacement/ backup auditee! I will write my observation (likely be converted to a non-compliance) upon 'implementation' itself, not even pointing at the 'effectiveness'.

Some of the key aspects while planning audit activities include documentation review where the management system documents should be reviewed to understand business operations and activities undertaken by auditee and establish audit overview to determine conformity and identify non-conformities. There should be a risk-based approach to planning audit activities, considering the risks of audit activities and facilitate audit scheduling to achieve objectives efficiently. The audit plan should comprise or relate to various factors such as audit criteria, audit objectives, locations, audit methods, roles & responsibilities, etc.

Developing a detailed audit plan that includes scope, objectives, criteria, methods, and resources ensures clarity and organization. For added impact, emphasize the importance of stakeholder engagement and clear communication. For example, regular updates and feedback sessions can foster cooperation and transparency. Additionally, documenting findings and tracking corrective actions are crucial for continuous improvement. Ensuring that the audit plan is adaptable to changes can further enhance its effectiveness and relevance.

The key outcome of the Audit should be whether the program designed addresses the resiliency for the company it is developed for. Given all the regulations, professional practices, guidelines, etc., it still remains that the program has to address the intricacies and operations of the company, the products, the interest of the stakeholders and any government regulatory requirements. Is it designed for operational resiliency and not just continuity of the business, is the objectives and processes in place to ensure the program remains viable with all of the constant technology changes on ongoing risks and threats the company is vulnerable to.

Scope: 1. Digital Landscape: Use the Digital Twin for holistic vulnerability mapping. 2. Stakeholder Inclusion: Cover internal processes and key external stakeholders. 3. Tech & Societal Integration: Audit IT infrastructure and societal roles. 4. Adaptive Focus: Adjust scope based on emerging risks. Objectives: 1. Adaptive Preparedness: Assess adaptability through gamified simulations. 2. Real-time Resilience: Use AI analytics for continuous resilience measurement. 3. Interconnected Resilience: Evaluate the resilience of supply chain partners. 4. Immersive Training: Prioritize VR/AR for adaptive response training. A holistic, adaptive, and interconnected approach ensures a comprehensive audit.

Some auditees (specially in the internal audits) have the tendency to ask the auditor 'how shall I close this finding/ observation/ NC?'. Well, friendship aside, this is pure professionalism, the auditor is not supposed to tell you the solution. You, as the SME, are the best person to decide how to close the finding/ observation/ NC. This depends upon your skills, other competencies and resources available to you, risks and opportunities, budget etc. And you will know all this much better than the auditor (even more than the internal auditor.

When we work for organizations that are required to have audits/been audited - it is helpful as the BC Program can then be designed (at a minimum) to meet those requirements.

Some of the aspects that can be considered during business continuity audits can be: - Environmental, Social & Governance (ESG): Addressing ESG-related concerns during business continuity audit in order to integrate ESG & BCM frameworks across the enterprise. By integrating BCM with ESG, the organization can demonstrate assurance over ESG frameworks and advice on broader resilience capabilities aligning with ESG risks and organizational commitment over UN SDG. - Artificial Intelligence (AI): AI Technology has rised to act as business decision-making function for organizations worldwide. By addressing digital transformation projects during BCM audits, it optimizes the BCM framework and enhances the organizational resilience capability.