A Roadmap to Resilience: Navigating Business Continuity in an Evolving Landscape

Good morning and welcome to our Horizon Scanning newsletter.

May has been another busy month for Horizonscan Limited our consulting team was spread across the world, supporting our clients in Mexico, the USA, the UK?and Europe. Matt Moon spoke at the Tall Building's London conference on Horizon Scanning; we attended BIBA and took part in The BCI business continuity awareness week.

Industries we have worked with in the last month include Manufacturing, Fintech, Education, Motor dealerships, UK?Ports, Security, tea, coffee, confectionery, and bakeries! As more and more industries take an interest in building resilience, it is important to look at where to start.

Today, we want to discuss an essential topic that affects businesses of all sizes: resilience. Organisations must journey towards resilience in an ever-changing world where disruptions and uncertainties can strike at any moment. Let us explore the key business continuity principles and how recent legislative changes and a challenging insurance market reinforce the need for robust planning.

Our In The News section has more insights?and some useful free tools to help support your business.?

Thanks for reading, and stay safe.

?? Key Principles of Business Continuity ??

Business continuity is about surviving a crisis and thriving in adversity. Here are some fundamental principles that form the backbone of effective business continuity planning:

• Risk Assessment and Management: Critical steps include identifying potential threats, assessing their impact, and implementing risk mitigation strategies. By understanding vulnerabilities and proactively addressing them, organisations can reduce the likelihood and severity of disruptions.
• Crisis Response and Communication: A well-defined crisis management plan, including clear roles and responsibilities, enables swift and coordinated actions during a crisis. Effective internal and external communication ensures stakeholders remain informed and confidence is maintained.
• Business Impact Analysis: Understanding the potential consequences of disruptions allows organisations to prioritise critical functions, allocate resources accordingly, and develop recovery strategies tailored to their specific needs.
• Continuity Planning and Testing: Developing comprehensive business continuity plans and regularly testing them through exercises or simulations is vital. This helps identify gaps, refine strategies, and ensure preparedness for various scenarios.

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?? Legislative Changes and Insurance Market Dynamics ??

Recently, legislation and regulations have increasingly emphasised the importance of business continuity planning. Governments worldwide are recognising the significance of resilient businesses to maintain economic stability. As a result, many jurisdictions have introduced or updated laws that require organisations to implement robust continuity measures. Companies must stay informed about such changes and ensure compliance to avoid penalties and reputational risks.

Furthermore, the insurance landscape has undergone significant shifts. A hard insurance market characterised by increased premiums, reduced coverage, and stricter underwriting has emerged. Insurers now place greater emphasis on risk assessment and business continuity planning. Businesses can enhance their insurability and potentially secure better coverage and rates by demonstrating strong continuity measures.

Examples of these changes can be seen with the Financial Conduct Authority (FCA), which introduced Operational resilience and Business continuity management into legislation and regulations.

• Operational Resilience: The FCA?have been developing a new framework for operational resilience, which goes beyond traditional business continuity planning. It ensures that firms are prepared to prevent, adapt, respond to, recover from, and learn from operational disruptions. This approach takes a broader view of resilience, considering technology, people, processes, and external dependencies.
• Business Continuity Management Systems: The FCA requires financial services firms to have robust business continuity management systems. These systems should include risk assessments, business impact analyses, crisis management plans, communication strategies, and regular testing and training exercises. Firms are expected to demonstrate their ability to promptly recover and restore critical functions.

To whom this applies to

• Banks
• Building societies
• PRA-designated investment firms
• Insurers
• Recognised Investment Exchanges
• Enhanced scope SM&CR firms

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An example of future changes that may affect many organisations is In response to growing concerns over public safety and the need to strengthen security measures; legislators are actively considering the implementation of?Martyn's Law. Martyn's Law, named after Martyn Hett, a victim of the Manchester Arena bombing in 2017, aims to enhance the safety and resilience of public spaces.

This proposed legislation requires public venues and spaces, including stadiums, concert halls, shopping centres, and tourist attractions, to adopt comprehensive security measures. The law would mandate the implementation of robust counterterrorism and emergency response strategies, ensuring that the highest safety standards are upheld.

Key provisions of Martyn's Law may include:

• Risk Assessment and Mitigation: Public venues would be obligated to conduct thorough risk assessments, identifying potential security vulnerabilities and terrorist threats. They would then be required to implement appropriate mitigation measures to address those risks effectively.

• Enhanced Security Measures: The Law would demand the deployment of advanced security technologies such as CCTV surveillance, access control systems, and screening procedures. This would aid in early threat detection, deterrence, and rapid response to potential security incidents.

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• Staff Training and Awareness: Public venue staff would receive comprehensive training on security protocols, emergency procedures, and recognising suspicious behaviour. Regular drills and exercises would be conducted to ensure preparedness and promote a proactive security culture.

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• Collaboration and Information Sharing: The legislation would emphasise the importance of collaboration between public venues, law enforcement agencies, and intelligence services. Sharing relevant information and intelligence would enable the timely identification and prevention of potential security threats.

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• Ongoing Compliance and Audits: Public venues would be subject to regular compliance checks and audits to assess the effectiveness of their security measures. Non-compliance may result in penalties, highlighting the importance of maintaining robust security standards.

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?? Embrace Resilience Today! ??

To navigate this evolving landscape successfully, it is time for businesses of all sizes to prioritise resilience. Start by conducting a comprehensive risk assessment, identifying critical functions, and developing robust business continuity plans. Regularly review and update your strategies to align with changing circumstances and stay ahead of legislative requirements.

Remember, resilience is not an endpoint but an ongoing journey. Stay tuned for more valuable insights on business continuity, risk management, and resilience. Feel free to reach out with your questions and comments – We are here to support your journey towards a resilient future!

Question for the month:

"What steps can your?businesses take to assess and strengthen their business continuity plans in light of the evolving challenges and risks we face today?"?

John Benfield CBCV CMgr

In The News

• How far would you go to make sure your data is secure? Take a look at this extreme case in India?https://www.bbc.co.uk/news/world-asia-india-65726193.
• ?How seriously is the world taking Supply Chain Resilience? There have been significant changes in recent weeks -?US-led trade talks with 14 countries, including India, are close to reaching a supply chains pact.
• ?Got resilience??Mckinsey provides some insight into how to build lasting resilience.
• ?How did the Foo Fighters show resilience after losing a key member??Resilient Rock Titans
• ?May saw the return of the?Business Continuity awareness week, which included fantastic insights and some free tools from The BCI .

Thought for the week:?

The Power of Preparedness. As disruptions become more frequent, preparedness is no longer optional but a business imperative. Invest in robust continuity plans, risk assessments, and crisis response strategies. Being ready is the key to navigating uncertainties and thriving in a rapidly changing landscape.

Fiona Grieve , Horizonscan consultant