Any incident, large or small, natural, accidental or deliberate, has the potential to cause major disruption to an organisation's operations and its ability to deliver products and services. However, establishing and implementing BCM before such events occur allows the organisation to keep operating and to contain the impact and consequences of the incident at an acceptable level. This can be regarded as part of an Organisation's/Business's Risk Management to ensure Sustainable Development!
In recent years, Vietnam has experienced many major operational disruptions, including:
- The COVID-19 pandemic: The pandemic caused serious disruption to economic and social activities. From April 2021 to November 2021, Vietnam recorded nearly 1,175,000 infections and 24,257 deaths, severely affecting the economy and social welfare.
- Natural disasters and climate change: The impacts of climate change, such as rising temperatures and sea levels, have disrupted economic activity and weakened growth.
- Global IT outage: In July 2024, a global IT outage disrupted flights, took some television stations off the air and affected services ranging from banking to healthcare.
- Cyberattack on VNDirect: On 24 March 2024, VNDirect, one of Vietnam's largest securities brokerage firms, was hit by a cyberattack. The attack disrupted the company's online systems, making it difficult for investors and partners to access them and execute transactions. The incident raised concerns about cybersecurity and the ability of businesses in Vietnam to protect data.
Many companies and organisations do not fully recognise the dangers and potential losses until an event actually happens and results in losses.
The impacts of business continuity disruption
Any incident, large or small, natural, accidental or deliberate, has the potential to cause major disruption to an organisation's operations and its ability to deliver products and services. However, establishing and implementing BCM before such events occur allows the organisation to keep operating and to contain the impact and consequences of the incident at an acceptable level.
The impacts of business continuity disruption on a company may include: loss of life, destruction of property, legal disputes and litigation, reduced ability to deliver products and services, and delays in meeting contract and project deadlines. These are just a few examples of the impacts and losses that companies and organisations may suffer.
No one can predict when an incident or operational disruption will occur. The only certainty is that it will happen at some point, sometimes when it is least expected.
The significance and benefits of a Business Continuity Management System (BCMS)
A company can only prepare for these incidents and disruptions by building an effective Business Continuity Management System (BCMS) that is genuinely applied, embedding its processes into the company's actual operations. BCM helps organisations deal with operational disruptions that could prevent them from achieving their operational objectives.
Implementing BCM not only helps an organisation maintain continuous operations but also protects its core assets and ensures staff readiness in emergencies.
By implementing a BCMS, a company will be able to:
- From an operational (business) perspective
- Support strategic business objectives
- Create a competitive advantage
- Protect and enhance the company's/organisation's reputation and standing
- Support the company's resilience
- From a financial/profit perspective:
- Increase partners' confidence in the company's success
- Reduce the impact of legal and financial loss events
- Reduce the direct and indirect costs caused by operational disruption.
- From the perspective of stakeholders (those with interests tied to the company)
- Support the protection of life, property and the (operating and living) environment.
- Help meet stakeholders' expectations
- From the perspective of the company's internal operations:
- Strengthen the ability to maintain operational efficiency during a disruptive event.
- Demonstrate the effectiveness of proactive risk control measures.
- Strengthen the company's resilience against risks and disruptive events.
The benefits of maintaining a business continuity management system depend on the company's/organisation's rules and regulations, organisational and operational requirements, industry requirements, the products and services the organisation provides, the activities being carried out, the company's size and organisational structure, and other requirements from stakeholders.
At VietESG, we have Mr. Phạm Quốc Hưng
Business Continuity Professional – by DRII, and Lead Auditor for ISO 22301 – Business Continuity Management Systems – BSI x IRCA. Ready to provide services
- Consulting on building/implementing a Business Continuity Management System (BCMS)
Contact details: Mr. Phạm Quốc Hưng – CEO of VietESG
Email: quynhhoa@vietesg.com
Phone: 0969060290
Website: www.vietesg.com
Fanpage:VietESG
