Can Credit Card Interest Rates be Capped?
The American politics is heating up in anticipation of the 2020 Presidential Election. Democrats are unveiling what appears to be a populist socialistic agenda. Amongst the Democrats, Bernie Sanders, in particular, is hell-bent on enacting policies which can be considered to be socialist. Bernie Sanders has found an ally in Alexandria Ocasio-Cortez as she too […]
Imports and Customs Clearance – Overview
When any Organization Imports any item into the country, the cargo would need to be Custom Cleared. The consignment transported by Air, Ship or by Trailer on the Road, would have to be deposited at the Customs Notified and Bonded Area. Customs Clearance or brokering is done by third party service providers who are licensed […]
Creating a SIPOC Chart
The SIPOC Chart, being one of the fundamental documents of any process improvement project must be developed in such a manner that it is easy to understand. It must also be coherent with the logic inbuilt in the process. There is a method which has been described to ensure the proper development of the SIPOC […]
The Glocal Approach in Business Is Applying Practical Intelligence in the Real World
What is Practical Intelligence, Why Is It Important, and How It Works in the Real World The world admires Street Smart tinkerers and Go Getters who get “things done”. For instance, how many times haven’t been in awe of the Fixers and the Technicians, who with little formal education manage to repair mechanical and electrical […]
An Introduction to Process Documentation
Multinational companies are facing the problem of knowledge management. Industries like software and ITES hire extremely skilled employees to work for them. However, they face several problems. This is because the skill lies in the “employee’s minds” and not in the system. As a result, if the employee goes on long leave or quits the […]
In the highly competitive world of business and marketing, Organizations are pushed to be ahead of the race and walk the talk. Customer and Market expectations are higher where in the Companies are expected to walk the talk and demonstrate their capability to live through the promises. In such situation, Organizations have had to think on terms of business contingency, Disaster Recovery and Business continuity plans for they cannot afford any disruption of supplies to markets and failing the customer on account of any risk or threat to their business on account of natural calamities, political situations, terrorism or any such perceived risks.
In fact in high value products especially those involving critical functions at the Customers end as well as those involving high end technology, customers expect the suppliers to demonstrate their capability and an operational plan of business disaster recovery in place so that their business does not suffer on account of disruption of services or failure at the Supplier’s end. Suppliers are often required to commit to having the disaster recovery plan in place as a part of the Supplier Contract.
Risk assessment, Disaster Recovery and Business contingency planning involves the entire Organization at all levels. First and foremost it is important to understand the kind of risk that the Business Contingency plan aims to cover. The plan aims to primarily cover the risk of disruption to Business Process, Risk of Life to employees, Management Control & Asset recovery.
Businesses face threats from several quarters. Some of the threats can be due to geographical location or natural disasters and havoc caused by the weather and other natural calamities. In such cases, man has very little or no control over the situation. Even amongst the Natural disasters and threats, there are two kinds of risks namely predictable and unpredictable. Unpredictable risks like floods, hurricane, fire and other such events can totally disrupt the business without giving anyone a chance to prepare for the same.
When we talk of manmade disasters, we are referring chiefly to acts of sabotage, terrorism, industrial espionage and attack, vandalism etc. Some of the companies prefer to include the supply failures due to supply chain network failure or supplier failure as a risk to the business and prepare contingency plan for the same.
Some of the companies which are highly dependent upon limited suppliers for their raw materials and in cases where raw material supplies are scarce and not freely available, the business contingency plan can cover these specifics as perceived risks too.
Similarly in technology and service sector companies, any disruption or threat to availability of skilled manpower required for the business process can also be covered under the risk making the business process unstable.
Events like wars, international sanctions, unstable political situations and strikes etc can also cause potential threat of disruption of business operations and supplies to the markets. The extent of the perceived threat and risk depends upon the particular country and the business.
Companies depending upon high end technologies, software and hardware run the risk of failures of the technology and systems thereby affecting the entire business process. The failure can be of the hardware or of the software. In certain other businesses, the critical machinery used in the manufacturing process can be under risk, thereby causing a threat to the supplies.
An analysis can go into minute level and identify a huge list of risks in the business. However the management needs to take a judicious call to filter out from the list of risks those that need to be covered essentially for, it becomes impossible to build a recovery plan around all of the risks that can be identified.
Your email address will not be published. Required fields are marked *
