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Volume 29, Issue 2

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Does Your Business Continuation Plan Put You at Risk?

Written by  Al Gliane and Jeff Ryan Monday, 19 November 2007 23:01

A business continuation plan is important for the continued operation of a company involved in a crisis or a catastrophe. Yet as helpful as business continuation plans can be, they may inadvertently expose a firm to lawsuits.According to the Disaster Recovery Institute, development of a business continuation plan proceeds through five phases: definition, functional requirements, design and development, implementation, and testing and monitoring. The final step at each phase is to obtain management approval. Thus, senior management plays a critical role in developing a business continuation plan and, ultimately, in determining how effective it will be. The senior managers determine what components and procedures should be included in the plan, and they make critical decisions during execution of the plan. All these judgments expose a company's directors and officers to liability lawsuits, should their decisions later prove to be damaging to the company. And senior management's decisions don't have to


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