Many retailers are leaving themselves open to the high financial and reputational cost of disruption by not investing in business continuity
Caversham, UK – 9th November 2015: More than one in five retail organizations do not have a formal business continuity policy in place. That is according to report published today by the Business Continuity Institute and supported by the Retail Business Continuity Association.
The Retail Resilience Report also highlighted that, of those that do have a policy in place, less than half have Key Performance Indicators attached, making it difficult to assess whether the policy is effective. With retailers being at the frontline of modern society where sales can be made or lost in an instant, it is perhaps more important for retailers to have plans in place to manage disruption.
Some of the other findings in the report include:
- Less than one in ten respondents (9%) claimed their organization was certified to ISO22301, the international standard for business continuity management, although 43% claimed to align to it.
- Nearly a quarter of respondents (22%) stated they had not conducted a formal Business Impact Analysis, a fundamental part of business continuity management as it provides the data from which appropriate continuity strategies can be developed.
- Nearly one in ten respondents (9%) admitted that their organization did not have a formal IT Disaster Recovery Plan, while 12% claimed it was still in development.
- Fires are the number one concern for organizations (63%), closely followed by human illness (62%), cyber attacks (51%) and physical security (51%). 16%, 9%, 12% and 9% of respondents claim to have invoked their business continuity plans due to these threats materialising.
The report underscores the need to get continuity and resilience at the heart of the agenda for retailers, yet there are existing challenges in communicating the value proposition of resilience. There is a need to promote metrics that allow top management to sense the urgency of driving resilience within their organizations.
Patrick Alcantara DBCI, Senior Research Associate at the Business Continuity Institute and author of the report, commented: “The BCI acknowledges the RBCA’s efforts in building resilience across the retail industry through this pioneering study. We believe that it is important for BC and resilience practitioners across different sectors to obtain relevant, industry-specific data that benchmarks their performance and adds value to their practice. This report is an excellent contribution to the retail industry and we encourage other sectors to follow suit.”
John Frost MBCI, Head of Business Continuity at Marks and Spencer and Chairman of the RBCA, commented: “The RBCA have been overwhelmed by the number of retailers from across the world that chose to take part in this survey. The results have given Retail Business Continuity and Resilience professionals the ability to benchmark their activities against their peer group for the first time. This visibility will assist with those all-important conversations with Top Management by offering credible evidence and industry comparisons. We would like to thank the BCI for providing their expertise and support for this first survey of its kind, and of course all those who took part. We look forward to developing and improving the survey in the future with the BCI, and supporting our fellow professionals from around the world in developing their retail resilience capability.”
Retail organizations depend heavily on technology in building resilience. This may introduce considerable risks and points of failure. Retail business continuity professionals must be aware of this in implementing an agile, holistic and responsive programme lifecycle. Developing relevant competencies within the team is imperative given an evolving retail industry landscape. Retail professionals understand how agility is a competitive advantage in an industry considerably influenced by market trends, rapidly changing tastes and fickle consumer behaviour. Building resilience therefore requires building skills sets among professionals in the ‘protective disciplines’ such as BC that enable them to respond to this context.
For more information please contact the Senior Communications Manager at the Business Continuity Institute – Andrew Scott CBCI – by emailing email@example.com or by phoning 0118-947-8241.
- Download a full copy of the report by clicking here.
- Note to the online survey: 104 respondents were from 26 countries.
About the Business Continuity Institute
Founded in 1994 with the aim of promoting a more resilient world, the Business Continuity Institute (BCI) has established itself as the world’s leading Institute for business continuity and resilience. The BCI has become the membership and certifying organization of choice for business continuity and resilience professionals globally with over 8,000 members in more than 100 countries, working in an estimated 3,000 organizations in the private, public and third sectors.
The vast experience of the Institute’s broad membership and partner network is built into its world class education, continuing professional development and networking activities. Every year, more than 1,500 people choose BCI training, with options ranging from short awareness raising tools to a full academic qualification, available online and in a classroom. The Institute stands for excellence in the resilience profession and its globally recognised Certified grades provide assurance of technical and professional competency. The BCI offers a wide range of resources for professionals seeking to raise their organization’s level of resilience, and its extensive thought leadership and research programme helps drive the industry forward. With approximately 120 Partners worldwide, the BCI Partnership offers organizations the opportunity to work with the BCI in promoting best practice in business continuity and resilience.
The BCI welcomes everyone with an interest in building resilient organizations from newcomers, experienced professionals and organizations. Further information about the BCI is available at www.thebci.org.
About the Retail Business Continuity Association
The RBCA was established to assist all business continuity personnel in the retail industry to share views, experiences, and information to the benefit of the sector. The aim of the RBCA is to create a community within which competition issues are set aside for the good of the retail industry at large with a vision to become a resource centre representing all retailers large or small across all sectors and multi government agencies. The core objectives are to: identify and assess the threats and risks to business as usual in retail; promote effective retail business continuity to manage and mitigate the most serious threats and risks; share intelligence and retail business continuity data, information, experience and best practice; recognise and respond to significant changes in threats and risks to retail; and embrace major developments and technologies to aid effective business continuity management. Further information about the RBCA is available at www.therbca.co.uk