Flevy Management Insights Q&A
What are the critical components of a business continuity plan under ISO 22301?
     Joseph Robinson    |    ISO 22301


This article provides a detailed response to: What are the critical components of a business continuity plan under ISO 22301? For a comprehensive understanding of ISO 22301, we also include relevant case studies for further reading and links to ISO 22301 best practice resources.

TLDR A comprehensive Business Continuity Plan under ISO 22301 includes Understanding Organization's Needs, Leadership and Commitment, Business Continuity Strategies and Solutions, and Incident Response, Communication, and Management to ensure operational resilience.

Reading time: 6 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Business Continuity Plan (BCP) mean?
What does Leadership Commitment mean?
What does Business Impact Analysis (BIA) mean?
What does Incident Response and Communication mean?


Understanding and implementing a robust Business Continuity Plan (BCP) is crucial for organizations to ensure resilience and sustainability in the face of disruptions. ISO 22301, the international standard for Business Continuity Management Systems (BCMS), outlines a framework that organizations can follow to plan, establish, implement, operate, monitor, review, maintain, and continually improve a documented management system to protect against, reduce the likelihood of occurrence, prepare for, respond to, and recover from disruptive incidents when they arise. The critical components of a business continuity plan under ISO 22301 encompass several key areas, each vital for ensuring an organization's operational resilience.

Understanding the Organization's Needs and Establishing the Scope

The first step in developing a BCP under ISO 22301 involves a thorough understanding of the organization's operations, processes, and needs. This includes identifying the organization's key products and services, the critical activities and resources required to deliver them, and the potential impact of various disruptions on these operations. Establishing the scope of the BCMS is crucial, as it defines the boundaries and applicability of the management system. It involves determining the internal and external issues that can affect the achievement of its objectives, as well as the needs and expectations of interested parties. This foundational step ensures that the BCP is aligned with the organization's strategic objectives and is capable of addressing the specific risks it faces.

Organizations often conduct a Business Impact Analysis (BIA) and Risk Assessment to prioritize activities and identify the most significant threats. For example, a global survey by PwC highlighted that 73% of organizations have identified and assessed continuity risks to their critical business operations, demonstrating the importance of this step in the business continuity planning process.

Real-world examples of this include how financial institutions prioritize their IT systems and data centers in their BCPs, recognizing the critical role these assets play in maintaining operations. Similarly, manufacturing firms often focus on supply chain continuity, identifying alternative suppliers and logistics options as part of their scope.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Leadership and Commitment

Leadership and commitment from top management are essential for the success of a BCMS. ISO 22301 emphasizes the importance of leadership involvement in establishing, implementing, and maintaining the business continuity plan. This includes ensuring that the BCMS is compatible with the strategic direction of the organization, and that adequate resources are allocated for the plan's development and execution. Leadership is also responsible for promoting a culture of business continuity within the organization, ensuring that the importance of an effective BCMS is communicated across all levels.

Top management must also establish, implement, and maintain a business continuity policy that is appropriate to the purpose of the organization. This policy should include a commitment to satisfy applicable requirements and to continual improvement of the BCMS. For instance, Accenture's research on resilience postulates that organizations led by proactive and committed leadership are more likely to recover from disruptions swiftly and efficiently.

Companies like IBM and Amazon have demonstrated strong leadership commitment to business continuity by integrating resilience planning into their corporate governance structures, ensuring high-level oversight and support for their BCMS initiatives.

Business Continuity Strategies and Solutions

Developing and selecting business continuity strategies and solutions is a critical component of ISO 22301. This involves identifying various strategies to manage and mitigate the impact of disruptions on the organization's operations. The chosen strategies should ensure the continuity of critical activities and the restoration of normal business operations within a defined timeframe. This might involve the implementation of redundant systems, diversification of supply chains, or the establishment of alternative work sites.

Organizations must consider technological, human, and physical resource requirements when developing their continuity strategies. For example, deploying cloud computing technologies can provide data redundancy and ensure access to critical systems from multiple locations, enhancing operational resilience. A report by Gartner highlighted that by 2022, 60% of organizations would use the flexibility of cloud services to enhance their business continuity strategies.

An example of effective strategy implementation is how banks have adopted multi-site strategies for their data centers, ensuring that the failure of one site does not disrupt their operations. Similarly, retail giants like Walmart have developed sophisticated logistics and supply chain continuity plans that enable them to maintain operations and service delivery in the face of disruptions.

Incident Response, Communication, and Management

Effective incident response and communication are pivotal in managing a disruption and minimizing its impact. ISO 22301 requires organizations to establish documented procedures for responding to, and managing, an incident. This includes the activation of the business continuity plan, roles and responsibilities during an incident, and communication with internal and external stakeholders. Effective communication ensures that all parties are informed of the situation and can take appropriate actions to support the recovery effort.

Organizations should also establish procedures for warning, informing, and communicating with the public and relevant interested parties. This can help in managing the perception and repercussions of the incident externally. For example, during the 2017 WannaCry ransomware attack, companies that communicated effectively with their customers, such as FedEx, were able to manage expectations and minimize the impact on their reputation.

Additionally, incident management includes the processes for documenting and learning from incidents. This involves conducting post-incident reviews to identify lessons learned and opportunities for improvement. Incorporating these lessons into the business continuity plan helps in enhancing the organization's resilience to future disruptions.

Each of these components plays a crucial role in the development and implementation of a comprehensive Business Continuity Plan under ISO 22301. By following these guidelines, organizations can enhance their resilience, minimize the impact of disruptions, and ensure the continuity of their operations.

Best Practices in ISO 22301

Here are best practices relevant to ISO 22301 from the Flevy Marketplace. View all our ISO 22301 materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: ISO 22301

ISO 22301 Case Studies

For a practical understanding of ISO 22301, take a look at these case studies.

Business Continuity Management Implementation for a Global Financial Institution

Scenario: A global financial institution is faced with the challenge of ensuring business continuity amid increasing geopolitical risks and cyber threats.

Read Full Case Study

Business Continuity Management for Power & Utilities Firm

Scenario: A leading firm in the power and utilities sector is seeking to enhance its business continuity management in line with ISO 22301 standards.

Read Full Case Study

Business Continuity Strategy for Retail Firm in Competitive Market

Scenario: A prominent retail company specializing in high-end consumer electronics faces challenges aligning its operations with ISO 22301 standards.

Read Full Case Study

ISO 22301 Business Continuity Strategy for Life Sciences in North America

Scenario: A firm in the life sciences sector, specializing in biotechnological advancements, faces challenges aligning its operations with ISO 22301 standards.

Read Full Case Study

Business Continuity Management for Real Estate Firm in High-Density Urban Area

Scenario: A real estate firm based in a high-density urban area is seeking to align its operations with ISO 22301 standards.

Read Full Case Study

ISO 22301 Business Continuity Management System Implementation for a Global Financial Firm

Scenario: A global financial firm is seeking to implement an ISO 22301 Business Continuity Management System (BCMS) to ensure its ability to continue critical business operations during unforeseen disruptions.

Read Full Case Study




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

  •  
    "I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

    – Moritz Bernhoerster, Global Sourcing Director at Fortune 500
  •  
    "As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

    – David Coloma, Consulting Area Manager at Cynertia Consulting
  •  
    "As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

    The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

    – Dennis Gershowitz, Principal at DG Associates
  •  
    "As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

    – Michael Duff, Managing Director at Change Strategy (UK)
  •  
    "I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

    – Roberto Pelliccia, Senior Executive in International Hospitality
  •  
    "As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

    – Jim Schoen, Principal at FRC Group
  •  
    "Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

    Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

    In today's environment where there are so "

    – Omar HernĂ¡n Montes Parra, CEO at Quantum SFE
  •  
    "Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

    – M. E., Chief Commercial Officer, International Logistics Service Provider



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.