[BCM] [CM] [Vs] Business Continuity Management Versus Crisis Management: Terminologies Used

Terms Used in Business Continuity Management Versus Crisis Management

In today’s fast-paced and interconnected business environment, organisations face various potential disruptions, including natural disasters, cyberattacks, supply chain failures, and reputational crises.

Businesses must adopt robust strategies to ensure continuity and resilience, thereby navigating these challenges effectively.

While CM and BCM share the common goal of organisational resilience, they differ in scope and execution.

Crisis Management focuses on immediate response, decision-making, and leadership during a disruptive event. It involves crisis communication, stakeholder coordination, and strategic decision-making to protect lives, assets, and reputation.
Business Continuity Management ensures the continuity of critical operations and services in the event of a crisis. It involves business impact analysis, business continuity management (BCM) strategies, and BCM Planning.

Business Continuity Management (BCM) and Crisis Management (CM) are two critical disciplines that help organisations prepare for, respond to, and recover from disruptions. While these fields share some common goals and terminology, their focus, scope, and application differ.

This chapter explores the key terms and concepts used in BCM and CM, highlighting their similarities and differences. By understanding these distinctions, organisations can better align their strategies to build resilience, protect stakeholders, and ensure long-term success in the face of adversity.

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Business Continuity Management (BCM) Terms

Business Impact Analysis (BIA): A process to identify and evaluate the potential effects of disruptions on business operations.
Recovery Time Objective (RTO): The maximum acceptable time to restore business operations after a disruption.
Recovery Point Objective (RPO): The maximum acceptable amount of data loss measured in time.
BCM Plan: A documented strategy to ensure critical business functions can continue during and after a disruption.
Disaster Recovery Plan: This is a subset of the BCM plan focused on restoring IT systems and data.
Risk Analysis and Review: Identifying and evaluating risks to business operations.
Crisis Communication Plan: Managing communication with stakeholders during a disruption.
Incident Management: Managing and resolving incidents that could disrupt business operations.
Resilience: The ability of an organisation to adapt to disruptions and continue operations.
Business Continuity Management System (BCMS): A holistic management system that establishes, implements, operates, monitors, reviews, maintains, and improves business continuity.

Crisis Management Terms

Crisis Management Plan (CMP): A documented strategy to manage and respond to crises.
Crisis Communication: The process of communicating with stakeholders during a crisis.
Incident Response: The immediate actions taken to manage and mitigate the impact of a crisis.
Emergency Response: The actions taken to protect life, property, and the environment during a crisis.
Crisis Leadership: The role of leaders in managing and guiding an organisation through a crisis.
Crisis Simulation: Exercises designed to test and improve an organisation's crisis management capabilities.
Crisis Recovery: The process of returning to normal operations after a crisis.
Crisis Assessment: The evaluation of the impact and severity of a crisis.
Crisis Management Team: A group responsible for managing and responding to a crisis.
Crisis Management System (CMS): A framework (ISO22361) for managing and responding to crises.

Comparison and Differences

Risk Assessment vs. Crisis Scenario Risk Assessment
- Risk Assessment: Identifies and evaluates risks to business operations.
- Crisis Scenario Risk Assessment: Focuses on assessing the impact and severity of a crisis.
Recovery Time Objective (RTO) vs. Crisis Recovery
- RTO: A specific time target for restoring business operations.
- Crisis Recovery: The broader process of returning to normal operations after a crisis.
BCM Plan vs. Crisis Management Plan
- BCM Plan: Focuses on maintaining business operations during and after a disruption.
- CM Plan: This plan focuses on managing and responding to a crisis, which may include broader organisational and reputational concerns.
Crisis Communication Plan vs. Crisis Communication:
- Crisis Communication Plan: A documented strategy for managing communication during a disruption.
- Crisis Communication: The actual process of communicating with stakeholders during a crisis.
Incident Management vs. Incident Response:
- Incident Management: Manages and resolves incidents that could disrupt business operations.
- Incident Response: Immediate actions taken to manage and mitigate the impact of a crisis.
Resilience vs. Crisis Leadership:
- Resilience: The ability of an organisation to adapt to disruptions and continue operations.
- Crisis Leadership: The role of leaders in managing and guiding an organisation through a crisis.
Business Continuity Management System (BCMS) vs. Crisis Management System (CMS):
- BCMS: A holistic management system (ISO22301) for business continuity.
- CMS: A holistic management system (ISO22361) for managing and responding to crises.
CM Team vs. BCM Team:
- CM Team: Focuses on managing and responding to a crisis.
- BCM Team: Focuses on maintaining business operations during and after a disruption.

Summary of Key Differences

Aspect	Crisis Scenario	Disaster
Methodology	Crisis Management	Business Continuity Management
Nature	A developing or immediate threat requiring rapid response.	A large-scale, destructive event causes significant damage.
Impact	It can affect reputation, operations, or safety without causing physical damage.	Causes severe operational disruptions and physical damage.
Response Approach	Managed through crisis response strategies, often requiring coordination with stakeholders.	Managed through business continuity and disaster recovery plans.
Duration	Typically, it is a short-term issue that can escalate if not managed properly.	Often long-term, requiring extensive recovery efforts.

Summing Up ...

Business Continuity Management (BCM) and Crisis Management (CM) share some common elements but have distinct focuses.

BCM is primarily concerned with maintaining business operations during and after disruptions, emphasising planning, risk assessment, and recovery objectives.

Conversely, CM is more focused on managing and responding to crises, which may include broader organisational, reputational, and emergency response considerations. Both disciplines are essential for organisational resilience, but address different aspects of managing disruptions and crises.

Business Continuity Management and Crisis Management are complementary disciplines that play vital roles in safeguarding organisations from disruptions and crises.

While BCM focuses on maintaining operational continuity through planning, risk assessment, and recovery strategies, CM emphasises the immediate response, leadership, and communication required to manage crises effectively.

Understanding each discipline's unique terminology and approaches can help organisations develop integrated strategies that address operational resilience and crisis response.

Ultimately, the synergy between BCM and CM enables organisations to navigate uncertainty, protect their stakeholders, and emerge stronger from disruptions.

Investing in both disciplines will remain essential for building a resilient and adaptive organisation as the business landscape evolves.

More Information About Crisis Management Blended/ Hybrid Learning Courses

To learn more about the course and schedule, click the buttons below for the CM-300 Crisis Management Implementer [CM-3] and the CM-5000 Crisis Management Expert Implementer [CM-5].