Notes for BCM Institute's Course Participants: This is the template for completing the "Overview of CBFs and Business Unit MBCO."
In this chapter, Bandtree systematically outlines and documents its key business functions and supporting sub-processes that are essential to delivering its services, fulfilling legal and regulatory obligations, and maintaining operational continuity.
As a government-linked company (GLC) under Darussalam Assets, Bandtree plays a strategic role in managing Brunei’s infrastructure and corporate properties.
The continuity of its operations is therefore vital not only to its internal stakeholders but also to national-level service delivery and public trust.
This chapter presents a comprehensive inventory of all critical business functions (CBFs) across various departments.
Each function is identified with its corresponding code, description, and relevance to Bandtree’s operational framework.
The output from this stage forms the foundation for subsequent Business Impact Analysis (BIA), risk assessment, and recovery planning activities.
|
Sub-Critical Business Functions (CBF) |
Sub-CBF Code |
Description of CBF |
Business Unit Minimum Business Continuity Objective (MBCO) |
|
Vendor Selection & Prequalification |
8.1 |
Identifying, evaluating, and approving suppliers based on capability, reliability, compliance, and alignment with Bandtree’s standards. |
Ensure continuous availability of prequalified vendors to support essential procurement during disruption (within T+48 hours). |
|
Contract Management |
8.2 |
Administration and oversight of supplier contracts to ensure terms, service levels, and obligations are met consistently. |
Maintain accessibility to critical contracts and enforceability of terms during a crisis (within T+24 hours). |
|
Purchase Requisition & Approval |
8.3 |
Initiating, reviewing, and approving procurement requests for goods and services required by various departments. |
Resume approval workflows for essential purchases to avoid operational delay (within T+48 hours). |
|
Supplier Relationship Management |
8.4 |
Maintaining strategic partnerships and open communication with suppliers to secure delivery continuity and service quality. |
Maintain critical supplier contact and engagement for urgent requirements (within T+48 hours). |
|
Inventory & Logistics Coordination |
8.5 |
Overseeing stock levels, warehousing, and the timely delivery of materials and assets across sites and facilities. |
Maintain minimum operational inventory levels and delivery schedules to avoid service interruption (within T+24 to T+48 hours). |
|
Compliance & Procurement Governance |
8.6 |
Ensuring that all procurement activities adhere to internal policies, as well as legal, regulatory, and ethical standards. |
Ensure continuity of compliance oversight and auditability of urgent procurements (within T+72 hours). |
|
Risk Management in Supply Chain |
8.7 |
Identifying and mitigating supply chain risks, including vendor insolvency, disruptions, and geopolitical issues. |
Enable risk tracking mechanisms and supplier contingency plans (within T+72 hours). |
|
Emergency Procurement |
8.8 |
Fast-track acquisition of critical goods and services during crises, bypassing standard processes with appropriate controls. |
Activate emergency procurement procedures to support essential services (within T+4 hours). |
|
Procurement System & Data Management |
8.9 |
Managing digital procurement platforms, supplier databases, and procurement records for efficient and secure operations. |
Restore access to procurement systems and critical data repositories (within T+24 hours). |
Through the identification and classification of its Critical Business Functions, Bandtree has established a clear understanding of its core operational landscape.
This foundational step ensures that all vital processes are documented and aligned with strategic objectives and service delivery requirements.
The completion of this chapter enables the organisation to proceed with a focused analysis of potential disruptions, their associated impacts, and the development of targeted recovery strategies.
It also supports compliance with national BCM guidelines and reinforces Bandtree’s commitment to operational resilience and service excellence.
The functions identified herein will serve as the basis for determining recovery priorities, allocating resources, and planning continuity in the chapters that follow.
Notes for BCM Institute's Course Participants: This is the template for completing the "Impact Analysis of CBFs, including financial implications and effect on MBCO."
This chapter outlines the potential impact areas of each Critical Business Function (CBF) within Bandtree, Brunei.
Understanding the breadth and depth of these impacts is essential for ensuring the company’s preparedness and resilience in the face of disruptions.
The assessment identifies specific business functions and their sub-processes that, if interrupted, could lead to significant financial, operational, legal, regulatory, and reputational consequences.
The analysis is structured to examine the estimated monetary losses, key impact areas, and how each function contributes to or impedes the Minimum Business Continuity Objective (MBCO) of the organisation.
By evaluating both tangible and intangible risks associated with the disruption of business functions, Bandtree can prioritise continuity planning efforts and design appropriate mitigation and recovery strategies.
This section serves as a foundational step in the Business Impact Analysis (BIA) process, helping decision-makers recognise which functions are most critical to sustaining essential services, meeting compliance obligations, and protecting the company’s assets and public trust during a crisis.
Here is the Impact Assessment Table for CBF-8: Procurement & Supply Chain Management of Bandtree, based on BCM Institute’s Impact Area of Business Functions methodology.
This table includes qualitative and quantitative insights, focusing on financial impact, implications for MBCO, and a concise description of each sub-process.
|
Sub-Critical Business Function |
Sub-CBF Code |
Impact Area |
Financial Impact - Monetary Loss (Estimated) |
Financial Impact - Calculation of Monetary Loss (State Formula for Calculations) |
Impact on MBCO - Affect MBCO |
Impact on MBCO - Impact |
Remarks - Description |
|
Vendor Selection & Pre-qualification |
8.1 |
Operational Disruption |
BND 20,000 – BND 50,000 |
(Avg. cost/day of delayed vendor sourcing) × (no. of days delayed) |
Yes |
May delay procurement of essential goods/services, hindering core functions |
Delays in identifying alternate vendors may halt key infrastructure services. |
|
Contract Management |
8.2 |
Legal / Compliance / Service Disruption |
BND 50,000 – BND 150,000 |
(Contract value at risk due to breach or lapse) |
Yes |
May result in legal penalties or loss of services needed for MBCO |
Contractual lapses affect vendor obligations, penalties, or service continuity. |
|
Purchase Requisition & Approval |
8.3 |
Operational Delay |
BND 10,000 – BND 40,000 |
(No. of delayed purchase orders) × (average operational delay cost per PO) |
Yes |
Delays can stall procurement of urgent supplies or services |
Without approvals, essential services or supplies may not be delivered. |
|
Supplier Relationship Management |
8.4 |
Reputation / Operational Risk |
BND 30,000 – BND 60,000 |
(No. of critical suppliers impacted) × (impact per supplier breakdown) |
Yes |
Weak communication may disrupt delivery timelines and strategic partnerships |
Breakdown of supplier trust may lead to service lapses. |
|
Inventory & Logistics Coordination |
8.5 |
Service Delivery / Revenue Loss |
BND 100,000 – BND 250,000 |
(Estimated revenue loss/day from halted services) × (days of logistics failure) |
Yes |
Stockouts or delivery failures affect operational continuity |
Delays in stock movement affect on-site maintenance and client delivery. |
|
Compliance & Procurement Governance |
8.6 |
Regulatory / Compliance Risk |
BND 20,000 – BND 100,000 |
(Penalty per compliance breach) + (investigation cost) |
Indirectly |
Impacts audit trail and transparency, especially during emergency procurement |
Non-compliance may delay approvals and increase scrutiny. |
|
Risk Management in Supply Chain |
8.7 |
Strategic / Operational Risk |
BND 50,000 – BND 200,000 |
(Impact of disrupted supply) + (cost to mitigate or switch vendors) |
Yes |
Lack of contingency plans affects ability to pivot during disruptions |
Exposure to unassessed risks may magnify crisis impact. |
|
Emergency Procurement |
8.8 |
Operational Continuity |
BND 20,000 – BND 75,000 |
(Cost of emergency purchases - baseline cost) × (units procured) |
Yes |
Enables MBCO when normal procurement channels are non-functional |
Crucial for ensuring urgent needs are met under crisis. |
|
Procurement System & Data Management |
8.9 |
Data / Digital Disruption |
BND 30,000 – BND 90,000 |
(Cost of downtime/hr) × (system downtime in hrs) + (data recovery cost) |
Yes |
Interrupts digital workflow, access to vendor and transaction records |
Data or platform unavailability affects tracking, approvals, and reporting. |
The impact assessment of Bandtree’s critical business functions has highlighted the varying degrees of vulnerability across operations, especially in areas such as procurement, inventory coordination, and contract management.
The disruption of even a single sub-process can ripple across the organisation, affecting service delivery, regulatory compliance, and financial stability.
By identifying the specific impact areas and estimating potential monetary losses, this chapter provides a data-driven basis for prioritising recovery actions and resource allocation.
Moreover, the insights gained here will guide the development of more precise recovery strategies and reinforce Bandtree’s overall Business Continuity Management (BCM) framework.
Moving forward, these findings will inform contingency planning, resource preparedness, and incident response strategies for each CBF, ensuring that Bandtree remains operationally resilient and capable of fulfilling its commitments, even in adverse conditions.
Implementing Business Continuity Management for Bandtree: A Practical Guide |
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| eBook 3: Starting Your BCM Implementation |
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| MBCO | P&S | RAR T1 | RAR T2 | RAR T3 | BCS T1 | CBF |
| CBF-8 Procurement & Supply Chain Management | ||||||
| DP | BIAQ T1 | BIAQ T2 | BIAQ T3 | BCS T2 | BCS T3 | PD |
To learn more about the course and schedule, click the buttons below for the BCM-300 Business Continuity Management Implementer [BCM-3] and the BCM-5000 Business Continuity Management Expert Implementer [BCM-5].
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Please feel free to send us a note if you have any questions. |
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