[BCM] [IsDB] [E1] [C10] Identifying Critical Business Functions

Introduction

The Islamic Development Bank (IsDB) is an international financial institution that plays a crucial role in the socio-economic development of its member countries.

With a commitment to fostering sustainable development, IsDB supports diverse sectors, including infrastructure, health, education, and governance.

To ensure the continuous delivery of its services, IsDB needs to establish a robust Business Continuity Management (BCM) framework aligned with international standards such as ISO 22301.

This chapter outlines IsDB's critical business functions (CBFs), focusing on those vital to maintaining operations during disruptions.

Understanding these functions is fundamental to developing effective business continuity strategies that align with the ISO 22301 requirements.

Overview of Critical Business Functions (CBFs)

ISO 22301 emphasises the need for organisations to identify and prioritise their critical functions to ensure business continuity in the event of a disaster or disruption.

For IsDB, these CBFs span across various operational areas that directly impact its ability to deliver essential services to its stakeholders, including member countries, clients, and partners.

The following are the high-level CBFs relevant to IsDB’s business continuity planning:

Financial Operations & Treasury Management

• Description: This function covers the bank’s core financial operations, including treasury management, fund mobilisation, and liquidity management. It ensures that IsDB can continue operations, even during periods of financial instability.
• Importance to BCM: Financial services and treasury management are essential for the bank’s liquidity and its ability to execute financial transactions. Disruptions could delay disbursements or fund transfers, impacting the bank’s reputation and operational continuity.
• ISO 22301 Compliance: Ensuring access to critical financial systems and maintaining liquidity are essential aspects of IsDB’s business continuity strategy.

Project Financing & Investment Management

• Description: This function involves the evaluation, structuring, and disbursement of loans and investments in development projects across member countries.
• Importance to BCM: Disruptions in this area could delay or cancel critical projects, affecting socio-economic development across member countries.
• ISO 22301 Compliance: Recovery strategies should ensure that critical project management tools and data are preserved, and that IsDB’s financing capabilities remain intact during crises.

Human Resources & Workforce Management

• Description: The Human Resources (HR) function encompasses recruitment, employee well-being, payroll, training, and talent management.
• Importance to BCM: Without a functioning HR system, IsDB may struggle to maintain a skilled workforce, which is critical for day-to-day operations. A lack of HR support can result in poor morale, reduced productivity, and high turnover.
• ISO 22301 Compliance: Establishing contingency plans for key personnel and ensuring HR systems are resilient to disruptions are crucial for BCM.

Information Technology & Data Management

• Description: Information Technology (IT) systems at IsDB support all functions, from communication and data storage to financial transactions and project management.
• Importance to BCM: IT systems are essential for operational continuity. A failure or disruption in IT infrastructure could halt operations, affect communication, and compromise data security.
• ISO 22301 Compliance: Maintaining data integrity and availability through backup systems and disaster recovery plans is critical in this function.

Risk Management & Compliance

• Description: This function focuses on identifying, assessing, and mitigating risks across all operations of the bank. It also ensures that IsDB complies with legal, regulatory, and internal policies.
• Importance to BCM: In the event of a disaster, effective risk management enables IsDB to assess and respond to emerging threats while maintaining regulatory compliance.
• ISO 22301 Compliance: Business continuity strategies should include procedures for monitoring risks during disruptions and ensuring regulatory compliance in crisis scenarios.

Client Services & Customer Relationship Management

• Description: Client Services involve managing relationships with member countries, partners, and clients. This includes providing support, ensuring communication, and managing client expectations.
• Importance to BCM: Maintaining client relationships during a disaster is essential for IsDB’s credibility and long-term partnerships. Disruptions could harm trust and future collaboration.
• ISO 22301 Compliance: Business continuity measures should include communication strategies that keep clients informed during a crisis and maintain ongoing support.

Legal & Governance

• Description: This function addresses the legal frameworks under which IsDB operates, including its governance structures, compliance with international law, and internal regulations.
• Importance to BCM: Disruptions in governance or legal functions could expose IsDB to liabilities, damage its reputation, and impair its ability to operate in its member countries.
• ISO 22301 Compliance: Legal and governance functions must maintain continuity plans to ensure corporate governance and compliance during a disaster.

Public Relations & Communications

• Description: The Public Relations (PR) and communications function is responsible for managing internal and external communication, including media relations, stakeholder engagement, and crisis communication.
• Importance to BCM: During a crisis, clear and accurate communication is crucial for maintaining stakeholder and public trust. Disruptions in communication can lead to misinformation and a loss of confidence.
• ISO 22301 Compliance: Effective communication plans should be in place to ensure that messages reach all stakeholders during an emergency.

Facilities Management

• Description: This function manages the physical facilities of IsDB, including office buildings, infrastructure, and critical office supplies.
• Importance to BCM: Physical disruptions to facilities could halt operations or make continued operations difficult.
• ISO 22301 Compliance: Ensuring facility resilience through contingency plans for relocation, access control, and emergency repairs is vital.

Table: List of Critical Business Functions

Business Continuity Management (BCM) at IsDB must cover all the above critical business functions to ensure operational resilience.

By identifying and prioritising these functions, IsDB can implement effective recovery strategies that align with ISO 22301 standards.

Through a well-structured BCM approach, IsDB can safeguard its operations, protect stakeholder interests, and continue to drive development in its member countries even in the face of unforeseen disruptions.

Building Resilience: A Guide to Business Continuity Management at IsDB
eBook 1: Understanding Your Organisation: Islamic Development Bank
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