This blog comprehensively compares Critical Business Functions (CBF) in BCM and Critical Business Services (CBS) in OR, highlighting their similarities and differences.
| Business Continuity Management (BCM) | Operational Resilience (OR) |
| Critical Business Functions (CBF) | Critical Business Services (CBS) |
| Definition | |
| If disrupted, CBF are an organisation's core activities or processes that could significantly impact its ability to continue operations and deliver essential products or services. | CBS represent the key services provided by an organisation, encompassing both internal and external-facing activities. These services are critical to fulfilling its mission and maintaining customer satisfaction. |
| Scope and Focus | |
| BCM primarily concentrates on the organization's ability to manage and recover from disruptive incidents or events. CBF in BCM are identified based on the impact of their disruption on the organization's ability to continue its core operations. |
OR focuses on maintaining the organization's ability to deliver critical services even in the face of disruptions. CBS in OR are identified by assessing the services critical to the organization's mission and reputation. |
| Similarities Between | |
| Busienss Continuity Management | Operational Resilience |
| Critical Business Functions (CBF) | Critical Business Services (CBS) |
| Identification of Critical Components | |
| Both BCM and OR require organizations to identify their critical components. | |
| CBF in BCM and CBS in OR are determined through a comprehensive risk assessment and business impact analysis process. | |
| Dependency Analysis | |
| Both approaches emphasise understanding the dependencies and interdependencies of critical components. | |
| Dependencies may include technology systems, suppliers, human resources, facilities, and external factors. | |
| Mitigation Strategies | |
| BCM and OR involve implementing strategies to mitigate risks associated with critical components. | |
| Strategies may include redundancy, backup systems, alternate facilities, crisis communication plans, and incident response procedures. | |
| Differences Between | |
| Business Continuity Management | Operational Resilience |
| Critical Business Functions (CBF) | Critical Business Services (CBS) |
| Focus on Disruption | |
| BCM primarily focuses on managing and recovering from disruptions caused by various incidents, such as natural disasters, cyber-attacks, or equipment failures. | OR focuses on maintaining the delivery of critical services, even during disruptions, by emphasizing operational efficiency and agility. |
| Stakeholder Considerations | |
| BCM primarily addresses internal stakeholders' needs, such as employees, shareholders, and business partners, during and after disruptions. | To ensure uninterrupted critical services, OR considers internal and external stakeholders, including customers, regulators, and the wider community. |
| Regulatory Requirements | |
| BCM, while also influenced by regulations, tends to focus on general resilience principles applicable across different sectors. | OR is often driven by regulatory requirements, such as financial industry regulations, which mandate the identification and protection of CBSs. |
| Recovery Time Objectives (RTO) vs Service Level Objectives (SLO) | |
| BCM commonly defines Recovery Time Objectives (RTOs), representing the targeted time within which critical functions should be restored. | OR focuses on Service Level Objectives (SLOs), which define acceptable performance levels for critical services during normal operations and disruptions. |
Business continuity management and operational resilience are complementary disciplines that share similarities in identifying critical components and implementing mitigation strategies.
However, their primary focus, stakeholder considerations, regulatory requirements, and metrics used to measure recovery or service levels differ.
Organizations should leverage the strengths of both approaches to enhance their overall resilience and ensure the continued delivery of critical functions.
To learn more about the course and schedule, click the buttons below for the OR-3 Blended Learning OR-300 Operational Resilience Implementer course and the OR-5 Blended Learning OR-5000 Operational Resilience Expert Implementer course.
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