A study conducted by KPMG indicates that 73% of Brazilian companies do not have an adequate level of maturity regarding a business continuity plan.
Of this total, 40% of organizations are at stage 1. That is, they do not even have a strategy in this regard.
Another 33% were classified at stage 2. In which this mechanism does exist, but does not adequately identify and address all the events that may affect operations.
The study shows that 27% of companies have a structured, complete, and comprehensive business continuity plan. Similar to the model expected by good market practices.
Importance of the business continuity plan
Despite the figures related to the level of maturity, 57% of survey respondents stated that they are aware of the importance of establishing a business continuity plan.
This survey also highlights that efficient recovery with the least possible damage is the topic most cited by executives among the various benefits brought by the implementation of this mechanism.
On the other hand, the greatest barrier faced by companies is caused by the absence of a culture in risk and crisis management. In addition to the lack of clarity regarding the potential benefits of these practices.
“It is essential to keep in mind that all corporations are exposed to various risks. And what differentiates the successful ones from the others is the way they act when a crisis sets in. Companies that seek longevity must identify and address risks through an efficient business continuity plan. To do so, it is important to understand the company’s level of maturity. The existing recovery protocols and which points should be addressed as a priority,” says the partner-director of risk management at KPMG, Luís Navarro.
IT and financial services have the highest stage of maturity
The KPMG report evaluated and classified the level of maturity of the business continuity plans of 17 sectors. The industries that stood out the most were: information technology (IT) and financial services, with 51% and 49% at stage 3, respectively. At stage 2, the following segments appear: retail, 63%; energy, natural resources, and sanitation, 49%; and infrastructure, 44%.
In the stage 1 maturity positions are: logistics and distribution companies, 88%; agribusiness, 75%; biotechnology, 75%; education, 69%; consumer goods, 67%; construction/real estate, 62%; pharmaceutical, 60%; entertainment, media, and publishing, 60%; transportation, travel, tourism, 60%; manufacturing, 51%; healthcare, 48%; and other lines of activity, 42%.
“The results indicate that there is still a long way to go for this culture to be implemented and normalized across all segments. Only then will the desired level of maturity be achieved. Aligning crisis and continuity management with the business strategy,” emphasizes Navarro.
The survey
The first edition of the “Survey on the maturity of business continuity plans in Brazil” was conducted between May and June of last year. Through a web platform. The work comprised 28 questions. The results were classified on a scale with three levels, detailed below:
- Stage 1: The company does not have a business continuity policy and the governance prerequisites for this structure are not implemented. In addition, there is no assessment of the level of preparedness to respond to a crisis that interrupts business continuity, and employees are not properly made aware of the subject.
- Stage 2: The existing business continuity plan does not identify or address all the events that may affect the continuity of operations. The company has a crisis management process, but it is not structured with all the responses, nor is it updated on a regular basis, limiting the strategies for recovery from adverse events.
- Stage 3: the business continuity plan is complete and comprehensive, reviewed regularly and whenever there is any significant change in the business. Adherence to the policy, standards, and procedures is analyzed independently, and there is structured governance for the activation and execution of crisis management.
To prepare regarding a business continuity plan, the company generally relies on the work of multidisciplinary teams, involving professionals from various levels and areas. The Legal department also has a fundamental role, and companies can rely on various models for this area. It is not always necessary to invest resources to assemble and maintain an internal team.Click here to learn more
← Back to blog