These are crazy times. The global economy is circling the drain, risks are proliferating, and organizations are cutting costs as well as trimming manpower. But risks won’t go away just because businesses think they can’t afford to deal with them.

In fact, the need for preparedness is greater in times of economic uncertainty. When an organization is flush, a “little” disruption (product recall, computer outage, customer service faux pas) might be shrugged off. However, in tough times that little disruption could be the camel-breaking straw.

Changing Nature of Risks

Business continuity has always aimed at planning for any unacceptable business interruption. In today’s economy, the list of acceptable business interruptions should be much shorter.

Risks to brand image or reputation are heightened by recent downturns in both consumer and industrial spending. Protecting your organization’s image and its customer service reputation is more critical than ever. Retaining a customer costs less than finding a new one.The recession (which, according to folks who track these things, began in December, 2007) has hit every sector of the economy. Most visibly, it has thrown the banking and financial industry into turmoil, resulting in a world-wide credit squeeze.

What impact does that have on business continuity programs across the board? Plenty. For lenders to reduce their risks, they must choose borrowers who have their own risks under control. Increasingly, lenders are asking questions about business continuity and preparedness. An organization that can’t answer those questions may find itself without access to credit.

Pound-Foolish Foot Shooting

Most organizations, and many practitioners, think of business continuity as a risk management tool. Plans are safety nets to prevent the worst. But the wise understand that a comprehensive, tested program also can be a competitive advantage. Additionally, business continuity provides a necessary layer of protection by safeguarding the bottom line.

Senior managers who know that are more likely to protect business continuity personnel when budget slashing time arrives. In past economic downturns, many managers faced with directives for percentage cuts did what was easy, not what was right. They cut everything that didn’t generate revenue.

Does management in your organization acknowledge the need for BCM planning without appreciating the need to exercise and maintain those plans? When layoff decisions are made, will that decision be made by fully-informed managers or by a leadership team that sees the plan – not the planners – as the necessary asset?

Believe it or not, some organizations have maintained essentially the same plan for decades. Those organizations see the plan as an asset but see little or no value in testing, exercising, or proving the validity of the plan. Organizations perceiving their programs that way will not hesitate to lay off all their continuity teams; they’ve got a plan to keep them warm.

What You Must Do

We already have seen large layoffs at Fortune 500 companies. The impact of those losses will trickle down to smaller companies soon enough. You must make sure your management understands the value your program provides. Business continuity has come a long way in its struggle to establish itself as both a profession and a vital resource in successful organizations. Those efforts must continue during these difficult economic times. Whether they know it or not, organizations cannot afford to go back to the way things used to be. It’s your job to show them why.