CONTEXT UNDER BUSINSS COUNTINUITY AND RISK MANAGEMNT . i. Define and explain the

Question

CONTEXT UNDER BUSINSS COUNTINUITY AND RISK MANAGEMNT .

i. Define and explain the differences between outage, resource and impact.

ii. Why are all important operations not considered to be critical operations?

iii. Define and explain the differences between supply chain and process flow.

Identify reasons why an operation with a short Recovery Time Objective(RTO) will require a more expensive Business Continuity Management (BCM) than a similar operation but with a longer Recovery Time Objective(RTO).

Explanation / Answer

Que-1

Define and explain the differences between outage, resource and impact:-

Outage is referred as when a service is not available or gets disconnects frequently. In businesses, if cash flow generation or say revenue generation is frequently disturbed, that is, company is not having consistent sales, and then this Outage will result in employee and operational chaos.

Resource in Business means- Employee talent, Capital Investment, Infrastructure, Tools and technologies which is overall called as Input.

Impact in Business is like, effect of selling products on low profit margins in an year, has resulted in the very less overall Profit for the company, or call it Impact of this case has been negative on company’s business health.

Que-2

Only those operations which are very important or serve as a back bone of company’s operations, or who impact on company’s business health, revenue generation, and profitability can be severe, are called as Critical Operations.

Example- In banking company, IT system operations and day to day transactional operations are highly critical. In a Pharma manufacturing company, the medicine manufacturing operations and Quality testing audit operations are highly critical to reduce any kind of risks with supply/ customers.

Que-3

Process Flow is representation of the path of a process. Example, in a chemical plant process, the Process flow can indicate the flow of a gas through various mechanical equipments- pumps/ heat exchangers/ boilers, end- resulting to produce a chemical.

While a Supply Chain is about integration of the movement of Raw materials, work in progress inventory, finished goods from one end of Production, Warehousing, Inventory Management to the other end of Distribution to a customer.

Que-4

A short Recovery Time Objective Operation will have more expense because desired result or impact expected or to be achieved has to be done in less amount of time. Hence, more input resources are needed, more speedy working by manpower, wealth, tools, techniques etc. will obviously cost more, compared to a similar operation in long time.

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