Business Continuity

A Step-By-Step Guide to Creating a Business Continuity Plan (BCP)

Business Continuity
Timothy Clarkson
February 21, 2025

Imagine waking up to find your business completely shut down—your systems offline, your data inaccessible, and customers unable to reach you. Whether it’s a natural disaster, a cyberattack, or an unexpected power outage, disruptions can bring your operations to a grinding halt.

But here’s the reality: most small businesses don’t have a business continuity plan (BCP) in place. And without a structured approach to getting back on track, the financial and reputational damage can be devastating.

A BCP is more than just a safety net—it’s your Plan B to continue operating when the unexpected happens. With a clear strategy, you can minimise downtime, protect important data, and ensure your team knows exactly what to do in the event of a disaster.

This guide will walk you through the steps involved in creating a business continuity plan, from assessing potential risks to implementing a strong disaster recovery plan. By the end, you’ll have a solid framework to maintain business operations, safeguard critical functions, and give your business the best chance at long-term success.

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Business team discussing a business continuity and disaster recovery plan on a digital dashboard.

What is a business continuity plan?

A business continuity plan (BCP) is a structured framework that ensures your business operations can continue operating during and after an unexpected disruption. It outlines the steps your company must take to recover from potential threats like cyberattacks, natural disasters, or sudden business interruptions.

Think of a BCP as your roadmap for resilience—it details roles and responsibilities, essential communication channels, and backup strategies to keep your critical business functions running. Unlike a disaster recovery plan, which primarily focuses on restoring IT infrastructure and data, a BCP covers all aspects of your business, from human resources to supply chain management.

Having a BCP in place means you won’t be scrambling in the wake of disaster. Instead, you’ll have a well-prepared business continuity team that knows exactly how to react quickly and efficiently, reducing downtime and minimising financial losses.

For businesses in New Zealand, where disruptions like earthquakes, power failures, and ransomware attacks can happen unexpectedly, a BCP is critical to long-term survival. Without one, you risk lost revenue, damaged reputation, and even permanent closure.

Benefits of a business continuity plan

A business continuity plan isn’t just about reacting to disruptions—it’s about staying ahead of them. By having a BCP in place, your business gains a resilient business strategy that minimises losses and ensures smooth recovery.

Reduces downtime and financial losses

Every minute of downtime costs money. Whether it’s a power outage, a cyberattack, or an IT failure, a well-designed business continuity process helps your company continue operating with minimal disruption. Instead of scrambling for solutions in the wake of disaster, your team follows a clear plan to get back on track.

Strengthens disaster recovery and data protection

Your business stores important data, from customer records to financial reports. Without a solid disaster recovery plan, a data theft incident or ransomware attack could wipe out everything. A BCP covers secure data backup strategies, ensuring that even in the worst-case scenario, your company can recover quickly.

Improves customer trust and brand reputation

Clients and customers want reliability. If your business can’t bounce back after an unplanned event, it risks losing customer confidence. A business continuity and disaster recovery strategy reassures your clients that you have systems in place to keep their data safe and your services running.

Ensures regulatory compliance

Depending on your industry, having a business continuity plan may not be optional. Sectors like finance, healthcare, and legal services require businesses to meet strict regulations regarding business continuity and risk management. A proper BCP ensures your company remains compliant and avoids hefty penalties.

Strengthens internal preparedness and communication

When a crisis happens, confusion leads to chaos. A BCP outlines roles and responsibilities for each team member, providing a clear structure for decision-making. Whether it’s an emergency communication plan or a step-by-step business recovery approach, your team will know exactly what to do.

IT professional reviewing business continuity management software for risk assessment and recovery strategies.

Elements of a business continuity plan

An effective BCP isn’t just a document—it’s a strategy that ensures your business can function despite unexpected disruptions. To create a BCP that covers all aspects of your business, it needs these four key elements:

Business impact analysis (BIA)

A business impact analysis helps identify critical functions and assesses how disruptions affect them. It answers the following questions:

  • What are the potential risks that could interrupt operations?
  • How long can the business afford to be down before financial and reputational damage sets in?
  • Which processes need to be restored first?

Risk management and prevention strategies

A business continuity plan needs a solid risk management strategy to mitigate threats before they become crises. This includes:

  • Implementing cybersecurity measures to prevent data theft and ransomware attacks
  • Regular BCP testing to identify weaknesses
  • Creating contingency plans for business interruption scenarios like power outages or cyberattacks

Emergency response and recovery strategies

When disaster strikes, a structured business continuity planning process ensures you react quickly and efficiently. Your BCP outlines:

  • Roles and responsibilities for employees
  • Steps to maintain business operations during an outage
  • A detailed disaster recovery plan for restoring IT systems and infrastructure

Regular updates and testing

A BCP is activated when a disruption occurs, but it needs constant updates to remain effective. Businesses should update the plan regularly to reflect changes in operations, technology, and business environment. Running BCP testing ensures that when a real disaster happens, your team knows exactly how to respond.

Emergency management team conducting a BCP testing drill in an office setting.

5 steps of the business continuity planning process

Building a business continuity plan doesn’t have to be overwhelming. By breaking it down into clear steps, you can create a structured, actionable strategy that ensures your business runs even in the face of disruptions. Here’s an overview of the business continuity process:

1. Conduct a business impact analysis (BIA)

The first step in the business continuity planning process is to evaluate the business impact analysis (BIA). This helps you determine:

  • Which critical functions are essential to your operations
  • How long you can afford to be down before significant losses occur
  • The financial and operational consequences of a business disruption

2. Identify risks and threats

Next, conduct a risk assessment to identify potential risks that could impact your business, such as:

  • Cyberattacks, data theft, and ransomware attacks
  • Natural disasters like earthquakes or floods
  • A pandemic or other public health crisis
  • A power outage or IT system failure

3. Develop a recovery strategy

A strong recovery strategy ensures that your business is back up and running as soon as possible. Your plan should include:

  • A clear disaster recovery plan for restoring systems and data
  • Backup solutions such as cloud storage and business continuity management software
  • A strategy for maintaining supply chain continuity

4. Define roles and responsibilities

Every employee should know their roles and responsibilities during a crisis. Establish a continuity team responsible for:

  • Executing the emergency management plan
  • Coordinating communication with employees and stakeholders
  • Overseeing recovery efforts to maintain business operations

5. Test and update the plan

A BCP is important, but only if it actually works. Regular BCP testing helps identify gaps and weaknesses before a real emergency happens. Run scenario-based drills to simulate disruptions like a power outage or cyberattack. After each test, review the lessons learned and update the plan accordingly.

Final thoughts

A business continuity plan (BCP) isn’t just a document—it’s a lifeline that ensures your business can continue operating no matter what comes your way. Whether it’s a natural disaster, cyberattack, or unexpected business interruption, having a structured business continuity process protects your revenue, reputation, and long-term success.

The key to a successful business continuity strategy is preparation. By conducting a business impact analysis, identifying potential risks, creating a disaster recovery plan, and regularly testing the plan, you’ll give your business the best chance at bouncing back from disruptions with minimal downtime.

Many businesses only think about continuity planning after a crisis hits—but by then, it’s too late. Take proactive steps now to secure your operations, protect your important data, and keep your customers’ trust.

If you’re unsure where to start, working with experienced IT professionals can help you implement a business continuity and disaster recovery strategy tailored to your needs. With nearly two decades of expertise, OxygenIT provides customised IT solutions that keep businesses running smoothly—even in the wake of disaster. Let us help you safeguard your business’s future today.

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Frequently asked questions

What is business continuity and risk management, and why is it important?

Business continuity and risk management focuses on identifying possible business threats and developing strategies to keep operations running during and after disruptions. A well-prepared business can reopen after a disaster quickly, minimising financial losses and downtime.

How does a BCP differ from a disaster recovery plan?

A BCP (business continuity plan) ensures that an organisation's business process continues despite unexpected events, while a disaster recovery plan specifically focuses on restoring IT infrastructure and data after an emergency or disaster. Both are essential for a resilient business strategy.

What should a BCP include?

A BCP would include:

  • A business impact analysis to identify essential functions
  • Risk assessment and mitigation strategies
  • A disaster recovery plan to restore IT systems
  • An emergency management protocol to guide employees
  • Regular BCP testing to ensure the plan remains effective

How can business continuity management software help?

Business continuity management software streamlines the business continuity and disaster recovery process by automating risk assessments, tracking critical resources, and ensuring compliance with ISO 22301 standards. It also helps businesses highlight areas of vulnerability and improve response times following a disaster.

What are the five steps to creating a business continuity plan?

The five steps to develop a business continuity plan include:

  1. Conducting a business impact analysis
  2. Identifying risks and threats
  3. Establishing a recovery point objective and restoration strategy
  4. Assigning company and oversight responsibilities
  5. Testing and updating the plan regularly

Who should oversee the plan, and how often should it be updated?

A company will respond more effectively if a dedicated continuity team is responsible for managing the BCP. This team should oversee the plan and ensure updates align with changes in business operations, regulations, and emerging threats across various industries. Regular testing using planning software ensures the plan remains relevant and actionable.

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