Critical Functions in Ensuring Effective Business Continuity Management. Evidence From Romanian Companies

Abstract

The paper explores how business continuity management (BCM) is defined within the professional and academic communities that work in the field or research it. It sets out the framework for the composing elements of a BCM that emerge and considers how these various elements can interact with each other to build a sound business continuity management. Also, the paper aims to examine the organization’s critical functions that ensure an effective BCM. The research relies on a questionnaire-based survey, with data collected by personally interviewing top and middle-level managers from Romanian small and medium-sized companies. The results, which count on the responses of 119 participant companies, show that risk assessment takes a critical role in building the organization’s BCM strategy, while business continuity response planning has the strongest impact on the overall effectiveness of the organization’s BCM. The novelty of this research lies in a first time establishment of the critical functions that are vital for companies to maintain their essential business operations in case of disruptive incidents, to build organizational resilience. Future research should be grounded on testing if the BCM arrangements and business impact analysis influence the BCM strategy as the existing data did not prove that it did.

Innovation Indicators and the Innovation Process - Evidence from the European Innovation Scoreboard

“…Furthermore, Păunescu and Argatu (2020) describe that the continuous analysis of internal resources can help companies achieve a more efficient management of "unexpected occurrences". In this sense, the authors depict the concept of business continuity management as representative for small and medium enterprises.…”

“…In this sense, the authors depict the concept of business continuity management as representative for small and medium enterprises. In the own acceptance of Păunescu and Argatu (2020), this concept stimulates enterprises to better understand how to protect against various risk factors and how to better respond and adapt to risk. Considering the importance of mitigating risks, and the flexibility to rapidly adapt business models, in order to deliver value for customers, Rusu (2016) reveals the importance of manifesting innovation through business models.…”

Information-driven Supply Chain During a Catastrophic Event: COVID-19 Pandemic

“…Supply chain firms operating in a dubious environment can adopt risk-adjusted supply chain management practices and enhance competitive advantage (Hauser, 2003). Identifying, managing risks, and communicating the efforts can help organizations in sustaining competitive advantage (Paunescu & Argatu, 2020). Contemporary organizations need to have a strategic plan to deal with uncertain events to avoid a negative impact on the operations (Marisa & Oigo, 2018).…”

“…Supply chain firms operating in Demand risk Chen and Paulraj (2004) Increase in the inventory cost Chen and Paulraj (2004) and Zhao et al (2013) Reduced customer service Chen and Paulraj (2004) and Zhao et al (2013) Unstable deliveries Chen and Paulraj (2004) and Zhao et al (2013) Lowering the uncertainly due to financial risk Awaysheh and Klassen (2010) Compliance risk Pundmann and Kobel (2003), Liu et al (2010), Deloitte (2015Deloitte ( , 2020b, and Bustamante (2019) Degree of variability in return Ball and Brown (1968) Behavior-related performance measures Information systems Control systems Eisenhardt (1989) a dubious environment can adopt risk-adjusted supply chain management practices and enhance competitive advantage (Hauser, 2003). Identifying, managing risks, and communicating the efforts can help organizations in sustaining competitive advantage (Paunescu & Argatu, 2020). Contemporary organizations need to have a strategic plan to deal with uncertain events to avoid a negative impact on the operations (Marisa & Oigo, 2018).…”

Views on business continuity and disaster recovery

“…The global economic, environmental and social instability and the dynamics of business environments resulted in new types of risks and disruptions. Besides, the worldwide openness through social media, Internet and transportation exposed many countries and organizations to new types of threats, such as reputational crises, cyber-attacks and pandemics (Paunescu and Argatu, 2020; Glenn and Gordon, 2002).…”