Impact of crisis situations on development of business continuity management in Croatia

Abstract

The study focused on the influences of different crises situations on development of business continuity management. Empirical study was conducted in Croatian companies via quantitative research. Hypothesized model for development of business continuity management was tested. Crisis situation was measured as a composite variable based on three elements: recovery time period, impact on corporate profits and amount of operations affected by the crisis. Correlation between crisis situations and development of business continuity management indicated that the increase of the risk of a crisis situation will increase the degree of development of business continuity management. Furthermore, strategic and operational risks influence more on development of business continuity management than natural disasters. Also, unintended risks influence the business continuity management development more than intentional risks. The second part of the research focused on the influence of likelihood of recurrence of the crisis situation on the development of business continuity management. The relationship between likelihood of crises recurrence and business continuity management development was not determined. The main contribution of the research lies in modelling business continuity management development related to different crises situations and likelihood of crises recurrence.

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