| dc.description.abstract | With the rapidly changing business environment and arriving of the new millennium, challenges and risks facing enterprises, despite technological advances, become much more complicated. Enterprises have to face not only human induced disasters such as terrorist attacks, financial crises, but also natural disasters and other unexpected events. Consequently, business continuity management, BCM, has been embraced by many business entities.
With available analysis tools, an enterprise can consider all factors having possible impact on BCM. With detailed work procedures to guide the evaluation teams completing the step-by-step analysis, omission of impact of key factors and processes can be prevented, which helps to ensure the integrity of the assessment. According to this study, business impact analysis, BIA, should consider three possible situations such as including the normal business cycle, economic recession and the possibility of non-expected surge in production capacity. BIA should be conducted for all situations to explore the maximum tolerable period of disruption, MTPD, and the recovery time objective, RTO, and to establish the comprehensive recovery program accordingly.
In this study, risk assessment is conducted utilizing the risk matrix model of the Australia / New Zealand HB 221:2004 Business Continuity Managrment Standard. Severity is classified into financial and non-financial impact, which includes business management, finance, operations, and disaster. The significant risk contains 20 items within which 17 items are considered to be associated with management and finance, and risk management is the main focus of BCM.
With the unexpected occurrence of the financial crises, manufacturers tend to reduce inventories to prevent potential losses. Maintaining cash flow is the primary objective it, but it also prolongs the supply period and the conflicting phenomenon of suppliers’ response time in a sudden surge of demands. This research predicts more complex relationships and heavy reliance among a company’s supply chain members. For improved supply chain management, in addition to quality and delivery time, it should also include the suppliers’ capability in safety and health management, overall management performance and cash flow management to avoid all potential impacts.
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