With the ongoing crisis, there has been a shift in the way businesses are being operated. Companies are trying out different approaches to business continuity management solutions as per their goals and processes. Enterprises are looking at a broader perspective before making decisions.
Let’s discuss BCM as a proactive or reactive strategy and different BCM solution approaches. Some organizations prefer an evaluation-based reactive strategy, while others root for the proactive one. In this article, we have focused on both the strategy of the BCM solution. We will lay out the differences and discuss why the proactive strategy has become the first choice for most organizations.
What is Proactive and Reactive Approach in BCM Solution?
Proactive strategy encircled around the concept of prior planning to minimize any threats or risks in the future. This approach assesses business risk appetite and their processes thoroughly before detecting underlying potential threats & their severity.
The Reactive Strategy is a response-oriented perspective that relies on past experiences to respond if a crisis strikes. This perspective reacts to the crisis or unplanned events after it takes place. In that case, the reactive strategy is referred to as an evaluation and audit-backed process by the experts.
Proactive v/s Reactive Approach in BCM Solution
Experts have matched proactive and reactive strategies to identify the best possible business continuity management solution. The diversion of these two plan-based and reaction-oriented approaches is staggering. Read these key components for better clarity.
Ideas & Initiation
Proactive BCM solution connects with the thought that prevention is better than cure. This strategy is preferred due to its risk management planning. Stakeholders display support for those who take progressive initiative during this time.
On the other side, the reactive strategy does not invest its time in the planning framework. It focuses on the experience. That is the reason; new idea generations often get restricted in this strategy.
Trustability of Managers
In the proactive business continuity management solution, companies often make changes in their process. Some businesses are considering a proactive framework as the best feasible solution for rising above the risks. The pre-planning stage ensures managers are aware of the risk managing procedure for implementing it effectively. This situation enhances trust among managers.
Things are not similar when it comes to a reactive strategy. Due to immediate actions, a lack of trust often gets projected. Confusion and contradictory actions can also take place. The chances are there that situation might get dense.
Open Flow of Information
The flow of information in the proactive business continuity management solution holds significance due to its optimized operational functionality. The open flow of information in the proactive strategy puts the organization in a progressive position during the crisis.
In a reactive strategy, things take a different turn due to the restricted flow of information. Sometimes, the absence of key responsible personnel gets businesses into the pitfall of losses. The crippling effects on businesses; afterward, the crisis is undeniable.
Attitudes towards staff, customers’/service users
The proactive strategy concentrates on the specific service users or customer requirements due to prior planning. The reactive strategy focuses on customer needs as this approach offers no such perspective to businesses of what their customers specifically want at that time.
One of the major components of the BCM solution is the approach of enterprise at a crisis period. In a proactive strategy, participation is given high importance if you compare it with the reactive one. The consultative nature of the proactive concept seems to be more successful. In the proactive business continuity approach, participation assists companies in dealing with crisis management more efficiently.
Co-ordination between staff or managers
Proper co-ordination with managers in disruptive situations takes the proactive business continuity management solution approach a step ahead. A structured framework helps managers in making effective emergency communications. In a reactive strategy, unpreparedness often seems to be a hindrance to the co-ordination between managers.
Plans & Priorities
While opting for BCM Solution, enterprises often go for proactive strategy due to its comprehensive knowledge-based plans. It enables them to carry out their businesses without getting impacted. The clarity of priorities helps them in dealing with a crisis without interruptions.
A reactive strategy saves time of resources by not involving in prior plan-making. It may help you concentrate on other high priority work if the crisis possibility is less or rare. But, the selective knowledge on crisis often restricts the restoration opportunity if any threat occurs. Companies with the reactive strategy only focus on particular priorities for the crisis time.
Investment Depending Upon Risk Appetite
Discussion on the BCM solution won’t be completed unless we discuss the investment of both proactive & reactive approaches. One of the best advantages of the reactive approach is its investment cost. Due to experience, they have a clear idea of the situation. In this case, they save the cost of planning and allocating resources to invest it in other significant processes.
In BCM Solution, Which Approach Works Better?
These components often turn situations for companies dealing with a crisis. Both strategies have their own set of advantages & disadvantages. Taking the current scenarios into consideration, we can say that the chances of disruptions have been increased. Dealing with a challenging situation has become difficult than before. In this situation, most enterprises found that a proactive strategy has long-term value than a reactive approach. Thus, shifting towards the approach of proactive business continuity management solutions is thriving.