How to Build a Business Continuity Plan: A Step-by-Step Guide for Risk-Ready Companies

When disaster strikes, your company’s ability to survive and thrive hinges on one critical document: your business continuity plan (BCP). Whether it’s a cyberattack, natural disaster, or unexpected supply chain disruption, having a proactive and well-practiced plan can mean the difference between a brief setback and a business-ending crisis.

If you’re not sure how to build an effective business continuity plan, this guide breaks it down into five essential steps—so you can prepare, respond, and recover with confidence.

Photo by Marcus Kauffman on Unsplash

Why Business Continuity Planning Matters

Many businesses focus on growth and daily operations, but overlook how fragile those operations become during a disruption. A comprehensive business continuity plan protects your team, operations, and bottom line when the unexpected occurs.

Risk is everywhere—pandemics, floods, data breaches, fires, power outages, and even civil unrest. Being unprepared can cost your business in revenue, reputation, and regulatory fines.

Step 1: Identify the Risks That Threaten Your Business

Start by conducting a risk assessment tailored to your location, industry, and operations. Common risks include:

• Cybersecurity threats and ransomware

• Severe weather: hurricanes, floods, wildfires

• Earthquakes or other environmental hazards

• Equipment failure and power outages

• Pandemics or widespread illness

• Workplace violence or civil unrest

Don’t make the mistake of assuming, “It won’t happen to us.” Every business has vulnerabilities.

Step 2: Develop Your Business Continuity Strategy

Your BCP should outline how you’ll continue operations during and after a crisis. Here’s how to start:

• Conduct a Business Impact Analysis (BIA): Assess how disruptions impact your operations, customers, revenue, and compliance.

• Identify Essential Functions: Prioritize the business processes that must continue or be quickly restored.

• Set Timelines: Define acceptable downtime, recovery time objectives (RTOs), and critical deadlines.

• Secure Resources: Identify the people, equipment, data, and facilities you’ll need to operate.

• Mitigate Risks: Take preventative steps to limit damage—like backing up data or relocating sensitive assets.

Step 3: Add the Critical Components

Make sure your business continuity plan includes these key elements:

• Essential Functions: What operations can’t stop?

• People: Who executes the plan? Consider employees, contractors, and vendors.

• Resources: Equipment, supplies, IT systems, utilities—anything needed to function.

• Data: How will you access critical data? Where are your backups stored?

• Location: Where will your team work if your primary site is inaccessible?

• Communication: How will you stay in touch with employees, customers, and partners?

• Losses and Expenses: What losses might occur and how will they affect your financials?

Step 4: Train, Test, and Improve

A plan only works if your team knows how to use it. To keep your BCP effective:

• Train Employees: Ensure everyone involved understands their roles.

• Collaborate with Department Heads: They can flag risks and dependencies you might miss.

• Test the Plan: Run simulations and table-top exercises to expose weaknesses.

• Make Improvements: Use test results to refine the plan regularly.

Step 5: Keep Your Business Continuity Plan Updated

A static plan becomes outdated fast. Make it a habit to:

• Review your BCP at least annually

• Update after major organizational changes

• Adjust for shifts in services, staff, tech, vendors, or regulations

Your business is constantly evolving—your continuity plan should too.

Stay Risk Assured

Business continuity planning isn’t just a box to check—it’s a core component of operational resilience. At RiskAssured, we help businesses assess risk, reduce vulnerability, and create customized continuity strategies that stand up to real-world disruptions.