Free Access GAQM CBCP-002 New Release

A disaster can also be declared for an illness pandemic where a significant portion of employees are sick. This is true because an illness pandemic is a type of natural disaster that can affect an organization’s ability to continue its normal operations. An illness pandemic can cause absenteeism, reduced productivity, increased costs, supply chain disruptions, customer dissatisfaction, or regulatory compliance issues. Therefore, an organization may need to declare a disaster and activate its business continuity and disaster recovery plan if an illness pandemic impacts its critical functions and processes beyond an acceptable level. VerifiedReferences:

Business continuity planning is not a one-time activity, but a dynamic and ongoing process that needs to be reviewed and updated regularly to reflect changes in the internal and external environment. The frequency of review may vary depending on the nature and size of the organization, but it is generally recommended to conduct a review at least annually or whenever significant changes occur that may affect the continuity of the organization’s functions and processes. Such changes may include organizational restructuring, new products or services, new technologies, new regulations, new threats or vulnerabilities, or lessons learned from incidents or exercises. Verified References:

Continuity planning with external stakeholders, such as key suppliers, is essential to ensure the uninterrupted flow of information, materials, products, and services during disruptions. The type of continuity planning determines the nature of the relationship and coordination with these suppliers:

Multilateral: This involves multiple parties (e.g., an organization and several suppliers or partners) working together in a coordinated plan. While multilateral planning can enhance collaboration across a broad network, it is complex and not specifically tailored to strengthening individual supplier relationships, which is the focus of this question.

Bilateral: This refers to a two-party agreement or plan between the organization and a specific supplier. Bilateral continuity planning fosters a direct, functioning relationship with key suppliers, enabling mutual understanding, aligned recovery strategies, and stronger assurances of continuous supply. It is the most effective approach for building robust, one-on-one supplier relationships, as it allows for tailored coordination and commitments.

Unilateral: This is a one-sided plan where the organization develops its continuity strategy without direct supplier involvement. While it may address internal resilience, it does not enhance the functioning relationship with suppliers or provide assurances of their continuity, making it inadequate for this purpose.

The correct answer isB. Bilateral, as it directly enhances the relationship with key suppliers through mutual planning and coordination, ensuring a continuous supply chain. This aligns with Business Continuity Professional practices that emphasize collaboration with critical external dependencies.

References:

DRI International Professional Practices for Business Continuity Management (2023), Section 4: Business Impact Analysis and Risk Assessment – Highlights the importance of engaging key suppliers in continuity planning.

ISO 22301:2019, Clause 8.2.3 – Emphasizes identifying and managing dependencies, including suppliers, through coordinated planning.

The primary reason for developing and implementing a business continuity plan is to ensure the continuation of a company’s critical functions and processes in the face of a disruption that may otherwise cause severe losses or damage to the company’s reputation, assets, customers, or stakeholders. A business continuity plan can help a company to resume operations asquickly as possible after a disruption, minimize the impact on its performance and profitability, protect its brand and image, and fulfill its legal and contractual obligations. Verified References: