What must organizations reference to establish the need for a business continuity program?

Organizations must reference legal and regulatory requirements to establish the need for a business continuity program because these requirements often set the baseline for operational resilience standards. Numerous industries are governed by laws and regulations that mandate certain levels of preparedness and response capabilities in the face of disruptions. Failing to comply with these standards can result in legal penalties, financial losses, and reputational damage.

By understanding and adhering to the specific legal obligations applicable to their industry, organizations can ensure that their business continuity programs not only help protect their assets and operations but also comply with relevant laws, enhancing their credibility and stakeholder trust. This compliance-driven approach creates a strong foundation for the business continuity program, emphasizing the need to plan and prepare for potential risks and disruptions to ensure organizational resilience.

While considerations such as cost, employee feedback, and market trends can influence the development and implementation of a business continuity program, they do not provide the same fundamental imperative that legal and regulatory requirements do. These elements may be useful for shaping the specifics of a program, but the initial drive to establish one often stems from the necessity to meet legal obligations.