Proposal for enhancing effectiveness of Business Continuity Plan (BCP)

This proposal focuses on the effectiveness of Business Continuity Planning (BCP), especially in the context of the Great East Japan Earthquake, with an aim to see improved effectiveness of these measures by Japanese companies. The proposal suggests implementing measures from two perspectives: "Efforts by companies and the business community" and "Efforts by public administration."

It concludes that companies and the business community should recognize that efforts for business continuity are an effective investment which can lead to the enhancement of corporate values and competitiveness.

On the occasion of the Great East Japan Earthquake, Japanese companies successfully carried out planned measures including business continuity plans (BCP), but the effectiveness of these measures remains an issue in need for improvement. In addition, the business environments have been changing considering issues such as the Tokyo Inland Earthquake, the Nankai-Trough Great Earthquakes, and influenza pandemics etc.

Keidanren compiled the proposal focusing on the effectiveness of BCP. This proposal suggests measures from two perspectives — "Efforts by companies and the business community" and "Efforts by public administration."

A. Efforts by Companies and Business Community

1.  Responsibilities of Top Management
   • Strengthen business continuity with a strong leadership
   • Appropriate allocation of management resources at times of disaster
2.  Enhancement of Effectiveness of BCPs
   1. Improve a system toward business continuity
      • Enhancement of functions of disaster response headquarters (ensuring personnel in the case of disasters in non-business hours etc.)
   2. Review of postulated events in BCPs
      • Study BCPs to address all potential risk factors (consequence-based approach)
   3. Improvement of facilities and equipment
      • Make facilities earthquake-resistant and secure disaster-resistant communication network
   4. Utilize cutting-edge information and communication technologies (ICT)
      • Utilize cloud technology, social networking service (SNS), and other solutions in disaster management
   5. Development of human resources and raising awareness
      • Improve on-site capability through practical trainings
   6. Evaluation and review of BCPs
      • Objective evaluation and building of the plan-do-check-act (PDCA) cycle
3. Establishment cross-sectional BCP systems
   1. Collaboration within a company and within group companies
      • Construct an emergency communication system
   2. Collaboration within industries
      • Develop concrete action plans under the leadership of industry groups (provision of BCP guidelines etc.)
   3. Collaboration within supply-chain
      • Create database of business partners and share BCPs with the partners
   4. Collaboration with local communities and public administration
      • Conclude collaboration agreements with local governments and develop District Continuity Plans (DCP)

B. Efforts by Public Administration

1.  Build a Resilient Society
   1. Strengthen continuity of an entire society
      • Raise public awareness toward disasters and intensify information gathering, analyzing, and transmitting systems
   2. Strengthen social infrastructure
      • Make infrastructures quake-resistant and renew over-age infrastructures, as well as maintenance and management of infrastructures utilizing ICT
   3. Develop a legislation system contributing to building a resilient society
      • Flexible application of laws and regulations at the time of disaster
2.  Support for Companies' Efforts
   • Design an incentive scheme for companies' disaster prevention measures etc.

Companies and the business community should recognize that efforts for business continuity are an effective investment which can lead to the enhancement of corporate values and competitiveness. Keidanren will lead and support such companies' efforts and activities.