Continuity planning empowers businesses to adapt, recover, and thrive

Businesses often struggle to recover from extreme weather events and natural hazards because they are not ready. 

It has been estimated that 40% of small and medium-sized enterprises (SMEs) do not reopen after a disaster and many of those that do, fail within a year. Businesses need to rethink their operating models before disruptions happen. Yet building disaster resilience does not always have to require a resource intensive process or lead to something new.  It does not mean changing what a business does, but how it does it. This is where business continuity planning comes in.

A business continuity plan (BCP) outlines what is needed for a business to continue operating or resume operations after a disruption. It serves as a guide for pivoting operations if and as needed. Yet according to some estimates, only 20-30% of SMEs have written BCPs in place.

In partnership with local governments, chambers of commerce and ARISE networks, UNDRR is implementing a project in Barcelona (Spain), Bridgetown (Barbados) and Sendai (Japan) to support SMEs in developing and testing business continuity plans to strengthen their disaster resilience. Early lessons are already emerging. 

Here are five noteworthy things about business continuity planning that further highlight its importance:

Business continuity plans can separate those that recover from those that do not

With the increasing frequency and intensity of disasters, preparation is no longer optional. It makes all the difference. In many parts of the world, the question is not whether but when the next extreme weather event or natural hazard will strike. What businesses do today will determine how they fare in the face of a disaster tomorrow. A systemic approach to developing a BCP – conducting even quick multi-hazard risk assessments, identifying critical functions, outlining response and communications protocols, assigning roles, and stress-testing the plan – outline a clear roadmap that enables faster, risk informed decision-making and more effective resource allocation. Those without BCPs will inevitably face more chaos, operational delays, and significant losses – many times leading to business closure. Businesses that are risk-aware, with tested and up-to-date BCPs, however, are able to absorb shocks better, pivot operations, recover faster and become more resilient.  

Business continuity plans are cost-effective mitigation measures

Business continuity plans are a quick, low-cost way to mitigate potentially high-impact disaster risks. They typically require low financial investment especially when compared against the potentially significant losses of being unprepared for disasters. This is particularly true for small and medium-sized enterprises (SMEs) that often do not have the resources – human or financial – for developing more holistic disaster risk reduction approaches or undertaking disaster recovery efforts.

Business continuity plans are a mechanism to operationalize resilience

While resilience encompasses more than just business continuity, a well prepared BCP provides the foundation for reducing organizational vulnerabilities, pivoting operations and building resilient recovery capabilities. They clarify roles and actions that are needed to continue operations or resume quickly after a disruption. While resilience may be the ultimate goal, business continuity planning represents the practical steps to achieve it.

Business continuity plans can offer a strategic advantage during uncertainty

Business continuity plans can significantly enhance a company’s competitiveness and safeguard long-term success during disruptions. Those that have BCPs – and have tested and updated them regularly – are in a better position to minimize downtime and continue or quickly resume their operations. They are better equipped to protect their physical assets and data, while also retaining customers as well as contributing to the resilience of the communities where they operate. The operational flexibility - agility and ability to adapt to changing circumstances - can even help in capturing more market share.

Business continuity plans can improve financial reserves

Limited access to finance and no or inadequate insurance coverage are often cited among the key reasons why SMEs do not recover from disasters. Partners want to ensure that their supply chains and services are not disrupted, investors and lenders are keen to protect their capital, and insurers want to minimize payouts. A robust BCP can help improve financial cushioning by providing a form of assurance that operations will continue. As operational and financial risks are lowered, the business becomes a more stable, and thus attractive investment. Business continuity planning can also improve insurability: turning the business into a lower-risk policyholder, potentially leading to better policy terms and/or lower insurance premiums. In general, BCPs signal commitment to proactivity, stability and sustainability – making the business more credible and trustworthy in the eyes of all key stakeholders.

To support businesses in understanding their resilience capacities, UNDRR has also developed the Resilience Maturity Assessment Tool (ReMA). ReMA helps businesses – particularly SMEs – identify gaps in their disaster preparedness and assess the maturity of their resilience strategies, offering a structured path toward stronger continuity planning and risk governance.

Business continuity planning is more than a safeguard – it’s a strategic choice that empowers businesses to adapt, recover, and thrive amid disruption.