Risk Assessment & Business Continuity Planning (BCP)

Today, consider yourself an auditor inside an organization. We’ll be discussing risks, processes, mitigation strategies, Business Continuity Planning (BCP), Disaster Recovery Planning (DRP), and everything that connects them. It’s important to step into this auditor’s role before getting into the entire process.

Basic Terminologies: Vulnerability: A weakness or gap in systems, processes, or controls that can be exploited by a threat. Threat: Any event, action, or circumstance with the capability to cause harm to an asset. Risk: The potential impact on an asset when a threat exploits a vulnerability, measured in terms of likelihood and consequence.

Step into the shoes of an auditor for a moment.

You’re walking into an organization on a normal Monday morning. The systems look fine, the network feels calm, and everyone is busy with their routine. But behind this calm surface lies a question you must answer:

“What could go wrong here and are we prepared for it?”

And that’s where your work begins.

First Step: Risk Analysis

As you explore the environment, you start identifying what could harm the organization.

One thought should click: “If someone tries to break in, where could they succeed?”

Risks are of two types: proactive (process that reduces the risk of new vulnerabilities in your organization) & reactive (process that responds to security events as they occur.)

How Risks Are Measured: Quantitative vs Qualitative Analysis

Once you’ve identified what could go wrong, the next challenge as an auditor is understanding how severe the risk really is. This is where two methods come into play:

Both approaches help the auditor convey the seriousness of risks in a manner that decision-makers can understand.

Second Step: Risk Assessment

Next, you examine the existing security setup: firewalls, policies, user awareness, logging systems. You’re not just checking whether controls exist, you’re judging their strength.

You should question like:

• Are these controls enough for the threats we identified?

• Will they hold up during an attack?

• Are the adequate?

Third Step: Risk Management

Once you’ve mapped the risks, your work moves to something big, that is risk management. It’s the organization’s long-term playbook or document.

It guides how risks are:

• Identified

• Analyzed

• Evaluated

• Treated

• Monitored

• Communicated

Risk management ensures that the organization isn’t reacting to problems, it’s preparing for them.

Three Pillars of Understanding Risk

Every auditor lives by three core components:

1. Risk Assessment: Understanding what the risks are

2. Risk Management: Choosing how to reduce or handle those risks

3. Risk Communication: Explaining these risks clearly to decision-makers

Because a risk understood but not communicated… is a risk unmanaged.

What You Evaluate Along the Way

As you walk through departments and systems, you keep mental notes:

• What is valuable here? (databases, services, intellectual property)

• Where is the system weak?

• Who could attack (insiders or outsiders)?

• Which risks must be tackled first?

What You Examine Before Suggesting Controls

You also look at the possible security measures and compare:

• Are they available?

• Do they genuinely work?

• Are they cost-effective?

Sometimes a simple control like MFA solves a major problem. Sometimes a costly solution adds little value. The right balance matters.

The Final Phases: Implement and Monitor

After deciding what needs to be done, the organization implements the controls. But your role doesn’t end here, risks evolve, technologies change, attackers improve. So continuous monitoring becomes the silent guardian of the system.

Why This Entire Exercise Matters

By now, your story inside the organization has made one thing clear, Risk analysis is not just documentation, it is awareness.

It brings:

• Clarity on the high risks

• Alignment between teams

• Support for investing in needed controls

• A clear way to communicate decisions

• Confidence that the organization is moving toward resilience

Every audit, every analysis, and every review ultimately strengthens the organization’s ability to continue operating, even when something goes wrong.

BCP: Business Continuity Planning

By now, you’ve walked through the hallways of the organization as an auditor, spotting risks, understanding vulnerabilities, and mapping the intensity of every threat. But the real test of an organization isn’t the number of risks it lists on paper.

It’s how it survives when one of those risks becomes real.

Business Continuity Planning is the process of preparing an organization to continue its critical business functions even when unexpected events threaten to shut everything down.

If risk assessment tells you what can go wrong, BCP answers how the business will survive when it does.

And one afternoon, it does.

The office suddenly goes silent.The network crashes, screens flicker, employees gather in confusion. A critical system has failed — maybe a power outage, maybe a cyberattack. Whatever it is, the impact is immediate.

This is the moment the Business Continuity Plan (BCP) was created for.

Why BCP Exists?

BCP steps in with one goal: “No matter what happens, critical business functions must not stop.” So as an auditor watching this chaos unfold, you don’t just see disruption…you see a test.

BCP ensures that:

• Emergencies get an immediate, structured response

• Safety of people is prioritized

• Critical business functions resume quickly

• Confusion is replaced with clarity

• The business remains alive during and after disruptions
  

Process of Creating BCP

To understand BCP better, let’s continue the auditor’s story and walk through each phase as it unfolds during the incident.

Resource: 9 Bcp+Drp | PPSX

1. Project Initiation

Long before today’s outage, the organization had already set things in motion:

• A BCP project team was created

• Management approved the effort

• Roles were assigned

• A Business Continuity Coordinator was appointed

• Clear objectives and scope were defined

This phase is about establishing the foundation. Nothing moves without management support, and no plan works without the right people to build it.

2. Business Impact Analysis (BIA)-Knowing What Truly Matters

In this phase, the organization analyzed:

• Which processes are critical

• How long each process can survive an outage

• What financial, operational, or reputational damage each disruption could cause

• Which systems, people, and resources each function depends on

This analysis resulted in identifying the Maximum Tolerable Downtime (MTD) the longest duration a business function can be unavailable before the damage becomes unacceptable.

This is why, during the actual incident, the teams immediately knew which systems needed attention first because BIA had already prioritized everything.

3. Recovery Strategy

Before anything goes wrong, organizations decide how they will recover. This includes planning for:

• Alternate sites (hot, warm, cold, mobile)

• Backup methods

• Resource requirements

• Manual workarounds

• Data recovery methods

• Staffing needs

The strategy ensures that when things break, there’s already a roadmap ready. This is the phase where the company answers:

“If our primary site fails, what’s our backup plan?”

4. Plan Design & Development

Once strategies are selected, everything is documented clearly:

• Step-by-step emergency procedures

• Communication workflows

• Evacuation plans

• Contact lists

• Backup processes

• Technical recovery details

• How to shift to alternate sites

• How to perform business operations manually
  

In the story, this is the script every team member now follows as they respond to the ongoing disruption. This phase transforms planning into a usable, practical manual.

5. Implementation

This is the moment where the plan stops being theory. During the disruption, the organization activates:

• The Business Resumption Plan

• IT Contingency Plan

• Crisis Communications Plan

• Cyber Incident Response Plan

• Disaster Recovery Plan

• Occupant Emergency Plan

Implementation is where coordination becomes everything. Teams communicate, systems shift, backups load, and people move with direction instead of panic.

6. Testing

BCP testing happens long before the incident. Teams conduct:

• Walk-through tests

• Checklist reviews

• Simulations

• Parallel tests

• Full interruption drills

These rehearsals build confidence so that when a real event occurs, like this imaginary story, people know exactly what to do.

No confusion, No hesitation. Just controlled response. (Ofc Panic will be there, but at least one would not be standing blank with no plans or guidance)

7. Maintenance, Awareness & Training. Important for Keeping the Plan Alive

A BCP is not a static document. It must evolve with:

• New technologies

• Staff changes

• Updated infrastructure

• New risks

• Organizational changes

That’s why regular reviews, updates, and training sessions are essential.

After any incident, the team should document what worked and what didn’t and the plan should become even stronger and more robust.

There is still much more to cover, and another important part is DRP, which I will discuss in the next section. Until then, enjoy being an auditor, at least theoretically.