Business Continuity Professional Exam Prep

Category - Development & Implementation

Which of the following scenarios demand coming up with a new business continuity and crisis management plan rather than editing the existing plan?
  1. Natural disaster
  2. M&A
  3. Accident affect manufacturing capability
  4. Flu pandemic
  5. All of the above
Explanation
Answer: B. The existing BCP should address natural disasters, loss of manufacturing capability and pandemic events. However, a merger or acquisition is almost impossible to plan for and requires a new BCP project for the integrated firm.

Key takeaway: M&A activity leads to a paradigm shift in organizational processes and systems. Often the methods and controls become ineffective for new combined activity. It is imperative that planning is done afresh to address disaster management needs.
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Additional Answers

Warren Billett says:

I did not know that M & A was mergers and acquisitions.

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