Business continuity refers to the ability of a business entity to maintain basic functions during and after the occurrence of a disaster. Business continuity requires establishing a set of processes, policies, and procedures, which define how to address and correct the risk profile and prevent, as far as possible, future occurrence thereof. This will enable a business entity to work uninterruptedly and seamlessly and recover the full functioning of key business activities.
Are there international standards governing Business Continuity Plans?
Yes, International Organization for Standardization (ISO) issued the Standard ISO 22301:2019 Business continuity management systems. Further, there is the UK-based Business Continuity Institute (BCI), which issues standards related to business continuity planning.
Are there instructions issued by any regulator to supervised entities regarding Business Continuity Plans?
In the State of Kuwait, Law No. 7 of 2010 regarding the Establishment of Capital Markets Authority and Regulation of Securities Activity and its Executive Regulations were promulgated, which address the business continuity in Module 6 – Internal Policies and Procedures of Licensed Person and require licensed persons to implement the same as follows:
Article 2.1 of Chapter 2 of Module 6 sets forth that:
“A Licensed Person shall develop policies and procedures manual ensuring compliance with the Law and these Regulations. Such policies and procedures shall particularly govern the following aspects:
13- Emergency and business continuity plans”.
Furthermore, Article 6.1 of Chapter 6 of Module 6 sets forth that:
“A Licensed Person shall have proper measures in place to ensure its ability to maintain its operations, in particular maintaining sufficient capital for this purposes, and fulfil its legal obligations in the event of an unexpected suspension of its business, taking into consideration the nature, volume and diversity of their business. Such measures shall be documented and periodically updated and tested to ensure their effectiveness and continued relevance to the latest developments in the field of activity of the Licensed Person”.
What is the importance Business Continuity Plan within business entities?
A business continuity plan is a component of internal controls that support the corporate governance system. This explains why it is mandatory to implement the same.
The UK-based Business Continuity Institute (BCI) recommends the implementation of a business continuity plan by creating an organization unit or a committee under the CEO to be chaired by CEO or an Assistant CEO with department heads as members. A full-time job should be assigned to manage the tasks of this unit or committee and a regular meeting framework should be established for the same.
What is the added value from the Business Continuity Plan to business entities in Kuwait?
- Protect the entity against potential threats to maintain business continuity.
- Improve the processes and operations and attain competitive advantage.
- Compliance with laws, regulations, resolutions, and instructions issued by regulatory authorities; and
- Enhance the stakeholders’ confidence in the business entity.
Why do you choose Baker Tilly Kuwait to provide this service?
Baker Tilly is distinguished by specialist professional experience and offers the following characteristics carrying added value to our clients as follows:
- A global consulting firm operating in the State of Kuwait
- Baker Tilly’s local experience under the international umbrella
- Professional bilingual team with in-depth experience in providing risk management services
- Baker Tilly’s experience in the matrix of regulatory instructions in the State of Kuwait related to the Business Continuity Plan