Is the UK government passing the buck on business continuity?

Does a House of Commons exchange about business continuity in SMEs constitute an abdication of responsibility?

On July 1st a very rare event took place: the House of Commons had a discussion about business continuity. Oral Answers to Questions — Cabinet Office provided the opportunity for Liberal Democrat MP, Lorely Burt, to ask Cabinet Office Minister Tessa Jowell about government attempts to increase the awareness about business continuity within the UK’s small business sector.

According to Hansard, the exchange was as follows:

Lorely Burt (Solihull, Liberal Democrat):
[I would like to ask the Minister] What steps her Department is taking as part of its civil contingencies responsibilities to increase the proportion of small businesses which have a business disruption plan.

Tessa Jowell (Minister of State, Cabinet Office; Dulwich & West Norwood, Labour):
The Civil Contingencies Act 2004 places a duty on local authorities to provide business continuity advice, which ensures that advice reflects local conditions at times of emergency and meets local needs. To support that work, the Government have set up a business continuity advice line and in 2008 we published a national risk register to encourage organisations to prepare for the impact of business disruption. In addition, we are supporting the quality of that advice by the adoption of a British standard for business continuity.

Lorely Burt (Solihull, Liberal Democrat):
In March, a Cabinet Office survey found that the proportion of small businesses that had a business continuity plan fell from 25 per cent to only 14 per cent. The possibility of allowing a premium discount with insurers was being considered to see whether that would reverse the trend in respect of companies that had a business disruption plan. Will the Minister say whether she agrees with that strategy and how far the Cabinet Office has got with that investigation?

Tessa Jowell (Minister of State, Cabinet Office; Dulwich & West Norwood, Labour):
It is clearly the responsibility of local authorities to pursue that policy with their small businesses and through their local organisations. However, the figures to which the hon. Lady refers rightly give cause for concern, and I am happy to write to her further about that matter.

While it is correct to say that the Civil Contingencies Act 2004 places a duty on local authorities to promote business continuity awareness to all its local organizations, including SMEs, Continuity Central finds it disappointing that central government is not being more proactive in this area. Essentially it seems like it is passing the buck or, even more strongly, the Minister’s statement is almost an abdication of responsibility.

It is equally disappointing that Tessa Jowell should make an error of fact, stating that the government has set up an advice line to support local authorities’ business continuity awareness raising work. In fact, the Cabinet Office later clarified that the Minister meant to say “advice online”, referring to the UK Resilience website and other web-based resources.

A couple of years ago the Business Continuity Institute (BCI) called for a ‘Business Continuity Czar’ i.e an individual appointed within central government with the responsibility of:
a) promoting business continuity awareness to SMEs and the wider business community;
b) promoting and coordinating business continuity within all central government departments; and
c) Leading central government communications with local authorities about the subject.

Continuity Central believes it is now time to revisit this idea.

Author: David Honour, editor, Continuity Central

Further comments

The BCI was asked to comment on the exchange in the House of Commons. Campaigns Manager Lee Glendon said:

The BCI is very pleased that the subject of business continuity has reached the floor of the House of Commons and particularly notes the emphasis of politicians on helping smaller businesses. This step forward builds on the BCI’s briefing to MPs in March this year, which Lib Dem MP Lorely Burt attended, and also the recent question in the House of Lords by Lord Cotter requesting that the Department of Business Innovation & Skills plays a more prominent role in promoting business continuity to UK PLC. A political consensus around the importance of business continuity as an enabler of greater economic resilience would be a huge advance.

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Reader comment

In the US, passage in 2007 of Public Law 110-53, Title IX which addresses business continuity among other issues, is the closest the two houses of Congress have gotten on the subject of business continuity management.  Title IX was an afterthought - it was tacked on at the end of the legislative process.  It would not have appeared had it not been for the efforts of a few die-hard BCM professionals who raised the issue with their elected representatives.  Since the law's passage in August of 2007, very little has happened.  There have been two public meetings as specified in the law, but nothing of any substance has come out of these meetings.  An organization called ANAB has been assigned responsibility for accreditating organizations that can audit and certify a company's voluntary compliance with a BCM standard.  No BCM standard has been identified that satisfies the legislation's mandates.  So despite some reluctant but good-faith efforts of the US Congress, once again business continuity is the bridesmaid but never the bride. 

Paul F Kirvan, FBCI, CBCP, CISSP

•Date: 3rd July 2009• Region:UK •Type: Article •Topic: BC general
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