The extent of development of business continuity management in Kenya

Abstract

Turbulence has become the norm for businesses all over the world. Continuity in times of turbulence is critical for all business concerns. This can only be achieved through clearly planned measures and procedures defining the risks and their mitigating factors as well as pre- emptive actions against turbulence and disruptions. Business Continuity Management is the name given to such planning measures. This study sought to investigate whether firms listed on the Nairobi Stock Exchange in Kenya have BCM programs, and if they do, what are some of the factors that have led to the success of the program as well as challenges that hinder those who may not have such programs. Primary data was colle~ted using a questionnaire, designed to be completed by respondents at managerial and operational levels in the surveyed firms. The data was then checked for completeness and analyzed using cross tabulation and descriptive statistics. The survey revealed that most firms on the Nairobi Stock Exchange do indeed have a BCM system in place. Secondly, most firms developed these systems by themselves without any help from external consultants and experts; in addition to these some of the firms did not use any known or recommended standard or regulation to create their BCM program. Risk/Resilience management was identified as the most important reason for the respondents to have BCM systems in place. Finally, employee awareness through a strong corporate culture was identified as the key factor for the success of the BCM programs while lack of sufficient funds was identified as the biggest hindrance to the creation of BCM systems among firms on the NSE. The study concludes by a confirmation that BCM has had a tremendous effect in improving the operations of many firms and will continue to play a critical role in their success going into the future.