Why is ISO 22301 Important?

ISO 22301 provides a framework for developing an infallible Business Continuity Management System (BCMS) that can help businesses keep themselves up and running during a crisis. The most apparent benefit of ISO 22301 is to prevent financial losses, but there is much more to it.

ISO 22301 helps ensure the continuity of the operations irrespective of the circumstances

BCMS, designed strictly per the ISO 22301 standard, helps safeguard business operations from all disruptions, including natural disasters, cyber-attacks, infrastructure failure, and planned outages. Whether your supply chain is interrupted or there is a significant machinery failure, or there is a natural disaster, BCMS will provide you with every possible solution that you would need to ensure that your business works as usual and your clients experience minimum hassles. ISO 22301 eliminates the need to depend on any specific person to execute the disaster recovery plan. It eliminates all possible last-minute guesswork. All you need to do is to implement the plan.

It safeguards businesses from unexpected financial losses.

As per FEMA, about 25% of businesses do not reopen after a disaster. That’s an alarming figure, and, as expected, the primary reason why companies give up is because of the whopping financial loss they experience. By ensuring the continuity of operations, ISO 22301 can help reduce the economic impact to a great extent during the time of the disaster and afterward. It can protect your annual reports from showing disappointing results to the stakeholders and other interested parties. Instead, the surprisingly good results despite facing a disaster will reflect your dedication and responsiveness.

ISO 22301 certification reduces the business interruption
insurance cost

Although ISO 22301 certification is not mandatory, insurance companies usually prefer businesses that are ISO 22301 certified. This certification proves that you, as a business, have already accessed the risks and have taken all necessary measures to reduce them. It means you already have a disaster management plan to reduce the impact and help you get your business back to usual. When operating with low risk, insurance companies may be able to provide you coverage at a much lower cost than what they charge from non-certified businesses.

It helps improve a brand’s reputation and reliability.

The business continuity management system will ensure that your customers are served appropriately on time, every time, irrespective of the weather conditions and social and political environment. When you ensure 99.9% continuity, you can build a strong customer base that can even become your brand advocate and help you get more business. Business continuity during difficult times will improve customer retention. It will also strengthen the trust that your stakeholders have in you. ISO 22301 certification will provide you an edge over competitors who aren’t yet certified.

ISO 22301 certification may help you minimize legal risks.

Like most other ISO standards, 22301 is not mandatory in most countries. But it is designed to cover a lot of legal protocols and policies that businesses are required to follow. By getting certified, you can minimize the legal risks that you may have skipped otherwise or may have forgotten to stay updated with them. Since ISO 22301 certification needs to be renewed every three years, it can help you stay updated with other legal requirements.

You will get a third-party opinion on your disaster preparedness.

To get ISO 22301 certification, you will have to get your Business Continuity Management System audited by a third party. If you successfully pass the audit, you will get your certificate. If you fail, you will get to know the loopholes that you need to fix to come up with a foolproof disaster management plan. Both of these possibilities are going to work in your favor.

ISO 22301 requires you to monitor and test your BCP regularly to ensure preparedness.

Every business designs a business continuity plan (BCP), but the plan can be forgotten at times. ISO 22301 mandates that the BCMS needs to be monitored and tested at regular intervals. The certification needs to be renewed after every three years. It leaves no scope for ignoring the disaster management plan. Instead, it enables businesses to stay ahead and keep updating their BCMS as and when needed, unlike BCP, which is hardly tested or updated.

You will be able to focus on the core area of your business instead of worrying about continuity.

When you have a highly effective and reliable business continuity management system in place, you have less to worry about securing the future of your business against unforeseen circumstances. ISO 22301 will take care of it. You can focus on daily operations, expansion, and growth.


ISO 22301 is suitable for all types of businesses, whether you are dealing with products or services. It is equally beneficial for small, medium, and large companies. Large corporations often have a backup, but small ones and startups rarely have financial support. Unless they have a highly effective business continuity management system, they may not be able to survive a crisis.

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