Business Case for BCM · 2017. 9. 20. · The Business Case for BCM 4 ... 56% for transport...

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The Business Case for BCM Copyright © 2010 The Business Continuity Institute Business Case for BCM The Business Continuity Institute’s report on the tangible benefits of BCM programmes based on a worldwide survey of practitioners The Published March 2010

Transcript of Business Case for BCM · 2017. 9. 20. · The Business Case for BCM 4 ... 56% for transport...

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    Business Case for BCM

    The Business Continuity Institute’s report on the tangible benefits of BCM programmes based on a

    worldwide survey of practitioners

    Th

    e

    Published March 2010

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    re in

    tra

    inin

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    eo

    ple

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    BC

    M.

    Lo

    ss o

    f p

    rod

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    ivit

    y is

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    e p

    rim

    ary

    imp

    act

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    eri

    en

    ced

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    Th

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    UK

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    ub

    lic

    sect

    or

    felt

    BC

    M b

    en

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    re

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    ve o

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    e e

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    rie

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    d is

    “fa

    vou

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    ove

    rage

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    his

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    r is

    th

    e

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    clin

    ed

    to

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    co

    nsu

    lta

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    in it

    s B

    CM

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    mm

    e, b

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    on

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    y th

    ey

    are

    ve

    ry

    sati

    sfie

    d w

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    th

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    co

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    nts

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    f re

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    BC

    I m

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    be

    rs.

    Co

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    s

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    e f

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    om

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    T a

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    d

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    M p

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    hig

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    vels

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    ed

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    ere

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    so

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    e e

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    pri

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    Ma

    na

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    ed

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    a g

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    du

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    t is

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    ote

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    CM

    ma

    na

    ge

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    ave

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    ed

    it in

    sura

    nce

    co

    nd

    itio

    ns

    (4th

    )

    Ad

    vers

    e m

    ed

    ia c

    ove

    rag

    e (

    4th

    )

    Loss

    of

    tale

    nt/

    skil

    ls (

    4th

    )

    Re

    fle

    ctio

    n

    A k

    ey

    qu

    est

    ion

    ari

    sin

    g is

    wh

    eth

    er

    a g

    oo

    d B

    CM

    pro

    gra

    mm

    e a

    ctu

    all

    y im

    pro

    ves

    the

    ba

    selin

    e

    pe

    rfo

    rma

    nce

    of

    an

    org

    an

    iza

    tio

    n, i

    .e.

    the

    re

    aso

    n w

    hy

    18

    1 r

    esp

    on

    de

    nts

    did

    no

    t n

    ee

    d t

    o a

    ctiv

    ate

    th

    eir

    BC

    P,

    wh

    ile

    oth

    ers

    did

    , wa

    s p

    reci

    sely

    be

    cau

    se o

    f th

    e p

    lan

    -

    nin

    g, m

    itig

    ati

    on

    an

    d p

    rep

    ara

    tio

    n m

    ad

    e t

    hro

    ug

    h t

    he

    BC

    M p

    rog

    ram

    me

    . T

    he

    se o

    rga

    niz

    ati

    on

    s w

    ere

    ab

    le t

    o

    de

    al w

    ith

    mo

    re in

    cid

    en

    ts w

    ith

    in “

    bu

    sin

    ess

    as

    usu

    al

    pro

    ced

    ure

    s” n

    ot

    as

    exc

    ep

    tio

    ns.

    Swin

    e F

    lu is

    a g

    oo

    d e

    xam

    ple

    . I

    t sc

    ore

    d h

    igh

    est

    in

    term

    s o

    f th

    e n

    um

    be

    r o

    f re

    spo

    nd

    en

    ts r

    ep

    ort

    ing

    th

    at

    the

    re h

    ad

    be

    en

    so

    me

    dis

    rup

    tio

    n (

    70

    %),

    ho

    we

    ver,

    it

    cau

    sed

    on

    ly 2

    6%

    of

    resp

    on

    de

    nts

    to

    invo

    ke t

    he

    ir

    BC

    P.

    Th

    is is

    sim

    ila

    r to

    th

    e im

    pa

    ct o

    f co

    mp

    ute

    r

    viru

    ses,

    wh

    ich

    ag

    ain

    ha

    ve h

    igh

    occ

    urr

    en

    ce le

    vels

    bu

    t th

    e n

    ee

    d t

    o in

    voke

    th

    e B

    CP

    is r

    ela

    tive

    ly

    un

    com

    mo

    n (

    alb

    eit

    th

    is m

    ay

    be

    att

    rib

    uta

    ble

    to

    th

    e

    fact

    th

    at

    oth

    er

    pla

    ns

    de

    al w

    ith

    su

    ch in

    cid

    en

    ts).

    At

    the

    oth

    er

    en

    d o

    f th

    e s

    cale

    , a f

    ire

    , lo

    ss o

    f e

    ne

    rgy

    sup

    ply

    or

    fail

    ure

    of

    an

    ou

    tso

    urc

    er

    alm

    ost

    ine

    vita

    bly

    lea

    d t

    o a

    BC

    P in

    voca

    tio

    n (

    59

    % t

    o 4

    7%

    ra

    ng

    e).

    Ind

    ust

    ria

    l act

    ion

    , ad

    vers

    e w

    ea

    the

    r e

    ven

    ts, p

    rod

    uct

    reca

    lls

    an

    d f

    ina

    nci

    al f

    ailu

    re o

    f a

    su

    pp

    lie

    r re

    qu

    ire

    BC

    P in

    voca

    tio

    n in

    aro

    un

    d 4

    0%

    of

    case

    s.

    Th

    is le

    ad

    s to

    an

    inte

    rest

    ing

    co

    mp

    ari

    son

    in t

    he

    rela

    tio

    nsh

    ip b

    etw

    ee

    n n

    on

    -in

    voca

    tio

    n a

    nd

    invo

    cati

    on

    ge

    ne

    rati

    ng

    eve

    nts

    . I

    n t

    he

    fo

    llo

    win

    g

    tab

    le t

    his

    re

    lati

    on

    ship

    ha

    s b

    ee

    n t

    erm

    ed

    th

    e

    “se

    veri

    ty in

    dic

    ato

    r”.

    It

    wo

    uld

    su

    gg

    est

    th

    at

    cert

    ain

    typ

    es

    of

    dis

    rup

    tio

    n d

    ese

    rve

    mo

    re u

    pfr

    on

    t

    con

    sid

    era

    tio

    n t

    ha

    n o

    the

    rs, p

    erh

    ap

    s th

    ey

    sho

    uld

    als

    o b

    e a

    fo

    cus

    of

    exe

    rcis

    es.

  • Th

    e B

    usi

    ne

    ss C

    ase

    fo

    r B

    CM

    8

    Co

    pyr

    igh

    t ©

    20

    10

    Th

    e B

    usi

    ne

    ss C

    on

    tin

    uit

    y In

    stit

    ute

    Base: 207. Multiple responses

    allowed.

    Disruption -

    No BCP

    invoked (1)

    Disruption—

    BCP invoked

    (2)

    Total

    events

    recorded

    (3)

    Proportion of

    respondents

    registering

    event (4)

    Severity

    indicator:

    (2) in relation

    to (3)

    Swine flu 107 38 145 70% 26%

    IT or telecom disruption 73 55 128 62% 43%

    Adverse weather event

    (incl. flooding)

    65 55 120 58% 46%

    Lack of energy supply

    (power or fuel)

    40 37 77 37% 48%

    Computer virus/malware

    (cyber threats)

    56 17 73 35% 23%

    Adverse media coverage 41 13 54 26% 24%

    Fire 21 30 51 25% 59%

    Failure in service provision by

    outsourcer

    23 20 43 21% 47%

    Transport network disruption 25 13 38 18% 34%

    Loss of talent/skills 33 5 38 18% 13%

    Climate change protesters 18 12 30 14% 40%

    Financial failure of a supplier 16 11 27 13% 41%

    Civil unrest 14 13 27 13% 48%

    Theft of equipment 22 4 26 13% 15%

    Act of terrorism 13 10 23 11% 43%

    Financial fraud 13 8 21 10% 38%

    Industrial dispute 11 9 20 10% 45%

    Change in government or

    regulatory position

    15 5 20 10% 25%

    Animal disease 8 4 12 6% 33%

    Tighter credit insurance

    conditions

    7 3 10 5% 30%

    Product recall 5 4 9 4% 44%

    Employee kidnapped 4 4 8 4% 50%

    Assets seized in foreign

    country

    5 2 7 3% 29%

    Anti-trust investigation 2 3 5 2% 60%

    Hostile take-over 2 1 3 1% 33%

  • Th

    e B

    usi

    ne

    ss C

    ase

    fo

    r B

    CM

    9

    Co

    pyr

    igh

    t ©

    20

    10

    Th

    e B

    usi

    ne

    ss C

    on

    tin

    uit

    y In

    stit

    ute

    Inv

    est

    me

    nt

    in B

    CM

    ex

    pe

    rtis

    e

    Th

    e in

    vest

    me

    nt

    wa

    s ch

    ara

    cte

    rise

    d b

    y th

    ose

    wh

    o h

    ad

    re

    ceiv

    ed

    BC

    M t

    rain

    ing

    an

    d m

    igh

    t a

    lso

    ho

    ld B

    CM

    ce

    rtif

    ica

    tio

    n.

    On

    th

    e q

    ue

    stio

    n o

    f “h

    ow

    ma

    ny”

    exp

    ress

    ed

    in t

    erm

    s o

    f Fu

    ll T

    ime

    Eq

    uiv

    ale

    nts

    (FT

    E),

    th

    e m

    ost

    fre

    qu

    en

    t re

    spo

    nse

    wa

    s le

    ss t

    ha

    n f

    ive

    FT

    Es

    – o

    vera

    ll 6

    3%

    of

    resp

    on

    de

    nts

    em

    plo

    yed

    fe

    we

    r th

    an

    fiv

    e

    Full

    Tim

    e E

    qu

    ival

    en

    ts.

    BC

    M p

    rog

    ram

    me

    sco

    pe

    Th

    is q

    ue

    stio

    n a

    tte

    mp

    ted

    to

    ga

    ug

    e r

    esp

    on

    de

    nt

    sati

    sfa

    ctio

    n l

    eve

    ls w

    ith

    th

    eir

    BC

    M p

    rog

    ram

    me

    sco

    pe

    . I

    n t

    erm

    s o

    f sc

    op

    e,

    the

    qu

    est

    ion

    s re

    late

    to

    se

    ven

    are

    as

    of

    imp

    act

    th

    at

    org

    an

    iza

    tio

    ns

    ne

    ed

    to

    co

    nsi

    de

    r.

    Wh

    ile

    no

    n-a

    vail

    ab

    ility

    of

    IT a

    nd

    of

    site

    s a

    nd

    fa

    cili

    tie

    s a

    re

    com

    mo

    n

    ele

    me

    nts

    co

    nsi

    de

    red

    w

    ith

    in

    a

    BC

    M

    pro

    gra

    mm

    e, w

    e w

    ere

    inte

    rest

    ed

    to

    un

    de

    rsta

    nd

    th

    e e

    xte

    nt

    to w

    hic

    h o

    the

    r a

    rea

    s

    we

    re c

    on

    sid

    ere

    d s

    uch

    as

    “pe

    op

    le”

    an

    d “

    sup

    ply

    ch

    ain

    ”.

    We

    als

    o a

    dd

    ed

    tw

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    sin

    ess

    are

    as,

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    ust

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    ” a

    nd

    “f

    ina

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    , i.

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    de

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    cy o

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    lin

    es

    of

    cre

    dit

    .

    For

    the

    se

    ven

    th c

    ate

    go

    ry,

    we

    we

    re i

    nte

    rest

    ed

    in

    un

    de

    rsta

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    ing

    wh

    eth

    er

    the

    pro

    gra

    mm

    es

    con

    sid

    ere

    d n

    ot

    just

    th

    e i

    nd

    ire

    ct r

    ep

    uta

    tio

    na

    l co

    nse

    qu

    en

    ces

    of

    dis

    rup

    tio

    n, b

    ut

    a d

    ire

    ct lo

    ss o

    f re

    pu

    tati

    on

    eve

    n w

    ith

    ou

    t o

    pe

    rati

    on

    al i

    mp

    act

    .

    To

    he

    lp e

    xpla

    in t

    he

    ab

    ove

    ch

    art

    co

    nsi

    de

    r IT

    & C

    om

    mu

    nic

    ati

    on

    s: 5

    1 r

    esp

    on

    -

    de

    nts

    we

    re v

    ery

    sa

    tisf

    ied

    , 8

    0 w

    ere

    sa

    tisf

    ied

    , 4

    4 w

    ere

    fa

    irly

    sa

    tisf

    ied

    , 3

    0 w

    ere

    no

    t sa

    tisf

    ied

    , 2

    sta

    ted

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    at

    the

    y h

    ad

    no

    t d

    on

    e t

    his

    an

    d a

    fu

    rth

    er

    1 s

    aid

    it

    wa

    s

    no

    t a

    pp

    lica

    ble

    to

    th

    eir

    org

    an

    iza

    tio

    n.

    Sup

    ply

    ch

    ain

    cle

    arl

    y st

    an

    ds

    ou

    t a

    s th

    e a

    rea

    wh

    en

    re

    spo

    nd

    en

    ts a

    re n

    ot

    sati

    sfie

    d.

    63

    % o

    f re

    spo

    nd

    en

    ts s

    tate

    d t

    he

    y w

    ere

    fa

    irly

    sa

    tisf

    ied

    , n

    ot

    sati

    sfie

    d o

    r h

    ad

    no

    t

    con

    sid

    ere

    d it

    wit

    hin

    th

    e s

    cop

    e o

    f th

    eir

    BC

    M p

    rog

    ram

    me

    .

    Ba

    se:

    20

    8

    Ba

    se:

    21

    0.

    Ch

    art

    sh

    ow

    s a

    bso

    lute

    nu

    mb

    ers

  • Th

    e B

    usi

    ne

    ss C

    ase

    fo

    r B

    CM

    1

    0

    Co

    pyr

    igh

    t ©

    20

    10

    Th

    e B

    usi

    ne

    ss C

    on

    tin

    uit

    y In

    stit

    ute

    BC

    M p

    rog

    ram

    me

    re

    cog

    nit

    ion

    an

    d e

    ffe

    ctiv

    en

    ess

    A q

    ue

    stio

    n a

    ske

    d w

    he

    the

    r se

    nio

    r m

    an

    age

    me

    nt

    ha

    d a

    ckn

    ow

    led

    ge

    d t

    ha

    t th

    e

    BC

    M p

    rog

    ram

    me

    ha

    d d

    em

    on

    stra

    bly

    mit

    iga

    ted

    th

    e i

    mp

    act

    of

    an

    y d

    isru

    pti

    on

    .

    81

    .6%

    fe

    lt t

    he

    pro

    gra

    mm

    e d

    id a

    chie

    ve t

    his

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    bso

    lute

    ly”

    or

    “to

    so

    me

    ext

    en

    t”.

    On

    ly 9

    % f

    elt

    it

    did

    no

    t a

    nd

    an

    oth

    er

    9%

    fe

    lt i

    t w

    as

    ha

    rd t

    o p

    rove

    on

    e w

    ay

    or

    the

    oth

    er,

    du

    e t

    o t

    he

    co

    mp

    lexi

    ty o

    f th

    e s

    itu

    ati

    on

    .

    An

    ad

    dit

    ion

    al

    qu

    est

    ion

    (ch

    art

    ab

    ove

    ) a

    ske

    d w

    he

    the

    r th

    ere

    wa

    s a

    sys

    tem

    or

    pro

    cess

    in

    pla

    ce t

    o r

    eco

    rd a

    nd

    re

    vie

    w d

    isru

    pti

    ve e

    ven

    ts a

    nd

    th

    eir

    im

    pa

    cts.

    T

    he

    cha

    rt s

    ho

    ws

    tha

    t n

    ea

    rly

    35

    % f

    elt

    th

    ey

    ha

    d a

    go

    od

    sys

    tem

    , b

    ut

    44

    % f

    elt

    th

    eir

    syst

    em

    ne

    ed

    ed

    im

    pro

    vem

    en

    t.

    Inte

    rest

    ing

    ly,

    20

    % e

    ith

    er

    did

    no

    t h

    ave

    a s

    yste

    m

    or

    we

    re s

    till

    loo

    kin

    g in

    to t

    his

    .

    Be

    ne

    fits

    of

    BC

    M t

    o t

    he

    org

    an

    iza

    tio

    n

    Th

    e m

    ost

    po

    pu

    lar

    be

    ne

    fits

    art

    icu

    late

    d b

    y r

    esp

    on

    de

    nts

    are

    th

    e t

    rio

    of

    “fa

    ste

    r

    reco

    very

    a

    fte

    r in

    cid

    en

    ts”,

    “r

    ed

    uce

    d

    imp

    act

    o

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    cid

    en

    ts”

    an

    d

    “pro

    tect

    ing

    bra

    nd

    /re

    pu

    tati

    on

    ”.

    Wit

    h 6

    7%

    of

    resp

    on

    de

    nts

    vo

    tin

    g f

    or

    “be

    tte

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    nd

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    tan

    din

    g

    of

    the

    org

    an

    iza

    tio

    n”,

    we

    ca

    n s

    ee

    th

    at

    the

    be

    ne

    fit

    of

    BC

    M c

    an

    be

    fe

    lt n

    ot

    just

    du

    rin

    g

    an

    in

    cid

    en

    t b

    ut

    tha

    t th

    e

    pro

    cess

    it

    self

    ca

    n

    be

    o

    f va

    lue

    to

    th

    e

    org

    an

    iza

    tio

    n.

    Th

    e r

    esu

    lts

    als

    o s

    ho

    w t

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    t lo

    we

    r in

    sura

    nce

    pre

    miu

    ms

    or

    ext

    en

    sio

    n o

    f in

    sura

    nce

    cove

    r a

    re n

    ot

    see

    n a

    s a

    be

    ne

    fits

    of

    ha

    vin

    g B

    CM

    .

    Ba

    se:

    20

    7

    Ba

    se:

    21

    5

  • Th

    e B

    usi

    ne

    ss C

    ase

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    pyr

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    10

    Th

    e B

    usi

    ne

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    on

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    stit

    ute

    Po

    siti

    ve

    im

    pa

    ct o

    f B

    CM

    on

    re

    cove

    ry t

    ime

    sca

    les

    Th

    e r

    esp

    on

    se t

    o t

    his

    qu

    est

    ion

    sh

    ow

    s th

    at

    56

    % o

    f B

    CM

    pro

    gra

    mm

    es

    en

    ab

    led

    org

    an

    iza

    tio

    ns

    to r

    eco

    ver

    in t

    wo

    -th

    ird

    s-o

    f-th

    e-t

    ime

    , a

    nd

    in

    ma

    ny

    case

    s in

    ha

    lf-o

    f

    -th

    e-t

    ime

    , w

    he

    n c

    om

    pa

    red

    to

    an

    ea

    rlie

    r si

    tua

    tio

    n w

    he

    re n

    o B

    CM

    pro

    gra

    mm

    e

    exi

    ste

    d.

    Giv

    en

    th

    at

    BC

    M i

    s a

    pp

    lied

    to

    tim

    e-c

    riti

    cal

    act

    ivit

    ies

    the

    n s

    uch

    a s

    avi

    ng

    in t

    ime

    is c

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