Business Continuance Planning Ltd
L3, PSA House
11 AuroraTerrace
PO Box 10-613
Wellington
New Zealand
Tel  +64 4 471 2407
Fax +64 4 471 2489
www.bcpl.co.nz

Governance & Compliance

Good governance relies in part on sound business continuity practices for the management of disruption-related risks, for all types of organisations in all sectors. These practices comprise coordinated activities for directing and controlling an organisation with regard to risk, including disruption-related risk.

Directors and executives must ensure the adequacy of disruption-related risk management to safeguard the organisation’s achievement of its goals and objectives. Whereas accountabilities for business continuity planning may be delegated to contracted parties, responsibility for their effectiveness rests within the organisation.

Compliance for disruptive events

Government departments, local authorities, and commercial organisations are subject to Acts, regulations, rules, and guidelines that encompass business continuity management. Some of the important ones are as follows.

Civil Defence Emergency Management Act 2002

Each Government department, local authority, and lifeline utility* must ensure "that it is able to function to the fullest possible extent, even though this may be at a reduced level, during and after an emergency". (CDEM Act 2002, s58(a),
s60(a), s64(2)).

For these organisations, business continuity planning is mandatory.

Lifeline utilities are organisations that provide essential services such as water, energy (electricity, gas, oil), wastewater disposal, telecommunications, broadcasting, transport (road, rail, ports, airports), etc.

Securities Commission: A Handbook for Directors, Executives, and Advisors (2004)

The Securities Commission's guideline on risk management states that "The board should regularly verify that the entity has appropriate processes to identify and manage potential and relevant risks." In other words, it requires good governance (refer above).

New Zealand Stock Exchange listing rules

The New Zealand Stock Exchange supports the Securities Commission's Handbook for Directors, Executives, and Advisors by requiring that directors remain able "to best perform their duties as Directors".

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