Globalisation in the Digital Age The importance of a tech-resilient business continuity plan

The emergence of the digital era has revolutionised the pace, scope, and nature of globalisation, connecting people, businesses and governments in ways that were once unimaginable. The advent of the internet, mobile communication and digital platforms has accelerated interconnectivity and brought about a new wave of globalisation.

This, however, is not without associated inherent risks. Minor disruptions to digital platforms or internet can have wide-reaching consequences.

Two recent incidents can be referenced when discussing the fragility or disruptions that come with the new wave of globalisation. The first incident is the damage of two key undersea cables that occurred off the coast of East Africa and had significant repercussions on internet connectivity across more than 5 countries leading to widespread internet outages and slower connection speeds. The disruption of the cables led to major communication breakdowns, affecting banking, trade and other digital services in the region, demonstrating the vulnerability of the physical infrastructure that supports globalisation and the impact it can have on both local and global scales. The second incident is the Crowdstrike outage that impacted cybersecurity services, potentially leaving businesses and governments exposed to cyber threats. With so many systems relying on cloud-based security infrastructure, the outage illustrated how a single point of failure can cause wide spread risks across organisations.

Lord Robertson, former NATO Secretary General once said that “Globalisation will make our societies more creative and prosperous, but also more vulnerable”. Looking at the two incidences, the creative angle of globalisation (i.e. technology advancement) cannot be disputed. It however acts as a double edged sword since the same technology has brought about vulnerabilities arising from interconnectedness.

It is therefore undeniable that the Board of Directors, which plays a critical role in guiding the business through volatile and uncertain environments needs to prioritise resilience and adaptability to prepare for disruptions brought about by digital globalisation. They can do this by ensuring that the company has a robust business continuity plan (BCP) that includes responses to tech disruptions. This includes identifying critical operations, alternative processes and a chain of command for rapid decision making. The Board should also ensure that the company’s business continuity plan is reviewed at least annually and updated based on technological advancements, organisational changes or newly identified risks.

During the annual reviews of the BCP, the board should assure itself that the following aspects, among others, are articulated in the plan:

• Disaster Recovery Sites: The plan should capture alternate data centres to switch to in case of primary site failure.
• Regular Testing: The BCP should be subjected to regular testing including simulated technology failures and disaster recovery drills to ensure its effectiveness. Data restoration processes should also be tested periodically to ensure reliability.
• Third Party Vendors: Third party technology providers should have their own continuity plan in place. Service level agreements should be in place that guarantee certain uptime levels or recovery timelines in case of provider failure.
• Cybersecurity Response Plan: The BCP should detail a response plan for cyber incidences as well as outline emergency contacts for cybersecurity vendors and regular authorities.
• Data Protection and Privacy: The plan should include measures of safeguarding sensitive information during disruptions to avoid legal ramifications.
• Diversification of Solutions: Relying on a single vendor or technology can be risky; diversifying technologies and having backup systems in place is crucial for maintaining business continuity.
• Continuous Monitoring: The plan should accommodate monitoring tools that will detect early signs of failure, performance degradation or security issues allowing for proactive measures before major disruptions occur.

While technology dependence brought about by globalisation is necessary for business success, it introduces challenges to business continuity. Preparing for these eventualities with strong BCPs and partnerships is critical for business today. A BCP that includes comprehensive plans for technology disruptions ensures that the business remains resilient and can recover quickly, while minimising the impact of technological issues on operations.

This is a guest blog which contains the views of the author and does not necessarily represent the views of the IoD.