Top 10 Business Continuity Risks

For businesses, nonprofits, and religious organizations, crisis should not be able to stop your operations.

Learn about these top ten risks to give your company a chance to be not just reactive but also proactive and to have a state of “operational resilience”.

1. Advanced Cybersecurity Threats and Ransomware

Cyber incidents still stand as the #1 threat to business continuity. More recently, criminals have been employing AI-powered social engineering and “double extortion” techniques, where data is not just encrypted, but also stolen and leaked if the victim does not comply. This could lead to a complete IT blackout, loss of sensitive donor or customer data, and an expensive recovery. Cyber Liability Insurance can be an effective shield if this is something your company is worried about.

2. Extreme Weather and Climate Events

Natural disasters are not only more frequent but also more severe. Hurricanes, wildfires, and flash floods (even in areas that have never flooded before) have the potential to cause not only devastating physical damage but also long-term power outages. These could cause destruction of physical facilities, staff displacement, and lack of access to the main location-  if you’re worried about floods, flood insurance can be a help.

3. Third-Party and Supply Chain Vulnerabilities

The majority of organizations are intertwined with a network of SaaS providers, cloud hosts, and vendors. A disruption at the level of “fourth-party” (the vendor that supplies your vendor) can result in a shutdown of your operations even if your systems are working fine. The loss of software services that are essential, not being able to source supplies, and “contingent” business interruption.

4. Talent Shortages and Succession Gaps

The problem of attracting or retaining talented employees, or abruptly losing a major leader without a succession plan, can be a significant operational risk, not to mention the loss of the institutional knowledge, slowdowns in the provision of services, and the inability to implement emergency response plans.

5. Economic Volatility and Inflation

Inflation that lasts for a long time and labor costs that are high continue to put pressure on companies’ profit margins. Nonprofits may experience this as a “funding gap” where the need for services grows while the value of donations decreases.

Effect: The lack of cash flow necessary to keep the business going during a crisis as well as being underinsured because of rising replacement costs.

6. Rapid AI Integration and “Agentic” Failures

Organizations, as they hurry to embrace AI for the sake of efficiency, bring about new dangers. Not every AI is useful for every business! The situation in which the failure of an automated system on which there is too much reliance or the provision of biased data can result in huge operational and reputational mistakes. It can lead to the mishandling of data, legal claims due to biased AI decisions, and loss of public trust.

7. Heightened Regulatory and Compliance Scrutiny

Increasingly strict regulations are putting more and more demands on companies as regards their Data Privacy practices (e.g., EU’s DORA or localized US laws) and environment reporting. Non-compliance may bring along hefty fines or, even worse, operation suspension.

8. Geopolitical Instability and Trade Disruptions

Wars on a global scale and changes in trade policies lead to waves that reach local organizations. This, in turn, opens a door to everything from cyber espionage to sudden rises in the cost of energy or tariffs on the necessary equipment. This is especially true for mission-sending organizations who may have to evacuate.

9. Physical Security and Public Safety Concerns

Business, churches, and any other public-facing organization also need to worry about their safety. Especially recently, fear of violence or of conflicts in their space can be a main concern that causes worry for safety and continuance of life.

10. Reputational Crisis and Social Media Fallout

Within the digital realm, the unauthorized use of a single ethical principle or the misinterpretation of a communication could become viral in a matter of minutes. That “digital wildfire” is as efficient in disrupting your activities as any physical fire might be. One terrible miscommunication could mean the loss of donors/clients, bulk staff resignation, and the organization’s brand being irreversibly damaged.

Constructing a Resilient Model

A Business Continuity Plan (BCP) ought to be considered a “living document” which goes beyond the conventional static checklists. The most resilient companies are those which put the emphasis on capability rather than compliance, thereby making sure their staff is trained and given the authority to adjust when the unanticipated ​‍​‌‍​‍‌​‍​‌‍​‍‌happens.