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Companies with a BCP remain at 14.7%

June 19, 2018

 

- Despite more companies understanding the effect, they are slow in resolving issues for BCP formulation -

 

Companies are required by concerned interests that their crucial business operation will not be interrupted, or will resume within a short period of time even if it is interrupted when they are damaged by a disaster or an accident, etc. Therefore, preparing disaster prevention and mitigation measures in advance as well as response measures in the event of a disaster and after a disaster has become increasingly important, on the assumption that corporate activities will be impacted through various risks such as a natural disaster, or an information security incident. 

 

Teikoku Databank has conducted a survey on corporate attitudes towards Business Continuity Planning (BCP). This survey was conducted in conjunction with the May 2018 TDB Trends Research, and it is the 3rd survey following those of June 2016 and May 2017. 

 

*Survey period: May 18 – May 31, 2018, Companies Surveyed: 23,157, Valid Responses: 10,001 (Response Rate: 43.2%).

 

*Details of this survey can be found on the dedicated Economic Trend Survey HP (http://www.tdb-di.com)

 

Survey results (Summary)

 

1. With respect to company status in terms of formulating a BCP, companies that “have formulated” a BCP remain at 14.7%. Even combining those that “are currently formulating” and “are considering formulating” amounts to 44.9%, which is less than half of the companies. By industry, "Finance" has the highest percentage of companies that have formulated a BCP, at 39.0%.  "Real Estate" has the lowest, at 10.3%.

 

2. Among companies that “have formulated,” “are currently formulating” and “are considering formulating”, highly-ranked risks in which business continuity is assumed to be difficult are "natural disaster (earthquake, storm and flood damage, eruption, etc." (69.1%), “facility failure” (40.7%), “fire and explosion accident” (35.4%), and "information security risk" (35.1%).  For matters that have been implemented/considered in preparation for business interruption risks, "establishment of means to confirm employees’ safety" (71.2%), "Information system backup" (62.3%), and "ensuring the safety of the office" (44.5%) are highly ranked.

 

3. With respect to the effect of formulating a BCP, "Operational formalization and standardization are advanced" was ranked the top, at 42.7%, for companies that have formulated a BCP, followed by "Operational priority has become clear" (37.7%), and "Increased business partners’ trust" (28.5%).  All items except for “Others” show higher percentages than last year, while companies understanding the effects of formulating a BCP are gradually increasing.

 

4. Reasons for not formulating a BCP were "Do not have the skills and know-how necessary to formulate" with the highest ratio of 44.0%, followed by "Cannot secure human resources to formulate such a plan" (30.6%), and "Stops in document creation and difficult to make a plan practical-to-use" (26.1%).

 

Appendix

1.Research Subjects(Companies Researched 23,157 ; Valid responses: 10,001 ; Response rate: 43.2%)

 

 2.Research Items

*Business Confidence (current, in 3 months, in 6 months, in 1 year)

*Business Conditions (sales, purchasing and selling unit price, inventory, capacity utilization ratio, number of employees, overtime work hours)

 

3.Research Period and Methodology

 Internet-based survey conducted May 18 – 31 2018

 

The explanation of the Economic Diffusion Index

Research Purpose/Researched Terms

TDB Economic Trend Research (started from May 2002) is a monthly statistical survey conducted for over 20,000 nationwide corporations on their general business activities including the current condition and future outlook of the industry business performance and operating climate.  The primary purpose of such a survey is to assess the current state of Japan’s economy.

 

Selection of the Subject Corporations

Companies of all sizes in all domestic industries are eligible to participate in the survey.

 

DI Formula
The DI (Diffusion Index) is calculated by attaching a number (in parenthesis in the diagram below) to each of seven possible responses.  Then multiplying the percentage of each response by the appropriate number, and adding the results.

 

 

A DI over 50 is in the range of “Good.” A score under 50 is “Bad.”  The number 50 is the dividing point (“Neither Good or Bad”).  All numbers are rounded off to the hundredth.  It should be noted that no weight is given to a company’s responses based on its size.  Calculations are made according to a “one company, one vote” rule.

 

For example, all corporations rated ‘Very Good’.

DI=6/6x100(%)=100

All corporations rated ‘Neither Good nor Bad’.

DI=3/6x100(%)=50

 

Size Classification

 

 

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