Sample Business Studies Paper on Business Regulation

Business Regulations

Question 1

Compliance with regulations and adequate security is among the primary objectives of a business. Compliance to regulations is often regarded as expensive, but it is cheaper compared to the harsh penalties that come with non-compliance. The types of costs that arise from non-compliance include fines, business disruption, and losses in productivity and revenue (Clapper et al., 2016). Penalties are usually incurred from failure to comply with agreed terms and conditions in a business. Business disruption expenses lead to loss of profits, reduced net projections, and loss of capital. On the other hand, overheads associated with inadequate security include compensation costs to individuals or groups and damages costs arising from the disruption of the business program or injury to another person or business. These costs are preventable, and it is the duty of the higher level management to ensure that the institution limits any risks that could jeopardize security levels in the firm.

Question 2

Disaster recovery planning is the process of creating a document with a structured step by step approach with instructions on how a business can recover from a disaster or catastrophe. A disaster can either be natural or man-made, natural disasters are beyond human control such as earthquakes, droughts, wildfires, and tsunami. On the other hand, man-made catastrophe can be either intentional such as acts of terrorism   or unintentionally such as mining accidents and explosions. Organizations must develop disaster recovery plans that go in line with the organizational goals and objectives (Sahebjamnia et al., 2015). An effective disaster recovery plan must meet features such as ensuring a rapid response to the disaster, must reduce the overall risk, and should be flexible enough to be maintained and tested periodically. When correctly implemented, the plan should restore normalcy to the business operations and alleviate the owner and investor concerns.

In contrast, business continuity planning involves the creation of a strategy through recognizing the threats and risks facing a company to ensure that the business assets and personnel can function in case of a disaster. Moreover, an effective Business Continuity Plan must first conduct a proper business impact analysis so as to identify various critical business operations and the resources that support their operations (Sahebjamnia et al., 2015). Additionally, the investigation should properly document steps to recover the critical organization functions. Furthermore, the analysis should be flexible to ensure training for the business continuity team in testing and evaluating the recovery strategies and the plan (Maggi et al., 2018).

Question 3

Disaster recovery planning and business continuity plan are vital and essential for a smooth flow of business operations. Effective and efficient business operation goals are aimed at minimizing losses due to disruptions and disasters that could otherwise be prevented. Organizations with a proper plan enjoy benefits such as reduction in potential legal liabilities associated with non-compliance to regulations. There is an appropriate way to respond to disasters thereby minimizing panic and confusion in such events. The plans lower unnecessarily stressful workplace environment thus guarantees the reliability of standby systems reducing the risk of delays (Torabi et al., 2016). However, as much as the plans are implemented correctly in the organization when there is no initiative to ensure the involvement of all stakeholders to prevent disasters, the program is likely to fail.

 

References

Clapper, D., & Richmond, W. (2016). Small business compliance with PCI DSS. Journal of Management Information and Decision Sciences, 19(1), 54.

Maggi, F. M., Marrella, A., Capezzuto, G., & Cervantes, A. A. (2018, November). Explaining non-compliance of business process models through automated planning. In International Conference on Service-Oriented Computing (pp. 181-197). Springer, Cham.

Sahebjamnia, N., Torabi, S. A., & Mansouri, S. A. (2015). Integrated business continuity and disaster recovery planning: Towards organizational resilience. European Journal of Operational Research, 242(1), 261-273.

Torabi, S. A., Giahi, R., & Sahebjamnia, N. (2016). An enhanced risk assessment framework for business continuity management systems. Safety science, 89, 201-218.