One thing is for certain: your credit union needs a business continuity plan (BCP). But how much will it cost? And what contributes to that cost?
Whether you’re trying to figure out your 2020 budget, or just trying to satisfy NCUA requirements, it’s best to have all the information. So, read on to learn what a business continuity plan will cost your credit union.
Not All Business Continuity Plans Are Equal
Let’s lay some groundwork, here. First and foremost, one must understand that every business continuity plan will be a little different. But why is that?
Every credit union has different needs and different desires. Not only that, but each has its own way of doing things. Finally, each credit union exists in a different geographic location.
Each of those variables will affect the pricing structure.
In fact, here are just a few of those variables:
1. Level of robustness
The first question your credit union must ask itself is this:
What level of business continuity planning do we need?
And the answer, of course, is up to you. But you have two basic options
First, you can decide to merely meet NCUA requirements. It will be cheaper, but you’ll increase your risk during any actual event. It might be costlier in the long run.
Second, you can exceed NCUA requirements. It’ll cost more, but you’ll decrease your risk. Not only will your team be readier for an event, but the associated costs will be lower.
2. Credit union size
It’s not a hard and fast rule that larger credit unions require costlier business continuity plans. Actually, a larger impact on pricing might be the number of people involved.
If your current plans are all-hands-on-deck affairs, that could rack up the bill. On the other hand, if there’s only a handful of people involved, that could keep the costs down.
Of course, you’ll have to ask yourself:
Is it in your best interest to minimize the staff involved? If you’re trying to mitigate risk? Probably not.
3. Region, location, whereabouts, whatever
Where you’re located won’t change your pricing model. However, it might affect what kinds of continuity threats your credit union faces.
While regional concerns are a bit more of a disaster recovery issue, it’s something to consider. If you’re in the southeast, you’re more vulnerable to hurricane threats. In the Midwest, it’s tornadoes.
If there’s a higher likelihood of regional complications, you should prepare accordingly. That means going the extra mile on your continuity plan. That also means higher costs.
4. Additional training or services
This might go back to the first point a bit, but it bears repeating:
You can take your credit union’s business continuity planning to the next level. A good plan might include consulting, tabletop exercises, and faster recovery speeds.
Additional consulting layers may add a little to the cost. But they will also ensure that your team actually knows what to do when the time comes. Instead of reading instructions off a sheet, you’ll have already practiced similar scenarios.
One Thing You Need to Know for Pricing
Have you done a business impact analysis (BIA)? You’ll also need to perform a financial impact analysis (FIA).
Basically, a financial impact analysis will help you understand what your risks are—and what they’ll cost. Ongoing Operations can provide you quantify your risk with a simple tool.
Contact us to receive a free financial impact analysis for your credit union.
So, What Does a Business Continuity Plan Cost?
Credit unions have several options out there for business continuity planning. Which plan works best for your credit union’s needs will affect the total cost.
DIY solutions are the cheapest on the surface. However, they’re rarely backed up by the kind of experience that you might want during an event.
Some BCP providers can offer you a bare-bones package. These vary in price, but some are relatively cheap. Still, the phrase, “you get what you pay for” comes to mind.
Other BCP providers offer a more comprehensive solution. Ongoing Operations is one of these providers. You can expect a cost breakdown to look something like this:
Ongoing Operation BCP Cost Breakdown
Unfortunately, we can’t provide exact numbers. There are simply too many variables. Still, this should give you a little idea.
Credit Union fee: A moderate one-time fee to cover initial costs.
Implementation cost: A modest one-time fee to cover implementation and training costs. This fee is per user, so setting up 50 users will cost more than setting up only 20.
Per month price: A very slight per-user fee. We’re talking very slight.
Would you like to learn more about credit union business continuity planning? How about disaster recovery? Or managed patching? Or just about anything else that your credit union has to do that you don’t really like doing?
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