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Risky Thinking
Tools and Ideas for Risk Assessment and Business Continuity
23 November, 2014

BCP Value Calculator

Just how much is a Business Continuity Program worth to your company? This tool, which uses the method described in the articles How Much is a Business Continuity Plan Worth (Part 1) and How Much is a Business Continuity Plan Worth (Part 2) is subject to the various simplifying assumptions described below.

Your situation:

  • The current interest rate is %.
  • The current inflation rate is %.
  • Your company / business unit earns $ per year (net).
  • Those earnings can be expected to grow at % per year.
  • The probability of the company / business unit failing in a given year with no Business Continuity Program or plan in place is %.
  • The probability of the company / business unit failing in a given year with a Business Continuity Plan or Program implemented is reduced to %.

Results

Based on the information given above (and the assumptions below):

  • The value of the company / business unit without a Business Continuity Program in place is $8,398,045.
  • The value with a Business Continuity Program in place is $9,309,401.
  • The value of the Business Continuity Program is therefore $911,356.

You can get a more accurate assessment of the risks (and costs) associated with a major incident and the likelihood of failure using our Risk Assessment Toolkit.

Assumptions

The results were based on the following assumptions:

Need different Assumptions?

If you need these figures calculated using different assumptions (e.g. residual value of assets, complex or changing income, growth or interest rate scenarios), please contact us.

Comments?

We're always interested in people's comments. If you have any comments on the method used, please drop us a line using the contact form on this website.

© Albion Research Ltd. 2014