📅 2026 Update: Key Changes in Business Continuity Planning

Since the original article was published, there have been important updates in business continuity planning regulations and standards. These changes affect how businesses create and manage their continuity plans, ensuring they are prepared for emergencies and significant disruptions. More details from the earlier article follow below.

📜 FINRA Rule 4370 Update

In May 2026, the Financial Industry Regulatory Authority (FINRA) updated Rule 4370. This rule now requires all member firms to have a written Business Continuity Plan (BCP). The BCP must address emergencies and significant business disruptions.

This change highlights the importance of preparation in the financial sector.

  • 🔍 Compliance Necessity: Firms must develop, implement, and annually review their BCPs. This ensures they can effectively respond to unforeseen events.

📑 ISO 22301 Adoption

In 2025, the International Organization for Standardization (ISO) released ISO 22301:2025. This new standard emphasizes a risk-based approach to Business Continuity Management Systems (BCMS). Businesses are encouraged to regularly test and validate their plans.

  • ⚙️ Focus on Testing: Organizations are required to regularly test their BCPs to ensure their effectiveness. This proactive approach helps in identifying weaknesses before an actual disruption occurs.

💰 Current Compliance Costs

As of 2026, the costs for compliance with FINRA Rule 4370 can vary greatly. Firms should budget for personnel time, technology investments, and potential consulting fees.

  • 💵 Financial Planning: Businesses need to allocate sufficient resources for developing and maintaining their BCPs. This includes ongoing costs for reviews and updates.

📝 FINRA Compliance Steps

To comply with FINRA Rule 4370, firms must follow specific steps:

  • 🛠️ Written BCP Development: This involves addressing data backup, mission-critical systems, and alternate communications.
  • 👥 Annual Review: A designated senior manager must conduct this review to ensure the BCP is up to date.

📌 Key Points Summary

  • 📅 FINRA Rule 4370 now mandates a written BCP for member firms.
  • 📈 ISO 22301:2025 promotes regular testing of BCPs.
  • 💰 Compliance costs vary and require careful budgeting.
  • 🔄 Annual reviews of BCPs are now essential for firms.
  • 📜 These changes enhance the preparedness of businesses for emergencies.

💡 Tips for Effective Business Continuity Planning

Reviewing your specific situation is essential, so consult with an attorney to ensure all aspects are covered.

🔍 Assess Risks

Identify potential risks that could disrupt your business. This includes natural disasters, cyber threats, and other emergencies that may impact operations.

💡 Create a Communication Plan

Develop a clear communication strategy for all employees and stakeholders. This ensures that everyone knows their roles and responsibilities during a disruption.

🏗️ Establish Power Needs

Evaluate your business's critical power requirements. Ensuring backup power sources can keep essential operations running during outages.

📦 Prepare Supply Chains

Examine your supply chain for vulnerabilities. Having alternative suppliers or plans in place can help maintain operations even when disruptions occur.

🔒 Protect Critical Data

Ensure you have robust data backup processes. This protects essential information and allows for quicker recovery after a disruption.

📋 Conduct Regular Testing

Regularly test your Business Continuity Plan. Schedule drills and exercises to ensure employees are familiar with the procedures and can respond effectively.

🏆 Business Continuity Services Ranked by User Reviews (2026)

This section highlights various services that support business continuity planning. The rankings are based on Trustpilot data checked in October 2026, and scores can change over time. Remember that a higher score does not always reflect overall satisfaction since unhappy customers often leave more reviews.

🥇 1. LegalZoom

LegalZoom holds a Trustpilot score of 4.6. It has been known for its business formation services and legal document preparation. However, some users report delays in processing times, which may affect urgent matters.

🥈 2. Bizee

Bizee has an impressive Trustpilot score of 4.8. This service specializes in business formation and registered agent services. Users have noted issues with customer support responsiveness, which could be a concern for those needing immediate assistance.

🥉 3. Rocket Lawyer

Rocket Lawyer averages a Trustpilot score of 4.5. It is known for providing legal document creation and legal advice services. Some users find the subscription model costly, especially if they only need occasional help.

🆓 Free Government and Nonprofit Help

The U.S. Small Business Administration (SBA) and the Federal Emergency Management Agency (FEMA) offer free resources. The SBA provides guidance for developing continuity plans, while FEMA integrates emergency response plans with business continuity.

🔎 Factors to Compare When Choosing Services

  • 💼 Service Variety: Look for services that offer a range of business continuity planning tools.
  • 💸 Cost Structure: Consider how pricing fits within your budget, including potential hidden fees.
  • 🕒 Processing Times: Evaluate how long services take to deliver results.
  • 🤝 Customer Support: Research responsiveness and availability of customer assistance.
  • 📜 User Reviews: Pay attention to what other users say about their experiences with the service.

❓ Frequently Asked Questions

❓ What is a Business Continuity Plan (BCP)?

A Business Continuity Plan (BCP) outlines how a business will continue operating during an unexpected disruption. It includes strategies for maintaining essential functions.

🔄 How often should a BCP be reviewed?

A BCP should be reviewed at least once a year. Regular reviews ensure that the plan remains current and effective in response to new risks.

🛠️ What are the key components of a BCP?

Key components of a BCP include risk assessments, recovery strategies, communication plans, and testing and maintenance procedures.

📊 How can businesses assess their risks?

Businesses can assess risks by conducting a thorough analysis of potential threats, including internal and external factors, and determining their impact on operations.

🌐 Are there specific regulations for BCPs in different industries?

Yes, regulations can vary by industry. For example, financial firms must comply with FINRA Rule 4370, which outlines specific requirements for their BCPs.

📅 What happens if a firm fails to comply with BCP regulations?

Failure to comply with BCP regulations can lead to penalties, fines, and damage to a firm's reputation. It may also result in reduced trust from clients and stakeholders.

⚖️ Recent Cases Relevant to Business Continuity Planning

Various recent court rulings have addressed issues related to business continuity and compliance. These cases highlight the importance of proper planning and adherence to regulations in maintaining business resilience.

For further insights, feel free to explore more rulings on the news page.

End of October 2026 Update






The Facts on Business Continuity Planning: A Guide to Protecting Your Business


In today's fast-paced and unpredictable business environment, it's essential to have a solid plan in place to ensure your organization can continue to operate smoothly in the event of a disruption.

Business continuity planning is a critical aspect of risk management that helps organizations prepare for and respond to unexpected events, such as natural disasters, cyber attacks, and pandemics. In this article, we'll delve into the facts on business continuity planning and provide you with a comprehensive guide to help you protect your business.

What is Business Continuity Planning?


Business continuity planning (BCP) is a process that helps organizations develop and implement strategies to ensure the continuity of their operations in the event of a disruption. It involves identifying potential risks, assessing the impact of those risks, and developing plans to mitigate or recover from those risks.

Why is Business Continuity Planning Important?


Business continuity planning is essential for organizations because it helps them:

  • Reduce downtime and minimize financial losses

  • Protect their reputation and customer loyalty

  • Ensure the safety and well-being of employees and stakeholders

  • Comply with regulatory requirements

  • Improve overall business resilience


Key Components of a Business Continuity Plan


A comprehensive business continuity plan should include the following key components:

1. Risk Assessment: Identify potential risks and assess their likelihood and impact on the organization.

2. Business Impact Analysis: Analyze the potential impact of each risk on the organization's operations, finances, and reputation.

3. Business Continuity Strategy: Develop a strategy to mitigate or recover from each risk.

4. Emergency Response Plan: Establish a plan for responding to emergencies, including evacuation procedures, emergency contact information, and emergency funding.

5. Recovery Plan: Develop a plan for recovering from disruptions, including procedures for restoring IT systems, restarting operations, and communicating with stakeholders.

6. Testing and Exercises: Regularly test and exercise the business continuity plan to ensure its effectiveness and identify areas for improvement.

7. Communication Plan: Develop a plan for communicating with stakeholders during disruptions, including customers, employees, suppliers, and regulators.

Best Practices for Business Continuity Planning


To ensure your business continuity plan is effective, follow these best practices:

1. Involve Stakeholders: Involve stakeholders from all levels of the organization in the planning process.

2. Keep it Simple: Keep the plan simple and easy to understand.

3. Prioritize: Prioritize critical functions and resources.

4. Test Regularly: Regularly test and exercise the plan to ensure its effectiveness.

5. Review and Update: Regularly review and update the plan to reflect changes in the organization or risks.

Common Business Continuity Planning Mistakes


Avoid these common mistakes when developing your business continuity plan:

1. Not Considering All Risks: Failing to consider all potential risks can leave your organization vulnerable.

2. Not Prioritizing Critical Functions: Failing to prioritize critical functions can lead to delays or losses during a disruption.

3. Not Testing Regularly: Failing to test regularly can lead to errors or omissions in the plan.

4. Not Communicating Effectively: Failing to communicate effectively with stakeholders can lead to confusion or panic during a disruption.

Conclusion


Business continuity planning is a critical aspect of risk management that helps organizations prepare for and respond to unexpected events. By understanding the key components of a business continuity plan, following best practices, and avoiding common mistakes, you can ensure your organization is well-prepared to withstand disruptions and continue operating smoothly. Remember, business continuity planning is an ongoing process that requires regular testing, review, and updates to ensure its effectiveness.

In conclusion, implementing a solid business continuity plan is essential for protecting your business from unexpected events. By following these facts and best practices, you can ensure your organization is well-prepared to respond to disruptions and continue operating smoothly.



 

What is Business Continuity Planning?


Business Continuity Planning helps a company identify potential threats to a business staying in business and offers help in planning for these events.  A common business continuity plan will identify potential damage caused by building fires, local weather events, blackouts, or loss of suppliers.  Business continuity plans are tailored specifically for each business and will over the decision makers in the company with alternatives to ensure that they can continue business in spite of events that occur outside of their control.

How To Use Business Continuity Planning for your Company


1. Identification of Important Staff

The first phase of writing a business continuity plan is to identify the weaknesses of your company.  You must create a list of staff that your business cannot function without and their key duties and responsibilities.  You will need to consider how your business can continue if you lose these people for short term or long term periods.  In case of injury or sickness, you should consider investing in resources that will allow your key employees to contribute from home or other areas.

2. Documentation of Key Contacts and Emergency Lines

After identifying potential weaknesses from lost clients, you must document all contacts with suppliers, clients, and emergency contacts. Your suppliers and clients need to have an open line of communication in order to inform you of issues and likewise, you need to inform them of any changes or problems you are encountering.  Emergency contacts should be listed and available to all employees, in order to assure that your building, products, and infrastructure is safe and secure.  Communication is one of the easiest but most important part of business continuity planning.

3. Identification of Important Documents

After creating a list of emergency contact, you should identify all critical documents and contingency equipment.  These items should be accounted for and secured in a safe place.  You may need to access these items during an emergency, so ensure they are readily accessible and easily transported should you face physical dangers, such as evacuation or loss of your building.

4. Implementation of the Plan

Implementation is the last phase of business continuity planning and may require trial and error before it can be properly initiated.  Changes that are recommended by the plan need to be put into place, and this may take extensive time and resources before the entire business continuity plan is fully realized.  Additional assets may need to be sought, properties purchased, or the most common, insurance protection needs to be obtained and tailored for the specific risks that may occur.  Insurance is a very important part of emergency planning for any company, but it must always be determined if their costs outweigh the potential benefits they may provide.

Maintaining and Updating your Business Continuity Plan


Business continuity plans often must be maintained and updated in order to stay relevant for a company.  Companies evolve and change constantly and as a result, so do the potential risks and appropriate responses to those risks.  Changes to staff, personnel, locations, clients, areas of focus, and growth can all lead to business continuity plans that may be inadequate or even improper for your current needs.

Some plans may even provide for testing and review, in which certain emergency situations are drilled and studied in order to determine how well the company copes with them.  Therefore, to maintain your business continuity plan, you must schedule reviews every 6 months to 2 years, depending on how fluid your company may be.  During each review period, you will need to identify the changes to your company and change the business continuity planning accordingly.

The Facts on Business Continuity Planning