Buland Investments Ltd, is a Jaipur-based Non-Banking Finance Company (NBFC) and has more than 300 branches/customer service points (CSP) across India. Company mainly offers housing loans, loans against property, and per
CS Professional · Environmental, Social and Governance (ESG) Principles and Practice · PYQS · June 2025
Buland Investments Ltd, is a Jaipur-based Non-Banking Finance Company (NBFC) and has more than 300 branches/customer service points (CSP) across India. Company mainly offers housing loans, loans against property, and personal loans to all segments of society including salaried employees, professionals and businessmen. The Company has a paid-up capital of ₹ 100 crore, public deposits of ₹ 250 crore and borrowings of ₹ 80 crore (₹ 40 crore each from public and private sector banks). Most of its operations in online mode with customers applying online and uploading their KYC and other financial documents through a secured web portal. Though the Company is on a growth trajectory, it still does not have robust policies and procedures which guide its operations. Recoverability from the customers, loan defaulters is a challenge on operational front. From a corporate perspective, adhering to Reserve Bank of India (RBI) Digital Lending norms and Cyber Security Frameworks are key challenges for the Company. It has hired few IT professionals to develop an inhouse IT security team. However, despite these efforts, the Company suffered a major cyber-attack recently, leading to theft of sensitive KYC data of large number of customers. RBI has imposed huge penalties and suspended the Company's operations. The media coverage of the incident has further damaged the Company's reputation, causing panic among customers, depositors and investors. In this context, answer the following questions: Discuss the relationship between Business Continuity Plan, Crisis Management and DRP, with an example.
Answer & Explanation:
The relationship between business continuity planning and crisis management is that a BCP provides the overarching framework for maintaining business operations during and after a disruptive event, while a CMP provides specific guidance for managing a crisis. Both BCP and CMP are essential components of a comprehensive risk management program, and they work together to ensure that an organization can continue to operate and recover from a disruptive event. For example, a multinational corporation is facing a financial crisis, caused by a sudden drop in demand for its products or a significant financial loss. The senior finance manager of the company is responsible for overseeing the company's financial response to the crisis and ensuring that the company's operations are maintained. The senior finance manager immediately activates the company's business continuity plan (BCP), which outlines the procedures and strategies that the company will use to maintain its critical operations and services during the crisis. The BCP provides a roadmap for the senior finance manager and the crisis management team to follow, and it helps to ensure that the company's financial response is organized and effective. The senior finance manager also assembles the company's crisis management team, which includes representatives from various departments, to respond to the crisis. The crisis management team uses the BCP to assess the situation and determine the best course of action. They quickly identify the critical financial systems and services that are most likely to be impacted by the crisis and prioritize their efforts to protect those systems and services. The senior finance manager also works closely with the company's legal and regulatory teams to ensure that the company follows all relevant laws and regulations as it responds to the crisis. They also work with the company's public relations team to manage the company's image and reputation during the crisis. In this scenario, the senior finance manager plays a crucial role in ensuring that the company's financial operations are maintained during the crisis, and that the company's response is organized and effective. The BCP and crisis management plan provide a framework for the senior finance manager and the crisis management team to follow, and they help to ensure that the company's response is as effective as possible. It is concluded that in a crisis, the BCP provides a roadmap for the crisis management team to follow, and the DRP provides a roadmap for the recovery process. The BCP and DRP work together to ensure that the company can maintain its critical operations and services during the crisis and quickly recover from the disaster. The crisis management process helps to ensure that the company's response to the crisis is organized and effective, and that the BCP and DRP are implemented as effectively as possible.
Topics: Business Continuity and Crisis Management
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