Why Incident Management Is Critical for Business Continuity

Introduction 

Today, let’s start with a very important and eye-opening stat! 40% of businesses never reopen after a major disaster! It is a clear reminder of how well-established companies are also vulnerable when a problem strikes.

The range of threats that businesses face is only growing. There are now plenty of cyber attacks and data centre failures, as well as natural disasters and ransomware breaches that are constantly targeting well-established businesses.

In such moments, survival often comes down to one thing: preparation! It is so important to have a plan that is tested and also a responsive process that your team knows how to execute under pressure.

That is why incident management is so important. It proves to be so helpful for businesses when it is paired with a well-structured business continuity plan. 

In this blog, let’s explore why incident management plays such a vital role in business continuity and also learn about steps that you can take to make sure your business is ready for whatever comes next.

What is Incident Management?

Incident management is a process that helps businesses detect problems and respond to them effectively. It helps businesses to make a comeback fast when something goes wrong. It covers all kinds of problems, including server crashes, security breaches, power failures, and even fires, floods, or human mistakes.

It is just like your business’s emergency response plan. When something breaks, incident management is what tells everyone, “here is what to do, what is going on, how we are communicating, and how we are getting things back to normal.” 

In 2016, Southwest Airlines experienced a big route failure that shut down its website and internal systems for over 12 hours. This resulted in over 2300 cancelled flights and millions in losses. The problem was not just the broken router, but it was the slow detection and lack of a solid backup plan that turned a small technical issue into a major crisis.

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How it Supports Business Continuity

Let’s see why incident management really matters:

It Reduces Downtime and Financial Loss

Every minute of downtime costs money! And you know what, on average, businesses lose about $5600 per minute when systems are down. And that number goes way higher for some companies.

If there is no proper incident response in place, small outages continue to grow, and before you know it, the costs shoot up.

In 2016, Delta Airlines suffered over 2000 cancelled flights due to a 5-hour data center outage. It also cost them around $150 million. I think this is a perfect example of how a faster response could have saved them both time and money.

It Helps Keep Customer Trust

People might be patient when there is a service issue, but only if you are open and quick to respond. For this, you need to have a solid incident plan in place. It helps you communicate clearly and handle things calmly.

During Hurricane Harvey in 2017, the Houstonian Hotel had 32 guests staying during the storm. They managed to keep everyone safe and maintain key services, all thanks to a well-prepared plan. They got praised by guests and the emergency team for how well they handled everything.

Now, if you compare that with companies that stay silent and look unprepared during a crisis, you will see that people notice and trust? It fades fast and sometimes does not come back.

It Helps You Stay Compliant and Avoid Fines

In some industries, a slow response does not just hurt your business; it can lead to huge legal penalties.

So, a proper incident management plan can help you meet legal requirements and avoid serious fines like that.

Incident Management = Continuity in Action

Business continuity planning acts as your road map. It tells you where to go when you are hit by a crisis. But incident management tells you how to actually drive your car through the storm.

A good example of what happens when you don’t have incident management in place is the 2018 ransomware attack in Atlanta. They had outdated systems, and their response was slow. 

As a result, important city services like courts and utility billing were shut down for over a week. Total damage? More than $17 million.

Key Benefits of Robust Incident Management

Let’s look at what strong incident management gives you: 

• Faster Recovery: When everyone knows their role and how to communicate, it is easier to act fast. It is just quick action when it’s needed the most.

• Internal Clarity: It offers internal clarity. The IT team, customer support, or PR, everyone is on the same page, and when people know what to do and when to do it, it is called coordination, and it makes all the difference.

• Stronger Resilience: Every incident is a learning opportunity. When you review what happened and what could have gone better, your team gets stronger. Over time, your response gets faster and smarter.

• A Competitive Edge: If you’re able to recover faster from the crisis, it gains you the trust of people. People notice how you handle a crisis, and if you bounce back from it quickly, you stand out in a big way.

Best Practices for 2025

Here are a few steps for you to follow to strengthen your incident management:

• Follow Trusted Standards: I suggest starting with well-known standards like ISO 22301 and ITIL. These give you a strong starting point to build your plan.

• Automate Where You Can: Use tools that can identify problems before they get worse.

• Train Your Team: Do regular practice drills. This will help everyone stay calm and know exactly what to do during real problems.

• Keep Everything Updated: Your contact list, steps to follow, and who to call in an emergency should be up-to-date. 

• Prepare for Today’s Risks: Today’s risks include cyber attacks and vendor failures. Your plan should cover all of these, and most importantly, keep it simple and easy to understand.

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Conclusion

It is very common for a disruption to happen in today’s times. It can be a cyber attack, a climate-related event, or something completely unexpected. The point is how prepared you are if something ever goes wrong.

That is why incident management is so important. It gives your team the structure and tools to act quickly and protect what you have worked so hard to build.

The businesses that will survive and succeed in any problem are the ones that will plan ahead and adapt with confidence.

Make sure you’re one of them. Be that business.