A strategic approach by an organization to ensure its recovery and continuity in the face of a disaster or other major incidents or business disruptions.

Case in point: Automobile manufacturing sector is probably the most affected when it comes to supply disruptions. Companies manufacture automobiles in the U.S. or UK source parts from all over the world. Japan is a popular sourcing destination for many companies. In 2011, Japan’s earthquake and subsequent tsunami led to major car manufacturers like Honda and Toyota to suspend production. Honda set up two teams to source components to ensure production continued at its Swindon plant. It also announced that it could make up for lost production later in the year owing to its flexible working policy. There would be no loss of earnings for the workforce while the company cuts production as in 2009, it had negotiated a working-time agreement Unite.