The four stages of the business cycle are prosperity, recession, depression and recovery. The prosperity phase, also sometimes called the expansion phase, occurs when the economy is quickly growing.

Explanation of Four Phases of Business Cycle

The four phases of a business cycle are briefly explained as follows :-

1. Prosperity Phase

When there is an expansion of output, income, employment, prices and profits, there is also a rise in the standard of living. This period is termed as Prosperity phase.
The features of prosperity are :-

1. High level of output and trade.
2. High level of effective demand.
3. High level of income and employment.
4. Rising interest rates.
5. Large expansion of bank credit.
6. Overall business optimism.
7. A high level of MEC (Marginal efficiency of capital) and investment.

Due to full employment of resources, the level of production is Maximum and there is a rise in GNP (Gross National Product). Due to a high level of economic activity, it causes a rise in prices and profits. There is an upswing in the economic activity and economy reaches its Peak. This is also called as a Boom Period.

2. Recession Phase

The turning point from prosperity to depression is termed as Recession Phase.

During a recession period, the economic activities slow down. When demand starts falling, the overproduction and future investment plans are also given up. There is a steady decline in the output, income, employment, prices and profits. The businessmen lose confidence and become pessimistic (Negative). It reduces investment. The banks and the people try to get greater liquidity, so credit also contracts. Expansion of business stops, stock market falls. Orders are cancelled and people start losing their jobs. The increase in unemployment causes a sharp decline in income and aggregate demand. Generally, recession lasts for a short period.

3. Depression Phase

When there is a continuous decrease of output, income, employment, prices and profits, there is a fall in the standard of living and depression sets in.
The features of depression are :-

1. Fall in volume of output and trade.
2. Fall in income and rise in unemployment.
3. Decline in consumption and demand.
4. Fall in interest rate.
5. Contraction of bank credit.
6. Overall business pessimism.
7. Fall in MEC (Marginal efficiency of capital) and investment.

In depression, there is under-utilization of resources and fall in GNP (Gross National Product). The aggregate economic activity is at the lowest, causing a decline in prices and profits until the economy reaches its Trough (low point).

4. Recovery Phase

The turning point from depression to expansion is termed as Recovery or Revival Phase.

During the period of revival or recovery, there are expansions and rise in economic activities. When demand starts rising, production increases and this causes an increase in investment. There is a steady rise in output, income, employment, prices and profits. The businessmen gain confidence and become optimistic (Positive). This increases investments. The stimulation of investment brings about the revival or recovery of the economy. The banks expand credit, business expansion takes place and stock markets are activated. There is an increase in employment, production, income and aggregate demand, prices and profits start rising, and business expands. Revival slowly emerges into prosperity, and the business cycle is repeated.

Thus we see that, during the expansionary or prosperity phase, there is inflation and during the contraction or depression phase, there is a deflation.

Measuring Prosperity. When economists study economic growth, the focus is usually on income. The most common measure of income for an entire country is gross domestic product (GDP), a measure of the value of all market goods and services produced in a specific country or province in a year.

When a country’s GDP is high it means that the country is increasing the amount of production that is taking place in the economy and the citizens have a higher income and hence are spending more. … However, increase in GDP does not necessarily increase the prosperity of each and every income class of the nation.

If you do peruse these reports, remember that data can change rapidly, and that broad trends are not judged by one isolated economic data point.

• Real GDP (Gross Domestic Product)
• M2 (Money Supply)
• Consumer Price Index (CPI)
• Producer Price Index (PPI)
• Consumer Confidence Survey.
• Current Employment Statistics (CES)

Reference: https://www.aaii.com/journal/article/the-top-10-economic-indicators-what-to-watch-and-why.touch

ISO 22316:2017  (Security and resilience – Organizational resilience – Principles and attributes) and ISO 22301= Social Security – Business Continuity

“Over and above the ISO Standards mentioned above, numerous other standards are available. The one that fits into our “Prosperity” features on this page, is ISO 22316:2017 (Security and resilience – Organizational resilience – Principles and attributes).
In collaboration with this standard, the ISO 22301= Social Security – Business Continuity is standards which an organization MUST consider in its business management system.

ISO 22316 – New guidance standard on organizational resilience

The International Organization for Standardization has published a new standard that provides guidance to enhance organizational resilience for any size or type of organization. This international standard – ISO 22316:2017 – Security and resilience – Organizational resilience – Principles and attributes – establishes the principles for organizational resilience and identifies the attributes and activities that support an organization in enhancing its resilience.

ISO 22316 defines organizational resilience as ‘the ability of an organization to absorb and adapt in a changing environment’ and states that organizational resilience enables an organization to deliver its objectives and to survive and prosper.

James Crask, the project leader responsible for the final development of ISO 22316, explains:

“Resilience is one the most important concerns of organizations today. Being able to identify and adapt to changing circumstances resulting from emerging threats and opportunities will separate the survivors from those organizations relegated to history.  ISO 22316 is a landmark document representing international consensus on the core concepts supporting organizational resilience.  The principles and attributes contained in the document have the potential to help organizations survive and evolve in the face of mounting threats and new opportunities.

Brian Roylett, the project leader responsible for much of the early development of ISO 22316 shares:

“The release of ISO 22316 provides the catalyst for further standards development within ISO/TC 292.  The guidance document is not a standard produced in isolation but rather a forerunner of a suite of standard guidance and handbooks on organizational resilience – in particular some of the “how to” that was (intentionally) not addressed in ISO 22316.

ISO 22316:2017 – Security and resilience – Organizational resilience – Principles and attributes is available from ISO national member institutes. It may also be obtained directly from the ISO Central Secretariat .

Read more:  http://www.isotc292online.org/news-archive/iso-22316/