Companies today face an unprecedented number of exposures. Disasters come in all manner of shapes and sizes, the question is have you got adequate plans in place to deal with all eventualities?
Taking steps now and producing a plan provides a better chance to reopen a business quickly. Without a business continuity plan, one in four businesses are forced to shut down.
The frequency and severity of weather-related events seem to be increasing and reliance on a complex network of technology and supply chains is ever expanding. Both trends leave businesses susceptible to a variety of existing and emerging risks.
It does not take a major catastrophe to shut down a business. In fact, seemingly minor disruptions compared to widespread natural disasters can often cause significant damage — power failures, broken water pipes, or loss of computer data.
Managing these risks by developing a business continuity strategy and insurance programme is key to the survival of any organisation in today’s environment.
Why Business Continuity?
There are plenty of reasons for businesses to plan for the unexpected. We highlight and explain a few of the key areas in the sections below:
Avoid Market Share Loss
With a business continuity plan, your business will have a better chance of remaining competitive and minimising the loss of revenue and clients. A solid and tested plan boosts customer confidence. When your clients know you have plans in place to provide continuity in the delivery of your goods and services during a crisis, they are less likely to jump to a competitor if a disaster threatens your area of business.
Having a plan allows you to demonstrate that your business is committed and prepared to protect your employees, clients and their assets at all times. This demonstrates a proactive attitude and can enhance both employee morale and public opinion about your business.
Business continuity plans will improve communication within your organisation and with clients, suppliers, vendors, and key stakeholders. This is a helpful way to improve daily operations, not only in the event of disaster.
There are many misconceptions placed on business continuity planning by companies:
Employees will instinctively know what to do in an emergency
Wrong: Even the best employees cannot be expected to know what to do when disaster happens. Leaving people to their own devices can sometimes even add to the confusion. Having a well-documented business continuity plan in advance, training your employees to follow it should ensure everyone on the same page which will result in an organised, safe and timely recovery.
We have insurance to cover our losses
Insurance alone is NOT a business continuity strategy. The righr coverage is a significant and important part of the plan. But it may not fully cover some of the peripheral damages from an event, like loss of customers, market share, or setbacks in development or release of a new product. Consult with the Riskworks team to understand what is and is not covered under your current policy.
We do not have the time to develop a business continuity plan
Time spent developing and maintaining a business continuity plan is an investment in your company as a whole. Your fixed costs will continue after an event, whether or not you are open for business. The quicker you can return your operations to normal, the more likely you will recover from the event successfully. With so much at stake, your company really cannot afford NOT to have a plan and if you don’t have one in place now would be a good time to start.
Business continuity and disaster recovery planning are the same
Business continuity is a proactive plan to avoid and mitigate risks associated with a disruption of operations. It outlines steps to be taken pre, during and post event to maintain the financial viability of a company.
Disaster recovery is a reactive plan for responding after an event. It deals with the safety and restoration of critical personnel, locations, and operational procedures after a disaster, and is a part of business continuity planning.
Business Continuity, managing the risks and having the relevant insurance cover in place
Managing these risks by developing a business continuity strategy and insurance programme is key to the survival of any organisation.
Talk to the team at Riskworks on how we can work towards a strong continuity plan for you in 2018 and beyond on 01625 547754 or email firstname.lastname@example.org