Every business is vulnerable to disruptions. Most companies have taken steps to mitigate the impact of major hazards. However many businesses have neglected smaller, more probable perils, ranging from inadequate fire protection and offsite data backup, through the death or disability of key personnel, to over-reliance on a limited number of vendors.
While you can transfer many risks that could disrupt your business to insurance companies (through such coverages as Business Interruption and Extra Expense policies), this probably won’t be enough to ensure that the company will survive or continue its long-term growth and profitability. To prevent and/or reduce the impact of such a mishap, it makes sense to implement Business Continuity Planning (BCP). This process involves three key steps:
- Pre-disruption planning. Assess the “risk and threat environment” of your business and take steps to reduce these hazards and weaknesses.
- Disruption response. The extent and nature of losses will depend on the effectiveness of the emergency plans that you implement during the incident to provide a methodical, rational, and coordinated approach to dealing with the disruptions.
- Post-disruption recovery. While the first two steps can reduce or mitigate risk, the recovery process focuses on rebuilding and restoration. Although many businesses depend heavily on central and distributed computer resources, a comprehensive BCP involves a wide variety of crucial activities that need to continue with minimal interruption.
Your BCP should not be a one-time project that involves creating a plan and then moving on to “business as usual” – but a long-term commitment to design, develop, implement, and maintain a comprehensive, company-wide strategy to keep your business running effectively..
We’d be happy to review the risks facing your business and tailor a Business Continuation Plan to your needs.