Can your company afford to go without a business continuity plan?
Businesses can be affected by a number of perils which can cause a loss resulting in downtime and profit loss. These perils can adversely affect companies to the point where without any planning in place it is estimated that more than half of them never recover in their respective markets.
Exposure can be from any of the following perils but not limited to:
• Ice Storm
• Recession – Local
• Recession – Global
• Civil Unrest (Occupy Movement)
• Fire / Explosion
• Work Lockout
• Utility Disruption
• Cyber Terrorism
The objective of business continuity planning is to minimize the amount of downtime the company is exposed to and to maintain critical operations during the restructuring time. By planning the company can ensure critical business activities continue immediately after a disaster strikes. Preplanning can also assist the company in avoiding purely automatic reactions instead of carefully planned out thinking which can in turn avoid costly mistakes.
But typically what happens when there is no planning in place, rebuilding the operation can take longer and cost more than necessary.
Here’s an example: fire in your building.
Phase 1: Initial investigation to determine what happened.
Phase 2: Clean Up and debris removal
Phase 3: Develop plans
Phase 4: Obtain Permits
Phase 5: Work to restore pre-fire operations.
Phase 6: Reconstruction
What to expect during reconstruction if you do not have a business continuity plan:
- Drop in employee retention. If you cannot retain employees during the rebuilding period, you will lose trained and skilled workers. Expect to begin the rehiring and retraining process.
- Delays. While the building is being constructed equipment could be ordered but the delivery will have to coincide with the completion of the building. Expect a couple of weeks to set-up and test the equipment and adjust the settings to your specifications.
The business continuity plan centers on what a company will do in the event of an interruption of their operations. It identifies the cause of the loss and the crisis management plan (the plan to act during such loss.) Can your company afford to go without a business continuity plan? Learn more about Business Continuity Planning.
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