Table of Contents
- Understanding Business Continuity Planning
- What Components are typically included in a Business Continuity Plan?
- Action Steps
Understanding Business Continuity Planning
In the current business landscape, organizations must anticipate a wide range of challenges. These encompass a wide array of risks, from illnesses and adverse weather conditions to perils like fire or water damage, service and sales slowdowns, and even pandemic shutdowns. Each underscores the vital necessity of integrating comprehensive Business Continuity Plan components.
What is a Business Continuity plan? It’s a comprehensive strategy designed to mitigate risks to your business in the event of unforeseen circumstances such as illness, extreme weather, perils like fire or water damage, service and sales slowdowns, or even pandemic shutdowns. It serves as an action plan outlining the necessary steps to be taken to ensure the continuity of your business operations. A Business Continuity plan identifies potential risks and vulnerabilities. It provides guidelines and protocols to minimize disruptions and maintain essential functions, enabling your business to remain operational during challenging times.
Having a Business Continuity plan can be the difference in making it through a disaster and keeping your business & family afloat
What Components are typically included in a Business Continuity Plan?
- Financial Stability: Saving three months of revenues to cover rent/mortgage, utilities, salaries, maintenance & expenses
- Supply Chain: Identify a minimum of two alternative suppliers in different cities, provinces or countries
- Additional Sources of Income: For brick-and-mortar operations, develop and implement other avenues for sales. This may include online sales, take-out food capability, and outsourcing to third-party companies for continued manufacturing.
- Off-site Locations: Can you continue operations remotely? If so, develop a plan to seamlessly transition to other locations
- IT Solutions: P.O.S. (point-of-sale) & websites, identify critical repair & IT contacts that you can rely on if required
- Training: Cross-train employees to ensure skillset is available with multiple employees in case of absenteeism
- Contractors: Ensure that you identify and build reliable contacts with subcontractors who have proper insurance coverage. You can accomplish this by requesting a Certificate of Insurance.
- Communication Plan: Develop messaging that will keep your clients as well as employees informed on the status of operations
- Data Breach: If you are collecting and storing customer data, develop a preventative plan. This plan can include anti-virus/anti-spyware tools, as well as a response action plan that incorporates Privacy Breach Insurance in case a breach does occur.
Action Steps
Incorporating these Business Continuity Plan components can determine the success of navigating a disaster and ensuring the survival of your business and family. Additionally, discussing your insurance needs with your broker can better protect your business.
