Should I save the boss?

Five-step guide to commence Business Continuity Planning

1. Analyse your business

2. Assess the risks

3. Develop your strategy

4. Develop your plan

5. Rehearse your plan

Step 1. Analyse your business, also known as business impact analysis

Determine which areas of the organisation’s activities are crucial to running the business :

-Employees

-Location

-Major clients

-Main suppliers

-Specialist equipment

-Unique premises

-Time sensitive processes

Consider the factors which influence the impact of a catastrophe on your business. Establish where your business is at its most vulnerable if a catastrophe occurs.

Ask these questions:

-Which department is most/ least vital?

-Which people are most essential and when?

-Do you have contact information at another location for all staff?

-Do you have a plan of who does what in a catastrophe?

-Do you have a crisis team?

External factors which are likely to affect your business in a catastrophe:

-Local community

-Your competitors

-Government

-Transport

Step 2. Assess the risks

1.Internal and external threats:

- Does your plan work if power fails?

- Can customers and suppliers contact you?

- Can your suppliers get to you?

- Do you have alternative suppliers?

- Can your customers pay you?

- Can your employees get to work?

- Do you have catastrophe insurance?

2.Risk concentration

- Do you have all crucial machinery at one site:

3.Vulnerability to catastrophe

- Will your customers switch to competitors if there are delays in supplies?

- Have you assured your staff that a plan is in place and their jobs are secure?

- Have you assured your suppliers that you have a plan in place and you will be able to pay them?

- Does your landlord have a plan?

- Do you have back-up copies of financial details and vital papers off-site?

4. Risk appetite: How risk averse are you?

Establish how long your business can function at reduced capacity. What must be done to make sure it can function at reduced capacity?

Define your risk strategy

Various options are:

-Accept the risk and have a disaster recovery plan to get business fully operational after a catastrophe.

- Accept the risk but enter into a mutual arrangement with other business to provide help after a catastrophe

-Attempt to reduce catastrophe risk exposures.

- Effect insurance for the risk which cannot be retained.

-Prepare for the worst case scenario. This will enable you to deal with the greatest loss that is likely to occur and any smaller incidents.

Step 3. Develop and keep developing your plan

- Does your plan reflect the most up to date business impact analysis and risk analysis?

- Who is responsible for the plan’s maintenance?

- Is the plan regularly reviewed in terms of mission critical activities?

- Does the plan clearly define how to recover critical activities within the specified time frame?

- Does the plan clearly define personnel roles, accountability and authority?

- Consult with experts who can advise on preparation of plan.

- Determine information which insurers will need in the event of a claim

- Use emergency services for assistance with staff training and evacuation procedures.

Step 4. Rehearsal and staff training

Once the plan has been developed it should be tested in an environment to simulate catastrophe conditions. The plan should be tested with all team members to ensure that each is fully aware of their own responsibilities.

Update the plan regularly to reflect staff changes and technology upgrades.