How To Make A Business Continuity Plan
Should something occur to disrupt your business, you could lose revenue, incur unforeseen expenses, and ultimately see your profits reduced. While having Business Interruption Insurance in place can reduce the impact, a solid Business Continuity Plan (BCP) can be the difference between float and fail.
- Make a list of risks that could impact your company. This would include a wide range of evens from the death of a key member of the team to a hurricane flattening your premises.
- Ascertain what impact each risk might have on your business, in particular the obstacles it would create in normal day-to-day operations. This may be lost sales, longer lead times, and increased expenses.
- Put a plan in place for each eventuality, a solution that would enable “business as usual”, such as relocating to a temporary office or hiring equipment.
Remember: A Business Continuity Plan is a way to turn a high risk into a risk that an insurer would be prepared to underwrite. The key to this is identifying risks, and knowing what the solutions would be should the worst happen.
- If you identify risks that could be mitigated by acting now, put those plans into place – for example you could reduce the risk of loss by backing up critical information and systems. This can be backing up to a remote server and ensuring that hardcopies are filed in a safe place.
- Collate key emergency personnel information for each eventuality. Who should be contacted in the event of X, Y, Z, their telephone number, email address etc. This could also include external personnel such as suppliers, accountants, and of course YOUR INSURERS!
A BCP should be a complete document, and available to everyone who needs it. Make sure that you revisit your plan at least once a year ensuring that all contingency plans and risks are up to date.
If you would like any advice regarding compiling a BCP, get in touch!