A company experiencing a disruption of three days or more is at risk of going out of existence. Disruptions like natural disasters (storms, tornados), human risk (infectious disease, labor disputes) and business risks (financial crisis, supply chain) are a few of the events that can affect a business. Within two years, of the companies that experience this kind of delay, 70% will fail. After five years that figure rises to 90%. The majority of companies will have insurance coverage, but this may not be enough to protect them in the long-term. The key to a business surviving one of these events is to be prepared for every eventuality.
A well-thought out and successfully executed continuity plan protects employees and assets, continues operations, meets customer requirements, and maintains reputation. This plan must address emergency response, crisis management, and business recovery.
Response
It is important that in the event of any disruption that you react as quickly as possible. Emergency response consists of two items: immediate action (0-24 hrs.) and disaster recovery. The immediate action protects employees, makes facilities secure and prevents escalation. Disaster recovery addresses the technology utilized in today’s business environment and data recovery.
Management
Crisis management goals include an effective and timely response to avoid or minimize damage to the organizations profitability, reputation, and ability to operate. Communication begins immediately with affected parties and continues for the duration of the recovery. A team approach is critical. The management of social media is also an important part of crisis management, whether you have an online presence or not.
The final step of business recovery will lead to the resumption of normal operations. This could include the purchase of new physical assets and locations, as well as hiring new employees.
A business continuity plan is vital to an organization’s long-term survival. As long as you have a structured plan to protect your interests you should be fine. If you have yet to put together a business continuity plan, you need to ask yourself one question: Is your company really prepared or will it just be another statistic?
If you need advice for your business continuity plan, Gibson can help. Contact us here.
