Storms, pandemics and other emergencies can result in outages, disruption of business operations or facility damage. Is your business prepared? A continuity plan is a statement of actions to be taken during (and after) any emergency that interrupts business. The goal is to continue operations and return to full capacity as quickly as possible.
Start with the essentials
Begin by asking yourself a few simple questions. What processes are essential to keep your organization operational? What can be set aside? How would you maintain your critical functions in an emergency, and where would you get the necessary resources?
Develop a flow chart identifying the operations critical to business survival and recovery. Include emergency payroll and systems for expedited financial decision-making and record keeping, as well as procedures for management succession.
Keys to successful continuity planning
With these elements in place, you can begin the process of developing a full business recovery plan. Although every organization is different, the following should be part of any planning process.
Leadership. Appoint someone to guide the process, establish goals and assign responsibilities. In a smaller business, this could be the owner or a trusted associate. Larger organizations may appoint a facility manager or head of operations.
Hazard analysis. Make a list of the potential hazards your facility could face. For example, is your facility in a flood plain? Assess each hazard on its probability of occurrence and potential impact on your business. Include action items and mitigation procedures for each hazard.
Insurance review. Meet with your insurance providers to review all policies. Make sure you have adequate coverage for all of your facilities and equipment, as well as the risks you've identified. Determine what your deductibles are and make sure your policy covers business interruptions.
Vendor assessment. Identify all suppliers, shippers and other outside contractors that provide your business with critical resources and services. Develop complete, up-to-date contact information for all of your primary contractors, as well as alternatives, in case key suppliers are shut down.
Location planning. Plan what you'll do in case your facility is inaccessible; can you run the business from home or a suitable alternate location?
See Business Continuity Plan from the Federal Emergency Management Agency for more detailed information.
