BUSINESS CONTINUITY
YOUR BUSINESS CONTINUITY PLAN CAN EITHER MAKE OR BREAK YOU
Unemployment is at 14 year low. GDP is up 2.7-3 points. By all measures the economy is humming right along. The strain on risk-management resources can be great as companies fight to staff their businesses, keep up with production schedules and retain top performers. Why is business continuity important? Before we can answer this, it is helpful to understand what it is.
Business continuity is the process that enables a business to maintain its functions in the event of an emergency. The first step in business continuity planning is the process of identifying the parts of your company and supply chain that are most vulnerable. Step two is to create a plan to recover if a business interruption occurs. Your company’s business continuity plan, in conjunction with business insurance, form your business continuity management (BCM) program. Businesses with strong BCM programs are more resilient in the face of emergencies and disasters. Disaster preparedness is another name for this.
The process of creating the plan is in itself a beneficial exercise. The resulting plan, if implemented and maintained, can be the difference between recovering from a business interruption, retaining key employees and key accounts.
Business continuity by the numbers!
According to FEMA 40% of businesses never reopen after a disaster. Only 29% will open after 2 years. 75% of small businesses do not have a disaster preparedness plan. And in the past year, nearly 1 in 5 companies has reported experiencing a business interruption. A business interruption can be as benign as a short power outage or as severe as a hurricane. Companies that are prepared to face all types of incidents—small or large—are more likely to stay in business!
We recommend going through our risk discovery process to make sure you are well prepared. To learn more, please contact Sr. Risk Advisor David Schofield at 781-239-7625 or by email at dschofield@delandgibson.com.
