BUSINESS CONTINUITY
How Business Continuity Can
Save Your Business
Preparing For An Unexpected Disaster
M
anaging a business is
tough, and it becomes
even tougher when you
consider all of the external
factors that could affect
your day-to-day operations. Some of those,
of course, are obvious: getting customers
through the door, how much money you
need to devote to the operations of the
business, and having insurance to protect
you against property loss or common
liabilities. One thing that many companies
do not prepare for, however, is the potential
for how an unexpected disaster could affect
short- and long-term business operations.
That is where having a business continuity
or disaster recovery plan comes into play.
Each year, 20 percent of businesses in
Canada experience an event which poses a
significant challenge to its daily operations.
According to the Canadian Centre for
Emergency Preparedness, 86 percent of small
to mid-sized businesses will close their doors
within three years of such an event because
they did not have a plan in place to deal
with the disaster ahead of time. Those who
believe they have a plan typically rely on an
“unofficial” guide that was not thoughtfully
devised nor shared with their organization.
Business continuity is all about being
proactive. This requires a company to take
into account all aspects of its organization to
determine where potential issues may arise.
Developing that continuity plan will not
only help to prevent business interruptions
but also assist a company in identifying both
inefficiencies and redundancies. Taking
a proactive approach means reviewing
business processes, potential exposures,
and current insurance policies to make sure
your business is covered from every angle or
you are at least aware of areas where your
business lacks protection. The ideal plan will
both avoid and minimise the need to use an
insurance policy, which will translate into
lower premiums and lower overall insurance
costs.
Another aspect of this problem is business
interruption insurance, which can help your
company get back up and running after a
disaster and help keep your company’s cash