DISASTER STRIKES
Business Continuity :
Are You Prepared If Disaster Strikes ?
BY : JANICE CAMPBELL , KNIGHT ARCHER
INSURANCE
From fires to floods to hurricanes , disaster can strike anytime , anywhere , and often with little to no advance warning . According to the Insurance Information Institute , as many as 40 percent of businesses forced to suspend operations due to a natural or human-caused disaster never reopen their doors .
Try to imagine the challenges your business would face in the wake of a natural disaster like the British Columbia fires of 2017 or Hurricane Harvey or Irma . It ’ s scary to even consider . Now here ’ s something even scarier : a relatively minor fire or flood that forces you to shut down operations carries many of the same challenges as a disaster on the scale of these fires or hurricanes .
Your commercial property insurance policy would help you rebuild your physical infrastructure , but are you equipped to deal with lost revenue and mounting expenses while you work to restore operations ?
PLANNING FOR THE WORST The difference between surviving a business interruption and going belly up often hinges on one factor : preparation . The best way to prevent a disaster from putting the future of your business at risk is to have a proper continuity plan in place . Business continuity planning involves the following :
1 . Defining potential risks . All types of threats must be considered .
2 . Determining how those risks will affect operations . Dependencies and interdependencies should be carefully analysed .
3 . Implementing safeguards and procedures designed to mitigate those risks . For example , alternate sites for IT backup should not be situated close to the primary site .
4 . Testing those procedures to ensure that they work .
5 . Periodically reviewing the process to make sure that it is up-to-date
Start the process by establishing a planning team tasked with developing the continuity plan . These are typical goals of a continuity plan :
• Protecting the safety of employees , visitors , contractors , and others . Planning for employee support after such an event is important .
• Maintaining customer service by minimizing interruptions or disruptions of business operations . Do you have a backup location on retainer for quick relocation and setup ? Is your telephone system able to be redirected to avoid communication disruption ?
• Protecting your organization ’ s brand , image , and reputation .
Implementing the plan means more than simply exercising the plan during an emergency . It means acting on recommendations made while defining the potential risks , integrating the plan into company operations , training employees , and having an ongoing evaluation of the plan with adjustments made as necessary . And keep a copy of the plan stored at a secure off-site location .
No business owner wants to think about what would happen if disaster strikes ; however , it is a reality that all business owners must face . Knight Archer realizes it can be a daunting task to plan for a major business interruption — but it doesn ’ t have to be . We have a suite of industry-leading tools and resources that can be tailored to meet the unique needs of your business . Let Knight Archer make life easier for you . +
Janice is a local Regina broker , with 32 years of General insurance experience providing advice to business owners .
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