Business Continuity- a Plan for Recovery
A Business Continuity Plan (BCP) can help, or potentially save a company, during times of catastrophe. A recent poll conducted by Womply, a software-as-a-service (SaaS) provider, surveyed approximately 2,300 small business owners and their concerns about threats. The Small Business Threat Index evaluates prominent threats and if respondents were well-prepared for the worst case scenarios. The report concludes: small business owners perceive threats to their physical business and revenue to be the most damaging, likely because they run thin-margin companies with little room for error. Due to small financial buffers and risk mitigation strategies that are out of line with self-described catastrophic threats, potentially millions of small businesses are a disaster away from shutting down forever1.
So what’s the key takeaway? Risks are (for the most part) unpredictable and can be devastating for business operations. The key to recovery is planning, preparation and risk management. A Business Continuity Plan (BCP) can help your company recover quickly from any occurrence of unfortunate events. By reviewing all possible risks and hazards, a BCP outlines the procedures that enable your organization to continue to deliver products and services, while minimizing the cost to your company’s bottom line.
BCP - A Plan for Recovery
A BCP is a proactive way to stay resilient in any situation and provide the goods and services your customers expect. When developing a BCP, it is important that all potential hazards and vulnerabilities are analyzed. Once evaluated, the BCP should clearly communicate the procedures to allow your organization to continue to function. The following are just a few examples of what should be taken into consideration when outlining a BCP:
- Data backup and recovery (hard copy and electronic)
- All mission critical systems
- Financial and operational assessments
- Alternate communications between customers and the firm, and between the firm and employees
- Alternate physical location of employees
- Critical business constituent, bank, and counterparty impact
- Regulatory reporting
- Communications with regulators
- How the firm will assure customers’ prompt access to their funds and securities in the event that the firm determines that it is unable to continue its business
Have a specific list of step-by-step procedures to ensure these critical business elements can withstand a disaster. Make sure the procedures are communicated fully and easily located for reference. Natural catastrophes and man-made disasters can strike at any time so be prepared for the mishaps. By setting your organization up for fast recovery, you’ll suffer less loss and be back to business in no time. Creating a BCP is one of the best investments your company can make. Please fill out the form to receive your complete guide to Business Continuity Planning. To implement a full BCP for your business or if you would like an evaluation of your current procedures, please contact us.
Sources: Insurance Journal. Small Business Threat Index- National Study. Womply. https://www.insurancejournal.com/research/app/uploads/2017/10/SmallBusinessThreatIndex_FINAL-003.pdf Financial Industry Regulatory Authority. Business Continuity Planning. http://www.finra.org/industry/business-continuity-planning