Business Continuity Planning
Primary Goal and Purpose:
To increase the likelihood of business survival in the event of a disaster. The inclination for self-protection is strong when the environment gives clear reminders about the dangers. This is especially true when organizations are frequently exposed to natural or man-made threats. The purpose of a business continuity plan is to restore an organization’s critical business operations as quickly as possible after an unforeseen disruption. This will minimize its operational and financial impact.
Concerns:
When the economic climate is favorable, business continuity planning is not a priority. Even when profits are down, business continuity planning is the first item to be cut from the budget. About 60 per cent of businesses suffering a catastrophic loss due to a disaster were not in business two years later. No data is available to identify the financial health of the survivors and the size of surviving organizations is unknown. However, larger organizations tend to have a better chance as they have the resources to return readily to normal operations.
Many disasters result in common activities such as flood, fire, high winds, and even power failure which may require the organization to relocate to continue operations. Developing a full-scale business continuity plan requires time and resources. Evidence of a successful business continuity plan in disaster recovery had been attributed to the use of an effective planning methodology, carefully customized for the organization.
Possible Impacts:
The need for business continuity plans for an organization cannot be over-emphasized to include the following reasons:
The failure to deliver its critical services to customers can result in:
- Loss of confidence and reputation
- Loss of business and customers
- Cash flow problems
- Loss of efficiency
- Loss of financial and/or management control
- Loss of management visibility
In general, the tangible loss to any organization includes:
- Lost sales/income/cash flow
- Increased bad debts and costs
- Poor customer service
- Reduced market share and profits
- Reduced order processing
The potential effect of a disaster to an organization can result in:
- Increase inventory
- Loss of financial control
- Poor public image
- Reduced capacity
- Unfavorable shareholders' reaction
The Federal Emergency Management Agency (FEMA) and the General Services Administration (GSA) have created templates that can be used by both private government and public businesses in the creation of Continuity of Operation Plans (COOP). An interim emergency plan template developed by Forbes Calamity Prevention is a good starting tool until a COOP is created. A review of Sedgwick County’s Hazards Analysis Plan can assist in identifying known hazards that have or could potentially impact businesses. Please contact Sedgwick County Emergency Management at 660-5959 if you have any questions, would like further assistance in COOP, or to review your plans.
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