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.
©, Copyright, 2006 Sedgwick County Emergency Management.
last update:
04/05/06
Please report problems to the
webmaster
ALL RIGHTS RESERVED
Your
Government
