Case Studies

There was a time when recovery from a business disaster just involved getting someone in to clean up the mess and hanging a "business as usual" sign on the door. Unfortunately this is no longer the case. Business today is complex and its continuation after an interruption of any kind relies on a wide understanding of all the influences that could affect it as well as having carefully prepared plans to get those influences back in harmony once disturbed.

small and medium sized businesses are running fast to survive commercially. And they are not only exposed to incidents that are outside their control but also to considerable regulation as well as their own business processes, personnel and procedures.

80% of businesses fold in the aftermath of a disaster

It is a sad fact that many small businesses hit by fire, storm damage or even it failure go out of business because they have not planned for recovery. 80% of businesses without a business continuity plan fold in the aftermath of a major disaster. and this was never clearer than in the wake of the flooding this summer.

According to figures released in july from the chartered institute of loss adjusters, claims from businesses relating to the floods that hit the north in june will total more than £680m. And that figure doesn't include claims likely to be made by the organisations in the midlands who got swamped in july. It is clear that many organisations were caught out. the reality is that they were caught out, not just by the floods but by having no business continuity plan in place so that they could carry on business elsewhere.

Do you know the risks to your business?

But don't be mistaken into thinking that business continuity planning is only necessary to protect an organisation against the big disasters, like acts of nature, it failures, theft or damage it is actually just as crucial - if not more so - for making sure an organisation is prepared in case of a number of other events that can occur. What would you do If your best people suddenly resign? Or if one of your key suppliers goes under? Or a new competitor opens up in your area?

Do you have contingency plans in place for all of these eventualities - and do you understand the impact of such events on both your day to day business and your long-term profitability? and crucially, do all your staff know what to do in the event of any form of crisis?

Unfortunately, for many small to medium sized organisations the answer is probably no. But that doesn't have to be the case. and whilst business continuity planning isn't the panacea to all ills, if there is a problem and your business is prepared - including all your people knowing what to do - then you stand a much better chance of coming out the other side unscathed.

All parties in any business sector can give themselves the best possible back up with business continuity planning processes and practices that will ensure that, whatever the disaster, the day to day activities of the organisation should be able to get back up and running quickly. This should include clear processes for employees so that there is no doubt what action to take, whatever the circumstances.

With Incident Director, following an initial audit of a business by experienced professionals, a business continuity plan can be created for long term financial benefit. It could even help reduce insurance premiums. Incident Director experts also provide practical guidance and advice, supported by an online system that ensures business continuity practices and processes are adhered to.

Building hindsight

There is a clear role for cost-effective business continuity and the recent issues that have affected businesses across the UK have only highlighted the importance of forward planning. Hindsight is a wonderful thing and with the right solution, businesses could really gain this. They and their staff will know what should happen, should the unexpected occur - whether it is fire or flood, or some other crisis!

What others say.........................................

Many small businesses hit by fire, storm damage, or even it failure go out of business because they have not planned for recovery. (ESCC Emergency Planning Department)

"But the stark fact is that 40% of businesses suffer a terminal failure as a result of an incident, that proves more needs to be done" (Douglas Barnett - Risk control strategy manager AXA)

80% of businesses without a business continuity plan fold in the aftermath of a major disaster. (british chambers of commerce) ... never re open, or close within 18 months (AXA)

Overall only 25% of businesses have an adequate business continuity plan (Chartered Management Institute 2006 survey and the national audit office).

1 in 5 businesses suffer a major disruption every five years. (London First / Business Continuity Institute)

Sun Guard, a software provider, advise that their clients report six events per business day, non are high profile, just business interrupting events that can destroy a business.

and if you still think it's not for you......................................

......if secured and paid out, business continuity insurance only recovers part of the actual cost as these had not previously been accurately identified. (various)