Always plan ahead. It wasn't training when Noah built the ArkAnon
1. Business Survival
The reality is that there are many things that can disrupt a business (see Common Threats). A well thought through, practical plan will ensure that the next crisis to hit your company isn’t its last.
2. Improving efficiency
Developing a BCP starts with undertaking a thorough analysis of the business and deciding what parts are vital, and questioning the relevance of the things you do. A by product is that non-critical activities reveal themselves, are considered and if appropriate are dropped therefore improving the efficiency of your business.
3. Avoid hidden costs and missed opportunities
If you do suffer a crisis, you are likely to find that insurance will fund the replacement of assets, loss of profits etc. What it won’t do is cover you for hidden costs (loss of productivity, customer compensation, additional management resource to run the day to day and rebuild the workplace) and missed opportunities (being unable to quote for new business , being unable to attract new staff) whilst you rebuild the business. With a BCP you will minimise these costs as you will rebuild the business quicker.
4. Managing Insurance Premiums
Your business will have insurance cover in place to provide financial recompense in the event of a disaster. Your insurance premium is based on the risks your insurer perceives he is covering. A BCP will demonstrate to your insurer that you are proactively managing risks and as a consequence will consider this when calculating your future premiums.
5. Employee Satisfaction
Every employee wants to work for a business that has a future, and demonstrates concern for their welfare. A BCP shows you care, and inspires confidence and loyalty. As a consequence the cost of recruitment and subsequent loss of productivity is reduced.
6. Regulatory Requirements
In some industries having a BCP is becoming mandatory and certain structures of limited companies are required to review the risks their business faces and have action plans in place. Further the Civil Contingencies Act 2004 requires local councils, health authorities, police etc to ensure their suppliers have BCPs. If you are thinking of entering these markets you need to be prepared.
7. Positive Image
Having a Business Continuity Plan demonstrates good management practice, and will as a result make your business more attractive to banks, investors, insurers and customers.
8. Damage to business and personal reputation
Imagine your premises are lost due to a fire and along with it go all your vital records and information. You now can’t pay your staff or suppliers, you can’t call your customers and they can’t call you, and so on. Not only will the businesses reputation be damaged so will yours and this will have a long term impact. A BCP will avoid this and in fact probably enhance your reputation, as it will demonstrate how well prepared you were.
9. Competitive Advantage
Increasingly customers want to see evidence that their suppliers are committed to meeting their needs no matter what happens. Put yourself in your customer’s shoes – do you sign a contract with the supplier that has a Business Continuity Plan or choose the one that hasn’t?
10. Peace of Mind
Everyone knows they should prepare for emergencies, but most don’t get round to it and hope it never happens. With a BCP in place you can rest easy knowing that should the worst happen you and your people are well prepared.
