If you have ever applied for a loan or business insurance, you should check the box that asks whether you have a Business Continuity Plan. Many applicants tend to mindlessly check yes, even if they don’t have an actual plan in place.
Continuity plan checks are part of loan and insurance applications
That’s not a good idea. There is a reason why this agency is asking for a Business Continuity Plan. And it doesn’t bother you or give you unnecessary employment. They seek to minimize risk for you and the institution. Many are required by law to have a Business Continuity plan in place.
A Business Continuity Plan is a contingency plan that provides direction on how to keep a business operating in the event of an unforeseen event. Loan applications and insurance aside, having a plan is part of a solid business strategy especially in times of uncertainty.
Researchers show that nearly 90% of businesses that have a Business Continuity Plan report reduced disruption, improved resilience, and faster recovery from disruption. So there are several statistically proven benefits to having a Business Continuity Plan.
Disorders can be natural or can be man -made. Some of the most common disorders – unexpected death, divorce, distress, disability, or disagreement – will affect 1 in 2 businesses. One of these can have a severe impact, especially on smaller businesses.
Business Continuity Planning assists businesses with confidence in responding to unplanned events.
How terrible? The average disruption will cost a business around $ 81,000. And still 25% of the business will be off all. It’s quite harmful for a business without the resources to withstand the impact.
Business interruption insurance can help but only in cases where ‘covered events cause physical damage that cause losses’. Many disruptions are most common and therefore not eligible to pay for such business disruptions that are found during a pandemic. Check policies or speak with your broker.
The responsibility to protect people, profits, and corporate growth from unplanned events is an internal employment. This type of risk management and risk mitigation cannot be outsourced or delegated.
Business Continuity Plans usually include information about:
Thinking about and documenting this information in advance minimizes response time when there is disruption. This level of vision also reduces the number of decisions that need to be made when there is disruption when emotions increase and the business can lose money.
Continuity planning allows business leaders to focus on making the right strategic decisions to navigate disruption rather than expending energy for day-to-day operational decisions in the summer.
This area documentation ensures that relevant information is at the business’s fingertips when there is a disruption when the most important thing that is needed is information that is accessible. Once this information is documented, it is crucial that the people assigned to respond are informed and trained.
Running a business comes with inherent risks. Business leaders take this risk by taking steps to proactively protect growth and operations from unpredictable and unplanned events. Having a business continuity plan is one of those steps.
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