A crisis can happen at any time, threatening an organization in a multitude of tangible and intangible ways. Following best practices in risk management – including creating a business continuity plan – can mean the difference between recovery and bankruptcy.
Plan for the Worst-Case Scenario
While the probability of some events occurring may be relatively low, it’s best to know what to do in a crisis. You may want to consider how your business would respond to the following internal and external crises:
- A driver in your corporate fleet is found to be the cause of a massive, multi-vehicle collision
- An arsonist burns down your primary supplier’s warehouse
- Your office building is closed due to a terrorist threat
- A hacker successfully targets and shuts down all of your computer systems
- An ice storm cuts power to your only manufacturing plant
- One of your best-selling products is subject to a massive recall
- Your CEO/executive team is tragically killed in a plane crash
Create a Business Continuity Plan
Prepare a written plan to map out strategies for a variety of crisis scenarios, and then review it on a regular basis. When developing and testing your plan, think about:
- Business-critical activities. Deploy resources to areas that matter most to operations, such as IT.
- Leadership. Designate key roles and backup resources to communicate internally and externally.
- Training. From first-aid to functional cross training, ensure your team is ready to pick up the pieces.
- Human resources. In the event of an injury or death, a crisis counsellor can provide expert advice.
You can control the cost of your insurance premiums and improve your business operations by implementing risk management strategies. Create and review an emergency preparedness plan with your employees and/or volunteers.
As an addition to your existing policy, business interruption insurance may cover your earnings during a shutdown period. Talk to your insurance representative about coverage that can help you mitigate some of your business risks.
Thank you to Insurance Bureau of Canada for this information. To view original article, click here