A staggering amount of businesses, 40 percent, never reopen after a disaster, according to the Federal Emergency Management Agency (FEMA). Another 25 percent of businesses that are able to reopen fail within a year. As we enter the hurricane season, take this time to ask yourself if your business is prepared to deal with a potential disaster.
The best protection against a disaster of any kind is through preparation. Disaster planning before a loss occurs can make all the difference between having to permanently shut down your business due to significant losses and being able to continue business operations with minimal disruptions.
Business disruption after a disaster can cause reduced profits and customer loss. A business continuity plan is essential to the survival of your organization. Development of a business continuity plan consists of four steps:
- Analyze. Conduct a business impact analysis to identify time-sensitive and/or critical business functions and processes, as well as the resources needed to support them.
- Strategize. Identify, document, and implement the necessary steps to recover business functions and processes.
- Develop. Organize a team to compile a business continuity plan that manages business disruptions for different disaster scenarios (fires, floods, hurricanes, earthquakes, ice storms, severe winds, and more).
- Test. Provide training to the continuity team and conduct testing and exercises to evaluate recovery strategies and the overall effectiveness of the plan.
To discuss risk management strategies for your business, contact us today at 800-342-3859 or firstname.lastname@example.org. For more information on developing a business continuity plan, visit www.Ready.gov.
*This article is for informational purposes only and should not be construed as providing legal advice.