Planning for disaster
Blind optimism aside, most growing businesses are in a state of change, making it easy to forget about things under the surface. But if you start thinking early about what you’re going to do in the event of a disaster then the business can be in much better shape for it – and putting in place a plan to deal with risks will help reassure your shareholders, customers and employees. Furthermore, evidence of a continuity plan is likely to get you a lower insurance premium.
Size matters
Running a medium-sized business might even mean that you ought to be more inclined to create a disaster recovery plan than if you were a lot bigger. Rob Thompson, marketing director of business continuity experts SunGard Availability Services explains: ‘A very strong reason for growing companies to plan for disaster is that key staff and locations are fewer in number. Larger companies are generally more geographically diversified, so business functions are replicated in other areas. In smaller, entrepreneurial businesses this is much less likely. So, if there’s a single point of failure, say in the finance department, there’s no one to replace them in an emergency.
‘You’ve also got the classic supply chain pressures if you’re supplying to someone who supplies to someone else,’ he adds. ‘Contingency plans are often expected of suppliers and if you don’t have them then you might not be able to able to win some contracts.’ This need is going to be underlined soon by the introduction of a kitemark for continuity plans, British Standard 25999, in public consultation phase at the moment and comes into practice in 2007. It won’t be compulsory, but large firms that comply may insist their small suppliers have one.
The real cost
‘A common misconception is that putting plans in place will be an horrendously costly exercise. But the important thing is to look carefully at where to spend your recovery plan pound,’ informs Thompson. ‘Formats can range hugely from one paper copy in someone’s drawer – not advisable – right through to complex business continuity software that can map potential points of business failure and run you through everything that should happen.’
Although the concept of ‘disaster’ brings to mind events like terrorist bombings and Buncefield, by far the most common catastrophes are mundane; an over-exuberant road-digger cutting a power cable is every bit as traumatic for a business as a bomb going off. You can’t prevent most disasters, but you can lessen the resulting interruption to your business.
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Useful websites
www.pfe.gov.uk
Preparing For Emergencies information from the Government
www.ukresilience.info
Government website giving details of current UK threats and emergencies
www.sapira-international.com
Online register where you can log important contact information in case of catastrophe