Why your company's future may depend on a disaster response plan
It is estimated that four in every five firms adversely affected by a major incident either never re-open, or close within 18 months – highlighting the critical need for all businesses to have a plan in place to respond to possible disaster.
Major threats can include fire, break-ins, cyber attacks or damage caused by flooding and other extreme weather conditions.
To protect your company against such threats, it is imperative to have effective security preparation and disaster response plans in place.
Without prior and robust planning, your company could be left open to financial disaster, especially if forced to close operations for a period of time.
There is also the risk of facing legal actions from clients, distributors or employees claiming negligence.
For companies in the manufacturing sector, common risks can come in the form of fire, theft or vandalism and, in many cases, the best way to prepare for a potential security threat is to take preventive steps to secure your facility. Less common but more frequent are computer hacks leading to system crashes disabling production and design processes.
Any plan to respond to disasters, therefore, must begin with a full assessment of your company’s current security level and the identification of possible gaps or weaknesses.
It’s important because any significant event that impacts the continuity of your business could result in:
- Loss of work to competitors
- Failures within your supply chain
- Loss of reputation
- Human Resources issues
- Health and Safety liabilities
- Loss of website sales
- Higher insurance premiums.
Having an in-depth plan in place can improve your firm’s ability to cope with disruptive events allowing it to restore essential services within a timeframe that is right for the business and its customers.
Even the very knowledge that a plan is ready can be reassuring to staff, customers and suppliers and will also help insurers’ perception of risk and could potentially reduce premiums.
The implementation of your business continuity plan means more than simply following it during an emergency, however. It must be integrated into your company’s operations, relayed to employees and regularly evaluated.
Willis Insurance and Risk Management can help prepare your company for any kind of interruption — whether it’s caused by fire, water, theft, security breach or anything else.
For more information or to start the process of developing a business continuity plan, contact David Sinnamon, Risk Manager, Willis IRM on 028 9032 9042 or visit www.willisinsurance.co.uk.