Your guide to creating a Business Continuity Plan
A company needs to have a Business Continuity Plan (BCP) in place to recover quickly after a major disruption like a flood, fire, or cyberattack. Such a plan provides a systematic approach to prevent risks that could lead to the closure of the business. In this article, we explore what a BCP is, what it should include, and the basic steps to follow when implementing it.
What is a Business Continuity Plan?
A BCP is a crucial document that outlines the essential information needed to ensure your organisation can continue to operate during an unforeseen event. It specifies the systems and processes that need to be maintained, along with instructions on how to sustain them. This document helps prevent confusion and provides a clear plan of action for all involved.
Why do you need one?
Having a BCP in place will help your business to survive a major event, enabling you to rebuild and continue operating. For example, you can plan timescales to get your IT back on track; coordinate an emergency response in the event of a dangerous event, such as fire or flood; or in cases of infrastructure damage or destruction, have a plan to relocate or rebuild as quickly as possible. It also sends out a powerful message to your customers, reassuring them they will not be undersupplied despite the disruption.
Who should be involved in creating your BCP?
It is recommended that the owner or managing director of a business create a plan with the input and expertise of key personnel and employees who are fundamental to the operation of the business. This includes individuals who have experience and knowledge of the following:
- The manufacturing process of the business's products and/or
- The service provided by the business
- Key service providers
- Regulations associated with providing the business's services
- Key supply processes that the business relies on
- Processes for distributing the business's products.
Key processes and impact
You should list your key business processes, such as production services, IT infrastructure, stock, accounting, HR, marketing and sales, and the potential consequences if they are disrupted. Impacts could include loss of sales and income, increased expenses, decreased customer loyalty, delayed service delivery, poor product quality and regulatory lines.
Key resources
You should list the key resources on which your company relies, such as:
- key staff (employees your business can’t function without
- external contacts (people outside your business key to its operation)
- data, equipment & supplies (databases, machinery, technology, software, passwords, materials required to make products)
- business documents (bank info, HR docs, legal papers, tax returns, utility bills)
Contingency planning
You should always have a contingency plan in place to ensure your business keeps running, detailing contingency equipment (alternative equipment if current equipment is destroyed) and a contingency location (an alternative location if your premises are unavailable).
Costs
Also, look at the different areas where you might need to spend money, including:
- Relocation: Would you need a removal service? Would you need premises where your equipment can fit, there is good road access and access for customers? Time taken to set up a new office, collate documents, carry out risk assessment and connect power can also impact on costs.
- Furniture and Equipment: will you need to buy or rent desks, chairs, mobile phones and laptops? Can your team work from home? If you already have spare items in storage, it could help to lower costs.
- Stock, staff, suppliers, maintaining the business: will you need to replace stock (important if you’re a retailer) and will staff have to travel further to your new location? If you already have backup servers and devices such as laptops and smartphones, it will save time and money. It can also be a good idea to have an external storage facility where you can keep key docs and company info safe.
- Insurance claims: Does your insurance policy cover you for replacing damaged equipment and repairing property, or for business disruption, allowing you to claim back loss of earnings?
Finalising your plan
Following our suggestions above, you should now be able to create step-by-step instructions on executing your BCP. List the names and responsibilities of key people involved and file all the information together as one plan. Make copies for your continuity team and keep them in an off-site location.
Regular reviews
Don’t forget to review your plan regularly; as a guide, we’d suggest at least once a year to make sure it fits for purpose, as risks can develop and change quickly. Always review if there are changes to the business, such as new location, products, services or equipment, and changes to people, such as staff changes, promotion, new responsibilities and new suppliers. Redistribute the new plan and discard outdated versions.
Our business is your protection
We hope the above proves useful, as it always pays to plan ahead and be prepared should the worst happen. Of course, having appropriate insurance in place goes without saying, and we always advise regularly reviewing your policy to ensure you have the right cover in place.
Let us ensure you are protected in the event of a major event occurring, helping you get back on your feet as quickly as possible, and advising on Business Interruption cover, protecting you against loss of earnings.
To discuss your business insurance, please give us a call on 01992 703 300 or email insurance@nlig.co.uk