Business Continuity Plans: Your Lifeline in Times of Crisis

“Failing to plan is planning to fail.” What a cliche.

Except…cliches are commonly repeated for a reason. This phrase, in particular, ends up proving true over and over. Ignore the advice at your own peril, and look no further than recent events for evidence.

Unfortunately, many business leaders have learned this lesson the hard way in recent years. Most people have watched the LA wildfires from afar with compassion and sympathy, but without realizing how quickly the same circumstances could be their own. It’s not likely to come as a surprise to those reading this article that billion-dollar natural disasters are increasing across the globe. According to the Centre for Research on the Epidemiology of Disasters (CRED), disaster events have increased from 100 per year in the 1970s to around 400 events per year worldwide in the past 20 years.

It’s easy to assume that if you are cautious and make smart decisions, there’s no reason your operations shouldn’t continue running smoothly. The inconvenient truth is that many factors are completely out of our control, and the statistics on global disasters should serve as a wake up call. In such a landscape, a proactive business continuity plan is essential.

Recent events have highlighted this urgency: hurricanes devastating Florida and the Gulf Coast, wildfires ravaging California, and tornadoes wreaking havoc across the Great Plains. Furthermore, consider our current geopolitical landscape. It’s too early to tell what impact the latest tariffs will have, or even potential funding cuts. No company should assume their operations - or their bottom line - will remain unchanged.

Additionally, many organizations operate data centers in foreign countries that may be politically or environmentally unstable. A sudden crisis in these regions can lead to significant disruptions in service and data accessibility, impacting businesses that rely on these facilities. By the time a disaster strikes, it is far too late to scramble for solutions. The repercussions can be catastrophic, leading to financial loss, reputational damage, and even the end of the business itself.

The Importance of Proactive Planning

Business continuity plans (BCPs) are essential frameworks that outline how a business will continue operating during and after a disaster. These plans ensure that critical functions can continue, even in the face of significant disruptions. Establishing and regularly testing these plans is crucial to ensure that organizations can respond effectively to a rapidly changing environment.

Why You Need a Business Continuity Plan

It’s not fun to think of all of the potential ways your business could be disrupted, but it’s necessary. For many organizations, it’s not a matter of “if” disaster strikes, but “when”. And the repercussions of the interruption to your business or the loss of data can be costly or even catastrophic. Here are some of the reasons savvy business leaders have a business continuity plan in place - before the worst happens.

Minimization of Downtime

In 2014, Gartner released a study saying the cost of downtime was $5,600 per minute. That number is thought to be much higher now, up to $9,000 per minute for some companies. Could you absorb that impact? A well-crafted BCP allows businesses to quickly recover and resume operations, minimizing downtime and these associated costs.

Protection of Assets

Much of today’s business landscape is online, and cyber threats have increased significantly. Most professionals know they need to protect customer data and financial information, but your company has many more assets that could be exposed. Everything from employee data to intellectual property to digital rights are up for grabs and can fall into the wrong hands. Continuity plans help safeguard physical and digital assets, including sensitive customer data, IP, and infrastructure.

Enhanced Communication

Does your staff know what to do if disaster strikes? When seconds matter, what is the immediate response if your data centers are wiped out - and who is responsible? A BCP ensures clear communication channels are established, keeping employees, clients, and stakeholders informed during crises.

Regulatory Compliance

Many industries have legal obligations to maintain certain standards for data protection and business operations. These legal requirements are not eased during emergencies, and it’s your responsibility to understand how you’ll manage these measures during a crisis. Look no further than Equifax’s $425 million global settlement for an example of the severe consequences of failing to maintain regulatory standards.

Business Continuity: Creating and Testing Your Survival Plan

If you do not currently have a business continuity plan in place, here are some specific tips to get started:

1. Conduct a Risk Assessment - Identify potential threats to your business and assess the impact of each type of disaster, including natural disasters, cybersecurity threats, and supply chain disruptions.

2. Get a second opinion. It’s a smart idea to include an independent viewpoint in your risk assessment process. Often, business leaders are too close to their operations and it is difficult to see the forest through the trees. An objective expert can help you find gaps you may be missing.

3. Establish a Business Impact Analysis - Determine which business functions are essential for survival and prioritize them. This analysis will guide your recovery strategies.

4. Develop Response Strategies - Create detailed action plans for how to respond to different scenarios, including resource allocation, personnel assignments, and communication protocols.

5. Designate a BCP Team - Appoint a team responsible for overseeing the development, implementation, and maintenance of the BCP. This team should include members from various departments to ensure comprehensive coverage.

6. Create a Communication Plan - Establish protocols for communicating with employees, customers, and stakeholders during a crisis. This should include how to disseminate information quickly and effectively.

Once a BCP is in place, it is equally important to test and update it regularly:

• Conduct Drills and Simulations - Regularly practice the BCP through drills and simulations to ensure all team members understand their roles and responsibilities.

• Evaluate Performance - After each drill, assess the performance of the plan. Identify areas for improvement and update the plan accordingly.

• Stay Informed - Keep abreast of changes in your industry, technology, and regulations that may impact your BCP. Regularly review and revise the plan to adapt to these changes.

• Engage Employees - Encourage staff to provide feedback on the BCP and involve them in the testing process. This can foster a culture of preparedness within the organization.

• Review External Dependencies - Regularly evaluate the stability and reliability of your external partners (such as data centers or suppliers) and revenue sources, to ensure they can support your business continuity efforts.

We all need to face the fact that disruption is the new normal, and businesses must take proactive steps to prepare for the unexpected. Establishing a comprehensive business continuity plan is not just a best practice; it is an essential component of resilience. By anticipating potential threats and preparing for them, organizations can protect themselves, their employees, and their customers, ensuring that they can weather any storm - literally and figuratively.

We work with companies/organizations big to small and properly assess your risks and scope to keep you protected.  If you need some guidance on establishing a business continuity plan that will protect your business, reach out to SAGIN. We help leaders like you to take proactive steps that ward off the negative consequences of whatever comes our way.