Why Does Your Company Need a Business Continuity Strategy …
The most outstanding companies in the world today, that continually surpass everyone’s expectations include; Ford, Standard Oil, Microsoft, Wal-Mart, Tesla Motors, Chevron, Berkshire Hathaway and Exxon Mobil.
Examine these companies, and we can easily identify the common denominators that keep them standing tall and performing well above the rest.
The implementation of a tried, tested and revised business continuity strategy is one of them.
Business Continuity & Disaster Recovery?
Exactly Why Your Company Needs a Business Continuity Strategy?
A company is created for the sole purpose of gaining profits from the business it does, and a company or a corporation is a legal entity that is wholly separate from its members.
When you form a company, you form an imaginary legal person that can hold and dispose of property, take legal action and sign documents.
Because it is a wholly separate legal entity, a company can have its own assets and liabilities and make profits and losses quite separately from its directors and other members, and it’s important to note that some of the best companies in history were created by people who started with nothing.
Today more than ever before, companies are facing significant concerns regarding drastic environmental changes and other crisis that can pose significant risk to the continuity of the business.
These unplanned events can and have had devastating effects on small, medium and international companies. The BP oil spill in the gulf of Mexico being one of the most recent.
It should be obvious then, that every company needs and should have in place a business continuity strategy, particularly those involved in the financial sector, and companies that rely heavily on Information Technology to carry on their business.
The purpose of a business continuity strategy is … “to identify the potential impacts that threaten an organization and provide a framework for building resilience with the capability for an effective response that safeguards the interests of its key stakeholders, it’s reputation and value-creating activities.”
For Example … IBM was responsible for the implementation and back-ups of the financial institutions in the NY Trade Center. And after the September 11 attacks, most financial corporations were up and running within 4 days, as all financial records had been backed up at another secured site.
Most of the companies involved just did not think that anything of that magnitude would ever happen to them. Who does? But, because they had taken the pro-active decision to implement and test a business continuity strategy, they did not lose their important files or transaction records.
The effectiveness of their business continuity strategy prevented those financial institutions losing their customers and this relatively simple decision, is what kept them in business.iDex7
What Should Your Business Continuity Plan Cover?
Traditionally, the business continuity strategy focuses on what will happen if your premises, equipment, products or services are disupted or damaged in some unforseen way.
However, today, the absence of key staff, possibly due to illness, can cause equivalent effects that will prevent your business progressing as normal. Employee loss or absence then, should also be an important consideration in your business continuity plan.
Whether your company is large or small, every business should have a business continuity strategy in place that is not only written in hard copy form, but also backed-up with training and other measures that ensure the company’s members, shareholders, staff and it’s customers are protected
Remember, it’s not so much the cost of the plan, but the realization that something might happen and the costs that may acrue from a disastrous event, should you not have procedures or facilities in place for dealing with those events.
Your business continuity strategy can reassure the whole company that the business of making money will continue after a natural calamity, or without current key staff members, and that any challenges the company faces will never affect business that badly.iDex7