| Interruptions to business operations typically occur unexpectedly, making proper planning necessary to recover and maintain productivity. Since disruptions range from natural disasters and terrorism to power outages and computer failures, developing a complete business continuity plan can help employees respond effectively to most situations to restore the business.
When creating a continuity plan, businesses should begin by identifying all potential threats and the impact on all departments and locations. They should then be prioritized based on the likelihood of occurrence as well as overall influence on operations. It is also important to evaluate other businesses in the supply chain to determine the probability and effect of a breakdown elsewhere. Such businesses could include materials suppliers, production facilities, distribution services, warehouses, service centers and customers.
Following the threat evaluation, the company should determine what constitutes an emergency and consequent institution of the plan. Preparations should include expected recovery times for general types of incidents, such as natural disasters, rather than specific events, such as hurricanes. The plan should outline what is needed to reinstate production and the responsibilities of all personnel. All employees should be aware of the contents of the company’s business continuity plan, as key personnel or facilities might not always be available.
A business continuity plan should also address disruptions due to a failure in the supply chain. For example, depending on a backup supplier who can provide materials on short notice can assist in the continuation of operations if the primary supplier is no longer available. Avoiding a reliance on suppliers located in the same geographical region, particularly those with a high risk for natural disasters or military strife, can also prevent interferences. Some companies may choose to maintain an inventory of critical equipment in the event materials are not accessible.
Once the continuity plan has been developed, it is important to regularly evaluate procedures and the roles of personnel to ensure all employees understand their responsibilities and can enact them properly. A review also provides the opportunity to improve procedures to increase efficiency and productivity following an incident.
By developing an effective continuity plan, businesses are prepared to address threats to their operations, allowing them to maintain productivity, as well as their reputation.
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