Loss Control
Business Continuity Planning: Enhancing Your Resilience
In risk management, the first line of defense is always planning.
August 1, 2024
In today’s business environment, preparation is essential for managing risks from online breaches and criminal activity to natural disasters, geopolitical upheavals and terrorist acts. Nearly a quarter of businesses forced to close because of catastrophic weather never reopen. Many organizations that experience a significant data loss are unable to sustain their business past five years.
Creating a business continuity plan is critical. It extends beyond emergency response by detailing the methods a business will employ to recuperate from all types of losses.
What Is Business Continuity Planning?
Business continuity planning is the process of identifying vulnerabilities that could cause a significant business interruption and creating a strategy to respond to and mitigate those risks. Risk management methods can include planning/preparation and insurance. Business interruption insurance can provide necessary financial assistance to help get a company back on its feet following a qualifying business interruption.
What Are the Steps for Building a Business Continuity Plan?
A business continuity plan is a company's roadmap after experiencing an emergency. It is developed using the following steps:
- Determine essential business functions and identify recovery time objectives for each function.
- Develop a plan to meet recovery time objectives if a business interruption occurs.
- Identify an emergency response team and a business continuity team. Assign responsibilities, including actions during the event and into the recovery phase.
- Train employees about their role in the business interruption and emergency.
- Develop a communication strategy for all employees and business stakeholders. Train the employees on the communication plan in case of an emergency.
- Test the plan with a tabletop exercise or drill at least annually to keep the plan current.
Business Continuity Planning Resources
If your company needs assistance or resources to begin the business continuity planning process or improve an existing plan, contact your experienced property or casualty loss control risk advisor. For more information about business interruption insurance and ways to reduce risks, contact Hylant.
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The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.
Authored by
Beverlie Cote
Risk Advisor - Casualty Loss Control
Ann Arbor
Beverlie has 20 years of experience in environmental, health and safety within automotive, food manufacturing, agriculture, education, Japanese and Chinese companies, and life sciences. Beverlie partners with commercial clients in strategic casualty loss control by reviewing the client’s loss history and developing actionable objectives and goals to improve their program and systems.
Steve Groos
Risk Control Advisor-Property & Marine
Chicago
Steve has over 30 years of experience in property loss control across various industries. He advocates for Hylant clients, ensuring that property risk issues are identified, prioritized and addressed practically and consistently. Steve works with clients to document their property risk profile and ensure their risk improvement objectives are aligned with key performance indicators.
