The Importance of a Business Continuity Plan (Plus a Free Guide)
Creating a business continuity plan isn’t just a smart business strategy; it’s an essential component of ensuring survival during and after a crisis, emergency or disaster event. If your organization is looking to create (or update) its business continuity plan, look no further. This article covers the many benefits of having one. Plus, you’ll even find a downloadable, step-by-step guide for how to create one at the end.
What is a Business Continuity Plan?
A business continuity plan (BCP) is a process that outlines the potential impact of disaster situations to business operations. It creates policies that respond to various situations to ensure a business is able to recover quickly after a crisis. The main goal of a BCP is to protect people, property and assets. It also helps position your organization to recover from unexpected business interruptions, property damage, financial impact and even loss of life following an emergency.
Business Continuity Planning: Why You Should Care
There’s no denying that the beginning of 2020 has been incredibly difficult for many businesses. While some organizations have had to convert to a 100% remote approach to operations, others have have been forced to shut their doors until further notice. The COVID-19 crisis was sudden and unexpected for many, and called for drastic measures that many businesses were not prepared for.
Much like in the coronavirus situation, many businesses do not recognize the need for a BCP until it’s too late. Here’s how having a BCP could save your business significant time, money and precious resources in the wake of an emergency or crisis.
5 Benefits of Having a Business Continuity Plan
1. Your business will be more prepared to handle the unexpected.
Businesses can’t expect employees to know the best ways to react during a crisis situation. Leaving each person to respond in his or her own way will, at best, only add to the confusion and at worst, lead to loss of life. A BCP will help document procedures well in advance of an emergency. This way, employees can receive training to protect themselves and make smart decisions without panicking.
2. Your business will have safeguards in place (in addition to insurance).
A common misconception is that businesses do not need a business continuity plan if they have insurance. The truth is that a business can’t always rely on insurance alone. Insurance doesn’t always cover peripheral damage of an incident, such as loss of customers, loss of market share and operational setbacks. A BCP only helps bolster safety and security in your organization.
3. Your business will invest in itself and its ability to bounce back.
The time you spend developing and maintaining a business continuity plan is time that you spend investing in your company. It’s important to remember that your fixed costs will continue after an event, whether you’re open or not. The faster your organization can return to business as usual, the more likely you’ll be to fully recover from an unanticipated event.
4. Your business will have a plan to continue providing acceptable service after the disaster.
Threats, disruptions and disasters can lead to a loss in revenue and higher costs, which in turn can affect profitability. Don’t let an unanticipated event set your business back, especially when it comes to production of goods or services. A business continuity plan can help your organization keep operations running, retain customers and continue earning revenue.
5. Your business will better preserve its corporate reputation, image and revenue stream.
Companies that take the time to consider how they’ll respond to emergency situations are genuinely the ones who are able to bounce back and continue operations as usual. A predefined business continuity plan (when combined with proper insurance coverage) will help your organization eliminate the need to make hasty decisions under stressful conditions.
Here’s Your Free Guide to Creating a Business Continuity Plan
Business continuity planning is an expansive topic. With so many resources available on the internet, it can be difficult to know where to start. We made it easy with our step-by-step guide to business continuity planning. Inside, you’ll find resources including a BCP outline, a business impact questionnaire, and other helpful tools.