In the Wake of Disaster.....

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There are a number of terms for Business Continuity Management (BCM) - some people would know it as a Disaster Recovery plan.  Whichever way you term it in the wake of a major incident BCM can be the difference between survival and extinction.  This may sound a little over dramatic but statistics gathered by the London Chamber of Commerce make for truly terrifying reading:

• 90% of businesses that lose data from a disaster are forced to close within two years of the disaster
• 80% of businesses without a well-structured recovery plan are forced to close within 12 months of a flood or fire
• 43% of companies experiencing disasters never recover
• 50% of companies experiencing a computer outage will be forced to shut within five years

Shocking statistics like these and stories of businesses struggling to recover in the wake of the 9/11 and 7/7 terrorist attacks means BCM is a hot topic for senior managers. 

Global insurance intermediary Willis has first hand experience of managing the fall out of a major incident. In the Bishopsgate bombing of 1993 one of the company’s London offices was destroyed. A well developed and tested plan had to be used for real. Six hundred staff were contacted over the weekend. Dispersal arrangements were in place for the Monday morning. Tables, PCs and phones were set up in an alternative office.  Crucial papers were retrieved from the stricken offices and the impact on customers was minimal.  Remarkably, despite taking over two years to return to the damaged offices there was no business interruption insurance claim.

The harsh reality for smaller businesses is they just do not have the time and resource to devote to in-depth planning or, in the current economic climate, the funds to employ consultants to undertake the work.  Smaller businesses should at least consider implementing the following common sense activities.

1. Make a list of all the areas in the business you hold data on customers, prospects and suppliers. Data can be as simple as contact details in a telephone book and accounts information on a ledger or as complex as detailed technical drawings and tooling used to make products.
2. Start a project to ensure all your data is stored on a server and is accessible to all relevant employees through a secure login.  If paper files can’t be transferred to a digital format ensure they are kept in fire proof lockable cabinets.
3. Consider off site third party data storage rather than an on-site server.  If this is not an option, ensure your server is regularly backed up and data kept off site.
4. Establish a chain of communication so that all staff can be informed quickly if a disaster strikes. 
5. Secure your building to guard against unlawful entry, not only when the building is empty but also during normal operating hours.  If not already in place, consider installing a sprinkler system.
6. Ensure all responsible staff have ownership of specific tasks should disaster strike and they are aware of how their tasks influence the overall recovery of the business.
7. In the case of manufacturing companies reliant on machinery, investigate third parties that could complete work in progress and unfulfilled orders.
8. Investigate your suppliers’ lead times – How long would it take to recover?

Although these measures may sound time consuming and in some cases costly, the benefits are endless. Your customers will feel the benefit of a quicker, slicker operation and having information on your prospects at your fingertips could lead to improved sales.  Some of these measures could even reduce the cost of your insurance premium!

Willis Commercial Network has been working in partnership with the British Plastics Federation for over a year now. Our members are local independent insurance brokers with a wealth of knowledge.  The mix of great local service and the global buying power of Willis is a great combination for BPF members and indeed any company operating in the plastics industry.

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