Why it's important to consider potential disasters and plan for scenarios that could impact your business operations.
Today’s business environment is characterised by rapid, unpredictable change. If you want to stick around for a while and be successful, you have to make sure that your business is responsive and resilient to any eventuality. This articles looks at what we mean by a resilient business and what you can do to turn your business into one.
So what is a resilient business?
A resilient business:
- is able to resist threats rather than react to them
- constantly identifies weaknesses in process or infrastructure and improves on them
- gains a competitive advantage by planning for and mitigating potential disasters whilst other companies suffer
- employs staff that are constantly driven to anticipate problems and innovate when opportunities arise.
Business resilience is about continuous change and improvement.
Many will be surprised to know that half of businesses with no effective recovery plans in place fail within 12 months of experiencing a disaster. Are you confident your business would survive?
When thinking of a disaster, many businesses straight away think about flooding, because this is most commonly in the public eye. But there are many other things you should also be considering.
What situations could have a serious impact on your business?
- Do you need electricity for you businesses to operate? Do you have a backup generator?
- Is your data secure and backed up off site? A fire could wipe out every bit of data you have, which would have a serious effect on your operations.
- Does your insurance cover businesses interruption? And is this cover high enough?
- How would severe weather affect your operations? Consider:
- very high or low temperatures
- high winds
- heavy rainfall
- how essential travel would be affected.
- What about your supply chain? Have you considered their resilience? Any changes to companies in your supply chain could have a serious effect on your business.
- Do you have any personnel that are key to business operations? What would happen if they left the business or were off sick for long periods.
It’s worth remembering that a resilient business is also a dynamic business. Consider any situation that may have an effect on your operations, make a plan that deals with each situation and educate your staff so that they’re ready to act, if disaster strikes.