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Businesses need to be on the right track from the outset- it is too late to work out what to do as disaster strikes.
If the event affects other businesses and not just you, there may be competition for scarce resources, and those who are swift to react
will be in a stronger position to get what they need and gain a competitive advantage.
If a business is silent during a crisis, people will naturally fear the worst. Lack of a credible and visible plan will lead to loss of confidence in clients, suppliers and employees. Competitors may take advantage, regulators may become involved, and bad publicity will undoubtedly result. Sympathy and loyalty will last only so long, and in the worst-case scenario, cash flow problems will arise, leading to probable failure.
Being insured is simply not enough. Assuming that your business interruption cover is sufficiently comprehensive, most businesses typically recover only 30% to 50% of the total cost of an insured interruption, yet
the business still has to keep going while losses are assessed.
An effective Business Continuity Plan not only reduces the risks, but
helps to ensure that your business survives. Furthermore, having a BCP
today can help you to win additional business, reduce your compliance/
regulatory exposure, lower your insurance costs, and may also help
to identify other cost savings.
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