We have learned, through many hard knocks, that planning for the worst-case scenario is what we must do to stay in business.
We know that fires and the like start small, often as minor disruptions, but there can be many cascading affects that escalate until the problem is overwhelming.
So what should a business do to keep that minor disruption from turning into a major disaster? What are the most important actions you can take?
The business preparedness and recovery industry continues to grow. The 2010 Edition of NFPA 1600, of the National Fire Protection Association, which is one of the standards for business continuity, will be ready for distribution at the end of 2009. Its focus is to encourage business to prepare for, respond to, mitigate and recover from those threats, hazards, or perils that are able to significantly impact people, property, operations, the environment, or the entity itself, including conditions so severe that they may totally incapacitate the entity’s ability to respond. The new edition will provide information concerning the human impact of a disaster as well.
The business-continuity industry is hearing more about Public Law 110-53 Title IX “Private Sector Preparedness.” This law came out of the Department of Homeland Security (DHS) and has filtered to the ANSI-ASQ National Accreditation Board (ANAB) to start to identify accreditation standards.
But how will the law be administered? Who will be the certification body? What companies should become certified? What will this mean for businesses small and large? How will this help companies become more competitive as they bid for the same jobs? Will our businesses become better risks as they demonstrate their ability to recover successfully from a major disruption? And will the insurance industry respond with more attractive rates?
Businesses today depend heavily upon the ability to collect and analyze information in digital form. We increasingly demand robust telecommunications systems. The disruption of either the ability to process or access information for even a few days could cause severe financial distress to the business. A lengthy loss of these capabilities could seriously affect the company’s survival.
As DHS says, “Private sector preparedness is not a luxury; it is a cost of doing business in the post-9/11 world. It is ignored at a tremendous potential cost in lives, money and national security.”
So how can business continuity be so effective? To put it simply, a continuity plan does the following:
• It identifies stakeholders that need to be notified.
• It identifies critical and time-sensitive applications, as well as alternative work sites.
• It makes provisions for vital records, contact lists, processes and functions that must be maintained through the disaster event.
• And it highlights the personnel, procedures and resources that are needed while the entity is recovering.
Doing this work beforehand gives your company a competitive advantage. Doesn’t it make sense that businesses should be doing this?
In fact, the act of planning for disaster provides real benefits to your business. Business- continuity planning helps define essential business functions and processes, ones that are tied to profit and reputation. It also defines how quickly those functions need to recover. It increases understanding of time-sensitive workflows. In this economy, wouldn’t you want to know in detail where your best line of defense for survival is and where you want to devote critical resources, manpower and time for successful continuity for your business? It all makes sense, doesn’t it?
Business-continuity planning today has evolved into a strategic blend of many disciplines. It touches auditing, risk management, emergency response and management, physical security, disaster recovery, public sector coordination, telecommunications, supply chain management, information security and technology, and more. From this list the value of business-continuity and recovery planning is clear. Nothing less than the survival of your business is at stake. •
Lori C. Adamo is president of Cranston’s Code Red Business Continuity Services LLC.
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