Business continuation plans vital to post-disaster success

Ask most business executives if they have a plan for their company and you will be told how instrumental a business plan has been in achieving their success. Ask those same executives if they have a business continuation plan, however, and the answer could be surprising.

Since a year ago when the devastating storms hit southwest Missouri, this issue has become even more relevant for local businesses. This article will address the basic components of putting together a business continuation plan and is a compilation of the Federal Emergency Management Association’s public domain policy.

There are four steps in the planning process.

The first step is establishing a planning team that is in charge of developing the emergency management plan. In order for the team to be successful, remember to include all areas of the organization. Next, establish the authority of the team by showing management’s commitment and support of the team’s taking the necessary steps to develop a plan. The team needs to have a mission statement to define the purpose of the plan and indicate that it will involve the entire organization and define the authority and structure of the planning team. Finally, the team should establish work schedules and planning deadlines keeping in mind that timelines can be modified as priorities become more clearly defined.

The second step is to analyze capabilities and hazards. This step entails gathering information about current capabilities as well as identifying possible hazards and emergencies. Review all internal plans and policies that include, but are not limited to, evacuation plans, fire protection plans, security procedures, insurance policies, employee manuals and risk management plans.

Meet with government agencies, community organizations and utilities. Identify applicable federal, state and local regulations such as occupational safety and health regulations, environmental regulations, fire codes, zoning regulations and corporate policies. Recognize any critical products, services and operations needed to assess the impact of potential emergencies and to determine the need for backup systems.

Determine internal resources and capabilities that could be needed in an emergency including personnel, equipment, facilities, organizational capabilities and backup systems. Identify external resources that could be needed in an emergency such as the local emergency management office, fire department, emergency medical services, hospitals, local and state police, utilities and insurance carriers. Administer an insurance review to make sure all policies and coverages are up to date.

Next, conduct a vulnerability analysis to assess the vulnerability of the facility, the probability and potential impact of each emergency.

List all potential emergencies that could affect your facility, including those identified by your local emergency management office. Types of emergencies would include fires, severe weather, hazardous material spills and earthquakes. Are employees trained to work safely? Do they know what to do in an emergency?

Assess the potential human impact, the potential property impact and the potential business impact. Factors to assess include business interruption, employees unable to report to work, company in violation of contractual agreements, interruption of critical supplies and interruption of product distribution. After assessing both internal and external factors, review the results to help determine planning and resource priorities.

The third step is to develop the plan. The plan should include emergency response procedures. The procedures spell out how the facility will respond to emergencies. Whenever possible, develop them as a series of checklists that can be quickly accessed by senior management, department heads, response personnel and employees. Determine what actions would be necessary to assess the situation and protect employees, customers, visitors, equipment, vital records and other assets. Also, detail how to get the business back up and running.

The fourth and final step is implementation of the plan. Implementation means more than simply exercising the plan during an emergency. It means acting on recommendations made during the vulnerability analysis, integrating the plan into company operations, training employees and evaluating the plan.

Integrating the plan into company operations means emergency planning must become part of the corporate culture. Evaluate and modify the plan at least at least once a year.

The four steps above are designed to help businesses develop a business contingency plan. Critical factors for success lie in the ability to accurately review your capabilities and identify potential hazards. Once your true exposures are known, develop the plan accordingly. However, continue to implement the plan, train personnel, and revise your plan as business continues to grow, expand, and experience new and increased exposures.