It is April 9, 2022, and as I prepare to write this article my mind drifts back to exactly one year ago. For those who may not recall, it was on this exact date in 2021 that the La Soufrière volcano erupted in St. Vincent, casting that entire island and its neighbours including Barbados, into complete darkness as the skies filled with thick volcanic ash. Businesses were disrupted and our airport and other state-run entities were forced to close for several days due to the ash fall. For many, this was being experienced for the first time.
Hurricane Elsa swept across the island a few months later wreaking further havoc, damaging property, and displacing individuals. Almost a year later and some persons are yet to return to their homes. Additional consequences of this Category 1 Hurricane were prolonged water and electricity outages. While utility outages may occur periodically, it was the extended period before full restoration was achieved that triggered several businesses to evaluate their recovery and restoration capabilities.
Should these or other disruptive events occur this year, one must ask:
- What is your state of readiness?
- What mitigation measures have you implemented?
- What lessons have you learned?
- What revisions have you made to your Emergency Response and Disaster Recovery Plans?
If you did not see the value and importance in Business Continuity Management before, are you now a convert, or still cannot be bothered?
Having a business continuity plan (BCP) is key to achieving longevity and surviving disruptive events. It allows your company to continue operations (even if not fully) after an unexpected interruption, regardless of the magnitude. The plan should cover prevention, response, and recovery activities. Most importantly, it should be all-inclusive, and be the result of consultation and input from across your operations. Your people know your business best!
Unfortunately, companies can put in considerable time and effort to develop these plan documents but too often fail to review and update them on a periodic basis. A BCP that is out-of-date can be as bad as having no plan at all. Consider this, is the war in Ukraine or the recent Covid-19 spikes in China, likely to impact your supply chain for key operational inputs? Businesses are dynamic – things change constantly – whether work processes, technology, supply chains and / or personnel, therefore, your BCP should always reflect the current state of your business operations. Setting aside time during your financial year to review your plans, can help identify new risks as well as monitor the effectiveness of your current risk management strategies. This process provides an opportunity to modify or enhance your approaches to more adequately address any gaps identified within your own processes, or from emerging threats not previously contemplated in the existing documents.
How to conduct a review of your BCP?
In conducting your review, consider the following:
- What has changed in the business? (internally & externally)
- What key personnel changes have taken place – Incoming/outgoing?
- Introduction of, or removal of, product lines/services and associated process changes.
- Have you changed locations, or made modifications to facilities?
- Changes in addresses, contact numbers and responsibilities of key team members.
- Changes in technology platforms
- Changes in suppliers
- Changes in your industry
- Geo-political developments inside and outside of your region, which may impact your ability to deliver your product(s) or services.
- Executing periodic exercises or tests of your BCP – Aim to conduct these at least once annually or even quarterly, to assess various components of the plan. Document your findings, consult with team members on the gaps identified and develop strategies to close them out as soon as practicable.
- Adopting or aligning your process with leading practice standards. ISO 22301 for Business Continuity Management Systems is recommended.
Do not simply develop a plan document. Instead, strive towards implementation of a system predicated on a continuous improvement model. Obtaining buy-in from all levels of the company is key. As business leaders, we must provide the commitment and support for the investments that may be necessary, to achieve our desired outcomes and maintenance of these programmes.
Being aware of potential threats to your business allows you to stay ahead and be prepared for a disaster before it occurs. Being prepared facilitates the business’ ability to respond quickly, reduce the duration of a disruption, and allow for timely recovery of your operations.
With all of the benefits to be derived from implementing and maintaining BCPs, why would you not embark on the journey to achieving greater resilience in your business?