Business Continuity Plan - Have you got one?

Business Continuity Planning (BCP)

Business Continuity Planning (BCP) is a critical aspect that is often overlooked by business leaders, functional management, and owners, as they focus on growth, innovation, and overcoming financial constraints. However, having a robust BCP in place can serve as a strategic advantage and prepare the business for significant disruptions.

Developing a BCP culture involves focusing on four core internal pillars that every business model requires to operate effectively. These pillars, along with key areas to consider, are outlined below:

People:

• Communication Strategy: Establish a clear communication plan to ensure effective dissemination of information during crises.

• Succession Planning of Key Personnel: Identify and train backup personnel for key roles to ensure continuity in case of unexpected absences.

• Key Client Engagement Management: Develop strategies to maintain relationships with key clients during disruptions.

• Leave Cover for Critical Staff: Plan for coverage of critical roles in the event of planned or unplanned absences.

• Event-Based Scale-Down of Resourcing and Capacity: Implement strategies to adjust resources and capacity based on the severity of the disruption.

Process:

• Digital Platform and Data Management: Ensure the availability and security of digital platforms and data to support business operations.

• Written Process Notes/Task Workflows: Document processes and workflows to maintain operational efficiency during disruptions.

• Integration Continuity with Clients, Vendors, Financiers: Establish protocols to maintain seamless integration with external stakeholders.

Equipment:

• Replacement Due to Unplanned Breakdowns or Theft: Plan for the timely replacement of equipment to minimise operational disruptions.

• Reallocation or Sale of Assets When Scopes Terminate Early: Develop strategies for reallocating or selling assets to optimise resources.

Financial:

• Cash Available and Cash Runway: Maintain sufficient cash reserves and assess the financial runway to sustain operations during crises.

• Funding Options: Explore alternative funding sources to support business continuity.

• Expense Levers: Identify cost-cutting measures to manage expenses during disruptions.

• Accounts Payable and Accounts Receivable Balances: Monitor and manage payables and receivables to maintain financial stability.

While this list is not exhaustive, prioritising continuity planning fosters a risk management culture and can determine the success or failure of a business during crises. Timely decision-making and preparedness are crucial in mitigating losses and ensuring business resilience in the face of unexpected events.

Talk to the team at Covalent Advisory about you BCP and how to ensure your organisation or team are prepared!