Risk Management Tip
Be prepared so you can get back to business
With the frequency and severity of weather-related events and a reliance on a complex network of technology and supply chains increasing every year, a business continuity plan is one of the best investments your company can make. Proper insurance coverage is a significant and important part of the plan, but it may not fully cover some of the peripheral damage from an event. Business continuity planning is one of the most critical components of any recovery strategy and can be built in four steps:
- Risk Identification: Understanding the risks that could leave employees, customers, vendors, property and operations vulnerable is fundamental. Threats can include, but are not limited to, natural disasters, malicious attacks, power outages and system failures.
- Business Impact Analysis: Consider who and what is absolutely necessary to restore critical operations. Then prioritize the need to restore each item after the event. Plan to use limited resources wisely.
- Preventative Planning: Your prevention and mitigation plans should address, among other things, emergency response, public relations, resource management, and employee communications.
- Practice and Testing: A business continuity plan is an evolving strategy that should adapt to your company’s ever-changing needs. Test and update it regularly – yearly at a minimum– or any time critical functions, facilities, suppliers or personnel change. Train employees to understand their role in executing the plan, too.
Visit Travelers for more information on how to build a comprehensive business continuity plan.