Ensure operational continuity in the face of disaster

When a mechanical, electrical, or pressure breakdown occurs in your business, there’s no time to waste. In addition to facing large-scale disasters such as hurricanes and floods, businesses can be particularly vulnerable to operational breakdowns due to more mundane—but still potentially catastrophic—events like a crashed server, a robbery, a burst water pipe, or the unexpected death of a key employee. Here are some precautions business owners should consider to ensure operational continuity in the face of a business standstill:

• Draw up a step-by-step disaster response and recovery plan for your company, including workplace evacuation procedures. Publicize emergency procedures within the company through a memo or as a manual.
• Ensure that more than one manager or staff member has access to essential accounts, legal documents, and client information in case of emergency.
• Invest in power protection systems, such as uninterruptible power supply (UPS) systems, surge protectors, and line conditioners, that protect data and equipment in instances of power failure or spikes in electrical current.
• Invest in up-to-date security software to shield your computer network from those trying to access your data via the Internet. Programs include firewalls and antivirus and anti-spyware software packages.
• Back up data on a daily basis using a tape backup or other replication system, and burn extra copies of licensed software. Store these at an offsite location.
• Plan to set up your operations in an alternate location, such as a branch office or the home office of a partner, in the event that your building is unusable.

The best time to deal with disaster is before it happens. Knowing your risks and obtaining the proper insurance are essential steps to preparing your business. In addition, having a plan to handle any damage and quickly resume service to clients following a major disruption to operations may help protect your business from major financial losses.

Risk Manager Online Vol. 14 No. 5 Copyright © 2006 Liberty Publishing, Inc