DISASTER RECOVERY PLANNING – Part 1

What would you do if an important piece of plant breaks down? Easy, you probably say, I would fix it, or if I lacked expertise I would bring in experts. If the equipment was critical and could not be repaired quickly enough it may be possible to lease replacement equipment, particularly for mobile plant. For most CMPA members making the right decision in this sort of situation is second nature and does not require any special contingency planning or record keeping.

But what if a computer hard drive became corrupt, or fire or flood destroyed your office, communications and records?       

What can you do to plan for this admittedly unlikely eventuality but one which could have the potential to destroy a business you built up over many years?

Step 1 – Basic Computer Records

Ensure you are completing regular back ups of key computer records. Depending on their “business criticality” you may want to include separate weekly or even daily back-ups for:

Accounting software including weighbridge management software

Microsoft applications – Word /Excel

Sent/received emails and attachments only stored on your own PC (as opposed to stored on a bureau type service like hotmail where you don’t need to back them up)

Other “business critical” applications – contact management software, design packages, etc

And don’t assume that just because you are backing up that the data will help you in an emergency – ensure you attempt to restore files from back up each 6 months or so to test your plan and to test you are actually backing up all the data you require and to identify any technical issues.  Your local PC guy can help with advice on backups and can probably also arrange a test restoration using one of their PCs.

Step 2 – Other Company Records

Create a paper disaster recovery plan and give a copy to key staff to keep at home. This is a 10-or-so page typed or even handwritten document which should contain the following basic information:

 Staff contact listing: include staff names, addresses and home/mobile numbers

Customer listing showing name, address and other contact details (most accounting packages can produce this report)

Supplier listing: this will vary depending on your business but should probably include phone supplier (and a list of all your phone and fax lines), Internet Services Providers, Web Host, Electricity Supplier, fuel & oil suppliers, stationery supplier, and your local computer expert details together with details of the experts you rely on for mechanical or other work. For larger supplier organizations like your internet service provider include your account number with each suppliers details.

Other key contact listing: this would include DPI contacts, local council, accountants, lawyers, ASIC details, ATO details, payroll tax, Work Cover, State Revenue Office, superannuation fund, etc.

Bank details –  ensure that you have a record of your phone and internet banking registration numbers and access codes and the details of your local branch (keep this information secure though).

Insurance – detail the insurer name, policy number, name of insured company, and expiry for all policies (and ideally keep a copy of the policy offsite as well)

Office equipment listing including make, model, etc to assist in insurance claim and as a prompt when setting up a temporary office

Computer equipment listing and computer software listing

Step 3 – Develop your own Action Plan

Imagine a worst case scenario and think about your personalised action plan for an office destroying incident. Write it down. Steps might be (not necessarily in this order):

Contact insurance company

Change phone message to announce problem (place message on website if you have one)

Secure temporary office accommodation either onsite or in employee’s home, motel, office of supplier/customer etc.

Divert or install phone/fax line

Rent or acquire PC, printer and fax and minimum software – use credit card if necessary eg assuming cheque books and other method of payment cannot be accessed

Get internet access to allow emails

Phone key staff and advise of changed site conditions/work location/hours

Phone key customers and advise of likely interruption to supply if any

Issue press release to local papers and radio station so customers aware of changed trading conditions. This could later be supplemented with paid advertising announcing changes to trading conditions.

Contact other key relationships: bank, accountant, lawyers, suppliers. Be honest about what you do and don’t know about the situation and keep all key parties including customers informed as the situation unfolds. Banks in particular will appreciate honesty and will usually reciprocate with sympathy and co-operation if they feel you are being pro-active and trying to get on top of your situation.

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