DISASTER RECOVERY PLANNING – Part 2
In last month’s newsletter we discussed how members could plan for a fire or something similar that affected our office and computer equipment and records. This newsletter we consider some other potential disasters and how to avert them—or recover from them.
Step 4 Consider some other “disasters” and other contingency plans
We don’t expect CMPA members to really want to dwell on all the bad stuff but, realistically we need to accept that all our businesses have some inherent risks.
These may include:
- Major damage to fixed plant that will stop production for weeks/months
- Loss of main customer
- Large bad debt
- Loss of main supplier
- Inability to meet contractual supply obligations
- Price increase of main raw material
- Withdrawal of credit by bank/finance company
- Change of legislation
- Professional or product negligence claim
- Death of proprietor
Rather than put our heads in the sand we need to accept that these risks are part of the great roller coaster ride of being in business. As the list is pretty long (and depressing) concentrate on the risks which meet both these criteria:
- There is a chance that this particular risk could apply to my business; and
- If it did it would either result in insolvency or significant financial hardship
Once you have identified the top 2 or 3 risks to your business think about
a) whether you could do anything NOW to prevent it happening and, if not start to think about action plans in the event of the worst case scenario.
Step 5 Talk the talk
The final step is to talk about “Disaster Recovery Planning.” Tell your business partner, spouse, and key staff that you are putting together your disaster recovery plan and tell them you would appreciate their input. Ask administrative staff to complete key details of the documentation so they become familiar with the format. Speak to anyone who has been through this and ask what they did/wish they had done. Ensure key staff all receive a copy to keep at home (excluding sensitive information like phone/internet banking details or personal employee details). And of course make sure that YOU have a copy of the complete document at home.
While it is not the most pleasant of topics, businesses that have experienced a disaster of the types outlined are far more likely to survive if they have a Disaster Recovery Plan.
Finally, we would love to hear from any members who have other ideas for Disaster Recovery Planning, or who may have direct experience in this area. We would love you to share your insights with other CMPA members – on a confidential basis if required.
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