| The importance of business continuity |
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| Monday, 07 April 2008 | |
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Page 2 of 2 Others will lose an order forever if they miss the dispatch date but may also lose future orders because they gain a reputation for unreliability. The purpose of the business impact analysis is to calculate how serious a disruption of business would be. How much a company is prepared to spend in case of disaster depends on the extent of that loss. Prevention is better than cure, of course. There is no substitute for security systems, whether physical, fire alarms, sprinklers and fire doors, or software to block computer viruses. Backup generators or uninterruptible power supplies can ensure a business keeps functioning when others are disabled through an electricity outage. Psychological effect on staff Many disasters are beyond the control of the business affected though, whether it is a fire in neighbouring premises, a strike that disrupts supplies, or communication or a terrorist act. MI5 says that businesses are accustomed to planning against commercial risks such as the sudden failure of a critical supplier, an unexpected bad debt, industrial action or the discovery of a serious fault in a product or process and that planning for a terrorist incident is very similar. The security organisation warns that as well as loss of reputation, data and damage to buildings, however, there can be a psychological effect on staff. Employees are likely to be asked to work extended hours, take on jobs they do not normally do or perform them in strange or inconvenient locations. It is therefore important that companies look after their welfare too. For many people that may mean working from home. Although backup sites or serviced offices may be wired into the original computer systems, the Internet means many workers can undertake their jobs remotely from their own homes, thus reducing the number of desks and terminals that have to be assigned on alternative sites. Such facilities are useful during transport strikes or when weather disrupts journeys, but for one sort of disaster, working from home will be especially important. Allow staff to work from home Added to all the other threats with which a company has to cope is now an epidemic such as bird flu. With government warning that even a prudent worst case could lead to 350,000 UK deaths - and a reasonable worst case claiming twice as many - one of the best defences against the virus spreading is to stop people congregating and infecting others. The Cabinet Office suggests firms could find up to 30 per cent of staff are sick from such an epidemic at any time, but with other employees staying at home to nurse sick relatives, and others refusing to travel, absenteeism could exceed 50 per cent. If an office can allow staff to work at home it should be able to continue functioning until the scare subsides. Even if a company cannot prevent a disaster it needs to be in a position to deal with it efficiently. If the disaster is at a supplier or delivery company, the problem may know what alternative providers are available. If the disaster affects the company's own site, data backup and alterative premises - whether a permanently manned 'hot site' or a 'cold site' maintained by a bureau - are part of that plan but companies also need to work out how they can operate with reduced staffing and to prioritise orders and workflows. A switch to mobile communications can overcome the mechanical digger that disrupts fixed-line telephones. Insurance Insurance needs to be part of the equation. Insurance does not stop disasters and there are many situations that would entitle a company to claim compensation from the party that causes the problem, even if payment is slow. It is impossible to sue the weather system, terrorists, trade unions or even staff who make disastrous mistakes, however, and to ensure a business is up and running after such a disaster and that lost profits are recovered requires cash. Anne Low was managing director of a London business consultancy and also ran a promotional company based in the US. She now writes for financial and trade publications including The Business. Related articles
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We look at the glass ceiling, and importantly hear from those women that have shattered it on their own terms. 