Creating a Business Continuity Plan
8 Steps to keep in mind when creating a business continuity plan.
A business continuity plan is a plan to continue operations even if a business is affected by disaster. Every business should have one, and you should expect your key service providers, including your insurance company, to have one too.
Preferred Mutual’s business continuity approach focuses on the needs of our customers and the requirements of other key stakeholders, like our employees and independent agents, should we face a disaster that impacts any facet of our business. We recognize that not all disasters are created equal – some are caused by weather, others by fire or water, some by accident, and still others deliberate. But whether the disaster impacts our company for a few hours or several weeks, we are able to act because we have a business continuity plan in place to respond. Here’s how we approached our planning and what your business can do to prepare as well:
- Assess your capabilities and identify your business’ essential functions.
- Look at the types of risks that have the potential to occur, and the possible impact of each one, against your essential functions.
- Carefully consider your company’s risk (and opportunity) appetite.
- Prioritize your business needs.
- Develop mitigation strategies to proactively avoid the risks.
- Document your process for responding to the potential risk in each area. Include key contact information and a chain of command for responding.
- Enhance your data center operations to ensure your essential information is accessible if needed.
- Repeat the cycle annually to enhance your resiliency.
In the case of Preferred Mutual, we have also developed a central Corporate Incident Response Team of leaders to manage through incidents or disasters that impact our Company. We coordinate testing and run through drills at least monthly to ensure that we are prepared to respond to our customers, even if an emergency strikes.
Business continuity has contributed to Preferred's enhanced culture of risk awareness and preparedness. Keep in mind that often “It’s in the planning, not the plans.”
Dave Prosser
Risk Specialist, Business Continuity