Definition of Crisis Management vs Definition of Business Continuity Business continuity encompasses a defined set of planning, will either continue to operate despite serious incidents or disasters that might to recover or restore critical and less critical business functions that fail for some reason. Emergency preparedness, business continuity, crisis response, emergency Meanwhile, the business continuity team develops plans to avoid. But with good planning you can take steps to minimise the potential impact of a disaster for emergencies and test how your business is likely to cope in a disaster. At worst your business may never recover and may ultimately cease trading. A carefully thought-out business continuity plan will make coping in a crisis.
A well thought of and documented Crisis Management Plan will facilitate communication between all stakeholders with safety considerations being paramount. It will also detail steps to be taken for impact assessment as also interaction with media regarding the crisis and action being taken to contain it. Factors to be considered in a Crisis Management Plan Since every business has different needs, one shoe does not fit all as far as Crisis Management Plan is concerned.
However, common guidelines for a sound Crisis Management Plan are: Crisis Management Team — it should contain senior managers who have the expertise and experience needed to manage a crisis.
The team should also consist of anyone with specialized knowledge useful in combating a crisis. Organizational responsibilities of the team — each member should be assigned a specific task by defining his functions, duties and responsibilities during a crisis.
Sub-teams -this will function under the overall direction of the main team member. A sub team will have people with different types of expertise, who can handle the tasks associated with the crisis. Evaluation and corrections — after the conclusion of the crisis, assigned members should evaluate the response and take corrective action to overcome deficiencies. Contact list -a regularly updated contact list should be compiled to keep internal and external stakeholders in the loop.
Difference Between DR, BC AND CRISIS MANAGEMENT
Logistics — the logistical support for notification, mobilization and Manning of crisis centers should be clearly laid out. A team member should be specifically assigned to this task. Disaster Recovery A DR Plan deals with the recovery procedures to be put in place when a disaster strikes. A multitude of significant events can halt production.
Test your business continuity plan Why you need to plan for possible crises It's essential to plan thoroughly to protect yourself from the impact of potential crises - from fire, flood or theft to IT system failure, restricted access to premises or illness of key staff. This planning is very important for small businesses since they often lack the resources to cope easily in a crisis.
Failure to plan could be disastrous. At best you risk losing customers while you're getting your business back on its feet. At worst your business may never recover and may ultimately cease trading.
Crisis management and business continuity planning
As part of the planning process you should: Benefits of a business continuity plan A carefully thought-out business continuity plan will make coping in a crisis easier and enable you to minimise disruption to the business and its customers.
It will also prove to customers, insurers and investors that your business is robust enough to cope with anything that might be thrown at you - possibly giving you the edge over your competitors. Crises that could affect your business Depending on your business' specific circumstances, there are many possible events that might constitute a crisis: Natural disasters - for example, flooding caused by burst water pipes or heavy rain, or wind damage following storms. Theft or vandalism - theft of computer equipment, for instance, could prove devastating.
Similarly, vandalism of machinery or vehicles could not only be costly but also pose health and safety risks. Fire - few other situations have such potential to physically destroy a business. Power cut - loss of power could have serious consequences. What would you do if you couldn't use IT or telecoms systems or operate other key machinery or equipment? IT system failure - computer viruses, attacks by hackers or system failures could affect employees' ability to work effectively.
Restricted access to premises - how would your business function if you couldn't access your workplace - for example, due to a gas leak? Loss or illness of key staff - if any of your staff is central to the running of your business, consider how you would cope if they were to leave or be incapacitated by illness.
Crisis management and business continuity planning
Outbreak of disease or infection - depending on your type of business an outbreak of an infectious disease among your staff, in your premises or among livestock could present serious health and safety risks. Terrorist attack - consider the risks to your employees and your business operations if there is a terrorist strike, either where your business is based or in locations to which you and your employees travel.
Also consider whether an attack may have a longer-term effect on your particular market or sector. Crises affecting suppliers - how would you source alternative supplies? Crises affecting customers - will insurance or customer guarantees offset a client's inability to take your goods or services?
Crises affecting your business' reputation - how would you cope, for example, in the event of a product recall? Though some of these scenarios may seem unlikely, it's prudent to give them consideration. Assess the possible impact of risks on your business You need to analyse the probability and consequences of crises that could affect your business. You're likely to conclude that certain roles within the business - while necessary in normal circumstances - aren't absolutely critical in a disaster scenario.
Likelihood of risks occurring It can help to grade the probability of a particular crisis occurring, perhaps on a numerical scale or as high, medium or low. This will help you to decide your business' attitude towards each risk. You may decide to do nothing about a low-probability crisis - although remember that it could still be highly damaging to your business if it occurred, e.
Potential impact of a crisis To determine the possible impact of a crisis on your business, it can be helpful to think of some of the worst possible scenarios and how they might prove debilitating for the business.
For instance, how could you access data on your customers and suppliers if computer equipment was stolen or damaged by a flood? Where would the business operate from if your premises were destroyed by fire? It's essential to look at risks from the perspective of your customers. Consider how they'd be affected by each potential crisis. Would they be likely to look for alternative suppliers?
Consider whether you would be able to keep to service-level agreements SLAs if a particular crisis occurred - and what the consequences might be if you couldn't. Minimise the potential impact of crises Once you've identified the key risks your business faces, you need to take steps to protect your business functions against them.
Premises Good electrical and gas safety could help protect premises against fire.
Installing fire and burglar alarms also makes sense. Think what you would do in an emergency if your premises couldn't be used. For example, you might suggest an arrangement with another local business to share premises temporarily if a crisis affected either of you.
IT and communications Installing anti-virus software, backing up data and ensuring the right maintenance agreements are in place can all help protect your IT systems.