Small and medium-sized manufacturers face the risk of disruption on a constant basis. Natural disasters, social disruption, failure of infrastructure, loss of key personnel, pandemics, and cyber-attacks are just a few of the things that can cause a company to grind to a halt. Along with the potential of lost revenue, supply chain disruption, and increased costs, there is always the possibility of a negative impact to customers as well as a company’s reputation.
Lost revenue with unplanned expenses results in reduced profits. In some cases, insurance may provide some relief but it is very unlikely it will cover all losses and of course it cannot replace lost customers. Having a business continuity plan in place is essential for mitigating these negative impacts.
Development and implementation of a business continuity plan involves four steps:
Conduct a business impact analysis to identify the time-sensitive or critical business functions as well as the processes and the resources that support them.
Identify and document the implemented plans and methods needed to recover these critical business functions and processes if a disruption event occurs.
Establish a business continuity team and determine how this team will implement and execute the recovery plan to mitigate the disruption to the business.
Train your business continuity team and test the system in order to evaluate the recovery strategies and plans.