Too often business owners fail to understand the risk they face by not having a business continuity plan in place.
Tampa, Fla. (Vocus/PRWEB) March 22, 2011
During Business Continuity Awareness Week (March 21 – 25), the Insurance Institute for Business & Home Safety (IBHS) reminds business owners that planning and preparation are critical factors in a business’ ability to survive and recover from a disaster.
“Too often business owners fail to understand the risk they face by not having a business continuity plan in place,” said Diana McClure, business resiliency program manager at IBHS. “A disruption of business operations can cause financial loss, a decrease in customer service, damage to the business’ reputation, erosion of competitive advantage, and the inability to fulfill legal, regulatory, financial or contractual obligations.”
For many small business owners, the daily activities of running a business leaves little time to devote to planning ahead for a disaster that may never strike. However, it need not be a disaster on the level of the recent Japanese earthquake/tsunami to shut down a business. Severe winter weather across the U.S. shut down many businesses and caused disruptions to delivery of goods. As warmer temperatures melt the snow, flooding can prevent a business from opening its doors.
“The cause of a business interruption can come from multiple directions,” McClure said. “It can be weather related or a supplier can experience an event that renders it unable to deliver the goods you need to run your business.
“That uncertainty is exactly why business continuity planning is so critical to a business’ ability to survive and recover from an interruption,” she added, “and there is no better time to start creating a business continuity plan or updating your current plan than during Business Continuity Awareness Week.”
To help business owners plan, IBHS offers Open for Business®, a free, easy-to-use program that provides small to mid-sized business owners with a tool to create a comprehensive business continuity plan. It is available as a stand-alone workbook, or with accompanying step-by-step instruction given during a series of eight 15-25 minutes multi-media trainer sessions. The toolkit and the trainer sessions include valuable planning worksheets, business continuity and disaster recovery tips and peril-specific property protection information.
IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.