The importance of business continuity planning

If your business faced a devastating situation as a result of a terrorism attack, cyber attack, fire, flood or natural disaster, would you be able to deal with it?  And more importantly, could your business recover?

Every year, around 20%[1] of UK businesses find themselves in this situation – and many of them never manage to get back on their feet. Over the last two years, 550,000[2] small – medium enterprises (SMEs) have been forced to suspend trading as a result of a business interruption incident.

Preparing for the worst

You’d think that with statistics like this, businesses would be keen to protect themselves and the future of their organisations. Larger companies seem to be better prepared, but amongst SMEs, research shows that many are woefully lacking – and that’s despite 26%[3] claiming they’re concerned about the threat posed by a cyber attack:

  • Only 27% of small businesses have a business continuity plan in place[4]
  • Of those that do, only 27% have tested it within the last year[5]
  • Only 10% of businesses have an incident management plan in place in case of a cyber attack[6]
  • Only 9% of businesses have cyber cover[7]

Planning for recovery 

By taking the time to put together a business continuity plan now, you can safeguard the future of your business should disaster strike. If you can’t react quickly to a business interruption, and put contingency measures into place, it could have a devastating effect on your business. Not only will you lose revenue, you’ll incur additional expense and may lose customers, if you’re unable to provide your usual service.

With a business continuity plan, you’ll have agreed arrangements in place to deal with any situation. That means understanding which staff will take control, how they’ll keep critical business functions operating, and even where you’ll work from if your premises are destroyed.

If you’d like to find out how to protect your company and create a simple business continuity plan, take a look at our infographic.

 importance business continuity planning infographic

[1] Zywave: Commercial Insurance Profile July 2017
[2] Zywave: Commercial Insurance Profile July 2017
[3] https://www.rsagroup.com/news/press-releases/2016/future-impacts-report-by-rsa-shows-two-thirds-of-uk-smes-dont-see-brexit-as-threat/
[4] Zywave: Commercial Insurance Profile July 2017
[5] https://www.businessexpert.co.uk/why-you-need-a-business-continuity-plan/
[6] https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/521465/Cyber_Security_Breaches_Survey_2016_main_report_FINAL.pdf
[7] https://www.rsagroup.com/news/press-releases/2016/future-impacts-report-by-rsa-shows-two-thirds-of-uk-smes-dont-see-brexit-as-threat/