Surprisingly, there are several businesses that do not see the value in establishing a continuity plan to protect them from any unforeseen events that may disrupt their ability to operate. Even though the development of a business continuity plan can consume time and resources, the impact of not having one in place during a disaster is far greater. Below is a list of the ways in which an unexpected event can impair your business if you don’t have a plan in place.
- Customer Impact. Customers are the most valuable asset for any company. Ensuring that your customers are satisfied with the service or product that you are providing them is imperative. By having a business continuity plan in place, customers can be rest assured that any issues that may occur will be handled accordingly. Additionally, informing customers about your continuity plan will assist in managing their expectations if a disaster occurs.
- Loss of Company Information. Many companies store their data and information electronically. As a result, these electronic documents could be lost during an event if they are not stored properly. A loss of records can permanently impact a business as well as their customers.
- Loss of Revenue. Every minute that your company is down, the more money it will lose. If a disaster has rendered your business inoperable, your productivity will come to a halt. Several companies depend on technological devices to conduct their business. Without access to these devices, employees are not able to do their jobs.
- Damage to Company Reputation. If your company is not prepared for a disaster, it is likely that the situation will not be handled well. Under times of high stress, customer service may not be the first priority while restoring business operations. As a result, any existing customers may churn if their expectations are not met. Additionally, any loss of company or customer information during an event can reflect poorly on the business and result in a loss of potential customers.
- Loss of Employee Support. If your company does not have a plan in place, it is the employees on the front line that may be significantly impacted. These are the members of your staff that are in direct contact with customers, and it is critical that they convey confidence that the issue will be resolved. If your employee does not believe in the capabilities of your company, it may come through when they are communicating with customers. By having a continuity plan in place, your employees can be assured that any problems are being handled accordingly, and they can then pass that along to their customer contacts.
Having an understanding of how an unexpected event can harm your business is an important part of developing a plan. If your organization does not have a plan in place when disaster strikes, your entire company will be negatively impacted. By proactively planning for a disaster, your company can reduce the overall impact on your business and speed up recovery.
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Blog posted by Vanessa Hartung.