business continuity

© Dr. Mark D. Yates. E: [email protected] W: www.businessconsultancyonestopshop.com

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Management Training Company Business Continuity

Following A Critical Incident

By By Dr. Mark D. Yates© Business Consultancy

One Stop Shop


2Management Training Company Business Continuity

The Issue

• The tragic events of Post Sept’ 11th, in particular July 7th 2005 in London, should make all HR managers think carefully about how prepared their business is for any type of critical incident.

• We are all conducting business in uncertain times. Protecting the future of the firm has to be the number one priority for every business manager.



The Issue - The Problem

• Statistics suggest that almost half (46%) of London businesses do not have a business continuity plan in place.

• This means that those directly impacted, suffering a major or even a minor loss may find it impossible to continue to trade, particularly if they do not have terrorism insurance cover.

Source: Vanson Bourne research, October 2004



Critical Incident Downside

80% of all businesses affected by serious incidents never re-open,

or close within 18 months.

Business interruption hits companies in • Customer Relationships.• Cash Flow.• Reputation.• Staff Moral.

• Understanding incidents like fire, flood or computer failure, highlight where long term damage is done.



Firm - Too Small For A Business Continuity Plan?

• The smaller your business, the more important it is to have a contingency plan in place. Any incident, no matter how small, is capable of impacting your business & profitability.

• The size of any continuity plan will depend on the risks facing each business – it will be as large or as small as needed.



Small Businesses Hit Harder

• The impact of any critical incident is likely to be more pronounced for SME’s. The majority of SME’s operate in specialised markets with limited product ranges & relatively small customer bases.

• Any short interruption to business can have a disproportionate effect, totally halting output & leaving customers high & dry.

Source: AXA Insurance.



What Is Continuity Planning

• It’s about anticipating crises that could befall a business & planning for them.

• It sets out clear roles & responsibilities.• It states who takes charge of specific roles.• It lists a series of contingencies.• Details clear emergency procedures to ensure

risks to staff are minimised.



Business Continuity PlanA business continuity plan sets out clear roles

and responsibilities, for example those assigned to manage all liaison with

• Customers. • Employees. • Emergency services.

It lists a series of contingencies that enable key business activities to continue in the

most difficult circumstances.


9Management Training Company Business Continuity Threats To A Business

Examples of threats to a business are

• A vital computer system is unavailable. • Critical process machinery is damaged. • Loss of key employees. • The building, or part of the building, cannot be

accessed, and...• Suppliers are unable to deliver.



Common Small Business Disasters

• Fire/Flood• Computer telecoms failure• Key equipment failure• People issues – illness, resignation, maternity

leave• Denial of access to premises• Product defects• Bomb – terrorism threats• Legal regulatory action• Utilities failure• Negative press or media coverage



Commercial Benefit Of A Continuity Plan

There is also the commercial benefit to consider.

• Companies with business continuity plans are more attractive to do business with.

For example

• Large businesses that rely on the outsourced services of third parties will prefer to work with suppliers who have a Business Continuity Plan in place.


12Management Training Company Business Continuity Business Continuity Summary

• 80% of all businesses affected by serious incidents never re-open, or close within 18 months.

• 46% of London businesses do not have a business continuity plan in place.

• Less than 20% of London Businesses have a dedicated team to handle a major incident.

• Barely a quarter (13%) of SMEs said they had managed to test their business continuity plans.

• Insurers are now seriously looking at how a business, plans for a major incident before insuring them.



Our Professional Service

Our Threat Management Unit will

• Design

• Produce

• Test

• Evaluate

• Manage

Your Business Continuity Plan.



Cost of Professional Services

• Initial Consultation £500.00 & travel expenses.• Producing a Business Continuity Plan, Minimum

Charge £1.600.00. Depending on size of company and scope of project.

• Testing effectiveness of Continuity Plan = price to be agreed with business owner.

WIIFY• 20% commission on initial consultation fee.• 10% commission on all further fees earned.


15Contact: www.businessconsultancyonestopshop.com

Business Consultancy One Stop Shop.com [email protected]