A key to business resilience

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  • 1. Published by The Golden QuillDisclaimer: The materials presented in this document are distributed as an information source only. The authors make no statements, representations, or warranties about the accuracy or completeness of, and you should not rely on, anyinformation contained in this document. Despite our best efforts, the authors make no warranties that the information in this publication is free of infection by computer viruses or other contamination. The authors disclaim allresponsibility and all liability (including without limitation, liability in negligence) for all expenses, losses, damages and costs you might incur as a result of the information being inaccurate or incomplete in any way, and for any reason.

2. 1. Be prepared Plan aheadPage 5 PreventionPage 6-7 PreparednessPage 8 ResponsePage 9 RecoveryPage 10 Develop a business continuity planPage 11 Backup your records Page 12-14 Check your insurancePage 15-18 Compile your emergency kitPage 19 Prepare your workplacePage 20-212. After the event Assess the damage Page 22 Reconnect utilities & communicationsPage 23-26 Your employeesPage 27 Assess the impact to your businessPage 28 Make an insurance claim Page 29-30 Clean upPage 31-32 Notify customers, suppliers and key contactsPage 333. Resources Documents -Appendix 1: Business continuity plan templatePage 34 -Appendix 2: Further examples of checklists Page 34 Queensland Government business and industry website Page 34 Web resources Page 35-36 Further business advice and support Page 364. Emergency contact information General Page 37 Townsville emergency contact informationPage 37 3. This project would not have been possible without the supportand invaluable assistance from the following: Chamber of Commerce and Industry QueenslandWe thank the many individual businesses who supplied information on specificsubject areas.The advice and constructive suggestions from these organisations have been instrumentalin the successful completion of this project. 4. Business resilience is your ability to adapt and respond to disasters without any major impacts onyour business operations. A proactive approach to business resilience will help your businessrespond to a disaster quickly and cost-effectively.On Tuesday 20 March 2012 a severe storm impacted a narrow corridor of commercial andresidential structures in Townsville, causing substantial local damage. After the storm, theQueensland Governments North Queensland Service Centre started an internal disaster responseand recovery plan. To ascertain the extent of damage, staff contacted businesses affected by thestorm.A number of issues were identified including: Loss of data due to inadequate backup or offsite storage Loss of communication and IT systems Inadequate insurance cover Concerns about loss of trade.Feedback showed that businesses were generally not aware of existing business resilienceresources, had difficulty finding any resources online and would have liked information that did notrequire internet access in times of a disaster.In response to this feedback, an Economic Recovery Committee was formed. The committeeagreed that the best way to address these issues was to develop a kit - containing information andlinks to a range of online resources - that helps businesses prepare for, respond to and recoverfrom disasters. This kit will be distributed to businesses on a USB stick, but businesses can alsoprint out the information and keep hardcopies for emergency situations where power is lost.While most of the information in this kit is generic, some information was collated specifically forbusinesses in the Townsville area. Please note that some links are for local websites (e.g. theTownsville City Council). If your business is not in the Townsville area, please locate equivalentsites in your local area. 5. When a disaster occurs, your business can be totally overwhelmed.Confusion is common, and many questions will come at once: Where do I start? Whom do I call? What will happen to my business? Will I lose my customers?We would all like to think, It wont happen to me; unfortunately, sometimesit does.It is far better to be proactive and take the time to plan now, rather thanwaiting until a disaster happens.Planning may take a bit of time, but when a disaster hits time is a luxury youwill not have.To help prepare your business for a future emergency or disaster, youshould consider 4 elements of planning:1. PREVENTION2. PREPAREDNESS3. RESPONSE4. RECOVERYThis approach to risk management is called the PPRR model. Theinformation you gather from the PPRR process can help you tailor abusiness continuity plan for your business. When disaster strikes, you willknow exactly what to do to keep your business running. 6. Risk management planning - actions to reduce or eliminate the likelihood and/or effects of a critical incidentIn this initial stage, you should identify risks and put measures in place toreduce potential loss of life, property and business damage.Every business has risks. Some are predictable, others are not. You can,however, plan for and mitigate risks to your business.The risk management process consists of a series of steps:1. Identify risks that could impact your business.2. Analyserisks to assess their impacts.3. Evaluaterisks to prioritise their management.4. Treatrisks to minimise their impact.5. Develop and review your risk management plan. 7. You can organise the results of this risk management process into a table. The following is an example of a risk management plan:Risk management planRisk description Likelihood ConsequencePriorityPreventative action Contingency plans Loss of production LVH M Arrange income Make sure you can protection insuranceget immediate access Source alternativeto personal resources production site while waiting for insurance paymentsLoss of staff H M M Ensure all staff are Contact recruitment agency properly trainedto source short-term contract Put succession planning staff until you can find in placepermanent replacements Locate recruitment agencies in your area Natural disasterM VH H Make sure insurance Make sure you can get is in place immediate access to Develop a businesspersonal resources while continuity plan waiting for insurance payments Loss of onMH H Backup computer and Use backup data to site recordsfinancial records restore lost files Store a copy of all data at another locationVH = Very high H = High M = Medium L = LowA risk management plan is not something you do once and then forget about. You will need to monitor and review this document on a regular basis.For more information, read our guides on risk management. 8. Business impact analysis - actions taken before a critical incident to ensure an effective response and recoveryOnce you have developed a risk management plan, you can conduct a businessimpact analysis to assess what impact these risks are likely to have on yourbusiness operations. This is the preparedness step in the PPRR model.Every business has a number of activities in its overall operations. However, only apercentage of these activities will be crucial to the survival of the business.It is important to gather information to determine basic recovery requirements foryour business in the event of a disaster. You should identify: your critical business activities the resources you will need to support each of these activities the impact to your business if these activities cease.Learn more about conducting a business impact analysis. 9. Incident response planning - actions taken to respond to a critical incident (i.e. containment, control and minimising impacts)This phase occurs as the incident happens and immediately after. If a disasteroccurs, you should have a plan of action you can quickly carry out.Crises take many forms, including natural disasters, embezzlement, industrialaccidents, systems failure, product recalls and economic downturn. Althoughyou will never be able to plan your response for every possible event, you need tobe able to react quickly to a critical incident.Your incident response plan should include: Clear, direct instructions for the crucial first hour after a disaster A list of personnel (and their back-ups), giving a detailed description oftheir role during a disaster - who does what? A checklist of things to do (see section 3 Resources for an example) An evacuation plan An emergency kit containing critical documents and equipment whichcan be picked up and carried offsite Contact lists for key external personnel, suppliers and businessstakeholders An event log to record information, decisions and actions following adisaster.Find out how to prepare an incident response plan for your business. 10. PREVIOUSRecovery plan - actions taken to recover from a critical incident in order to minimise disruption and recovery timesA recovery plan will help you get your business back to normal operations in theshortest possible time. Recovery planning involves the following: Establish a recovery team (and their back-ups) and make sure everyone understands their roles. Establish a location where employees can work offsite if necessary. They should have access to backup systems, records and supplies. Assess the business location relating to flood, storm tides etc. (See Townsville City Council and search for storm tides.) Determine which assets (including documents) are essential for recovery. Make sure you can access these assets and store documents offsite. Make sure you have contact lists of all employees, key customers, suppliers and insurance company. Find contact numbers for alternative suppliers. Find contact details for businesses that can fix office equipment. Also have the contact details for businesses where you can rent office equipment. Plan for disruptions to electricity, gas, water, sewerage and telecommunications. Do you have backup systems available? Be prepared for cash flow emergencies. Keep enough cash on