A business continuity plan can help ensure your organization will keep running, despite any interruption. Whether there is a hurricane, pandemic, financial crash, earthquake, or other unforeseen circumstances, this document can help ensure you reduce downtime at your company, maintain operations, and reduce the financial impact of the event. A business owner needs to understand the parts of a business continuity plan to have an effective strategy in place.
What is Needed to Create a Business Continuity Plan?
A well-drafted business continuity plan can ensure your business can run and thrive, no matter what type of emergency arises. With a good plan, you, your management, and your staff will be in a position to pick up the pieces. The general steps you will need to take to create a business continuity plan are:
- Conduct a business impact analysis — The first step when creating a business continuity plan is to identify the potential impact an interruption could have on your operations. A business impact analysis will help you to identify which business processes must be carried out for your company to continue to operate, and which will not be affected by interruption.
- Identify and assess any risks — After you have identified the business processes crucial to your organization, the next step is to evaluate the risks that could affect your business. By assessing the risk of natural disasters, cyber-attacks, power outages, and pandemics, you can create a plan to mitigate them.
- Develop a strategy for continuity — Once you have assessed the risks, you can put a strategy into place by mitigating them. A business continuity strategy outlines the steps that must be taken to ensure the company keeps running if an interruption should occur.
- Train a recovery team — It’s essential to train a recovery team who can help implement the business continuity plan. The team members should meet regularly so they will know the steps to take in the event of an emergency.
- Have backups in place — If an interruption occurs, you may need to move your operations to a different location. A good continuity plan should include any alternative locations in your business continuity plan and identify the equipment that will be needed to continue conducting business from the backup location.
A business continuity plan should be reviewed on an ongoing basis and changed as necessary to address the needs of your company. It’s best to work with an attorney who can provide the guidance you need and help you to update the document as necessary.
Including a Business Continuity Plan in Your Estate Plan
Another event that must be planned for is the incapacity or death of a business owner or key management. A good business continuity plan should consider business continuity in your estate plan. By creating a plan for succession, you can ensure a smooth ownership transition, and reduce the tax consequences, and disruptions while ensuring your business is transferred in the way you wish. By taking proactive measures, you can preserve your legacy and ensure your business will be in good hands for years to come.
Contact an Experienced New York Business Law Attorney
If you own a business, it’s important to create a business continuity plan to avoid disruption of operations and safeguard your bottom line in the event the unanticipated occurs. Offering capable counsel and trusted legal services, Brinen & Associates advises clients regarding a wide variety of business matters, including those involving continuity planning. Call (212) 330-8151 or send us a message to learn more about how we can assist you.