It only takes one major interruption to business operations for a company to recognize the value of having a disaster-preparedness plan in place.
Being able to swiftly adapt to the evolving circumstances during a crisis is critical. According to the Federal Emergency Management Agency (FEMA), about 25% of businesses do not reopen after disasters. Despite this fact, less than half of small businesses say they have a formal plan in place to ensure their business can continue its operations in the event of an emergency. A 2020 Mercer study found that this is not just a small business problem—51% of businesses across the globe had no business continuity plan (BCP) in place to deal with disasters such as the outbreak of COVID-19.
A business continuity plan (BCP) is a policy, supported by senior management, that helps ensure the necessary steps are taken to:
- Identify the impact of potential losses.
- Maintain viable recovery strategies.
- Supervise the continuity of operations through personnel training.
- Perform plan testing and maintenance.
