Business Continuity Tip of the Month

Just mind your own business?

Many business continuity strategies are very inward looking and insular, concentrating only on the risks to, or impacts associated with the loss of the organisation’s own processes, locations, staff, etc.

However, if you are reliant on other businesses (such as key suppliers or customers) you need to consider the potential impact on your business if they should suffer a problem. For instance :

  • If a particular supplier is unable to deliver critical components, can you source them from elsewhere, and do you have sufficient stocks to tide you over?
  • If a major customer stops ordering for an extended period, what impact will this have on your business?

If an impact analysis shows that you would be significantly affected you need to do something to mitigate the risk, including :

  • Making contingency arrangements, such as finding alternative suppliers or holding extra stock;
  • Checking whether the other party has its own business continuity plans and risk management systems in place;
  • Checking whether your insurance would provide some level of recompense.

So think of others as well as yourselves, and don’t let someone else’s problem become your problem.

 


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