Plan to Succeed with Business Interruption Planning

 

business interruption plan

Business Continuity Planning Process Diagram - Text Version. When business is disrupted, it can cost money. Lost revenues plus extra expenses means reduced profits. Insurance does not cover all costs and cannot replace customers that defect to the competition. A business continuity plan to continue business is essential. Business continuity is the intended outcome of proper execution of Business continuity planning and Disaster recovery. It is the payoff for cost-effective buying of spare machines and servers, performing backups and bringing them off-site, assigning responsibility, performing drills, educating employees and . The Ready Business program helps business leaders make a preparedness plan to get ready for these hazards. Ready Business Toolkits. The Ready Business Toolkit series includes hazard-specific versions for earthquake, hurricane, inland flooding, power outage, and severe wind/tornado.


Business Interruption Plans


When business is disrupted, business interruption plan, business interruption plan can cost money, business interruption plan. Lost revenues plus extra expenses means reduced profits. Insurance does not cover all costs and cannot replace business interruption plan that defect to the competition. A business continuity plan to continue business is essential. Development of a business continuity plan includes four steps:.

Information technology IT includes many components such as networks, business interruption plan, servers, desktop and laptop computers and wireless devices. The ability to run both office productivity and enterprise software is critical. Therefore, business interruption plan, recovery strategies for information technology should be developed so technology can be restored in time to meet the needs of the business.

Manual workarounds should be part of the IT plan so business can continue while computer systems are being restored. Business continuity impact analysis identifies the effects resulting from disruption of business functions and processes. It also uses information to make decisions about recovery priorities and strategies.

The worksheet should be completed by business function and process managers with sufficient knowledge of the business, business interruption plan. Once all worksheets are completed, the worksheets can be tabulated to summarize:. Those functions or processes with the highest business interruption plan operational and financial impacts become priorities for restoration.

Recovery of a critical or time-sensitive process requires resources, business interruption plan. The Business Continuity Resource Requirements worksheet should be completed by business function and process business interruption plan. Completed worksheets are used to determine the resource requirements for recovery strategies. Following an incident that disrupts business operations, resources will be needed to carry out recovery strategies and to business interruption plan normal business operations.

Resources can come from within the business or be provided by third parties. Resources include:, business interruption plan. Since all resources cannot be replaced immediately following a loss, managers should estimate the resources that will be needed in the hours, days and weeks following an incident.

After all managers have completed their worksheets, information should be reviewed. Gaps or inconsistencies should be identified. Meetings with individual managers should be held to clarify information and obtain missing information. After all worksheets have business interruption plan completed and validated, the priorities for restoration of business processes should be identified.

Primary and dependent resource requirements should also be identified, business interruption plan. This information will be used to develop recovery strategies. If a facility is damaged, production machinery breaks down, a supplier fails to deliver or information technology is disrupted, business is impacted and the financial losses can begin to grow. Recovery strategies are alternate means to restore business operations to a minimum acceptable level following a business disruption and are prioritized by the recovery time objectives RTO developed during the business impact analysis.

Recovery strategies require resources including people, business interruption plan, facilities, equipment, materials and information technology. An analysis of the resources required to execute recovery strategies should be conducted to identify gaps, business interruption plan. For example, business interruption plan, if a machine fails but other machines are readily available to make up lost production, business interruption plan, then there is no resource gap, business interruption plan.

However, if all machines are lost due to a flood, and insufficient undamaged inventory is available to meet customer demand until production is restored, production might be made up by machines at another facility—whether owned or contracted. Strategies may involve contracting with third parties, entering into partnership or reciprocal agreements or displacing other activities within the company.

Staff with in-depth knowledge of business functions and processes are in the best position to determine what will work. Possible alternatives should be explored and presented to management for approval and to decide how much to spend. Depending upon the size of the company and resources available, there may be many recovery strategies that can be explored. Utilization of other owned or controlled facilities performing similar work is one option.

Operations may be relocated to an alternate site - assuming both are not impacted by the same incident. This strategy also assumes that the surviving site has the resources and capacity to assume the work of the impacted site.

Prioritization of production or service levels, providing additional staff and resources and other action would be needed if capacity at the second site is inadequate.

Telecommuting is a strategy employed when staff can work from home through remote connectivity, business interruption plan. It can be used in business interruption plan with other strategies to reduce alternate site requirements. This strategy requires ensuring telecommuters have a suitable home work environment and are equipped with or have access to a computer with required applications and data, peripherals, and a secure broadband connection.

In an emergency, space at another facility can be put to use. Cafeterias, conference rooms and training rooms can be converted to office space or to other uses when needed. Equipping converted space with furnishings, equipment, power, connectivity and other resources would be required to meet the needs of workers. Partnership or reciprocal agreements can be arranged with other businesses or organizations that can support each other in the event of a disaster.

Agreements should be negotiated in writing and documented in the business continuity plan. Periodic review of the agreement is needed to determine if there is a change in the business interruption plan of each party to support the other. There are many vendors that support business continuity and information technology recovery strategies. External suppliers can provide a full business environment including office space and live data centers ready to be occupied.

Other options include provision of technology equipped office trailers, business interruption plan, replacement machinery and other equipment. Business interruption plan availability and cost of these options can be affected when a regional disaster results in competition for these resources.

There are multiple strategies for recovery of manufacturing operations. Many of these strategies include use of existing owned or leased business interruption plan. Manufacturing strategies include:. Telephones are ringing and customer service staff is busy talking with customers and keying orders into the computer system. The electronic order entry system checks available inventory, processes payments and routes orders to the distribution center for fulfillment.

Suddenly the order entry system goes down. What should the customer service staff do now? If the staff is equipped with paper order forms, order processing can continue until the electronic system comes back up and no phone orders will be lost.

Identify the steps in the automated process - creating a diagram of the process can help. Consider the following aspects of information and work flow:. Create data collection forms to capture information and define processes for manual handling of the information collected. Establish control logs to document transactions and track their progress through the manual system. Manual workarounds require manual labor, so you may need to reassign staff or bring in temporary assistance.

Business Continuity Plan. Development of a business continuity plan includes four steps: Conduct a business impact analysis to identify time-sensitive or critical business functions and processes and the resources that support business interruption plan. Identify, document, and implement to recover critical business functions and processes.

Organize a business continuity team and compile a business continuity plan to manage a business disruption. Conduct training for the business continuity team and testing and exercises to evaluate recovery strategies and the plan. Business Continuity Impact Analysis Business continuity impact analysis identifies the effects resulting from disruption of business functions and processes.

Once all worksheets are completed, the worksheets can be tabulated to summarize: the operational and financial impacts resulting from the loss of individual business functions and process the point in time when loss of a function or process would result in the identified business impacts Those functions or processes with the highest potential operational and financial impacts become priorities for restoration. Resources include: Employees Office space, business interruption plan, furniture and equipment Technology computers, peripherals, communication equipment, software and data Vital records electronic and hard copy Production facilities, machinery and equipment Inventory including raw materials, business interruption plan, finished goods and goods in production.

Utilities power, natural gas, water, sewer, telephone, internet, wireless Third party services Since all resources cannot be replaced immediately following a loss, managers should estimate the resources that will be needed in the hours, days and weeks following an incident. Recovery Strategies If a facility is damaged, production machinery breaks down, a supplier fails to deliver or information technology is disrupted, business is impacted and the financial losses can begin to grow. Manufacturing strategies include: Shifting production from one facility to another Increasing manufacturing output at operational facilities Retooling production from one item to another Prioritization of production—by profit margin or customer relationship Maintaining higher raw materials or finished goods inventory Reallocating existing inventory, repurchase or buyback of inventory Limiting orders e.

How much time will it take to shift production from one product to another? How much will it cost to shift production from one product to another? How much revenue would be lost when displacing other production? How much extra time will it take to receive raw materials or ship finished goods to customers? Will the extra time impact customer relationships? Are there any regulations that would restrict shifting production?

What quality issues could arise if production is shifted or outsourced? Are there any long-term consequences associated with a strategy? Manual Workarounds Telephones are ringing and customer service staff is busy talking with customers and keying orders into the computer system.

Developing Manual Workarounds Identify the steps in the automated process - creating a diagram of the process can help. Consider the following aspects of business interruption plan and work flow: Internal Business interruption plan department, person, business interruption plan, activity and resource requirements External Interfaces company, contact person, activity and resource requirements Tasks in sequential order Manual intervention points Create data collection forms to capture information and define processes for manual handling of the information collected.

 

13 Business Continuity Plan Examples - PDF | Examples

 

business interruption plan

 

Business Continuity Planning Process Diagram - Text Version. When business is disrupted, it can cost money. Lost revenues plus extra expenses means reduced profits. Insurance does not cover all costs and cannot replace customers that defect to the competition. A business continuity plan to continue business is essential. Business Continuity Plan Template is a roadmap for continuing operations under adverse conditions (i.e. interruption from natural or man-made hazards). Disaster Recovery Plan Template. DRP's are steps or mechanisms that can reduce or eliminate various threats for organizations. Business interruption planning and business continuity planning are just as important as marketing and business plans. Unlike marketing and business plans, however, business interruption planning and business continuity planning provide a step-by-step guide on how your business will commence following disasters and severe interruptions.