Association of National Lenders: Members Updates

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What Is A Business Continuity Plan And Why Have One?

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Every system needs a contingency plan. An idea and outline of what to do and what measures to take, in case disaster ever strikes! A business continuity plan is a contingency plan for a business in case of major problems.

Small businesses can be hit very badly in case of a disaster. They might not have a large security blanket and it is always important to know what steps to take in the event of a disaster. It is not exactly an exit strategy but more like a ‘things to do’ list to salvage the business and its employees.

Disasters can mean anything from natural disasters, accidents or even terror strikes. In today’s world, unfortunately, there is long list of possibilities. On the bright side, one can plan ahead and be prepared.

The idea behind writing a business plan beforehand is that personal response to disastrous events can be emotional and one cannot be trusted to make rational and sensible decisions in such a situation.

Insurance is a way of being prepared in case of an eventuality. However, insurance does not always come through immediately. Besides, insurance can only offer money and cannot bring back all the lost intangibles. Only people who run the business can do that.

The plan comprises of fundamental and detailed steps to be taken. This includes a communication plan, data recovery options and back up of all the data etc.