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Develop a disaster recovery plan
A business impact analysis should be developed to identify what an
operation must do to protect itself in the face of a natural disaster.
Large corporations often hire risk managers to handle this task and
some companies hire consultants with expertise in disaster planning
and recovery to assist them with their plans. But small businesses
can do the analysis and planning on their own.
Your business disaster plan
- Set up an emergency response plan and train employees to carry it out. Make sure
employees know who to notify about the disaster and what measures to take to preserve
life and limit property losses.
- Write out each step of the plan and assign responsibilities to employees in clear
and simple language. Practice the procedures set out in the emergency response plan
with regular, scheduled drills.
- Compile a list of important phone numbers and addresses. Make sure you can get in
touch with key people after the disaster. The list should include local and state emergency
management agencies, major clients, contractors, suppliers, realtors, financial institutions,
insurance agents, and insurance company claim representatives.
- Decide on a communication strategy to prevent loss of customers. Post notices outside
your premises; contact clients by phone, email, or regular mail; place a notice in the local
newspapers.
- Consider the things you may need initially during the emergency. Do you need a back-up
source of power? Do you have a back-up communications system?
- Human resources. Protect employees and customers from injury on the premises. Consider the
possible impact a disaster will have on your employees’ ability to return to work and how
customers can return to shop or receive goods or services.
- Physical resources. Inspect your business’ physical plant(s) and assess the impact a
disaster would have on facilities. Make sure your plans conform to local building code
requirements.
- Business continuity. Even if your business escapes a disaster, there is still a risk that
the business could suffer significant losses due to the inability of suppliers to deliver goods
or services or a reduction in customers. Businesses should communicate with their suppliers and
markets (especially if they are selling to a business as a supplier) about their disaster
preparedness and recovery plans, so that everyone is prepared.
- Protect your building. If you own the structure that houses your business, integrate into
your plan disaster protection for the building and the contents. Consider the financial impact
if your business shuts down as a result of the disaster. What would be the impact for a day, a
week, or an entire revenue period?
- Keep duplicate records. Back up computerized data files regularly and store them
off-premises. Keep copies of important records and documents in a safe deposit box and make
sure they’re up to date.
- Identify critical business activities and the resources to support them. If you cannot
afford to shut down your operations temporarily, determine what you need to run the business
elsewhere.
- Find alternative facilities, equipment and supplies, and locate qualified contractors.
Consider a reciprocity agreement with another business. Try to get an advance commitment from
at least one contractor to respond to your needs.
- Protect computer systems and data. Data storage firms offer off-site backups of computer
data that can be updated regularly.
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