What is a Business continuity plan
Businesses today are faced with an unprecedented number of exposures, from cyber-attacks, electrical grid failures, to natural disasters. The key to the survival of any organization is to have an action plan, do not assume your employees and visitors know what to do during an emergency.
A disaster recovery plan and a business continuity plan are often implemented simultaneously. There is a difference between the two programs in that, a disaster recovery plan focuses on the technical aspect of recovery due to equipment failure, while a business continuity plan focuses on planning contingencies and stakeholders responsibilities ahead of time for an unavoidable crisis.
From an operational standpoint, if your business isn’t proactively prepared to handle an emergency and you’re unable to maintain business continuity during a crisis, your vendors and customers may seek an alternative supplier, especially if you are contractually obligated to provide.
A business continuity plan (BCP) will help you decide how to recover all your business operations in the least amount of time possible, this means your business can continue its day-to-day operations, thus allowing sales transactions. Do you have remote access set up for your key employees who generate revenue, process payments, or handle logistics, etc.?
The BCP should outline different scenarios that can occur ranging from a natural disaster to human error. There are two main objectives in the business continuity plan to be considered:
- Recovery time objectives (RTOs)
- Recovery point objectives (RPOs)
RTO is the maximum amount of time a business can be down in case of disruption or disaster. Whereas RPO is the maximum amount of data loss and downtown that a business can handle. Both of these are important components of your back-up power and data recovery strategy.
Technically, the downtime should be zero as a business cannot afford a loss or be down for even a couple of hours. Imagine the potential for sales with your competitor if you fail to operate during a disruption, it gives them a distinct competitive advantage.
Most companies are not proactive in maintaining critical power systems or emergency policies and procedures. As an organization grows so do the legal liabilities for your company and your insurance carrier. Your carrier provides financial coverage and reimbursement for a loss of revenue, but some insurance carriers stipulate that disaster recovery and business continuity plan are mandatory requirements. Your insurance agreement may be voided if you are not compliant with the small print.
A well-structured business continuity plan shows that your organization’s ability to recover and effectively operate in a timely fashion. Odyssey Power can assist with all aspects of designing a back-up power plan to minimize downtime events and protect your data. Don’t wait for a disaster, call us today!