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Agriculture Risk: How To Build a Business Continuity Plan
November 15, 2021

Agriculture Risk: How To Build a Business Continuity Plan

Business continuity planning is crucial for farms and ranches. Building an effective plan can help prevent long-term loss of income, protect employees’ safety and get a business back to operating sooner after a disruption, such as severe weather events or supply chain interruptions.

The following are some steps to help develop an agriculture business continuity plan:

  1. Identify threats or risks. Consider and assess all areas of risk that have the potential to cause a business disruption based on historical, geographical, organizational and any additional factors. Analyze the probability of each event, its potential impact and the organization’s readiness to respond.
  2. Conduct a business impact analysis. Identify the employees, facilities, equipment and programs that are critical to the survival of the organization. Consider who and what is necessary to restore operations. This will help prioritize the order in which each item needs to be repaired.
  3. Adopt controls for prevention and mitigation. Developing a business continuity plan can help an organization identify, prepare and recover from an unexpected event, but it can also help reduce the event’s impact. Prevention and mitigation planning activities can help identify and solve conditions that could lead to dangerous situations, such as fire, explosions or flooding. Make sure any business continuity plan also includes a plan for public relations, resource management and employee communication.
  4. Test and improve. Test the plan regularly and update it to include new potential risks as the organization evolves and grows. Train employees to understand their roles and responsibilities. It’s also important to analyze and account for new risks that might arise as technological advancements are developed and introduced to the agriculture industry.

For more information on risk management, farm insurance, or to find out how to reduce your insurance costs call CMB at 780.424.2727 or click here to get a quote.