Including Winter Storms in Business Continuity Plans
The impact of extreme winter weather events on businesses can be devasting, resulting in significant commercial building and vehicle damage; lost production, sales, income and labour time; additional transportation costs; decreased tourist activity; and utility disruptions.
A business continuity plan (BCP) outlines how a company can restore critical operations during an unplanned service disruption. When creating their BCPs, employers need to identify prevalent operational threats by focusing on the most likely disruptions and their related consequences. Because winter storms can potentially cause widespread disruptions, they should be included in these plans. Effective BCPs generally consist of the following components:
- Business impact analyses—Businesses should recognize the types of disasters (e.g., an ice storm causing a power outage on the production floor or a blizzard disrupting delivery operations) that could compromise their operations, assess the overall severity of these threats and identify various ways to minimize their impact.
- Organized frameworks—By developing detailed response frameworks and creating temporary relocation plans, businesses can ensure the proper measures are in place to keep property damage, operational disruptions and bodily harm to a minimum amid a disaster.
- Recovery strategies—Following a disaster, businesses must assess which critical functions are necessary for the restoration of sales, production and other operations. Businesses can develop recovery strategies by identifying and documenting their particular resource needs and conducting gap analyses.
- Tests and exercises—To successfully execute their BCPs in the face of disaster, it’s imperative for businesses to developspecific plan testing, exercise and maintenance requirements. Further, businesses should implement in-depth training and orientation processes regarding their BCPs for both new and existing employees.
- Ongoing reviews and updates—It’s best for employers to regularly review and update their BCPs to ensure the effectiveness of these plans. Businesses grow and change over time, which may necessitate certain plan adjustments to address emerging risks and vulnerabilities.
While preparation may seem overwhelming, businesses can work with qualified insurance professionals to learn more about and assist with winter weather preparedness practices and policies.
Contact us today for risk mitigation guidance and robust insurance solutions.