No matter what the size or scope of your business, an emergency plan is required to offset the impacts of such disasters as hurricanes, terrorist attacks, fire, criminal activity and untold emergencies. No business is immune from the possibility of an emergency situation and every business should have a plan of action that is commensurate with the needs of the business.

The fundamental question that all businesses must recognize is the level of risk that is acceptable. Whether measured in days without revenue, or by physical damage, business survivability, systems operability, people availability, or even inventory/product availability, this risk tolerance is unique to each business and should be developed and evaluated annually. In general, most companies underestimate the risk profile of their business and therefore they understate or simply misunderstand their risk tolerance until it is too late.

Business insurance and other financial tools are one element of factoring and mitigating risk, however, the duration and/or severity of any event or emergency can easily exhaust these resources. Consequently, the understanding and acceptance of your risk profile and the mitigation of your risk to an acceptable tolerance level is a critical leadership function within the governance of your business. We strongly encourage you to take ownership of this issue and be prepared.

If you already have a plan and feel it is adequate for your business, test it. Conduct a simulation or drill. Uncover what may have been missed, and take the opportunity to improve and learn.

One easy way to approach the development of an emergency or contingency plan for your business is to think in terms of “people, property (assets), processes, products and partners.

People - start your plan with an understanding of the people elements of your business. What if they cannot be at work? What processes and work elements are people intensive? What happens in my plan if my people are not available? What do I do for my people in the event of an emergency? What is the role of my people to execute an emergency plan? Have I trained my people how to respond in an emergency? Critical factors include a plan to perform without your staff, to augment or temporarily relieve your staff, and a plan to manage all of the issues related to human assets. The hardest part of any plan is the right balance of consideration and planning for your employees and their families.

Property - This includes all assets. Physical, financial, information, intellectual, systems, and inventory assets must all be addressed. A protection, recovery and/or sustainability plan for each is a requirement. From hard hats to hard drives, every asset that contributes to your business requires review and a plan to recreate, access, or support during an emergency.

Processes - Are your business processes re-creatable in a temporary environment? Do you have emergency processes that support your people and your business systems? What drives the invocation of your emergency processes and plans? What process is in place for continuous risk analysis and mitigation? What processes do your suppliers or key vendors have in place to support you? How will I communicate internally and externally?

Products - How will I manage inventory or goods and their recovery or value? How are my service elements and customer expectations met and sustained? What elements of product placement and mix can be altered to provide a sustainable business during the emergency? What will be the demand for my products and services in the event of an emergency? What is the contingency plan for perishable assets? How will my supply chain requirements be altered by an emergency within the chain?

Partners - What are the continuity plans of my key partners and suppliers? How are they incorporated into my contingency plan? Who are the key players in my plan and can I test my plan with them? How do I communicate my emergency and coordinate my partners to respond and support me? Who do I contact to get the help I need?

No doubt you can see that we have merely scratched the surface in terms of what should be considered in the development of your plan. We urge you to talk with fellow chamber members, some of whom provide business continuity services as a key component of their business. Get their advice and have them share their plan and issues with you.

In a recent study, 91% of businesses surveyed in South Florida reported that they had some type of a business continuity plan, however, the number of firms who engaged in the regimen of testing and revising that plan on a regular interval was below 45%. Now is the time for your leadership and engagement on this important aspect of business.