Business Continuity Plan Forms

8/11/2019 Business Continuity Plan Forms

1/16

www.dmitre.sa.gov.au/sbs

Business Continuity

Plan INFORMED

CONNECTED

COMPETITIVE

SUS

TAINABLE


2/16

P2 DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

BUSINESS CONTINUITY PLAN A GUIDE FOR BUSINESS OPERATORS IN SOUTH AUSTRALIA

Contents

01 Introduction P 3

02 Developing your plan P 5

03 Work section P 12


3/16

P3

01 Introduction

WHAT IS BUSINESS CONTINUITY PLANNING?

Business continuity planning is about being prepared to manage any disruption to your businessto ensure the continuity of services to your customers.

You want your customers to know that you can provide business as usual even if others around youare experiencing difficulties. The disruption to your business could be caused by an environmentalemergency such as a flood, or a critical input disruption like an extended electricity blackout.

WHAT IS A BUSINESS CONTINUITY PLAN?

A Business Continuity Plan contains the documented arrangements that enable you to manageany disruption to your business and maintain the continuity of services to your customers.

WHY SHOULD I PREPARE A BUSINESS CONTINUITY PLAN?

The Small Business sector is a substantial part of Australias socio-economical life and, due toits characteristics such as scale and employment patterns, it tends to be less equipped to handlediscretionary or the non-immediate business-related activities often undertaken by larger firms.Business planning is one of these activities and, within it, risk management and business continuityplanning as particular activities are generally not priorities for owners/managers.

By preparing a Business Continuity Plan, your business will be more likely to survive an emergency orcritical input disruption. The ability to continue trading while competitors experience disruptions mayenable you to gain market share and grow your business. Your staff, key customers and insurer mayalso like to know you have a Business Continuity Plan. This will give them more confidence that yourbusiness is well organised and able to withstand business disruptions.

Business continuity planning will also help you to better understand your business and itsvulnerability. In addition, good business continuity planning needs to emphasise theinterdependency of business activities, which include discussions with suppliers and distributors.

WHAT ARE THE BENEFITS OF DEVELOPING A BUSINESS CONTINUITY PLAN?

Greater financial resilience.

Reduce loss of business turnover.

Improve staff morale and retention through planning.

Resilient communities lessen the extent and duration of government assistance.

SMEs play vital role in community and social cohesion in a communitys abilityto be resilient to disasters.


4/16



01 Introduction

IS MY BUSINESS AT RISK?

Businesses across South Australia are at risk from a number of natural and societal hazards,including:

Bushfires

Floods

Building fire

Criminal activity

Staff loss Pandemic Influenza

Electrical failure

Fuel supply disruption

Machinery failure

Computer failure

Through adequate preparation, these risks and the potential impact to your business canbe minimised.

HOW LONG WILL IT TAKE TO PREPARE A BUSINESS CONTINUITY PLAN?

The time it takes to develop a Business Continuity Plan will depend on a variety of factors, includingthe size and the complexity of your business. Depending on these factors, your organisationsBusiness continuity planning might only take a few hours.

This Guide provides a series of simple steps that will help you to develop your Business ContinuityPlan and potentially address any concerns.

HOW MUCH WILL A BUSINESS CONTINUITY PLAN COST?

This will vary from business to business. It is possible that only some of your time to prepare the planis required.

WHAT IS INVOLVED IN PREPARING A BUSINESS CONTINUITY PLAN?

The following simple steps are required to prepare your Business Continuity Plan.

1 Knowing your risks.

2 Conducting a Business Impact Analysis. This involves identifying your key products and services,deciding how long you can stop delivering them without incurring serious risk, and identifyingyour critical inputs.

3 Developing continuity strategies to operate your business during and post the crisis.

4 Identifying your communication needs.

5 Being ready to go.

6 Reviewing your plan.


5/16

P5

02 Developing your plan

Businesses are at risk from a number of natural disasters, societal hazards and supply chaindisruption. These risks include:

Bushfires

Pandemic Influenza

Floods

Building fire

Criminal activity

Staff loss

Electrical failure

Fuel supply disruption

Machinery failure

Computer failure

It is important to understand these risks and how your community and governing bodiessuch as

local councils and State Government bodiesmanages them. For example, it is important to discoverwhat medium of communication your local council utilises in times of crisis, such as a flood orcyclone. Knowing what support and guidance to expect from these services will help you formulateyour contingency response.

This involves identifying your key products and services, deciding how long you can stop deliveringthem before incurring serious losses, and identifying your critical inputs.

In this step it is important to be clear on what key products and services your business produces.For each key product and service, identify how long you could stop delivering it before your businesswould experience difficulties. You wish to prioritise these based on the amount of profit each productor service generates.

The length of outage your business can tolerate will vary depending on the time of day, day of the weekand time of year. For example, if your busiest trading week of the year makes enough profit to carryyou through the quiet periods then you will be less able to withstand a sustained outage at this time.Plan for the duration of outage you can withstand during this period.

The Maximum Acceptable Outage may be based on lost income, public disruption or regulationcompliance issues. The answers to this question will be different for every business. The followingexamples are based around two small business structures; a small owner and operated floristemploying a number of casual staff, and a hotel in a country town.

1 Knowing your risks

2 Conducting a Business Impact Analysis


6/16




EXAMPLES:

Key products and services for a florist Maximum Acceptable Outage

Flower sales at store 1 day

Home delivery flower sales 1 day

Card sales at store 3 days

Gift sales at store 2 weeks

Staff payments 1 week

Tax payments 3 months

Key products and services for a hotel Maximum Acceptable Outage

On site cold drink sales at bar 1 day

On site bottle sales from liquor shop 2 days

Fuel sales 2 hours

On site accommodation 3 days

On site food sales 3 days

On site entertainment 2 weeks

Staff payments 1 week

Tax payments 3 months

Business continuity means that you must find a way to restore your products and services withinthe Maximum Acceptable Outage. The business could be disrupted because of a total loss of assetsresulting from a flood or fire. However, often the disruption is caused by lost access to a critical inputthat is needed to operate the business.


7/16

P7


IDENTIFYING YOUR CRITICAL INPUTS

In this step it is important to understand the critical inputs that enable you to provide each of yourbusiness products and services. Critical inputs are the essential services and products required torestart your business if there was a disruption. Critical inputs might include; staff (specialist andgeneralist), utilities (electricity, water, gas etc.), supplies (fuel, vehicles, raw materials, equipment),property and equipment premises, warehouses, EFTPOS, computer records, etc.

ExampleIn our florist example, critical inputs for each key product and service might include:

Product or service Critical inputs

Flower sales at store Flower supplies (120 bunches delivered twice weekly)EFTPOSElectricityFlorist (x 1) and counter staff (x 2)Water (200 litres per day)Shop front facing main streetCool room (8sqm)Accounts

Home delivery flower sales Vehicle and driver

Fuel (40 litres per day)Accounts

Card sales Card supplies (400 per month)EFTPOSElectricityShop front facing main streetCounter staffAccounts

Gift sales Gift supplies (300 items per month)EFTPOS

ElectricityShop front facing main streetCounter staffAccounts

Staff payments Banking servicesStaff hours book

Tax payments Account recordsBanking services

Should your business be destroyed by a structural fire or natural disaster you now know what critical

inputs you need to put in place.


8/16




With some forethought, you can develop continuity strategies to operate your business after adisruption before the Maximum Acceptable Outage is reached.

The range of continuity strategies you might consider include:

Cross-training staff and skill sharing.

Hiring equipment.

Borrowing equipment with another business.

Having backup equipment.

Retaining old equipment when it is replaced.

Practicing manual processes to replace computer systems.

Identifying alternative suppliers.

Having records and forms stored off-site.

Keeping computer backups off-site.

Contracting out.

Having insurance policies, contracts and other important documents copied and kept off-site.

Succession planning.

For each of your product(s) or service(s), develop a continuity strategy to restore business before themaximum Acceptable Outage is reached.

Product or service Continuity strategy

Flower sales at store Operate from home, or share space at chemist shop,or rent vacant shop.Manual processing of EFTPOS using machine stored at homeor use EFTPOS in shop next door until replaced.

Rent cool room trailer from hire company.Need 6 kva generator to power cool room. Obtain fromlocal hire company.Daily accounts backup kept at home.Lease new computer.

Home delivery flower sales Use an alternative driver. Use alternative driver when regular driveris on leave, etc. to build an understanding of business.Could also use local taxi.

Card sales Restock with new supplies. If supplier closes, possibly useFred Bloggs card shop in Adelaide.

Gift sales Restock with new supplies. If supplier closes, possibly useJane Doe gift shop in Adelaide.

3 Developing continuity strategies to operate your business


9/16

P9


Product or service Continuity strategy

Florist skills Use Mrs Smith, a retired florist, and use counter staff

(need to build their skills).

Counter staff Use a number of casuals to ensure flexibility.

Staff payments Through goodwill, staff will wait an extra week for pay.

Tax payments Keep copy of all financial records at home and originals at work

in case one set is destroyed.

Once youve developed your continuity strategies, youll need to ensure that the training, equipmentand relationships, youve devised are in place. If you store items that deterioratesuch as, perishableproduce, or goods such as fuelyoull need a process to replace them as required. If your strategiesdepend on staff performing tasks that they do not usually do, you will need to arrange regular practicefor them.

You will also need to ensure staff members know the triggers for activating the Business ContinuityPlan. The triggers must allow adequate time to implement your contingency strategies before youreach the Maximum Acceptable Outage. The plan should also set out clear accountabilities for staff sothey know who is responsible for each action.

Once you have decided on the best contingency strategy option, write it in your plan.

The success of your Business Continuity Plan may depend on ensuring the right people andorganisations are contacted quickly. This will ensure you get the help and support you need tomaintain your business.

Some of the key contacts you need include:

Staff Key customers

Insurance company Financial institution

Suppliers Alternative suppliers

Contractors Regulator

Hire companies Equipment maintenance companies

Your staff will want to know whether they still have a job and how they can help.

Your customers will want to know if you will meet existing orders and to be reassured that you willcontinue to operate.

Your suppliers will want to know if you still need orders already placed and what they can do to help.

You may also need to place an advertisement in the local press informing your customers andsuppliers of the status of your business.

4 Identifying communication needs


10/16




Key contact Contact number

EFTPOS faults

Telephone faults

Electricity authority

Local real estate to rent alternative premises

Insurance company

Electrician

Local hire company

Office equipment lease company

Bank manager

ExampleIn our florist example, key contacts include:

Flower supplier

Alternative flower supplier

Alternative counter staff

Retired local florist

Alternative vehicle drivers

Gift supplier

Alternative gift supplier

Card supplier

Alternative card supplier

Florist in neighbouring town

Refrigeration mechanic

Major customers


11/16

P11


Your contingency strategies will be most successful if you practice them regularly. Staff will need to beclear on when your continuity plan is to be deployed and know the triggers to start using it. It may behelpful to conduct some business continuity exercises. An exercise can be as simple as a discussionabout what people would do if a range of situations, such as those listed below, occurred.

The electricity supply will be disrupted for two days.

The computer system has failed and will be out of service for a number of days.

A key supplier has closed down at short notice.

A number of staff have been seriously injured in a car accident and will be off work for months.

Your building has burnt down.

More practical exercises could include using your continuity strategies on a quiet day at work tobe sure that they work.

Staff members are most likely to be able to continue working effectively with your contingencystrategies if they have practised them.

5 Being ready to go

As your business grows and changes, you will need to revise your Business Continuity Plan.

This review should occur every six months. Most importantly, telephone numbers must be checked.

Remember to keep two copies of your Business Continuity Plan at two different sites in case oneis destroyed.

6 Reviewing your plan


12/16



03 Work section

Risks

What could happen that would significantly disrupt your business? Include natural disasters,technological failures and supply chain disruptions. List the risks to your business below(some have already been included for you). Remember that any of these may complicate theimplementation of your Business Continuity Plan.

Complete this section with answers for your business.

1 Knowing your risks

Building fire

Electricity disruption


13/16

P13

03 Work section

Key products and services Maximum Acceptable Outage

This involves identifying your key products and services, deciding how long you can stop deliveringthem, and identifying your critical inputs.

KEY PRODUCTS AND SERVICES

What are the key products and services delivered by your business and how long can you stopdelivering them?

2 Conducting a Business Impact Analysis

IDENTIFYING YOUR CRITICAL SUPPLIES/RESOURCES

What are the critical inputs required by your business to deliver each product and service?Detail the minimum quality and quantity required.

Products and service Critical input


14/16



Key products and services Continuity strategy

Identify a contingency strategy to restore each key product and service during a disruption to meet

your Maximum Acceptable Outage. Remember to record details of equipment required, such as

size of generators.

3 Developing continuity strategies to operate your business

This Business Continuity Plan is to be activated if any of these triggers occur:

Key products and services Continuity strategy

1

2

3

4

03 Work section


15/16

P15

03 Work section

Key contacts Contact numbers

For your strategies, identify the people and organisations you will need to contact to get help and support.

4 Identifying communication needs

Develop some exercise ideas for your business to ensure your staff know what needs to be donewhen a disruption occurs.

Building continuity exercises

5 Being ready to go

6 Reviewing your plan

Copies of this plan are stored at: I will update this plan again on:

DATE: / /


16/16

DISCLAIMER

The Government of South Australia gives no warranty and

makes no representation, whether express or implied,

as to the accuracy of information contained within

this Business Continuity Plan or the suitability of the

information for any purpose. Any use of the information

contained in this Business Continuity Plan (whether

authorised or not) is at the users sole risk and the

Government of South Australia disclaims responsibility

for any loss or damage incurred as a result of such use.

The information is provided solely on the basis that users

of the information will make their own assessment of the

accuracy of the information and users are advised to verify

all information contained within this document.

Any information about the law in Australia or South

Australia is provided as general information only and

is not legal advice. This Business Continuity Plan is

a starting point only and is not a substitute for legal

or professional advice. While the Department hasattempted to ensure the information is accurate at the

time of publishing, no responsibility will be accepted

for any errors or omissions and the Government of

South Australia will not be liable for any loss or damage

incurred by any person as a consequence of any use,

reference or reliance on this information. Any such

use, reference or reliance shall be at the sole risk of

that person who should seek their own legal and/or

professional advice if required.

COPYRIGHT

Produced by the South Australian Department for

Manufacturing, Innovation, Trade, Resources and Energy

June 2012

Department for Manufacturing,

Innovation, Trade, Resources and Energy

Level 9, The Conservatory131139 Grenfell Street, Adelaide SA 5000

GPO Box 1264, Adelaide SA 5001T +61 8 8303 2400F +61 8 8303 2509

E [email protected]/sbs

INFORMED

CONNECTED

COMPETITIVE

SUS

TAINABLE

Business Continuity Plan Forms

Documents

Transcript of Business Continuity Plan Forms