Business Continuity Planning

Business Continuity Planning

Introduction

One of the primary goals of the recovery phase of a disaster is to restore community functioning to its predisaster state as soon as possible. Critical to that goal is reestablishing regular business and commerce functions, which are vital to any community. While civic leaders have significant responsibility for supporting business continuity, so do business owners and operators. The paper attempts to evaluate the state of preparedness for disaster and recommend a recovery plan for the owner of a small business organization.

Business’s Legal Obligations for Disaster Preparedness

The federal, state, and local authorities have developed guidelines that define the minimum requirements for emergency management and business continuity. The regulations vary from one jurisdiction to another. One has, therefore, to identify regulations that are applicable in his facility location. The owner should, therefore, determine which environmental, health, and safety regulations are within the business jurisprudent and in cooperation, the preparedness programs.

The owner should be conversant with employee safety and health regulations.  OSHA publication of 3122 gives information on the emergency response as well as links to state occupational safety and health plan (Department of Homeland Security, 2020). The owner should also delve into understanding environmental law and regulations, such as hazardous material management, spill prevention, and countermeasure plans. He should also factor adherence to life safety and fire codes such as NFPA 101 life safety code as well as NFPA 1 fire code, among other international standards. The owner should further research on regulations on business continuity and information disaster recovery planning. Finally, the owner should equip himself with non-mandatory standards and practices such as fire brigade, pre-incident planning, among others..

Recommended Process for Business Continuity Planning

The government has established a guideline to mitigate disaster on the society they serve.  The 1999 planning for Recovery from a Technology Disaste recommendations were revised to accommodate additional, comprehensive disaster and recovery planning. GFPO recommended the following in the plan development, external planning resources, Disaster and Emergency Recovery Plan Assessment, Office of State and Local Government Coordination and Preparedness (SLGCP), Disaster and Emergency Recovery Plan Testing and a followup of FEMA guidelines (Government Finance office Association, 2020). Disaster and Emergency Recovery Plan Assessment is an office o Domestic Preparedness (ODP), a component in the US department of homeland security same as FEMA. 

Financial and Other Resources Available

Some of the programs authorized under FEMA by Stafford Act include Individual Assistance, Hazard Mitigation Grant Program. Individual assistance includes programs aimed at providing housing, living expenses, and home repairs temporally after a disaster. Others like public disaster grants are aimed at guaranteeing short and long-term Recovery after a disaster all under FEMA. Hazard Mitigation Grant Program is aimed at providing aid during the Recovery to minimize impact and losses with future disasters. Other sources of finance may include revolving loan funds, bridge loan programs, and business grants. The owner is further recommended to subscribe to a disaster and risk insurance scheme.

Preliminary Business Continuity Plan

Introduction

The preliminary business plan is for a small business located in the United States. The business must adhere to the local and federal requirements of that jurisdiction. The owner will ensure that all mandatory legal obligations for disaster preparedness are met.

Adherence to the Legal Obligation

It will be ensured that employee safety and health Act are met. Such as Emergency action plan, and state occupational Safety and Health guidelines. Adherence to environmental laws such as hazardous materials management plan, spill prevention control, and US environmental protection agency. There will also be adherence to all safety and fire codes as per US guidelines. To guarantee Recovery, the company will subscribe to a disaster and risk insurance scheme. The owner will also ensure to follow guidelines authorized under FEMA by the Stafford Act to guarantee compensation in case of a disaster.

Preliminary Business Disaster Operation Plan

Communication Plan

The company will develop a communication plan that shall be adopted in case of an emergency. Employees should be made aware of what is happening within the company. For an effective communication plan, disaster recovery positions will be created to reduce stress and confusion during the mitigation process.  The team will ensure that everyone knows what to do and when. The business entity will assign a point of contact for each department and also backups who will provide effective communication with each other. Further, the company shall collect emergency contacts for all their employees in one place, including phone numbers and home addresses, to ensure their safety during the emergency period.

The employees shall be made aware of the disaster and recovery plans through the especially people assigned that role. In the event of a disaster that interrupts the normal flow of communication, employees will be notified through an emergency meeting that will be conducted by the assigned team. The assigned team in each department will provide information on what each employee is required to do. The point person in the business responsible for communicating with emergency responders in the event of a disaster will be a health and safety specialized assisted by the assigned departmental leaders. A decision to close the business shall be arrived after evaluating the balance between the risks and benefits of either action. The safety of the employees shall be prioritized over anything else. The employees shall be made aware of the final decision the firm management has agreed on.

Recovery Plan

The insurance company shall cover the risks that are under the insurance plan. The law of indemnity return shall apply to return the company to its financial position. However, some situations may not be outlined or covered in the insurance plan. Those plans call for the company to have self mechanisms that can help it regain its status.

In cases where the risk was not insured, the company will be required to take bold steps in solving the problem. The company will be required to first take stock of the damage to ascertain the level to determine the first way you attack first (Star, 2020). The step will provide the company with information on the equipment that is destroyed to take steps on acquiring others. According to Evans Bloom, small companies can recover by being lean and mean by avoiding unnecessary spending. The small businesses should further avoid be closed rather than get started as soon as possible in the recovery journey. Finally, plan even before another disaster occurs, which will give you leverage in mitigating the situation.

Federal, State, And Local Resources

The company can further benefit from the state, federal, or local government funding. The business may recover through Individual and Household programs (IHP) that are offered under FEMA. IHP is a federal grant that offers financial grants to individuals and businesses after loss from disasters. Additionally, the company can benefit under State Supplementary Grants Program (SSGP), which offers further aid to individuals who meet IHP. The small business also recovers from federal and secure loans that the government offers and charge small interests.Finally, the government may offer property and Income tax relief that the company saves on and use the funds for Recovery.

Reference

Department of Homeland Security. (2020). Laws & Authorities | Ready.gov. Ready.gov. Retrieved 20 March 2020, from https://www.ready.gov/laws-authorities.

Government Finance office Asssociation. (2020). Business Preparedness and Continuity Guidelines | Government Finance Officers Association. Gfoa.org. Retrieved 20 March 2020, from https://www.gfoa.org/business-preparedness-and-continuity-guidelines.

Smith, G. (2014). Disaster Recovery Funding: Achieving a Resilient Future. National Academy of Sciences, Institute of Medicine Committee on Post-Disaster Recovery of a Community’s Public Health, Medical, and Social Services.

Star, C. (2020). Disaster Recovery Tips for Small Businesses. Business News Daily. Retrieved 20 March 2020, from https://www.businessnewsdaily.com/3099-disaster-recovery-tips.html.