Business continuity planning for an emergency

3 minute read  

According to the government of Canada, small businesses account for almost 97.8% of total businesses throughout the country. Imagine if 97.8% of Canada’s businesses were to shut down. That would be a scary situation, which is why risk management and business continuity planning is very important as a small business owner.

What is business continuity?

Business continuity planning is essentially preparing your business for the worst. This involves implementing a step-by-step plan for the future should an emergency situation occur, and it’s something that some small business owners overlook. What would you do if there was a power outage? How would you recover from a cyberattack? Are you properly prepared for natural disasters or a pandemic? These are just a few of the questions you need to begin asking yourself to develop a business continuity plan.

Top risks for small businesses

Emergencies and disasters can happen anywhere and without warning. Don’t let this coming year be the most expensive one yet for your small business—make sure you’re both aware of and prepared for the top risks you may face.

Fire

In 2023, Canada experienced its most destructive wildfire season on record, with over 6,000 fires burning more than 15 million hectares of land. This unprecedented event caused significant losses for individuals and business alike, emphasizing the importance of fire preparedness. Start by asking yourself:

Are your employees properly trained on handling and operating equipment and fuel that may cause fires, property damage and/or serious injury?
Do you have fire protection equipment, such as fire extinguishers and smoke alarms, installed on your property?

Natural disasters

Fire is not the only natural disaster that can cause significant damage to your business. Others include:

Flood
Wildfire
Earthquake
Tornado
Hurricane
Avalanche

Each of these possible disasters can have an impact depending on your location. Make sure you have a plan in place for the ones that could cause a loss to your business. If you do have insurance coverage for your small business, check if the items on this list are covered through your current policy. If not, it may be time to update your coverage. Some other key points to consider are:

If you can’t return to your business facility, where could you temporarily set up?
Is your staff trained on the proper protocol for a natural disaster?
Do you have a communications statement ready for your customers if you’re unable to fulfill commitments?

Electrical power outages

This is one of the more common risks that small businesses face. A severe storm could knock out the power for a few hours. In more extreme cases, you could be without electricity for a few days. One harsh windstorm can leave many homes and businesses without power for quite a while. This can cause a few problems including:

Loss of heating or central air conditioning
Issues with electrical panel or meter
Breakdown of all electronics including machinery, cash registers, elevators, diagnostic systems, boiler, compressor, freezers, ovens, and other important devices

If your business depends on electricity—as many do—investing in a back-up generator would be wise as part of your business continuity plan.

Cyberattacks

Cyberattacks on small businesses are continuing to rise as hackers get savvier than ever in their techniques. It’s becoming increasingly difficult to combat these attempts, so it’s even more important to make sure you’re prepared in case you’re the victim of a cyber breach. Cyber losses can be caused by:

Virus or malware attacks
Hardware theft
IT system or communication system failures
Server room issues
Unexpected patches and updates

Should you suffer a data breach or hack of any kind, there are steps you can take to recover. While developing your business continuity and disaster recovery plan, consider the following questions:

Do you know what your warranty or insurance covers regarding broken or stolen equipment?
Do you know what kind of cyber insurance coverage you have?
Do you have a list of specific models and brands of the equipment and technology your business needs?
Have you backed up all important information on a company server, share drive, cloud, or external hard drive?

Crime

This may seem like an obvious risk for business owners, but it is still very important to consider while planning for business continuity. Crime can take many forms and affect businesses in different ways. Theft is a major one. If the equipment you rely on is stolen, how would you continue operations? How quickly could it be replaced? Is the replacement cost covered in your insurance policy? Some other items to consider:

Is your staff trained on how to deal with and protect themselves from unauthorized personnel?
Do you have a security system in place, such as surveillance cameras, alarms, locked areas, and security guards?
If a computer is stolen, are you able to remotely shut down/erase sensitive information?

These are only a few of the risks that small business owners deal with on a daily basis.

Protect yourself and your business

Every small business is different and faces its own unique set of risks. Ensuring you’ve developed a detailed and comprehensive business continuity and disaster recovery plan will help you get back on your feet if you suffer a loss this year. Proper insurance coverage including business interruption insurance can also be an asset in the face of a loss.

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.