Business continuity plans critical in power crisis
Correspondent | Monday March 17, 2014 14:36
People are saying that this is the worst it has ever been in the last 6 years when power saving became a reality. Power saving however, is not new to Southern Africa and for obvious reasons one has to make planning vital in both their personal and professional lives.
The blackout of electricity has had a profound effect on businesses of all descriptions in all places. Large shopping centres are practically empty because the shops cannot trade without electricity.
It is not a case of the shoppers will be back when the power is restored. Yesterday’s hamburger sales cannot be made up today or tomorrow. Another factor is that at times card machines or ATM’s don’t work either, leaving customers in distress as many have been accustomed to conveniently ‘swiping’.
Even though this has become a harsh reality for Botswana, it shouldn’t be surprising that some business do not have back up facilities or a basic “Business Continuity Plan” (BCP).
No business is ever too small to have a contingency plan in place. After all, it’s often smaller businesses that are impacted more severely from disasters and unforeseen events.
The creation of a B.C.P. will assist in:
•Ensuring the protection and preservation of assets. This includes IT information, data protection etc
•Managing the disasters while minimising the impact to the business and maintaining continuity
•Maintaining your market share. Preventing your customer moving to the opposition
•Making certain that you are correctly insured to assist in carrying the financial burden
•Making certain that you comply with legal and other regulatory bodies
•Having a risk management plan in place
•Having a supply chain plan in place and being able to maintain confidence with your stakeholders
These plans must be simple and reviewed periodically. It must be a plan that can be invoked quickly and considering the above, it has to be agreed that generators are probably an absolute necessity in the future.
It’s also important that Tenants in shopping complexes meet with their landlord’s to plan how they are going to avoid a situation like this again.
Botswana Insurance Company encourages all businesses micro to large, to have a sound BCP which should also entail a detailed risk management plan and an insurance checklist.
Being underinsured is common, and with the recent unexpected circumstances which could lead to potential workplace misfortunes, preparation and adequate cover is key. Losses of this nature (load shedding) are generally not covered even where there is a Business Interruption policy in force, however this is dependent on the type of insurance coverage.
*Alan David-Andersen is a Risk Management Consultant with the BIC