Natural disasters, supply chain disruptions, security breaches and even short power outages can paralyze a business. Almost 40 percent of small to mid-size businesses do not survive an initial catastrophic event. A business continuity plan can help a company ensure it will be in the 60 percent that survives. However, not all plans are created equal. Making one of the following five mistakes can be the difference between a company resuming profitable operations quickly or making headline news.

“My business continuity plan specifically targets my company’s primary natural disaster threats.”

Business disruptions have expanded. Companies that create plans targeting only natural disasters may be overlooking other harmful hazards to their day-to-day business operations, such as cyber-attacks or network outages. Business continuity plans that are simple yet holistic are most effective in addressing interruptions and maintaining business as usual.

“My CEO is prepared to lead our business if a disruption should occur.”

When disaster strikes, members of your senior management team may not be available or capable of making the critical decisions necessary to get your business back on track. Establishing a crisis management team comprised of individuals from departments such as information technology, finance, legal and human resources guarantees that there are multiple people prepared to respond and that core functional areas of your business are covered.

“I already have a business continuity plan. I am prepared for future disasters.”

Developing a business recovery strategy should be incorporated as an extension of your normal operations rather than a reactive project. Your organizational structure, vendors, clients and regulatory environments change over time. You don’t need to write a new plan every year, but you should factor in any of these changes that may occur and test your plan for viability and effectiveness.

“My employees are trained on our plan and capable of handling the process efficiently.”

Having a strong business continuity plan as the roadmap for working through an incident is not enough. Poor communication with staff, clients and the general public is typically the largest pitfall that makes it difficult for companies to recover. Using emergency communication technology can aid your crisis management team in responding to the situation at hand and keep your employees informed about what to do next. Additionally, maintaining open lines of communication with your clients allows them to feel secure that you are handling the situation without compromising their account information.

“My third-party vendors can pitch in during our recovery to help us service clients.”

If you rely on third-party vendors to deliver products or services to your clients, then your business continuity plan is only as strong as these vendors. Not only should they be prepared to support you when an incident occurs, but you should also be informed of their strategy in case disaster strikes on their end. Including a list of back-up vendors that can provide similar services in your plan greatly increases the likelihood that your customers will not experience a loss of service during an emergency.

Situations that compromise the security or longevity of your business are inevitable and failing to have an effective response strategy in place can lead to devastating financial, legal and reputational consequences. However, a holistic business continuity plan paired with a properly trained crisis management team empowers your company to react and recover from disruptions quickly in a way that protects your data, customers and revenues.

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