COVID-19 Crisis: How to Drive Effective ‘Business Continuity’?
The coronavirus pandemic has changed our lives dramatically in the last few months.
From the grave situation today, it seems that the ripple effect of this contagion on the socio-economic fronts will be long-term and take time to rebound.
It has wreaked havoc on both business supply chains and business demand, putting many companies in a financial predicament.
Survey says, 27% of businesses expect to experience average to unreasonable impact on their revenue, while 30% expect small to massive impact on their supply chain.
Though it is tough for businesses to survive during this time of unprecedented volatility, there are solutions to tackle most business challenges.
Here, we bring you five key steps to promote business continuity amid COVID-19.
A 5-step Plan for Business Continuity
In our earlier articles on “5 Steps to Preserve Business Continuity..”, we have escalated the need for reshaping BCPs.
Once you have a strategic BCP, following steps helps ensure its effectiveness:
1) Conduct Business Impact Analysis (BIA)
A BIA helps in determining and assessing coronavirus impact on your business operations. The process involves performing a gap analysis to assess your readiness for business continuity.
While conducting the BIA, consider the impact on the following-
- Employees – Your workforce plays a prominent role in business continuity. Identify the critical business processes of your organization and the concerned employees. Engage your workforce to work remotely to conduct these processes. If these processes must be performed on-premise, mobilize the team with adequate infection prevention measures.
- Customers – The way you respond to your customers in the present time of crisis is imperative to garner long-term loyalty. Closely monitor customer debt levels and regularly assess their credit risk and take initiatives accordingly. Determine potential customers and try to clasp them. Find alternative business models and new ways to serve your customers.
- Suppliers – In the present time of supply chain disruption, it is critical to determine the potential suppliers for business continuity. Review all your supplier contacts and look for alternative suppliers if necessary.
2) Build Business Models
Build business models for all the possible case scenarios to identify uncertainties that are the most likely to be detrimental to the business. This helps in identifying possible strategic, operational, and financial outcomes for the business to consider.
3) Do Risk Analysis
Consider the business models created in the 2nd step above to determine new risks and their probability of occurrence. Risk assessment involves evaluating the likelihood and potential impact of identified risks and helps in risk management.
4) Ensure Organizational Alignment
Ensure reliable communication with the workforce and other potential stakeholders to build organizational alignment around prime objectives. Make sure that business continuity operations are on par with government regulations and health guidelines.
Create a cross-functional pandemic response team to update the stakeholders about the latest business continuity strategies and initiatives.
5) Monitor Continuously
Continuous monitoring of Key Performance Indicators (KPIs) of prime business operations helps in responding quickly to the changing risks. Regularly measure and monitory liquidity, sales, stock, and other key variables to maintain production lines and supply chain.
The present COVID-19 uncertainty and crisis will eventually come to an end, and at that time, businesses that are taking practical actions now will stand firm.
Every company must prepare for future events as there will always be another crisis down the road. Preparedness eliminates panic. Indeed, there is and will be growth beyond every crisis.
Still, Have Questions? Consider teaming up with Veritis!
Veritis helps in business continuity through integrated, reliable, responsive, and cost-effective solutions.
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