Five Keys to Successful Business Continuity Management

One thing we’ve learned during recent years is to expect the unexpected. That advice is even stronger with an additional clause – “expect and prepare for the unexpected.” No company expects a cyberattack or a natural disaster. But both are increasing and becoming more costly. Don’t ignore the risks.

Prevention is key. However, to be prepared is to also have a business continuity plan that mitigates the impacts of an emergency, including details on how to respond, what to communicate to customers and employees, and the steps to recover.

Five key actions will aid in drafting a plan for recovery from disruptions of any kind.

EVALUATE.

Business continuity planning is crucial to surviving interruptions.

Even if you have an existing plan, you should periodically reassess where your organization, employees, customers and partners stand so you’re always prepared to move forward with precision. Start with basic, but relevant questions.

• Are our current employees emotionally prepared to resume work at pre-disruption levels or higher?
• Do we have enough staff to support company needs now and near-term?
• Is there now or will there be pent-up demand for our products and services?
• Can partners provide the support needed to swiftly ramp up operations? If we don’t have partners, will we need them for the next leg of the journey?
• How will we adapt to the lingering effects of this or subsequent crises?
• What types of business disruptions does our insurance cover?

If you don’t have the resources or inventories to manage market fluctuations and employee needs and customer demands during a crisis, you’ll want to develop an effective business continuity plan to address these gaps. Periodically test your plan so that it still meets expectations.

DIGITALIZE. Downtime is expensive for any corporation.

Digital technology and automation helps companies promptly react to disruptions and recover.

For example, consistent systems and data backups to a cloud-based solution ensure clean data is available for quick restoration. Automation reduces the chance of human error. Remote access enables employees to work offsite as needed.

INNOVATE. We’ve seen companies completely transform in response to challenging times. Is there something you did differently during a previous emergency? Would that work again or spur innovation? Continue to explore by asking:

• How has our customer base changed?
• What interim products or services can we offer?
• Are there optional delivery methods we can use?
• Would partnerships with other companies or suppliers help to expand our distribution network when needed?

Most often, challenges present opportunities. Scenario planning that examines multiple factors, including novel approaches, can enhance business continuity management. It will not only help companies bounce back faster, but also better prepare for the long term.

It will not only help companies bounce back faster, but also better prepare for the long term.

OPTIMIZE. During times of upheaval, it’s important to carefully manage cash flow so you have the funds you need to restore and continue operations.

• Cut costs and expenses.
  When revenue is down, cutting expenses can help to preserve capital. From operating overhead to shipping, take a good hard look at fixed vs. variable costs to determine where you can make cuts. Identify line items that will make a significant impact, as well as low-hanging fruit.


• Prioritize and negotiate payables as needed.
  Depending on cash reserves, it might be necessary to reprioritize invoice payments. Call vendors to discuss interim payment arrangements.


• Step up receivables.
  Accelerating payments brings in much-needed cash faster. Calculate and promptly collect receivables. Can you shorten terms or offer discounts for early payment? Bear in mind, you may be asked to extend the same considerations to your customers as you’re asking vendors to extend to you. For business continuity management, it’s important to know how much and when you’ll be paid. Contact customers to ask about their ability to pay. You should also ask your financial institution about tools that can help securely expedite receivables and manage payables.


• Identify viable funding options.
  Understand your liquidity and how much you’ll require to move forward, both short- and long-term. Call your lenders to reevaluate your credit risk and understand the financing options — lines of credit, loans, etc. — available to you. If taking a loan isn’t possible, consider investors or selling shares.

Timely access to capital is essential when managing through a crisis.

PROTECT. Fraud prevention is a critical element of business continuity planning. Cyberattacks, particularly those involving ransomware, can completely shut down operations and leave companies without access to systems and data.

Build a strong security posture

, applying the tools necessary to protect your networks, communications, e-commerce, banking and other systems.

Effective business continuity management helps quickly return to normal operations.

Mitigating further risk, while efficiently managing goods, services and capital will help businesses rebound following emergencies. If you’d like to learn how, complete a short form and a Synovus Treasury & Payment Solutions Consultant will contact you with more details. You can also stop by one of our local branches.