Contingency Planning
INTRODUCTION
The normal workings of any Organisation can be dramatically affected by an unforeseen major incident which unless immediately and effectively handled may result in irreparable damage to the business of the Organisation.
The scale of terrorist bombings and other disasters such as Buncefield has highlighted the need for contingency planning to cover the loss of an entire building. The existence of such plans enable affected businesses to continue operations within a short period of time.
Contingency planning is the concept of identifying and analysing the potential threats which are faced by an organisation, investigation as to how these threats can be reduced or eliminated and what action should be taken in order to minimise the effect of the incident on the business.
Many industries in the financial and service sector as well as higher risk industries have recognised the need for contingency planning but the majority of organisations either have no such plan or their contingency arrangements are limited to part of their activities such as the computers.
Whilst the need for contingency planning is now widely accepted, many organisations have difficulties in actually starting. This brief guide is intended to assist in initiating and developing a proper plan.
WHERE TO START
The plan will have to be capable of responding to current exposures and also be adaptable to change in circumstances within the Organisation. It is therefore vital that the final Plan emanates from within the Organisation with assistance being provided by external specialists if necessary.
To ensure that the project is undertaken properly and progressed to a satisfactory conclusion the following basic considerations are essential:-
- Top Level Commitment:
Success depends on a clear commitment from top management to ensure adequate support and resources are available.
- Setting of Objectives:
It is prudent to break down the plan into several stages, assess the situation and then define the next stages objectives.
- Formation of Planning Team:
A Planning Team under an appointed Manager should be appointed whose first task should be:
• Indication of the main areas of vulnerability of the operations and the potential threats posed whether through man-made or natural causes.
• Prioritising of these threats according to probability of occurrence, consequences of occurrence, possibility of risk, elimination or control, or any other selected criteria.
• Preparation of an initial plan suggesting further detailed study areas.
• Presentation of initial findings, making recommendations on further progress and indicating funding requirements.
DEVELOPING THE PLAN
At this stage the Project will be well under way and terms of reference and individual responsibilities will have been assigned.
Areas of activity will include analysis of:-
* Critical operations
* Possible loss situations
* Loss prevention measures
* Recovery options
* Cost implications
Reports will be prepared and presentations made to the Management.
Direction will be sought for further study and implementation of any particular action required.
These development stages will culminate in the preparation of the final Plan.
THE FINAL PLAN
The completed Plan should identify all the phases and appropriate functions which need to be carried out from the time of the incident and will typically include:-
* A list of key personnel and appointed deputies, with telephone numbers and specific responsibilities.
* A directory of contacts such as builders, tradesmen, architects, surveyors, salvage experts, emergency services, public service undertakings, insurers, etc.
* A list of customers, suppliers of raw materials, etc.
* Site services drawings.
* Sources of assistance from within and outside the organisation.
* Media contacts.
The Plan should also include provision of an emergency control centre which can be used as a base for the recovery operation.
The centre should be kept equipped at all times with adequate telephone and telecommunications links capable of being operated independently, plus copies of all essential information including the Contingency Plan.
ADOPTING/TESTING THE PLAN
The Plan will only be of use if it has been and continues to be developed through teamwork and being in a format which facilitates modification and updates as circumstances change.
Ideally the Plan should be tested at a level which provides a realistic test without actually causing a loss and we recommend that various degrees and types of test be conducted at least twice per annum.
THE BENEFITS
* Reduced risk to life and property.
* Prevention of avoidable incidents.
* Minimising of disruption.
* Improved staff co-ordination in an emergency.
* Increased staff awareness of risk and means of risk reduction.
* Protection of corporate image.
For further assistance on this or any other loss prevention topic please contact your Account Executive.
how to contact us
Darwin Clayton (UK) Ltd
Darwin House
20 Mount Ephraim Road
Tunbridge Wells
Kent TN1 1ED
Tel: 01892 511144
Fax: 01892 511455
Email: info@dcuk.co.uk
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