The article below was published in The National List of Attorneys
April 2009 Developing A Collection Practice booklet

Business Continuity Plan – The Latest Business Fad or a Necessary Tool for Survival?

By Christopher J. Couch, Managing Partner
Couch, Stillman, Blitt & Conville
 

How often have you heard or read about business continuity over the past 36 months?  Countless times, I am sure.  It almost seems that clients, peers, and industry leaders have uttered the words “disaster plan” or “continuity plan” more often than any other concept, including liquidation rates, market share, and profit margins.  But ask yourself, “Have I really taken business continuity seriously?”
 

• you arrive at the office to learn that it had burned to the ground,
• a fire is spreading in the wilderness area located near your office and is heading your way, or
• a large storm is headed toward your hometown. 

• Data Storage: Onsite/Offsite backup services are absolutely necessary.  Applications and software must be included.  It is vital that this piece is TESTED to assure you can retrieve and utilize the stored data.

• Documentation: Client information, bank information, insurance information, and key processes must be properly documented and maintained in separate and multiple locations.

• Business Interruption Insurance: Review your policy to assure coverage for content damage, building damage, mandatory evacuations (“civil authority”) and business interruptions.  Covered losses should include replacement costs for contents, costs to mitigate (i.e. setting up alternate locations), lost papers, lost account receivables, and lost income.  The time it takes to fully restore your business should also be covered for losses.

• Emergency Location: Regional offices may use one of their other offices.  Companies with one location should have alternate emergency space, inside and outside the region.  The alternate site must have appropriate internet access, phone lines, and space.

• Communication Tools: Assure communication with staff, clients, and debtors, via phone numbers outside of your region, email, website updates, a yahoo group, and text messaging.  Your ability to communicate is vital to surviving a major interruption.  Client and staff contact information must be documented so you can communicate.

• Third Party Business Interruption Support: Companies, such as Agility Recovery Services, provide short-term business interruption solutions for minimal and catastrophic interruptions.  In consideration of minimal fees, Agility members have access to mobile offices, computers, and all items necessary to restore your business within 72 hours of triggering the service.

• Tech-staff and Technology: Unless your hobbies include playing Bill Gates in your garage on the weekends, you need to make sure internal and external tech-staff are available and familiar with your plan.  Additionally, you need to make sure that your office has the technology to migrate core functions to alternate locations.  Answers to the following questions are vital:

• What hardware is necessary?
• How will we get the servers up?
• How do we import back-up data?
• Who will perform these functions before and during the crisis?

• Regional Disaster Plan: Alternate employee housing, voice-over-internet phones, migration of key staff to emergency office site, and relationships with banks outside of your region should be considered to assure some level of continuity in the event of a regional disaster.

• Multi-phase Plan: Short and long-term plans must be in place so you can react as the circumstances change during the interruption.  During our recent one-week Gustav evacuation, the threat of Hurricane Ike forced us to consider an extended evacuation.  Additionally, we almost experienced a “disaster within a disaster” when our temporary work site appeared to catch on fire.  Everything was okay in the end, but thankfully our plan included an extended displacement protocol, just in case.