September 2003
AXA launches free business continuity guide to help small and medium-sized businesses plan for the unexpected
Power cuts, industrial action and transport failures show fragility of UK businesses in face of unforeseen events
Recent power cuts and computer viruses have caused havoc for thousands of businesses across the UK. For some this might be a mere inconvenience but worryingly almost one in two companies (43 per cent) that experience a disaster never recover. Despite this, fewer than 50 per cent of organisations in the UK admit to having a back-up plan in place for when things go wrong, leaving them ill-equipped to survive the most common disasters. In response AXA has launched a free guide to help SMEs take control of their future by helping them to prepare for the worst.
A business continuity plan can help a small business overcome potential disasters by putting in place back-up systems and processes to keep the business viable during and after a calamity. Preparation is key to the success and longevity of any small business. The lack of a contingency plan can be devastating, in fact 1:
90% of businesses that lose data from a disaster are forced to shut within 2 years 80% of businesses without a well-structured recovery plan are forced to shut within 12 months of flood or fire 43% of companies that experience a disaster never recover Companies experiencing a computer outage lasting longer than 10 days will never recover their full financial capacity Less than 50% of all organisations in the UK have a business continuity plan
Entitled Business 4 Tomorrow, the AXA guide sets out a detailed business continuity planning process designed specifically for small businesses. The process, developed by AXA’s risk specialists, helps make business continuity planning more time and cost efficient by focusing on key risk areas one at a time. This ensures that high-risk areas of the business can be thoroughly assessed and secured. This makes it easier to pull together a comprehensive continuity plan based on a simple ‘crisis response template’.
London Chamber of Commerce and Industry, “Disaster Recovery: Business Tips for Survival. Information Centre Guide, May 2003”
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AXA’s Top Ten Tips for Business Continuity Planning:
1. When prioritising your plan, think about the cheque that you can’t afford to write 2. Run regular rehearsals 3. Create a “first hour” plan of action 4. Back up computer data regularly and off-site 5. Consider how will you contact your customers and suppliers 6. Identify the nearest person that can help you – how is your relationship with your neighbours? 7. Role-play your attacker – if you wanted to ruin your business, what would you do? 8. Share vital skills amongst your employees so that no-one can take them away with them 9. Ensure the safety of your people first with an appropriate evacuation plan 10. Manage your risk through appropriate insurance
Mike Butler, AXA’s risk control strategy manager, said: “With this guide we want to help business managers reduce the level of risk to which they are exposed. It’s staggering that fewer than 50 per cent of SMEs have not taken the simple, yet necessary, steps to protect the future of their business. In doing so, it will not only provide them with peace of mind, but will also help them manage their insurance premiums.”
Commenting on the guide, David Frost, Director General of the British Chambers of Commerce said, "We welcome this new initiative from AXA which we hope businesses of all sizes will pay attention to. Far too many companies overlook business continuity planning and as recent events have shown, businesses need to be as self-sufficient as possible. Any action that a company can take to safeguard its future on its own terms is welcomed by the British Chambers of Commerce."
The AXA Business 4 Tomorrow guide is available upon request on CD or by downloading from AXA’s small business website (www.axa4business.co.uk). Ends
For enquiries please contact: Rachel West, AXA Insurance, 0208 369 4293
For further comment from the British Chamber of Commerce: Olly Scott, 079 7190 1837, olly.scott@collegehill.com