SMEs overlooking disaster preparation
UK firms are neglecting business continuity management (BCM) and failing to prepare for disruption, a report by the Chartered Management Institute says.Bosses admitted existing plans were insufficient to make their businesses more resilient in the face of increasing problems caused by bad weather and high levels of skills loss.
The report also suggested flu pandemics and acts of terrorism, such as the London bombings, were real problems in today's climate that are not being properly accounted for with business continuity plans (BCP).
John Sharp, policy and development director at the Continuity Forum, said: "Successful business continuity planning is a two-way process. Organisations need to demonstrate their commitment to BCM to key stakeholders internally and externally, but at the same time should encourage suppliers to do the same. Failure to do so will lead to major business disruption as inadequate plans are exposed at the time they are needed most."
Although 73 per cent of companies' senior management teams saw business continuity plans as important, under half had such plans in force.
Of the medium-sized firms surveyed, 42 per cent were prepared, while just 34 per cent of small businesses were covering critical areas with a BCP.
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