The New Zealand Government and Ministry of Business has listed a set of guidelines to assist businesses in the hospitality sector to manage unexpected disruptions.
Continuity and contingency planning is about being prepared for all types of disruptions, for example, an earthquake, broken equipment or losing a supplier, or how a business can quickly get back on its feet.
A business continuity plan (BCP) pinpoints the most important parts of a business and identifies potential risks to these critical pieces, preparing businesses to recover as quickly and easily as possible. Contingency planning is a crucial part of continuity planning — it means having a backup if the original plan no longer works. It’s essentially a plan B.
A BCP shouldn’t be limited to what to do after a natural disaster. It should cover any risks or threats that could disrupt your most important business activities. Emergency plans cover in-the-moment procedures in a crisis, for example, a natural disaster. BCP covers how you’ll get core parts of your business up and running again.
Business owners aren’t legally required to do business continuity planning (BCP), but there are many reasons to put time and energy into it. Many small businesses struggle to reopen after a disaster. Planning greatly improves the likelihood that a business will survive — so it should be on the must-do list.
Other reasons to do BCP:
- It’s a plus for potential buyers and investors — it shows the company has thought about other scenarios than simply business-as-usual. It gives staff confidence, especially if they are involved in planning.
- It helps to spot good opportunities for the business, for example, outsourcing payroll.
- It could help the business negotiate lower insurance premiums — the more resilient a company is, the more likely insurers will consider it a lower risk.
The government has urged businesses of all sizes to consider its ten-step planning guideline on the Ministry of Business website
