Category: Emergency Action Plan

  • Emergency Action Plans Explained

    Emergency Action Plans Explained

    How would your employees escape from the workplace in an emergency?

    Do they know where all the exits are in case their first choice is too crowded?

    Are you sure the doors will be unlocked and the exit route, such as a hallway, will not be blocked during a fire, explosion, or other crisis?

    Knowing the answers to these questions could keep your employees safe during an emergency.

    An emergency action plan (EAP) is a written document required by OSHA standard 1910.38. The purpose of an EAP is to facilitate and organize employer and employee actions during workplace emergencies.

    Well-developed emergency plans and proper employee training (such that employees understand their roles and responsibilities within the plan) will result in fewer and less severe employee injuries and less structural damage to the facility during emergencies. A poorly prepared plan, likely will lead to a disorganized evacuation or emergency response, resulting in confusion, injury, and property damage.

    Check out the Safety Whitepaper, Developing an Emergency Action Program here

    Emergency action plans must be written. However, for smaller companies, the plan does not need to be written and may be communicated orally if there are 10 or fewer employees. It is recommended that all employers have a written emergency action plan for optimal safety.

    Check out the Post: Are Emergency Action Plans Really Necessary?

    OSHA Requirements for Emergency Action Plans

    At a minimum, the plan must include but is not limited to the following elements:

    • Means of reporting fires and other emergencies,
    • Evacuation procedures and emergency escape route assignments,
    • Procedures for employees who remain to operate critical plant operations before they evacuate,
    • Accounting for all employees after an emergency evacuation has been completed,
    • Rescue and medical duties for employees performing them, and
    • Names or job titles of persons who can be contacted.

    Although they are not specifically required by OSHA, employers may find it helpful to include the following in the EAP:

    • A description of the alarm system to be used to notify employees (including disabled employees) to evacuate and/or take other actions. The alarms used for different actions should be distinctive and might include horn blasts, sirens, or even public address systems.
    • The site of an alternative communications center to be used in the event of a fire or explosion.
    • A secure on- or offsite location to store originals or duplicate copies of accounting records, legal documents, your employees’ emergency contact lists, and other essential records.

    Evacuation policies, procedures, and escape route assignments are put into place so that employees understand who is authorized to order an evacuation, under what conditions an evacuation would be necessary, how to evacuate, and what routes to take. Exit diagrams are typically used to identify the escape routes to be followed by employees from each specific facility location.

    Evacuation procedures also often describe actions employees should take before and while evacuating such as shutting windows, turning off equipment, and closing doors behind them.

    Under the typical EAP, the employer will expect all employees to evacuate in an emergency. However, sometimes a critical decision may need to be made when planning – whether employees should be trained and responsible for extinguishing small (controllable) fires.

    A disorganized evacuation can result in confusion, injury, and property damage. When developing the emergency action plan, it is important to determine the following:

    • conditions under which an evacuation would be necessary.
    • conditions under which it may be better to shelter-in-place.
    • a clear chain of command and designation of the person in your business authorized to order an evacuation or shutdown.
    • specific evacuation procedures, including routes and exits.
    • specific evacuation procedures for high-rise buildings for employers and employees.
    • procedures for assisting visitors and employees to evacuate, particularly those with disabilities or who do not speak English.
    • designation of what, if any, employees will remain after the evacuation alarm to shut down critical operations or perform other duties before evacuating.
    • a means of accounting for employees after an evacuation.
    • special equipment for employees.
    • appropriate respirators.

    During development and implementation of a draft plan, think about all possible emergency situations and evaluate the workplace to see if it complies with OSHA’s emergency standards.

    Exit Routes

    Normally, a workplace must have at least two exit routes to permit prompt evacuation of employees and other building occupants during an emergency. More than two exits are required if the number of employees, size of the building, or arrangement of the workplace will not allow employees to evacuate safely. Exit routes must be located as far away from each other as practical in case one exit is blocked by fire or smoke.

    Exception: If the number of employees, the size of the building, its occupancy, or the arrangement of the workplace allows all employees to evacuate safely during an emergency, one exit route is permitted.

    Most employers create maps from floor diagrams with arrows that designate the exit route assignments. These maps should include locations of exits, assembly points, and equipment (such as fire extinguishers, first aid kits, spill kits) that may be needed in an emergency. Exit routes should be:

    • clearly marked and well lit,
    • wide enough to accommodate the number of evacuating personnel,
    • unobstructed and clear of debris at all times, and
    • unlikely to expose evacuating personnel to additional hazards.

    When preparing drawings that show evacuation routes and exits, post them prominently for all employees to see. See OSHA’s Interactive Floorplan Demonstration.

    Accounting for Employees

    Procedures to account for employees after the evacuation to ensure that everyone got out may include designating employees to sweep areas, checking offices and restrooms before being the last to leave a workplace or conducting a roll call in the assembly area. Evacuation wardens can be helpful in accounting for employees. To ensure the fastest, most accurate accounting of employees, consider including these steps in the EAP:

    • Designate assembly areas or areas Assembly areas, both inside and outside the workplace, are the locations where employees gather after evacuating.
      • Internal assembly areas within the building are often referred to as “areas of refuge.” Make sure the assembly area has sufficient space to accommodate all employees.
      • Exterior assembly areas, used when the building must be partially or completely evacuated, are typically located in parking lots or other open areas away from busy streets. Try and designate assembly areas so that employees will be up-wind of the building.
    • Take a head count after the evacuation. Accounting for all employees following an evacuation is critical. Identify the names and last known locations of anyone not accounted for and pass them to the official in charge.
    • Assembly area design. When designating an assembly area, consider (and try to minimize) the possibility of employees interfering with rescue operations.
    • Account for others. Establish a method for accounting for non-employees such as suppliers and customers.
    • Additional evacuation. Establish procedures for further evacuation in case the incident expands. This may consist of sending employees home by normal means or providing them with transportation to an offsite location.
  • Are Emergency Action Plans Really Necessary?

    Are Emergency Action Plans Really Necessary?

    You’ve probably heard the famous quote from General Eisenhower about plans being useless but planning essential. It’s as valid today as it was when IKE first used it but maybe we should ask, “If plans are so useless, why do we bother writing them?”

    Part of the problem is how we use plans. To many responders, a plan is like a cookbook – you follow the recipe to get the results you want. I have seen numerous plans heavy with detail, suggesting that planners have tried to foresee and plan for every possible contingency.

    If you stop and think for a moment, it’s obvious that this is impossible. The true risk in thinking this way is that you begin to expect the disaster to unfold in exactly the way the plan says it will. You begin to subtly make assumptions and ignore facts that don’t support your expectations. You see what you want to see and what you see may be wrong.

    The type of planning typical in emergency management is based on military war planning. This is not surprising, as the first planners were primarily retired military officers hired to help with nuclear war planning. They naturally used the type of planning with which they were most familiar. This consisted of a base document that laid out the assumptions and planning parameters and supporting documents that contained detailed planning data. Even with the adoption of all-hazards planning in the 70’s, the basic planning format remained unchanged and, indeed, is still the norm, even with the growing popularity of the emergency response function format.

    The problem with the traditional planning format is that we forgot one important fact: the military plan does not stand alone; it is part of a system.

    If interested in learning more about emergency action plans, check out these posts

    If you look closely at military plans, they do not dictate how a battle will be fought. Instead, they identify an overall intent, define initial relationships, and lay out control measures and logistics. But they also assume that the normal hierarchical structures of the military will be in place to support the plan. For example, military plans don’t spend time talking about command relationships – they specify specific task organizations for the operation with the assumption that they will operate under existing command structures.

    There is another well-known military maxim that no plan survives contact with the enemy. No military officer expects to follow a plan exactly. Instead, he or she is guided not by the strictures of the plan but by the commander’s intent articulated in the plan. The plan merely provides the resources to accomplish that intent. Flexibility is the key to winning battles.

    What’s this got to do with emergency management? For too many of us, we allow the plan to dictate our actions rather than allowing the circumstances of the disaster to do so.

    Let me give you an example of what I mean. Some of our plans set up triggers or indicators for activating the plan. I have seen cases where plans were not activated because the specific triggers were not met, even though there was clearly a need for the type of coordination available through the plan.

    One of the Principles of Emergency Management is flexibility and this should extend to how we use our plans. My team in San Francisco once supported planning for a garbage strike because we had the skills and contacts to help address a potential public health emergency. Clearly, this was not a disaster but the relationships and coordination mechanisms identified in our emergency operations plan worked just fine in a lesser event. We were able to practice our plan and we scored points with our boss.

    In Facing the Unexpected, researchers Tierney, Lindell and Perry suggest that emergency operations plans have two main functions. The first is to provide internal documentation of agreements among organizations as to the allocation of functions, activation of the response organization, and the direction and control of the response. The second purpose is to serve as a training document that forms the basis for drills and exercises.

    Note that the researchers did not suggest using the plan to manage the response. In Major Criteria for Judging Disaster Planning and Managing Their Applicability in Developing Societies, Dr. E.L. Quarantelli points out the distinction between disaster planning and disaster management and between response-generated needs and agent-generated needs. Response generated needs remain fairly constant across the disasters and can be captured fairly well in our plans. Agent-generated needs are created by the unique demands of a specific disaster.

    We need to recognize this distinction and change our attitude towards plans. We need to accept that while they establish a basis for our response, they are guides only and can be modified on the basis of actual need. Plans establish relationships and responsibilities but the decision as to how best to respond to a disaster should be based on operational need, not on planning assumptions.

    If your emergency action plan is going to be effective, you need to keep five points in mind:

    1. You can’t plan in a vacuum. Your emergency operations plan has to be part of an emergency management program, not an end in itself. It documents things that you have put in place through that program – it doesn’t actually put them in place.
    2. Your plan can make assumptions about existing systems or reference other documents. For example, many plans I read have extensive sections on basic Incident Command. Is this really necessary with all the existing state and federal guidance? Along the same lines, how much material is in your plan because you need it and how much is there just to meet an audit requirement?
    3. Your plan needs to be user-friendly. I recently spent a fruitless hour looking for some information I knew was in a plan because I helped develop the information. I never did find it. Could someone new to your organization find information under pressure?
    4. Just because something is in your plan doesn’t make it so. Your plan needs to capture agreements that have been made between organizations – it doesn’t establish those agreements. I’ve seen plans that were written without any consultation with the stakeholders. They never work.
    5. Remember that every time you use your plan for a smaller incident you’re testing that plan.
  • Basic Emergency Response Plan

    Basic Emergency Response Plan

    This Basic Emergency Response Plan template is useful for small businesses that want an emergency response plan, when it is only required to have a verbal plan. Having a written plan over a verbal plan provides additional safeguards, so all employees know the same responses to emergencies, and it can be referenced during an actual emergency.

    During an emergency in the workplace, it can seem chaotic. People forget what they have been taught, people forget numbers; which can potentially make the situation worse.

    If planning on using this form as an addition to your workplace’s verbal plan, ensure it is communicated to employee’s, ensure it is posted prominently in the workplace, ensure it is easily accessible in an emergency.

    Why have a workplace emergency response plan?

    Besides the major benefit of providing guidance during an emergency, developing the plan has other advantages. You may discover unrecognized hazardous conditions that would aggravate an emergency situation and you can work to eliminate them. The planning process may bring to light deficiencies, such as the lack of resources (equipment, trained personnel, supplies), or items that can be rectified before an emergency occurs. In addition an emergency plan promotes safety awareness and shows the organization’s commitment to the safety of workers.

    The lack of an emergency plan could lead to severe losses such as multiple casualties and possible financial collapse of the organization.

    An attitude of “it can’t happen here” may be present. People may not be willing to take the time and effort to examine the problem. However, emergency planning is an important part of company operation.

    Since emergencies will occur, preplanning is necessary. An urgent need for rapid decisions, shortage of time, and lack of resources and trained personnel can lead to chaos during an emergency. Time and circumstances in an emergency mean that normal channels of authority and communication cannot be relied upon to function routinely. The stress of the situation can lead to poor judgment resulting in severe losses.

    Related Post:  DHS Bomb Threat Checklist

    What is the objective of a quality emergency response plan?

    An emergency plan specifies procedures for handling sudden or unexpected situations. The objective is to be prepared to:

    • Prevent fatalities and injuries.
    • Reduce damage to buildings, stock, and equipment.
    • Protect the environment and the community.
    • Accelerate the resumption of normal operations.
    Check Out: Emergency Response Plan Best Practices

    View and Download the Basic Emergency Response Plan template below:

     

     

  • Emergency Evacuation Drill Guide

    Emergency Evacuation Drill Guide

     

    We have all been doing fire drills since we were in grammar school. But in a modern industrial environment there is a lot more to consider than just marching the students down the hall.

    In a manufacturing situation, there are specific actions that need to be taken by machine operators to shut down the machines safely and to minimize the restart expense. And if you are not actually shutting down your machines for a drill, then you don’t know if your procedures actually work.

    OSHA and other regulating bodies have various rules about how often evacuation drills are to be practiced. This article in no way supersedes those requirements.

    Develop Your Evacuation Plan While You Can

    To start or even update an emergency plan, start by addressing the following:

    How well prepared is your business now?

    What procedures do you already have in place for an emergency situation?

    What potential emergency situations could occur?

    Act Now!

    To help address the questions above, look at these basic guidelines to develop an effective emergency response plan for your workplace:

    For each potential emergency, determine if evacuation would be necessary.

    Designate first and secondary evacuation routes and emergency exits. Make sure they are clearly marked and well lit. Post signs and maps on routes.

    Check or install emergency lighting in case a power outage occurs during an evacuation.

    Check all evacuation routes and emergency exits are and make sure they are wide enough to accommodate the number of people evacuating and the routes are always clear.

    Designate a person to account for all employees, visitors, and customers.

    Establish specific evacuation procedures and meeting place once an evacuation has taken place.

    Hold emergency drills at least once a year to ensure that employees know what to do in an emergency and to test the effectiveness of emergency exit routes and procedures. Keep records of such drills.

    Consider the transportation needs of employees.

    Post evacuation procedures where employees can read them.

    Establish procedures for assisting people with disabilities and people who do not speak English.
    Consider how you would contact employees in an emergency. This contact sheet should include contact numbers, a family member’s contact numbers, and medical care information.

    By following these guidelines, an emergency response evacuation plan can be installed in your workplace. Once your plan has been written and posted, test it.

    Training will ensure all people will evacuate safely.

    Evac Drill Objectives

    The main objective of your drill should be to get everyone out efficiently and safely in the event of an emergency but, as a part of that, your objectives should include:
    – Giving employees an opportunity to practice emergency procedures in a simulated environment
    – Assessing whether employees can carry out assigned emergency duties
    – Understanding whether the evacuation procedures were effective
    – Considering any changes or adjustments to improve performance
    – Complying with any fire code or insurance requirements

    Need more emergency response plan training? Check out: Emergency Response Plan Explained – Training

    Frequency
    How often you hold evacuation drills should be determined by your local fire code, by your local weather hazards, and your workplace hazards. If your workplace presents serious fire hazards (eg. flammable materials) or complex exit procedures (eg. a high-rise building), fire drills should be conducted more frequently. For these types of workplaces, fire drills scheduled every three months may be appropriate, whereas other workplaces may only need drills every six months.

    Announced vs. Unannounced
    Employees prefer announced drills so that they can plan for the event and minimize disruption to their work, but unannounced drills provide a more accurate representation of evacuation readiness. The type of drill may also depend on your purpose for the event. For example, an announced drill may be preferred if you are introducing a new evacuation procedure. If employees are learning a new procedure, a scheduled drill will enable them to learn more effectively. However, since emergency situations are never planned, you also want to use unannounced drills to see how people will react and to make sure everyone can exit efficiently and safely.

    Evaluation
    Your safety team should debrief after each evacuation drill to assess how it went and whether any changes to procedures or roles are needed. They should consider things such as:

    – Did the fire alarm go off?
    – Did all employees hear the alarm?
    – Did all employees evacuate?
    – Did employees shut down equipment before they evacuated?
    – Did fire doors release?
    – Did the designated employees carry out their safety duties?
    – Did employees follow evacuation routes?
    – Were evacuation routes clear?
    – Did any employees need assistance?
    – Did employees go to assembly areas after they exited?
    – Was everyone accounted for?

    Check Out: Emergency Action Plan Special Considerations

    Using these questions, you can identify the strengths and weaknesses of your evacuation plan and make improvements. These are a critical part of workplace safety and can help protect employees from not only fire but also other situations that require a quick exit from the workplace such as power outages.

     

    Download & view the NFPA Evacuation Drill Guide

     

  • Emergency Response Plan Explained – Training

    Emergency Response Plan Explained – Training

    Knowing how to handle an emergency in the workplace is important for optimal employee safety, for many workplaces it is also an OSHA requirement under CFR 29.1910.38.

    As part of a quality emergency response plan, you need to train your employees on the basics of the plan and the basics of safe evacuation.

    This training Emergency Response Plan Explained is a template for your company to provide this training. This can be administered in a classroom training or as part of a self learning exercise.

     

     

    OSHA specifically spells out the training requirements for emergency action plans for all employees:

    1910.38(f)

    Review of emergency action plan. An employer must review the emergency action plan with each employee covered by the plan:

    1910.38(f)(1)

    When the plan is developed or the employee is assigned initially to a job;

    1910.38(f)(2)

    When the employee’s responsibilities under the plan change; and

    1910.38(f)(3)

    When the plan is changed.

    Source

    Be aware that this does not meet every training requirement under the plan, and no training will, as OSHA has one other training requirement:

    1910.38(e)

    Training. An employer must designate and train employees to assist in a safe and orderly evacuation of other employees.

    Source

    This is a simple training that you can do in-house, by explaining and practicing evacuations with anyone identified in your emergency action plan as assisting with evacuation.

    Check Out: How to Put Together a Workplace Safety Training Workshop
    Use this training in conjunction with an emergency action plan template from here.

    Why training is an important part of an emergency response program

    Training Improves Responder Knowledge and Confidence
    This emergency action plan training ppt teaches employees what is expected of them in an emergency. Conducting practice evacuation drills trains responders to be able to respond to workplace emergencies quickly and competently, training empowers emergency responders to meet dangerous challenges with greater confidence. When responders have received proper emergency response training, they feel more confident and assured of their capabilities and roles.

    Quality Training Helps Responders Follow Emergency Plans
    Emergency plans are designed to reduce workplace injuries and fatalities, reduce damage to buildings, property and the environment, and help to resume work activities as quickly as possible.

    Download & View the Emergency Action Plan training below

  • Is Your Company Prepared for an Emergency?

    Is Your Company Prepared for an Emergency?

    In case of a fire or other emergency situation, there ought to be an emergency action plan in place to kick in and help employees get to safety. A good emergency action plan which explains what the employees have to do in emergency situations will ensure their safety and well-being, resulting in fewer fatalities and less structural harm to the premises during emergencies. Establishing procedures is not a difficult task and only requires that employees react in a certain manner during emergencies, bearing in mind the type of worksite plan, structural features and emergency systems that the company has.

    Based on the company’s plans, a good plan should contain the following features:

    * Procedures that include dialing 911 to report emergencies, or dialing an internal number or pulling a fire alarm bell

    * Describe the alarm system that employees will need to use in order to evacuate or take other appropriate measures

    * Evacuation policies, procedures as well as escape routes

    * Shelter-in places and procedures to follow in case of emergency

    * Procedures governing employees who will remain on the site after the evacuation alarm has been sounded

    * Procedures that will enable accounting for all employees having been evacuated

    * Rescue and medical task – names of those who are responsible for giving medical relief as well as rescuing employees in case of emergencies

    * A safe on or off-site location for storing backup copies of vital documents such as accounting records, legal documents and other crucial records.

    In case of small shops, offices, small retailer shops and small manufacturing units that do not contain many dangerous resources or processes, there is no need to have any complex emergency action plans since employees can easily evacuate the premises on hearing the alarm bell sound or through other means such as public address systems. But, where there exist dangerous resources or processes, a more elaborate emergency action plan is needed. This involves detailed study of the site’s emergency conditions, evacuation policy and procedures, alarm systems and emergency reporting methods. It is of vital importance that employees are involved in planning the emergency action plan and that they are made aware of what to do in case of emergency situations. A well-organized emergency action plan will help eliminate unnecessary confusion, injuries and damage to properties.

    Does your company need more components of an Emergency Action Plan, I have them here

    When setting out an emergency action plan it is essential to keep in mind the following points:

    * What are the conditions under which evacuation will be required

    * What are the conditions when it may be better to have shelter-in places

    * What is the pecking order and designation of the person who will be in charge in case of an emergency or shutdown

    * There should be specific guidelines for employees and employers

    * What are the procedures during an emergency to help visitors or persons not speaking English or having a disability of some sort

    * What special equipment is needed in case of emergencies

    * Respirators for use in case of emergencies

    Some of the conditions which may necessitate emergencies are floods, fire, explosions, earthquakes, hurricanes, tornadoes or release into the air of toxic materials, radiological accidents, biological accidents, civil turmoil as well as workplace fighting.

     

    The North Carolina Department of Labor offers a model emergency response plan guide that will help your company develop a plan to keep your employee’s safe.

    Download the NC DOL Model Emergency Response Plan below:

    View the NC DOL Model Emergency Response Plan below:

  • Whitepaper: FEMA Business Continuity

    Whitepaper: FEMA Business Continuity

    It’s imperative for companies to have a backup plan for disaster, as no one can really predict when they will strike.

    Business disasters come in all forms, not always just a natural disaster. Business owners should take steps now to give themselves a better chance to react and reopen quickly.

    Without a business continuity plan, 25% of businesses forced to shut down because of a disaster never reopen.

    ABCs of Why Continuity Planning is important

    There are many good reasons for businesses to plan for the unexpected, most importantly protection and preserving the bottom line. To keep it simple, remember the ABCs:

    Avoid Market Share Loss

    With a business continuity plan, your business will have a better chance of remaining competitive and minimizing the loss of revenue and customers. A solid and tested plan boosts customer confidence. When your customers know you have plans in place to provide continued delivery of goods and services during a crisis, they are less likely to flee to competitors if a disaster threatens your area.

    Brand Protection

    Having a plan allows you to demonstrate that your business is committed and prepared to protect your employees, clients and their assets at all times. This demonstrates a proactive attitude and can enhance employee morale and public opinion about your business. With increased confidence in your business’ ability to operate during unexpected circumstances, your positive reputation grows with customers, staff, partners and investors.

    Check Out: Strategies Behind Crisis Management

    Communications

    Having a business continuity plan will improve communication within your organization and with customers, suppliers, vendors, and key stakeholders. This is a helpful way to improve daily operations, not only in the event of disaster.

    Source

    FEMA has released this business continuity plan whitepaper, it will explain the importance of implementing a plan, to make a case within your company.

    Does your business have a business continuity plan? If not, we have one for you here

     

    Download the FEMA Business Continuity Whitepaper below:

    View the FEMA Business Continuity Whitepaper below:

  • Business Continuity Forms

    Business Continuity Forms

    A quality business continuity plan has many aspects to it. The forms included in this post will help build your entire form.

    Does your company have a business continuity plan? Check here

    If not, read this whitepaper on the importance of a business continuity plan from FEMA.

    Forms for a quality business continuity plan

    • Business Program Committee Worksheet: This form identifies all members of the business continuity team, with their contact information, along with all relevant numbers for other outside organizations and agencies. Using these pages at the front of your business continuity book will assist you when the plan is needed.
    • Business Insurance Discussion Form: This form is used as part of the business continuity plan, to ensure your company has all the important insurance coverage, and all important aspects of your insurance.
    • Business Emergency Response Resources Form: This form is a full review of your entire business continuity plan, this form includes costs associated with each aspect. An important aspect of this form is the “response time” column, is for how long will it take this component to be enacted. This is important, because every event requires different response levels, and how quickly things need to be implemented.
    • Business Emergency Supplies List: This list are things you should have in a well stocked emergency response kit. These supplies are great for planning for natural disasters or other disasters that regularly hit an area.
    • Business Computer Inventory Form: This form is an asset list of all computer equipment owned by your company. This form is great for ensuring all equipment, across multiple job locations are accounted for, and any costs associated for insurance.
    • Business Cost Form: When reviewing your business, knowing how to account for all associated costs of a disaster plan, will help shape your plan, and all budgeting required to respond properly.

     

    These forms will build your quality plan, and will assist you in responding properly to every potential business disruption.

    Also, make sure to check out the Business Impact Analysis Worksheet, here, to ensure your plan is thorough for all needs.

     

    View and download the Business Continuity Forms below

    Business Program Committee Worksheet

     

     

    Business Insurance Discussion Form

     

    Business Emergency Response Resources Form

     

     

    Business Emergency Supplies List

     

     

    Business Computer Inventory Form

     

     

    Business Cost Form

     

  • Business Impact Analysis Worksheet

    Business Impact Analysis Worksheet

    As part of the business continuity planning session is to identify what items need to be a part of the plan, this is done through a risk assessment. Next step is to determine whether they will impact your business financially, operationally, or both. This worksheet will assist you in determining that, along with any interconnected elements.

     

    This Business Impact Analysis Worksheet is an integral part of a quality business continuity plan.

    How to conduct the Business Impact Analysis successfully

    • Gather senior leadership from all departments of the company to provide insight.
    • Review all potential scenarios seriously, no concept is ridiculous, as they can damage your business.
    • Don’t build an analysis that contains an overabundance of information, keep it lean and direct. What information is directly related to that section?
    • Review the results of the impact with all departments, and review the assessment on a minimum annually.

    Possible Loss Scenarios

    What are the possible loss scenarios that businesses are faced with, and have the potential of disrupting or interrupting operations? Performing risk assessment will help a company identify its possible loss scenarios. Some of the most common ones that are found across businesses and industries are listed below.

    • Accidents: All too often, businesses suffer from losses due to workplace accidents. For example, fire at the factory where the critical operations of the business are performed can cause closure. A burst pipe in the water supply may also incapacitate the work area for quite some time. The machines being used may malfunction and shut down, unable to work unless it undergoes major repair or is replaced with a new one.
    • Emergencies: These are unexpected situations that pose considerable danger, thereby calling for immediate action. The immediate action, in this case, is often the stoppage of business operations. Political and civil unrest, for example, may involve riots on the streets and other similar acts of violence. Usually, these will drive businesses to close their doors and stop operating until things have settled down. Although these are not strictly dangerous or perilous, they also count as emergencies that will result to interruption of operations. Examples are:
      • Failure of suppliers to deliver raw materials and other goods and services needed on time;
      • Failure of suppliers to deliver raw materials and other goods and services needed altogether;
      • Labor disputes within the company leading to workers refusing to continue working until their demands have been heard and met by management;
      • Utility failures, such as water shortage and shortage of power supply;
      • Cyber attacks, when the company’s information system is under threat by external forces; and
      • Absenteeism of key employees may also give rise to emergencies.
    • Disasters: These could be natural disasters (force majeure) or man-made disasters. Examples are earthquakes, strong typhoons/hurricanes, large-scale bush fires, massive power outages or shutdowns, and volcanic operations. These may result to physical damage to properties, specifically those that are used in the operations.

    Do not just assume these are the only incidents that can effect your organization, this is just the list of common incidents that can effect all industries, across all business divisions.

     

    View & Download the Business Impact Analysis Worksheet below

  • Business Continuity Plan

    Business Continuity Plan

    Is your business prepared to handle an emergency? More importantly if your business experiences an emergency, are you prepared to continue operating? Without a business continuity plan, a natural disaster or other catastrophic event could not only impact your business when it happens, but could continue to impact your business as you scramble to get back up and running.

    Don’t lose your business simply because you failed to plan, instead have a plan, and hope you never need it.

    Here are 4 Misconceptions about a business continuity plan from Traveler’s Insurance

    Misconception #1: “Our people will know what to do in an emergency.”

    Even the best employees cannot be expected to know what to do when disaster strikes. Leaving each to respond in his or her own way only adds to the confusion of an event. Having a well-documented business continuity plan in advance, and training your employees to follow it, gets everyone on the same page — helping to ensure an organized, safe and timely recovery.

    Misconception #2: “We have insurance to cover our losses.”

    Insurance alone is NOT a business continuity strategy. Proper coverage is a significant and important part of the plan. But it may not fully cover some of the peripheral damages from an event, like loss of customers, loss of market share, or setbacks in development or release of a new product. Consult with your insurance agent to understand what is and is not covered under your policy.

    Misconception #3: “We do not have the time to develop a business continuity plan.”

    Time spent developing and maintaining a business continuity plan is an investment in your company. Your fixed costs will continue after an event, whether or not you are open for business. The faster you can return your operations to normal, the more likely you will recover from the event successfully. With so much at stake, your company cannot afford to NOT have a plan.

    Misconception #4: “Business continuity and disaster recovery planning are the same.”

    Business continuity is a proactive plan to avoid and mitigate risks associated with a disruption of operations. It details steps to be taken before, during and after an event to maintain the financial viability of an organization.

    Disaster recovery is a reactive plan for responding after an event. It deals with the safety and restoration of critical personnel, locations, and operational procedures after a disaster, and is a part of business continuity planning.

    Still unsure if your business needs a business continuity plan? Check out this white paper from The Insurance Institute of Business and Home Safety.

    Check Out: Emergency Action Plans

    Download and view the Business Continuity Plan