Long-term disaster recovery
Once you have prepared your recovery plan and reopened your business, it is time to reflect on lessons learnt from your recovery to ensure that your business is in the best possible trading position.
Following a disaster, there will be many lessons learnt from the event that can be used to ensure that your business is in a good position to prosper. Although recovery may be a drawn out process, it is recommended that you review how your business was run before the disaster to find areas to improve post-disaster, particularly while these lessons are still fresh in your mind.
Importantly, you may need to implement processes and practices that you may not have had pre-disaster.
Assessing potential business risks
Every business is subject to possible losses from unmanaged risks. Sound risk management should reduce the chance that a particular event will take place and, if it does take place, good risk management practices should reduce the impact. Risk management starts by identifying possible threats, considering the likelihood of those potential risks, considering your risk appetite and implementing processes to minimise or negate them.
Sound risk management can produce the following benefits:
- lower insurance premiums
- reduce the chance that the business may be the target of legal action
- reduce losses of cash or stock
- reduce business down time
Some businesses may respond to a disaster by over-managing risk. Being in business is a risk and not all risk can be managed away. The more you try to manage away risk, the less focus you have on your business, which will eventually negatively impact your business. In short, focusing too much on reducing risk is a risk itself.
Also refer to the Risk Management Guide for Small and Medium Size Business (PDF)
Improving business performance
As you take the path to recovery, you may make many observations on how your business was operating prior to the event. You will have hopefully noted how the market has changed, and you will most likely have identified a number of areas of your business that could be improved.
One of the most important things to do when your business is recovering from a disaster is to look for improvements and to build a continuous improvement process. Implementing a continual improvement program in your business will ensure that all key business resources are being utilised efficiently and effectively at all times. It will also help ensure that your business not only responds to changing business conditions, but prospers in such conditions.
There are many activities that can be reviewed and undertaken to improve the overall performance of your business.
Also refer to Improving business performance (PDF)