UK companies have woken up to the need to put measures in place to protect their core business processes but still have huge gaps in other areas of business continuity planning.
According to Grant Thornton’s International Business Report, 77% of companies in the UK now have documentation in place to deal with disaster recovery and a major IT failure, comparing favourably with an EU average of 57% and 63% respectively.
The vast majority of businesses (81%) have procedures in place to deal with a breach in the security of their electronic information, while 80% could cope with privacy of information issues and 73% with the loss or destruction of property.
“Risk management should be an integral part of every firm’s strategic management, so it is encouraging to see so many UK businesses appearing to take the issue seriously,” said Alysoun Stewart, head of Grant Thornton's Strategic Services Group.
“Identifying fundamental risks and taking steps to prepare for them is essential for minimising the impact of a disaster, which is key to the continuity of privately held businesses.”
Yet only 26% of businesses have formal procedures in place to deal with an event that threatens their reputation or portrayal in the media while just 32% and 34% respectively are equipped to deal with the loss of a key supplier and customer.
“It is worrying that UK businesses appear to be overlooking these fundamental business risk areas,” added Stewart. “While not as high profile or dramatic as some events, the sudden or unexpected loss of key personnel or a supplier can have a devastating impact on a business.”
The report also revealed that only just over half (53%) of companies have a formal succession planning mechanism in place. “Exiting from your company is one of the most important decision a business owner can make and should take years of careful planning,” claimed Stewart.
“Business owners who fail to recognise the importance of such preparation risk putting the successful continuation of their businesses in jeopardy,” she added.
