Reduce the impact of business crises
How to reduce potential threats to your business by taking preventive measures and purchasing insurance.
Risks and uncertainty are part of everyday business, but not all crises lead to serious disruption. Taking simple steps can reduce risks, limit losses and help your business recover quickly.
Protect your business premises
Protect your premises from common risks:
- plan for flooding to reduce damage
- maintain electrical and gas safety to prevent fires
- install fire and security alarms
You should also have a contingency plan if you cannot use your premises. For example:
- agree to share space with another business if a crisis affects either of you
- use alternative premises offered by a business continuity supplier
- enable staff to work remotely if your premises close
Weigh up the costs and benefits of each option.
Secure your IT and communications
Protect your IT systems to avoid disruption with simple steps. At the very least:
- install anti-virus software
- back up data regularly (including offsite backups)
- maintain IT systems and support agreements
Keep copies of key data, such as customer contact details, offline so you can continue operating if systems fail. See best practices on IT risk management.
Plan for staff disruption
Avoid relying on a small number of employees for key skills. You can:
- train staff to cover different roles
- arrange temporary cover if needed
- follow good health and safety practices to safeguard your staff
Read about managing the welfare of people.
Manage transport risks
Consider how staff travel to work and plan alternatives, such as:
- car sharing schemes
- company transport
- public transport
- remote working options
This helps maintain operations during disruption. Read about workplace travel planning.
Protect equipment and supplies
If you use vital pieces of equipment, cover them with maintenance plans guaranteeing fast repair support. Keep essential stock where possible and identify alternative suppliers to avoid supply chain disruption.
Use insurance to manage risk
Insurance is a key part of business risk management. It helps protect your business, assets and people from financial loss during unexpected events. See more on business insurance.