For most accountants, planning their own and their clients’ business continuity after things go terribly wrong is simply not a priority.
But that’s a big mistake, warns seasoned expert Robert Lengyel, who maintains that more than 90 per cent of Australian businesses have not undertaken any disaster planning. And of the small minority that does, as many as one in three fail to update as their businesses grow or change.
“Procrastinating and not taking business continuity seriously are terrifyingly common,” says Lengyel, who runs Brains for Business, a company that conducts half-day workshops for organisations planning to conquer events they hope won’t happen.
He notes that in economically uncertain times, spending time and money on continuity planning is commonly regarded as non-essential.
But the top priority for all businesses during a period of adversity is to keep afloat, so investing in this area should be regarded as a ‘must’.
Accountants, Lengyel argues, should adopt two-pronged strategies: “Protect your own business and persuade clients to do the same,” he says, adding that plans should be tailored to suit the specific needs of a business after risks are assessed.
What could go wrong?
So, what are the risks that demand attention? People commonly think of earthquakes, volcanic eruptions and tsunamis – disasters associated more with places beyond Australian borders. But being an island continent doesn’t render us immune to unwelcome surprises, with fires, floods and storms regularly unleashing their destructive fury throughout our land.
As well as the human and environmental toll, the impact of these disasters on businesses can be devastating. Road works and construction activity hamper access to premises; electricity outages bring offices to a standstill; and telecommunications failures leave businesses isolated and impotent.
If an internet service provider is down – removing the ability to send and receive emails, as well as access the internet – we instantly realise how dependent on broadband we’ve become. An example is the chaos caused by computer failures at an airport or on our public transport systems.
“Computers are great when everything works perfectly,” says Lengyel, “but their doing so can’t be assumed. There must be a plan B – what to do when systems fail.”
