Recent events highlight that business sustainability also entails being prepared for times of crisis and the ease of implementing a business continuity plan to continue operations.
The week of 9 to 17 July 2021 is being called South Africa’s darkest hour, even in the midst of the devastating effects of Covid-19. Looting and destruction of businesses, warehouses, and shopping malls were the order of the day. The burning of transport trucks in KwaZulu-Natal and the blocking of key routes between Durban and Gauteng, the economic heart of South Africa, ensured chaos in both these provinces.
Amidst the sounds of gunfire echoing all around, communities were protecting their families and properties as they came under terror attacks. A shortage of food supplies thereafter saw unending queues at supermarkets, with people scrambling for necessities.
Although many businesses did not experience these traumatic events, the crisis highlighted the importance of business continuity, not just as a regulatory requirement. Events like this come as a big surprise. So, the question is, are you ready for such an event?
The Oxford dictionary defines ‘business continuity’ as “the ability of a company to continue working after a fire, storm, computer failure, or other event that might interrupt business”.
The effect of the looting, damage and destruction has gravely impacted on business continuity. It emphasises the imperative to have measures in place to prevent losses that would impact you and your business in unprecedented situations.
Section 37 (Governance Requirements) of BN194 requires all FSPs to have a business continuity or business contingency plan. The governance framework must also be proportionate to the nature, scale, risks and complexity of your business. It must include effective and adequate systems of corporate governance, risk management and internal controls.
Section 37(2)(e) specifically states that FSPs must have a business continuity policy. The business continuity plan must be aimed at ensuring, in the case of interruptions to the FSP’s systems and procedures:
- that any losses are limited;
- the preservation of essential data and functions; and
- the maintenance of its regular activities.
Implementing business continuity is partly a corporate governance principle and partly a practical plan. A business continuity plan exists to prepare an FSP for an event beyond its control, whether it is a natural disaster or man-made event, so it can restore services within a minimum timeframe. From a regulatory perspective, all FSPs are expected to implement preventive measures to minimise the impact of disaster and recover as rapidly as possible.
The following procedures and resources can help you recover quickly:
- List your FSP’s emergency notification contacts.
- Identify vendors, contractors and clients who must be notified in the event of a disaster.
- Document, test and review recovery procedures periodically to avoid confusion that may arise during a crisis.
- Identify alternate sources for supplies and resources, as well as location(s) from which you can operate.
- Provide details of document storage, safeguarding and retrieval procedures for vital records.
- Keep close at hand the details of key people who can assist following a disaster.
- Make sure data backups are performed regularly and are stored securely in another geographical location. They should also be isolated from environmental hazards and regularly tested for accuracy. The backup and retrieval processes must be duly documented.
- Maintain an assets inventory and record information about each computer or notebook. This should enable an IT technician to set up new computers with the same functionality as those that were lost or destroyed.
- List all the resources and items you would need to continue as a business.
- Keep an up-to-date list of clients, so you can notify them if new offices or premises have been set up.
- Identify and establish a disaster recovery site in a geographically separate business location. This will enable you to recover critical systems and continue business operations if a disruption occurs at the primary FSP site.
Having a business plan should prepare you for any crisis that may occur. To be effective, your business continuity plan should be a living document. It should be reviewed regularly, communicated clearly and kept where staff can easily access it. A copy should also be stored off-site where it is readily available. By keeping it up to date, practical and accessible, implementing your business continuity plan will ensure a quick and easy recovery process and prevent post-traumatic stress on your FSP.
The recent events have also impacted the emotional and psychological well-being of thousands of people, who may experience panic, paranoia, anxiety, trauma or depression. It is important to express your feelings and ask for help or support, or offer solutions to take care of physical health and effectively manage stress. This applies to you, your staff and clients.
Most South Africans desire to live in peace and harmony and want to rebuild an amazing country. To do that, the country must equally have a business continuity plan.
Mahatma Gandhi said, “The future depends on what you do today.” As the leading compliance practice in South Africa, Masthead can assist you to implement a practical business continuity plan. Speak to your Masthead compliance officer today about assistance.