President Cyril Ramaphosa announced on 23 March 2020 a 21-day nationwide lockdown. While we all have been watching the developments of the novel coronavirus (COVID-19), the unfolding crisis will impact the broader economy and, more specifically, financial advisory and investment management businesses.
Times like this highlight the critical importance of planning for disaster and business continuity. Having a plan that is practical and efficient, and which goes beyond just ticking a regulatory box, is essential to an FSP’s survival.
All FSPs are required to implement and update their business continuity plan regularly to ensure they plan for unforeseeable future events like fire and floods. But does your business continuity plan include a process to follow in all possible scenarios, including a pandemic? If the COVID-19 virus, the subsequent declaration of a national (and global) disaster and the national lockdown caught you and your business off-guard, it is time to review your business continuity plan.
What is a business continuity plan?
A business continuity plan is a strategy that allows a business to plan for the interruption of its services due to, for instance, the death of a key person or disasters such as those mentioned above. The plan will assist the business to know exactly what to do when uncertain events occur and how to operate effectively and efficiently in that scenario.
A business continuity plan is specific to each business. You should therefore engage with the process and also consider which areas of your business will be impacted the most in an emergency or disaster. Elements to consider when drafting a business continuity plan include succession planning, disaster recovery, emergency management, business interruption insurance, planning, review and maintenance.
Your strategy
Your business should have a strategy in place to reduce the impact of the pandemic on your business, clients and employees. Consider what functions are critical for your business to continue. Do you have functionality to allow for remote work? Can you adjust your day-to-day activities to allow for reduced face-to-face contact but still get the work done? Do you need to update your cyber security rules and measures?
While the nation is in lock-down, it will be difficult to implement any changes to your continuity plan. However, you could use the opportunity to review your plan and think about how to do things differently, as the future will bring new opportunities and challenges.
Tips for businesses during a disaster
- Keep the lines of communication with clients and staff open. This will inform them of the measures your business is taking to remain operational and available to clients with as little disruption as possible. This can include providing updated contact details of key staff, so clients can contact your business if necessary.
- Provide alternative options for physical meetings. These may include skype, telephone, email or even whatsapp video calls.
- Don’t get caught in the hype. Remain calm and in control of your business.
- Ensure you have reliable and secure internet connectivity.
The impact of a disaster on cyber security
When updating your business continuity plan, consider that cybercriminals may capitalise on the crisis. Where employees need to work from home or an alternative site, cyber risks may increase if networks are not secure and IT support is reduced.
When updating your business continuity plan, consider creating awareness about cyber security. Remind your employees about general cyber security risks such as phishing e-mails. For example, there may be an uptick in phishing e-mails related to the coronavirus, which serve as bait for employees to click on.
Also make sure your Virtual Private Network (VPN) connection is strong and secure and that multi-factor authentication is used. Check that all devices are up to date with the latest virus protection and security patches, and do not allow employees to make use of public Wi-Fi connections. You may want to consult your IT service provider too, to ensure all risks have been considered and factored into your plan.
Have you completed the Masthead Cybersecurity Online Course? If not, click here to find out more about the course.
Consider all events
While the current focus is to deal with the disruption created by a pandemic and the challenges it brings to continued business operations, your business continuity plan should include the processes your business must follow if any other type of disruption to your business operation occurs. This may include strikes, the loss of a key business partner and, very importantly, a cyber-attack.
Be sure to consider all the events that may impact your business. It would have been difficult to imagine a total lock-down prior to December 2019, yet here we are. It’s important to learn from this situation and improve your plan, as anything is possible.
If you need guidance in updating your business continuity plan, please contact your nearest regional Masthead office or get in touch with us.