BC 020104 Equipment or System Failure

The BCP Project Team will need to examine each potential disaster or emergency situation. The focus should be on the level of business disruption potentially likely from each equipment or system failure. Potential emergencies include business disruption caused by one or more of the following equipment or system incidents:

An internal power failure is an interruption to the electrical power services caused through an internal equipment or cabling failure. This type of fault will need to be repaired by a qualified electrician and delays will inevitably impact on the business process. Where particularly serious faults have occurred, such as damage to main cables, the repairs could take some time and could have a severe effect on the business.

An air conditioning (AC) failure could have serious consequences where the AC unit is protecting particularly sensitive equipment such as a main computer processing unit, and the rise in temperature could cause the equipment to fail and be damaged. It can also affect the workforce as conditions in buildings can become extremely uncomfortable with a significant rise in temperatures and where the staff are adversely affected. Portable AC equipment may possibly be used as back up.

Mechanical or electronic failure on an organisation's production line can have serious financial consequences. This is a particularly critical problem where the equipment needs to be replaced and is not easily repairable. The workforce may need to be laid off until the problem is rectified and sales and customers lost. Particularly vulnerable are the fully automated processes being used with the automotive and other industries.

Businesses that rely on cooling equipment for their production processes are particularly severely affected when the cooling plant fails. Dairy product processing and ice cream manufacturing are just two examples of a huge frozen and refrigerated food industry which is fully dependent upon cooling plants. Good back up arrangements are normally essential to avoid serious loss or damage to foodstuffs and deliveries.

All businesses rely on a whole range of different types of equipment in order to run their business processes. In many cases, it is possible to move to alternative processes to enable the business processes to continue but this requires considerable planning and preparation. See BC 020105 below for computer systems failure.

Each of the above scenarios needs to be developed and examined in detail and an analysis prepared of the consequences of each potential scenario. Each scenario should also be assessed for possibility of occurrence (probability rating) and possible impact (impact rating).

 

PROBABILITY RATING

IMPACT RATING

SCORE

LEVEL

SCORE

LEVEL

1

VERY HIGH

1

TERMINAL

2

HIGH

2

DEVASTATING

3

MEDIUM

3

CRITICAL

4

LOW

4

CONTROLLABLE

5

VERY LOW

5

IRRITATING

 

(To complete the relevant section of the Business Continuity Plan, click here)

 

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This information is derived from the BCP Generator
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