BC 020106 Other Emergency Situations

The BCP Project Team will need to examine each potential disaster or emergency situation. The focus should be on the level of business disruption likely from other emergency situations not already covered above. Potential emergencies include business disruption caused by one or more of the following incidents:

Acts of violence in the workplace can affect morale, absenteeism, create fear and uncertainty and increase the rate of turnover of employees. This can have a significant affect on productivity and could also result in claims for workers compensation, harassment claims and a need for increased security measures. Statistically, this type of incident is especially prevalent at organisations which have recently merged or are being re-sized or restructured, where there are regular threats of industrial action, or where permanent employees have been replaced with temporary employees.

Disruption to public transport has a major effect on businesses through the inability of employees to get to their normal place of work. This disruption can be caused through major accidents, industrial action, equipment failure, bad weather conditions and major preventative repairs. Difficult travelling conditions increase absenteeism as well as lower morale and productivity.

A neighbourhood hazard is defined as a disruptive event in the close vicinity which directly or indirectly affects your own premises and employees. An example would be a seepage of hazardous waste from a neighbouring factory or the escape of toxic gases from a local chemical plant. Health and safety regulations require that the organisation take suitable action to protect its employees. This may have severe disruptive implications for the business particularly where it can take some time to clear the hazard.

For organisations that do not properly and fully observe all the necessary Health and Safety Regulations, a complaint or an inspection can result in the operation being completely closed down until the situation is corrected. This could result in substantial delays on major projects with significant financial implications. Organisations should ensure that they meet the necessary regulations and requirements at all times.

A large number of internal or external factors can have a direct impact on the level of employee morale. This can often arise where there is a combination of poor management, uncertainty and difficult working conditions. Productivity will be affected and employee turnover is likely to rise.

Mergers and acquisitions can be extremely de-stabilising on the employees of both businesses involved. Employees may be uncertain about how they will be affected or even whether they are about to lose their jobs. Unless well managed, the effect on the staff could be considerable with a dramatic lowering of morale and productivity.

Unfavourable press comments can result in a lowering of employee morale or a loss of customers. Any company can suffer from negative publicity and an internal crisis is best resolved from within, prior to the media feeding of the uncertainties and disputes. Reports may also be inaccurate, particularly where reliable information is not available, and therefore, well-worded press statements may be issued to quieten down adverse reports. Information can be leaked to the press from disgruntled employees and industry competitors.

Legal problems are both time consuming and expensive. Organisations can experience a wide range of legal issues including sexual harassment, contract disputes, copyright disputes, health and safety regulations and discrimination. It is important that organisations are fully aware of their legal duties and the rights of their employees.

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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