There’s no single business that is impervious to risk scenarios. As much as data and trends are trustworthy, they can’t predict natural calamities and impassioned crimes against their entity.
Sure, executives and business leaders might have predicted and prepared for marginal loss, but how prepared are their companies for unforeseen collapse? They hardly are. That’s why the minute they gain access to consulting services for business continuity management, they grab the opportunity to shield themselves from possible threats.
The cyberscape continues to evolve, enabling malicious attacks to come from anywhere at any time. Even the largest businesses experience unforeseen data theft either, either in the form of a cyber-attack to their central server or a breach to one of their devices left unattended. Even cyber-security experts concur that you can’t encrypt data strong enough to prevent these attacks.
Avian flu, the Ebola outbreak, and now, the novel coronavirus that’s left the world panicked – all these pandemics can trigger economic crises across nations, and you can be sure that businesses aren’t exempt from the downward effect. These pandemics can disrupt markets enough to cause absenteeism, and they can very quickly throw supply chains into chaos.
Loss of key executive
Anyone who contributes to the success of the business, whether they be rank-and-file employees or the chief executives inside the boardroom, is a critical person in any company.
Thus, losing a vital employee not only sets you back financially but also causes complete disarray in your organizational hierarchy and pipeline. Unless you have a solid continuity plan, such a loss can bring your business to a halt.
Terrorism has both short and long-term effects on businesses of any scale. Right out the gate, terrorist attacks that devastate public property or take human lives are already a blow to any economy. In the long run, they can also destabilize an economy by disrupting a nation’s tourism, espousing xenophobia, and creating market anxiety among its population.
Natural catastrophic events can also damage your business’ facilities and equipment, paralyze your operations by disabling transportation and communication, as well as disrupt market demands. Depending on geography, these events can include hurricanes, prolonged flooding, snowstorms, volcanic eruptions, wildfires, tsunamis, or devastating earthquakes.
Aside from a business continuity plan, it bears noting that businesses should also observe compliance with safety and emergency protocols during such circumstances.
Stock market plunge
A stock market crash happens when any of the three major stock indexes drop drastically. This is usually caused by poor economic performance, a natural catastrophe, or a crisis in demand. As market share prices decrease, this causes an investor to lose confidence and spend less to protect their portfolios, negatively impacting publicly traded business and even small ventures.
In our rapidly changing society, trends in consumption can vary significantly in a short period, making it harder for businesses to predict these trends as time progresses. Lifestyle changes, sustainability efforts, shifting management tactics, and a mounting uproar for political correctness all influence consumer behavior, and thus, any business’ margin for risks as well.
This might be the last place you’d expect a threat to come from, but an employee who feels betrayed or dissatisfied with their profession and has an adequate amount of knowledge about a company is as big of a threat as any. They may be triggered by poor working conditions, management malpractice, or financial pressures within the company.
If all these seem alarming, then the need for a strong business continuity plan should resonate louder with you. Putting up the best protection possible, as well as upholding a wholesome company culture, is what will keep your business afloat.