Is Disaster Looming?

Are you ready for disaster? Not to be overly gloomy, but disaster planning should be high on your list of priorities followed closely by review and testing of the plan. Among the categories any disaster plan should address are personnel, records, and assets.

 

It comes as no surprise that one of the foremost concerns expressed by employers surveyed is for the individuals they employ. An organization should maintain a current employees list at all times and some manner by which to track attendance and location of employees. In an emergency situation, the first order of business is to account for all employees and ascertain their physical safety. Fire and emergency evacuation drills should be documented and practiced periodically. Some organizations deem it prudent to establish a safety room. Such space should be stocked with water and first-aid equipment.

 

Communication is critical in times of emergency, so employees should have a list of cell phone and home telephone numbers for all employees to access in the event of an emergency. Many organizations employ a communications tree.

 

In terms of safeguarding assets, it’s wise to maintain an up-to-date inventory of furniture, computers, and equipment including digital photos to facilitate and support updates to insurance policies. Business records carry their own set of challenges in terms of ensuring safety. While many organizations have moved to a paperless environment for archiving information, there is still a risk before data is converted to an electronic format.

 

By implementing procedures aimed at minimizing the length of time before information is electronically stored will greatly reduce exposure to loss. And who wants to call a client to explain how their original documents met their demise under your watch?

 

At the crux of any successful venture is an effective communications plan. Disaster recovery is no exception. Beyond the employee phone tree, a means of reaching out to clients as well as handling incoming calls is important. Rerouting calls to an individual’s phone or a call center are among the options available. Web communications can continue with limited interruption when adequate backup systems are employed. By having a communications plan in place an organization can greatly limit stress for employees and customers alike.

 

Business documents need to be accessible, which makes going paperless before disaster strikes a logical choice, and with the current cloud trend, numerous options are readily available. By electronically storing documents and information, your office can be up and running either virtually or in temporary quarters.

 

Employees will need to know they have access to compensation, and in the case of widespread disaster, there may be a need to provide emotional and physical support to affected families.

 

Once your most valued possessions and enterprise risks have been identified, it is time to turn to specific scenarios that might occur. Fire? Tornado? Flood? (Yes, even here in upstate New York — just ask our friends in the Mohawk Valley and Southern Tier.) Perhaps it is wise to consider what happens differently during work hours versus after-hours. In any event, it is important to have a documented plan that can be implemented quickly. The plan should prioritize what needs to be attended to and provide specific steps, activities, and desired outcomes.

 

A clearly defined checklist can help ensure that tasks are not overlooked. What should be considered? Contacting banks, courier services, insurance carriers, telephone-service providers all rank among the top priorities for recovery, but be sure that the most clearly communicated point to all employees is to call 911 and vacate premises immediately. For so many reasons, clear communication to all levels of employees and an expectation of compliance are key. Sounds simple, but this point is so important.

 

All of the logistics can seem overwhelming but, like so many things, provides its own reward for good planning. One of the most overlooked aspects of a disaster plan is proper insurance. Your CPA can provide assistance in determining values and guidance in maintaining inventories and operational documents. Don’t be content with the notion that trouble won’t bother your business. Be prepared.

 

 

 

Gail Kinsella is a partner in the accounting firm of Testone, Marshall & Discenza, LLP. Contact Kinsella at gkinsella@tmdcpas.com