The Benefits of Practice

There has been a lot of coverage in the media regarding the H1N1 influenza and the possibility that it will soon be declared a pandemic. Some are questioning whether it is overdone.

From a medical prespective the new strain of flu seems relatively mild, from a business continuity perspective the world is having to mobilise its defences and watch the results of various initiatives, most notably what impact closing down Mexico for a week will have.

It is far too early to draw conclusions except to say that SARS helped to get people to take pandemics seriously and H1N1 will have the same effect, with the result that if it does mutate into something more lethal or when another strain comes along we will be better prepared to manage the situation so that it does not get out of control.

Do not underestimate the benefits of practice for emergencies.

Floods, supply chains and cash flow

Floods are a particular problem for supply chain management. When all roads out are rendered impassable there is little comfort in having your factory on the top of a hill; staff can't make it to work, supplies can't be delivered or products shipped.

The impact is on the cash flow of the business. With no shipments there are no invoices and, if customers are also affected by floods then there may well be cancellations or contracts voided because of force majeure.

Bob O'Connor of A.M.Best spotlights the issue in his interview at the AIRMIC Conference with Dan Trueman of Kiln who are working to create insurance products to cover the revenue that the supply chain generates and respond to non-damage business interruptions. This is relevant to small companies as well as large, the sort our Business Continuity Management Online Course is designed to help. For more on that see http://www.riskrisk.com/