Business Continuity and Crisis Management
Managing Risks During Disruption
There are a broad range of risks that can disrupt business operations—natural disasters (bushfires, floods, cyclones), cyber-attacks, pandemics, supply chain interruptions, and geopolitical tensions. Effective business continuity and crisis management are crucial to mitigating the impacts of these risks.
Below is a comprehensive overview of how businesses can manage risks during disruption through business continuity and crisis management:
Understanding the Risk Landscape
Key Disruption Risks:
- Natural Disasters: Frequent bushfires (e.g. Black Summer 2019–20), floods (e.g. QLD and NSW), cyclones, and droughts.
- Cyber Threats: Rising cybercrime targeting businesses (e.g. Optus and Medibank data breaches).
- Supply Chain Risks: Global supply issues and vulnerabilities, particularly post-COVID.
- Pandemics and Health Crises: COVID-19 revealed major gaps in preparedness.
- Geopolitical and Trade Risks: e.g. tensions affecting export markets.
Business Continuity Planning
Business Continuity Planning is a proactive approach to ensure critical business functions can continue during and after a disruption.
Key Steps:
- Risk Assessment and Business Impact Analysis – Identify threats and analyse how disruptions affect operations, finances, compliance, and reputation.
- Business Continuity Plan Development – Create continuity strategies for essential services (e.g., remote work solutions, backup systems, alternate suppliers).
- Resource Allocation – Ensure key resources (staff, IT infrastructure, emergency funds) are available and accessible.
- Communication Plans – Develop internal and external communication strategies (media, customers, regulators, stakeholders).
- Training and Testing – Regularly test the plan through simulations and drills (e.g., fire drills, cyber incident tabletop exercises).
- Plan Maintenance – Business Continuity Plans should be reviewed and updated regularly or after significant changes (e.g., organisational restructuring).
Crisis Management
Crisis Management refers to the tactical response during a disruption or emergency event.
Crisis Management Team Structure:
- Crisis Leader (usually a senior executive or CEO)
- Operations Coordinator
- Communications Lead
- IT and Cybersecurity Advisor
- Legal and Compliance Officer
- HR and Employee Welfare Coordinator
Best Practices:
- Establish Clear Protocols: Define roles, responsibilities, and decision-making authority.
- Activate Crisis Management Plan: Swift mobilisation of resources, real-time communication, and issue containment.
- Transparent Communication: Keep staff, customers, and regulators informed with accurate, timely information.
- Liaise with Authorities: Work with emergency services, regulators, and government.
- After-Action Reviews: Conduct post-crisis reviews to identify lessons and improve plans.
Legal and Regulatory Framework
Businesses must comply with several regulatory requirements related to risk and continuity:
- Corporations Act 2001 (Cth) – Directors have a duty to act with due care and diligence.
- Privacy Act 1988 – Mandates response to data breaches.
- Work Health and Safety (WHS) Laws – Require businesses to protect staff during emergencies.
- Modern Slavery Act 2018 – Crisis (e.g., supply chain disruption) must still consider ethical sourcing obligations.
Technology and Tools for Continuity
Modern tech solutions help ensure rapid recovery and continuity:
- Cloud Services and Data Backups
- Incident Management Platforms
- Business Continuity Software
- Cybersecurity Solutions
Key Takeaways for Businesses
- Be Proactive, Not Reactive: Plan ahead for a range of plausible disruptions.
- Embed Resilience into Strategy: Not just compliance, but long-term value.
- Leverage Government Resources: Use guidance from Emergency Management Australia, CSIRO, and state disaster resilience agencies.
- Promote a Culture of Preparedness: Involve employees in drills, risk awareness, and communication.
Sherm Software is the resource your business needs to prepare for crisis management and business continuity planning. From communication and training throughout your entire organisation to incident management, Sherm has it all. Get in touch with us to find out more.
