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What is your Disaster Contingency Plan?

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Cara Pahoyo | September 14, 2017 | 0

Hazard Analysis and Critical Control Point is a common international system aimed at decreasing the risk of safety hazards in food. HACCP and natural disasters management plan is a critical aspect of any company. It requires that any risks are isolated and regulated at particular points in the process. The three common hazards that a business may face are chemical, physical and biological hazards. HACCP is especially relevant for companies involved in manufacturing, processing or handling food products, to reduce or eliminate food safety hazards in their products.

Reasons For a Contingency Plan. Many companies operate fairly well for a very long time without facing any disastrous issues. The smooth operation, however, does not mean little or no arrangements for the unlikely event. A company without a plan of how to manage possible risks stands to lose so much in the face of a disaster compared to one that has prior arrangements. A contingency plan is therefore essential in ensuring the safety of employees and data as well as making sure the company swiftly normalizes. Every company needs a comprehensive contingency plan. The employees should also be given a proper training time after time so that they don’t forget. Below are some of the reasons why you need a contingency plan in your business.

Instills Confidence. Every successful company needs a clear plan in case of a disaster. A definite contingency plan helps employees to regain quickly without panicking or having to wait for assistance. When the employees know what to do, managers have more time to focus on recovery operations and minimizing loses.

Minimizes Loss. A quick and well-calculated response during a disaster is what distinguishes a surviving company from a failing one. A contingency plan provides roles of its members, escape routes, survival tactics and any other necessary and safe practices that may reduce damages. A properly constituted plan also helps in quickly bringing all the operations back to normalcy. Devising and maintaining a contingency plan is costly but worth the struggle.

Promotes Comprehensive Management. Most business owners or managers are aware that everything might not run as anticipated. Therefore, they usually come up with a few strategies in case of a crisis. These emergency management plans are sometimes not comprehensive. Devising a contingency plan is methodological. The contingency team members can exploit all the possible sources of disaster while designing it. Assessing the effects of one step also leads to a discovery of the consequences of another step hence the comprehensive nature of a contingency plan.

Importance of a Contingency Plan

Seizing Business Opportunities. Planning for a business opportunity is as important as developing a risk management plan for your company. Grabbing an opportunity in time will position your business ahead of the competitors in many ways. These opportunities involve improving your products, developing new ones or even increasing promotional advertisements ahead of an event. A good contingency plan can help improve the profits as well as acquire new customers.

Anticipating Business Risks. A good business plan should have a broad business vision. It should be prepared to face both the best and the worst moments during the operation. It should anticipate the risks that the company may face like emerging competitors and fluctuations in business revenue. The business should not be caught unaware by predictable events.

Mobility of Business Strategies. Mobility allows your company to switch from a money-draining strategy in time. You should be able to quickly adopt practical solutions once you realize your business plan is not working as anticipated. In evaluating your strategy, a contingency plan should give your company the mobility necessary to shift focus to different aspects of your business in relation the market demands.

Developing Mitigation Strategies. Great mitigation strategies are a reflection of good contingency planning and risk management. These mitigation strategies help reduce the financial implications of a risk to your company as well as provide your business an action plan if a disaster strikes. A functional program saves time and helps to focus on solving the problem on the moment quickly. Mitigation strategies may include ways of limiting the effects of any future problems to the business like storing capital for the low revenue seasons and improving facilities to minimize employee injury and a comprehensive HACCP training will surely help.

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