Small firms are being urged to put adequate business continuity plans in place in the wake of the recent bird flu outbreak in Suffolk.
The British Insurance Brokers Association (BIBA), has conducted research revealing that millions of small and medium-sized businesses are failing to protect themselves in the event of emergencies.
The research also highlighted that only half of small firms had a formal written business continuity plan in place. This is despite the fact that 50% of those questioned believed it would take only one day for a serious disruption to have a significant impact on the business.
Government figures also revealed that one in five businesses suffer a major disruption every year, and 80% of those firms affected by a major incident close down within 18 months.
With small and medium-sized firms employing an estimated 12m people in the UK, BIBA is advising companies that ‘effective planning to deal with unexpected events makes good business sense’.
“Our research reveals an incredibly worrying trend amongst the essential small business sector in the UK,” said Eric Galbraith, chief executive of BIBA.
“Too many businesses are putting themselves and their employees’ futures at risk by failing to put in place proper continuity plans should the unexpected happen.”
Mike Penning, MP for Hemel Hempstead who has been supporting constituents affected by the Buncefield oil depot fire, agreed:
“Buncefield was a prime example of something that no one expected causing heartache to thousands. I do not want to see anyone experience the lows that my constituents did in 2005 and urge all businesses to get serious about business continuity.”
© Crimson Business Ltd. 2007
