Planning for Business Continuity after a Disaster

To view this page ensure that Adobe Flash Player version 11.1.0 or greater is installed.

Hello, I'm Tim, and I work for the IRS.

Did you know that 40 to 60 percent of businesses disrupted by a disaster, without a continuity plan, never reopen?

That's why business continuity planning is essential to the survival of all businesses.

In this video, I'll share some tips on keeping your business in business after a disaster.

You should first determine which staff, materials, procedures, and equipment are absolutely necessary to keep the business operational.

Some other things to consider in your planning are: Identify operations critical to survival and recovery, and establish procedures for replacing management, and include at least one person who is not at the company headquarters.

Let's look at four business areas to consider in making your continuity plan.

After a disaster, your supply chains may be broken.

Plan for this by having a relationship with more than one supplier for your products, ensure that your supplier has good continuity plans, and keep a three-day supply of your products in inventory - if possible.

Payroll is another area that you need to include in your planning.

You should have a plan in place to meet your company's payroll, and you should have an idea of how long your business can make payroll without bringing in money.

Understanding your insurance coverage is extremely important.

You should know your exact coverage for damages that result from disasters and the required documentation you will need to present for a claim.

Keep all this information, along with a copy of your policy, at an offsite location.

Employee preparedness is one of the most important efforts that a business owner can undertake to ensure a business will survive a disaster and recover.

Consider alternative staffing plans to ensure your business is operational if 40 percent of your staff is unable to come to work.

While this information is not all inclusive, we hope you have found it helpful in assisting with preparing your business continuity plan.

For more disaster-related information, log on to the IRS Website at and enter "Disaster" in the search box.