Disruption planning is an ongoing effort. Does your organization maintain some sort of an emergency preparedness plan or have contingencies in place that you fall back on? We spoke with business leaders about this very topic to see how businesses manage risk and plan for disruption to business on many levels. Disruption that could come in the form of market collapse, loss of funding, supply chain issues, consumer confidence or an unexpected calamity.
Take lesson from disruptions of yesteryear.
The CEO/president of a prominent Midwestern bank shared insights on dealing with past disruptions and how these experiences prepared them for the latest challenges, as well as those in the future.
“In the early 2000s chaos, many banks faced trouble, but we remained unaffected. During the 2008 financial crisis, we realized our asset quality was better than others. We didn’t need major adjustments but aimed to safeguard ourselves. Recognizing the changing economy, we, as a relatively undercapitalized financial institution, knew it was time for change.”
Understanding Diverse Disruption Scenarios
Disruption planning encompasses various factors, not just natural disasters or pandemics, but also broader business concerns. The CEO of an insurance company emphasizes creative thinking and constant strategizing.
“We continuously challenge ourselves to think outside the box, considering all possible events that could impact our business. Our enterprise management plan involves a committee from different disciplines meeting quarterly to address organizational risks. We ask, ‘What if…'”
This approach to risk management and disruption planning proved invaluable during the recent pandemic.
“I was at our Maryland office when the East Coast saw the initial impact. After discussing our local branch’s plan, I returned to headquarters, called a meeting, and said, ‘We need to update our pandemic plan, just in case.’ We assessed staff, equipment, and internet capabilities for remote work, ordered additional resources, and ensured our VPN was ready. Each office had its continuity plan, and everyone executed it flawlessly. I take immense pride in our seamless adaptation.”
Comprehensive Planning from A to Z
For organizations with multiple locations, each office had a pre-existing plan tailored to its unique needs. While not all offices were affected simultaneously or in the same way, they followed a master plan. Being part of a larger system requires meticulous planning and established protocols, as highlighted by a university’s vice chancellor for academic and student affairs.
“Belonging to a university system offers advantages. We maintain an emergency response plan with annexes, each specific to various topics, denoted with alphabet letters. The pandemic plan is labeled with an ‘R.’ This illustrates our readiness to tackle different issues.”
Prioritizing Risk Management and Disruption Planning
These stories offer valuable insights into preparedness planning and underscore the significance of anticipating changes. The echoes of history and the expectation of recurring challenges emphasize the need for consistent risk management and disruption planning. These should be integral components of quarterly planning, alongside goal setting and budget reviews.
Prepare for the Unexpected
If you’re a business leader seeking to adapt, change, and thrive following disruptions, let’s discuss how PRIME46 research and strategic advice can guide your journey.
Let’s talk.