FLOODING... fire... IT failure - could your business survive a major upheaval?

Too many in Dorset and Hampshire may be ill-prepared, warn advisers.

With natural disasters and arson increasingly hitting regional headlines, Business Link Wessex is urging bosses to guard against the impact.

More than 175,000 businesses in England and Wales are located within floodplains and at risk of flooding - 42 per cent of flooded firms incur costs in excess of £50,000.

Business Link Wessex is urging companies to invest in contingency plans.

"No business is immune," said spokesman Chas Morrison. "And it's not just water - fire, illness of key staff or IT failure can be equally catastrophic, destroying records and data, setting companies back years.

"At best, it'll disrupt day-to-day activities. At worst, it could mean loss of customers or even going out of business altogether."

Simple cost-effective planning is the key, says Mr Morrison:

identify key business functions;

determine the possible impact of worst-case scenarios;

grade the threatened impact on your operations;

consider the risks from your customers' perspectives - will they go elsewhere?

consider the impact on your service level agreements - could you maintain them?

set out how you will react in a business continuity plan.

Premises, IT and communications, equipment, people and insurance should all form part of an effective risk-management strategy.

Does it set out each employee's role in the event of an emergency? Does each employee understand his or her role? Are action priorities in order?

"Don't just leave your plan in the top drawer to gather dust," said Mr Morrison. "Test your plan regularly as expansion or new premises could have a significant impact.

"A well conceived plan will minimise disruption in such scenarios, while also demonstrating to customers, insurers and investors that your business is robust and reliable - giving you the edge over competitors."

First published: October 12