| Part 1 | | | | Appropriate contingency planning strategies |
| A few weeks ago I attended a seminar | | | | protect against catastrophic losses, regardless of |
| sponsored by Independent Solutions Insurance Inc | | | | the cause. A company needs to adopt a risk |
| (Edmonton) entitled "Seminar On Disaster | | | | aware culture, identify their risks and put in place |
| Preparedness", during this seminar I heard stories | | | | a plan which will mitigate their losses. This plan |
| from individual company owners who told us of | | | | needs to incorporate the entire risks of the |
| their misfortunes and how they coped with their | | | | organization, separating your external risks from |
| crisis. In both cases these crisis were caused by | | | | your internal exposures. This process can be |
| accident, however, a potential catastrophe | | | | achieved by completing a risk threat analysis |
| nonetheless. These individuals told their stories | | | | which basically outlines your assets and the |
| about how they had to deal with their traumas | | | | threats posed against these assets. A more |
| from onset through to completion. From listening | | | | comprehensive analysis can be obtained by hiring |
| to these stories, it quickly became clear to me | | | | a professional consultant who can guide your |
| that there were similarities; was their insurance | | | | through the process and assist in the education of |
| coverage adequate, how long could their | | | | staff and preparedness of your organization. A |
| companies survive, without being operational, do | | | | basic analysis will break down your company into |
| they have adequate funding to start operations | | | | four parts; people assets, property assets, |
| again, could they find suitable temporary business | | | | income assets and goodwill. Once we have |
| accommodations, employee morale and retention | | | | identified the risks posed against these assets, we |
| to name but a few. | | | | can then begin to formulate a plan of action which |
| It is clear to most entrepreneurs that starting any | | | | will deal with the risks identified and have that plan |
| new business involves risk and risk is one of the | | | | written into the companies policies and procedures |
| reasons, many of us are entrepreneurs. There is | | | | in order that all members of the company can |
| a certain thrill in taking the gamble and making a | | | | familiarize themselves with their individual |
| business work. Many entrepreneurs however, do | | | | responsibilities. |
| not consider instituting measures to manage the | | | | In the event a disaster takes place and you have |
| inherent risk of doing business. While taking a risk | | | | failed to plan, you are planning to fail in the |
| and winning is fun, prudent business owners take | | | | management of a disaster, the consequence of |
| care to minimize their risk, just as you would in | | | | your actions could be catastrophic to your |
| any other type of business venture in which you | | | | organization. Ottawa's commitment to fighting |
| are involved. We call this being "risk intelligent"; one | | | | white collar criminals and unnecessary corporate |
| needs to have a continuous process of analysis | | | | failures, introduced the Westray Bill. This bill is |
| and communication as an integral part of any | | | | designed to protect organizations from fraud and |
| business. | | | | the negligent acts of owners, directors and |
| So, What Are The Risks | | | | managers. Watch out for part 2 of this series of |
| Every day we are exposed to many risks which | | | | articles when we look at a risk analysis in greater |
| can cause a financial loss. Fraud, Accidents, | | | | detail and discuss some basic internal controls. |
| property damage, illness and death are all risks we | | | | Future articles will include topics relating to |
| have to consider. However, other risks, such as | | | | corporate occupational fraud, preventing industrial |
| the possibility of being sued or becoming disabled | | | | espionage, money laundering, corporate security in |
| and unable to work, are also important. We each | | | | the millennium and investigating corporate thefts. |
| have to decide how we will protect our vital | | | | Marwen's Contingency Planning; is a discipline that |
| assets should a risk become a reality. | | | | enables people and organizations to cope with |
| RISK; is anything that threatens the ability of a | | | | uncertainty by taking steps to protect it's vital |
| corporation to accomplish it's mission. A | | | | assets and resources. We recommend, just as |
| corporations mission is to earn profits by selling it's | | | | you would walk around your car checking for |
| products and services. | | | | defects, occasionally you should do the same with |
| What Can Be Done | | | | your business. |