Safeguarding your business: are you prepared for system disruptions?

In today’s digital age, small businesses increasingly rely on various systems to operate smoothly – from payments software and hardware, to internet connectivity and service providers. However, dependence on these systems can pose significant risks. Have you considered your backup plan if you suddenly lost access to these critical systems?

Start by making a list of essential tools and services your business relies on. This could include:

• Payment processing systems: What would happen if your payment processor went down? Consider having a backup method in place, such as a secondary processor or manual payment options.
• Internet services: Internet outages can halt operations. Consider what backup options are available should you experience a service outage, including mobile hotspots or a secondary internet service provider to ensure continuity.
• Critical suppliers and vendors Evaluate your reliance on specific vendors for services like shipping, customer support and inventory management. Diversifying your suppliers can mitigate disruptions. 
• Ecommerce platforms and websites: Outsourcing critical systems such as a website or payment gateway helps you focus on your business. However, it is worth understanding risks relating to service outages and having a plan to restore your online presence in case your current arrangements are disrupted. Consider your risk exposure to digital platforms and online marketplaces in the event your lose access to critical accounts.

It's important to remember that you are not always covered for consequential losses incurred as a result of your reliance on a critical system (such as lost income). 

By proactively assessing your dependencies and preparing for potential disruptions, you can safeguard your business against unforeseen challenges and maintain a resilient operation.

For more information on how to create a comprehensive business continuity plan and prepare for a variety of disruptions, check out our free guide. For tips on managing risks relating to digital platforms, see our free guide to help you mitigate common challenges.