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Today, companies don’t operate in isolation. Working in a volatile global business environment, they are part of a complex network with multiple stakeholders. Success requires a comprehensive and deep understanding of supply network ecosystems and the organisational resilience to respond quickly to threats and their impacts.
What is often overlooked in the continued refinement of processes and supply chains is the increased dependency risk from a business continuity perspective. Short-term interruptions of “just-in-time” delivery systems, single or sole supplier arrangements and/or consolidated IT systems can result in production shutdowns and extended service downtime within hours. Loss of critical functions such as custom manufacturing equipment, management information systems, e-commerce or telecommunication links can cripple many firms.
Companies that have not put in place effective business continuity management plans unnecessarily risk the loss of significant market share and reputational damage.
We take a phased approach and work with clients to develop and implement an appropriate continuity strategy that can help them maintain or rapidly restore business activities in the event of a disruption, minimising the impact to the organisation.
The result? A business continuity plan, created with your priorities and strategies in mind, that helps enable you to operate when competitors could be at a standstill.
Impact on Revenue Streams
A major concern of organisations facing crises is how to protect their revenue streams immediately following such events as well as into the future. Experience has shown that post-crisis financial consequences can have a tremendous impact on enterprise value, during and after a major incident.
Although the cash flow impact is not known with certainty at the time of the incident, stakeholders will form a collective opinion and adjust value accordingly.
Our experience has proven that management skills and how a crisis is handled are of utmost importance. They have a direct impact on corporate image and stakeholder perception, all of which can result in the re-evaluation and reassessment of a company’s future cash flow in terms of magnitude and confidence.
Marsh takes a consultative approach to assist your organisation with the development of a business continuity roadmap. Our approach can assist you to identify the systems, processes, and activities that can be impacted and provides a basis for implementing plans to mitigate the effects of a major incident.
Business Continuity Management
Business continuity management should focus on the protection of enterprise value by:
- Safeguarding employees / visitors and neighbours.
- Implementing a crisis management and communication plan.
- Implementing recovery strategies.
- Maintaining revenue streams.
- Maintaining a positive image.
- Avoiding loss of market share.
- Avoiding professional liability claims.
- Maintaining shareholder value.
- Reinforcing issues of corporate governance.
To develop a business continuity management (BCM) plan that will fit your organisation, we use the Marsh BCM approach, a unique and better-practice technique that replaces traditional, prescriptive text-based documents, yet is aligned with international standards and the requirements of the Australian Prudential Regulation Authority and other Australian regulators.
Our method aims to produce plans that are concise, aligned with the organisation’s risk profile, and supportive of operational objectives. Our final work product becomes the roadmap that can guide the restoration of critical functions.
Specific to your business and supported by our proven experience and better practice solutions, we also facilitate the preparation and testing of your plan. We are able to perform these functions with a limited amount of management’s time.
Business Interruption Insurance
To limit loss of earnings due to a business interruption, most companies obtain insurance coverage to compensate for the financial consequences of a major incident. However, to maintain shareholder value and limit the indirect costs of a major incident, insurance coverage alone is inadequate.
As a result, we recommend including BCM as an integral part of your company’s risk management policy. In some instances, insurance companies will look for evidence of an effective business continuity management plan. In addition, the opportunity to negotiate a reduction of the cost of business interruption coverage is likely.
Financial Advisory Services (FAS)
Marsh Risk Consulting’s global Financial Advisory Services (FAS) Practice provides expert assistance in the quantification and measurement of damages, economic claims, and losses to help you recover and/or minimise losses resulting from catastrophic events, litigation, or disputes.
Our multidisciplinary team of experts delivers consulting services in respect of forensic accounting, investigative, construction, product recall and liability, valuations, dispute advisory, insurance claim preparation, and advisory services. We are able to respond and react almost anywhere in the world, and in most cases, can assist you with local language, customs, and regulatory issues.
This page contains general information, does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh Pty Ltd on request. Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) arranges the insurance and is not the insurer.