When you’re working on your emergency response plans there are a number of aspects you need to review, but one point you should seriously consider, is the cost of business downtime and how it could affect your firm.
An article in Electrical Engineering has highlighted the potentially high costs of unplanned business downtime, noting that in Europe 552 man hours are lost every year as a result of issues that cause people to stop working.
This equates to an average 37 per cent of lost revenue, the website noted, which means failing to have contingency plans in place and not planning for every eventuality could be costing your organisation a considerable amount each year.
The publication used the manufacturing sector as an example, pointing out that if 50 members of staff are unable to do half of their jobs for five hours in a factory, which works out at a loss of £1,915, based on average salaries of £29,419, from just one occurrence of business downtime.
But the true cost of such an incident can be much higher when you factor in potential outcomes such as lost new business, the article added.
There are vast reasons that can result in work stoppages across all industries, including natural disasters or incidents at work. One of the keys to preventing such problems is through the testing of emergency response plans and thorough staff competency training.
Some industries are more likely to suffer problems of this nature than others. For example, in October the HSE urged those in the construction sector to do more to improve worker health and safety, after it was revealed 43 employees suffered fatal injuries in 2015/16.