The best way to build your company’s preparation for any disaster requires an ongoing focus on identifying, planning and reporting risks, say experts from the National Center for the Middle Market. Whether that threat is flooding, fire, market disruptions or a cyber threat, preparing your response ahead of time may make the difference in your company’s worth, profitability and survival.
While it’s tempting to think your company will be able to wing it should a disruption strike, it always pays to be prepared. After all, smaller businesses with fewer investors face a much larger financial risk than a large public company whose exposure is spread across hundreds or thousands of shareholders.
There is No One-Size-Fits-All Approach
As every business is unique, potential risks can be distinct too. That’s why your company leadership shouldn’t use an industry template when conducting enterprise risk management plans. Those templates may be useful as a starting point for discussion, but your company’s risk will vary by region, size, key talent, financial structure and more.
To begin, your company must identify potential risks before developing plans to mitigate the dangers and build financial resilience. The three general types of risk for any business are:
Using weather as an example, solar flares are a possible but unlikely threat for most businesses. But, if your main warehouse is located in a 100-year flood plain and your region has been experiencing more severe weather patterns, some prior planning could make all the difference in your company’s recovery after a storm.
Your review of potential risks should immediately follow your annual strategic planning for the business, recommend experts with the National Center for the Middle Market (NCMM). This allows your leadership team to more easily identify those risks likely to have a tangible impact on business goals.
Once you’ve identified and analyzed the most likely threats to your company’s financial health, it’s time to create a plan for recovery. This requires that you:
Complacency is the biggest danger to your company’s health, says Manuel M. Perdomo, Head of International Risk at SunTrust Banks, Inc., because resiliency planning isn’t a one-and-done thing.
Take hurricane planning for businesses along the Gulf Coast and southern Atlantic Seaboard, as an example. Most companies have some sort of hurricane plan, but is it tested every year before the storm season begins on June 1?
To properly plan for hurricane season, says Perdomo, a business should review and update its communication plans and phone lists, inspect their facilities to look for potential vulnerabilities, back up data, and arrange for capital liquidity and cash on hand that may be needed for a few days to a month if a storm hits.
How Companies Build Cyber Resiliency
Information technology represents a significant financial vulnerability for most companies, says Joseph Muniz, security architect at Cisco, and is vastly underreported. One of the main reasons behind the underreporting is that it takes businesses an average of 200 days to discover a system breach. On top of this, most companies have trouble tracking and documenting the entire breach once it is discovered.
The top dangers within a company’s digital footprint are generally related to having too many devices or too many different types of devices to manage securely; too much data; and trying to keep all IT tasks in-house rather than outsourcing expertise appropriately.
It’s a difficult time to manage cyber security, explains Muniz, when a Ring Doorbell can provide entry in to your entire system.
Muniz recommends companies build in multiple layers of security; simplify and consolidate systems and devices; automate as much security as possible; and train their employees to recognize phishing attacks and other potential vulnerabilities. He also recommends amplifying the strengths of your in-house IT department by outsourcing specialty IT jobs, such as forensics.
And realize this: More and more business buyers are including disaster planning and recovery in their due diligence checklists when they make acquisitions. They want to ensure that any business they acquire has plans in place to continue operations following any natural disaster or cyber-attack. So, creating and maintaining your business disaster recovery plans is vital.
To learn more, download the full report on risk and resilience from the National Center for the Middle Market.
Interested in learning more about how our dealmakers can help you and your firm build financial resilience prior to a sale or merger? Give us a call at 972-232-1121 or fill out our contact form, and we will be in touch.
By Jessica Johns Pool.
© 2018 Generational Equity, LLC. All Rights Reserved.
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
By submitting my name electronically and clicking the “submit” button, I understand that I am providing Generational Group, Inc., Generational Equity, LLC, Generational Capital Markets, LLC, DealForce LLC, their affiliates, representatives, contractors, etc. (“Generational Group”) my telephone number, which may include a number that is wireless and/or a number that is on a national, state, or other Do Not Call registry or list. I hereby consent and agree to receive telephone calls including any autodialed and/or pre-recorded telemarketing calls and/or text messages (telemarketing) from or on behalf of Generational Group at the telephone number provided. I further consent and agree that telephone calls may be made using automated technology such as an automatic telephone dialing system, artificial or prerecorded voice, or SMS text messaging. Consent is not a condition of purchase. I further warrant and represent that any telephone number provided is not on any state or national Do Not Call Registry and that by agreeing to these terms and conditions that if any number provided is on any such registry, I hereby consent and agree to receive telemarking calls and/or communications including any phone calls, text messages, URLs, links, emails, etc. to the telephone number(s) and/or any e-mail addresses provided. I understand that by entering my name in the electronic form provided, that I am signing my name as equally as if it was my handwritten signature and that it is my intent to provide an “electronic signature” as that term is defined in state and federal law, as well as industry practices for e-commerce.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.
Success, you have been added to our list.
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121