Securing Operational Records in Business Emergency Preparedness Plans

Natural and human-caused disasters often occur without much warning and can disrupt even the most well-oiled operations. Being equipped with an emergency preparedness plan for your business can ensure continuity after an incident.

Your emergency plan should include your business’s operational documents. Keeping these documents secure can facilitate informed decisions during a crisis, enabling effective management of financial uncertainty and fulfillment of obligations.

Securing Organizational Records

While the increased use of electronic statements and documents offers an efficient method for managing operational records, it is essential that you duplicate these copies and store them in a separate, secure location. Why? Because every industry faces a unique set of security challenges and even the most sophisticated digital platforms are not immune to unforeseen events—software glitches, cyberattacks, employee misconduct, or natural disasters can impede access to important data, at any given time. If original records are only available on paper, use a scanner to convert the documents into an electronic format.

Once all operational records are digitized and saved in a centralized hub, implementing a robust backup strategy can safeguard these records. Consider storing important documents in the cloud or on an external hard drive, USB flash drive, or CD, including, but definitely not limited to:

• bank statements
• past and present financial statements
• tax returns and W-2s
• insurance policies
• loan documents
• agreements and contracts
• governance documents

Further, be sure to keep any backup devices in a geographically separate location from your place of business, such as a safe deposit box or other secure location. While convenient access is important, it should not be the primary consideration when choosing a location—if everything is stored together, a single event can render both copies inaccessible.

Ensuring Service Providers’ Recovery Plans and Coverage

A strong emergency plan not only involves internal preparedness, it extends to your service providers as well. Understanding their recovery protocols ensures alignment and minimizes potential delays for your business in the event of a disruption. This is particularly important for businesses that outsource essential services, such as payroll, bookkeeping, and accounting, among others. Having access to business-reliant data allows you to continue operations like payroll processing, bill pay, inventory management, customer transactions, and tax filings.

For further protection, ask your service provider(s) if a fiduciary bond is in place. These bonds function as an insurance policy that protects your business against financial losses in the event of a default by the provider. This added layer of security elevates the integrity of your plan, giving you the confidence of knowing that your financial assets are protected, even outside your organization.

It is also important to regularly review and update your business insurance policies, specifically your business interruption policies. In the midst of a disruption, these policies can help bridge the gap by providing financial compensation for lost income, fixed costs, and possibly relocation expenses if necessary.

Documenting Valuables

To mitigate risk and help ease the recovery process, thorough documentation of physical assets is another critical piece of the plan. Having a detailed room-by-room inventory record of important business assets can streamline the possible claims process with your insurance provider, as well as offer much-needed peace of mind in an unsettling situation.

Remember to include pictures or video of the equipment or valuables in the plan, noting any model and serial numbers (if applicable). Physical records should be kept at a separate location than your place of business. For plans regarding physical assets, we recommend you contact your insurance broker.

Maintaining an Up-to-Date Emergency Plan

Especially if you have a physical office and staff, an emergency preparedness plan is vital. Among many components, it should include training for exiting your office in an emergency, information about sprinkler systems and alarms, and handling emergency medical procedures, including CPR. Local police and fire departments can often provide assessments of your physical office and recommendations for training,

The effectiveness of your emergency plan hinges on ongoing maintenance and communication. Establish a schedule to review your plan, update operational record backups, and make adjustments to reflect any changes in your business. This will reinforce employee awareness and facilitate seamless execution should an emergency occur. Proactive planning is key to business resilience.

Next Steps

There are many types of disasters you may need to be prepared to handle. R&A has resources to assist with cybersecurity, best practices for record storage, and developing disaster plans, including sample disaster plans. If you need guidance in these areas, contact Tavi Meketon, R&A's Director of Operations. Among Tavi's many responsibilities, she directs R&A's risk management initiatives.