By Angie Newland @ Angels Admin Support
Something that I have been thinking about recently is Business continuity planning for all
the small firms that may consist of one person or a very small team.
What has brought this to the forefront for me is thinking about how this process would
work for some of the firms that I work with, for example firms who may have one director,
who is the person that does the key work within the business, and then outsources to third
party providers their admin, paraplanning, accounting, and compliance. This is all fine, but
what if the key person is having health issues, which have resulted in a lot of medical
appointments, procedures, and time away from the business?, what would happen if they
unexpectedly had to take time off for a long-term illness or something more serious
happened and they could no longer do their job? do they have a Business Continuity Plan?
and as a third-party provider should you/or can you even ask them that question?
There are a lot of small businesses out there that are 1-5 employees, or “one man bands”,
some who have family members working with them, and some with no family involved,
most that I have come across when I mention about them having a Business Continuity Plan
have said things like – “Why do I need a Business Continuity Plan, I’ve told everyone what
will happen if anything happens to me” or “It’s only me in the business, the business would
just close or not run anymore I guess” – but they are missing some important points.
One of those points being that it is literally not just about them, it is about their employees
or family members within the firm being able to carry on with the business and continue to
provide the products and services to clients and know what is meant to happen going
forwards.
Also, it is about their customers and ensuring that there are no disruptions to their services
because of an unexpected occurrence within the firm.
What would the FCA expect to happen?
- Just a few examples of that the FCA would want to see –
A clear, documented, process in place for all employees that outlines details of what
to do, that they may not even have access to in their current role, and to give them
clear guidance on what would be expected to happen, how to implement it, and
when.
They would also encourage firms to include this as part of assessing risks for the
firm.
Adhering to consumer duty requirements, ensuring that there are measures in place
to prevent unforeseeable harm to clients, including those groups with specific
characteristics.
So, If there is a plan in place that’s great, but if there isn’t one I would ask you to think about
it in this way – put yourself in your customers shoes – would you expect a service that you
use from a small firm to grind to a halt if its Director/Senior Managers were suddenly absent
from the business, putting you at risk of possibly losing money and causing you significant
stress and inconvenience, and leaving you unable to access what you needed from them, or
would you expect them to be able to continue with as little disruption to you as possible?
I think we all know the correct answer!
If you would like to see how we at Angels Admin Support can assist you with Business
Continuity Planning or any HR policies and processes in relation to this blog, then please do
get in touch, we would love to hear from you.
Email: angie@angelsadminsupport.co.uk