When Disaster Strikes

cannabis licensing application guide
Cannabis Licensing Application Guide
July 26, 2018

When Disaster Strikes

When Disaster Strikes

What’s your backup plan if disaster strikes your cannabis business? Most companies don’t have one because everyone thinks it will never happen to them, but disasters do happen. Whether called a “disaster recovery plan” (DRP) or a “business continuity plan” (BCP) the end game is the same. Both processes are equally important because they provide detailed strategies on how the business will continue after severe interruptions and disasters. The disaster recovery plan what steps it will take to ensure that operations can be restored.  Disaster recovery describes all the steps involved in planning for and adapting to a potential disaster with a roadmap that will restore operations while minimizing the long-term negative impact on the company. Your goal is to resume operations and fiscal stability, as quickly as possible after a disruptive event. This lack of preparedness threatens the viability of any company and needs to be addressed. Creating and maintaining a disaster/ business recovery plan helps ensure that your business has the resources and information needed to deal with an emergency. A well-designed plan will help you minimize the risk that an emergency poses to your employees, clients and suppliers, the continuity of your business operations and your bottom line.

“Early Preparation for an Emergency or Disaster is Vital to Company Survival”

In most cases, emergencies and disasters occur with little or no warning. The information in your plan will help to ensure the safety of employees, and emergency responders, minimize financial loss, property damage, and protect the environment. Your emergency response plan should include an overview of your property, identifying the location of storage areas, buildings, emergency equipment, utilities, wells and surface water. It should also include information on hazardous and flammable substances stored at the facility and emergency contact telephone numbers. Having a comprehensive contingency plan may be useful should the question of due diligence arise because of an emergency situation. It is also critical that insurance policies be obtained and kept up to date to ensure eligibility for relevant emergency financial assistance.

To be prepared, companies should start developing contingency plans well in advance. Specifically, you should consider creating an emergency and disaster preparedness and response plan specifically for your company. After getting senior management buy-in you will need to assemble a core team from all the critical areas in your company who will be responsible for the plan. You will need to do risk assessments and prioritized regarding both probability of occurrence and damage potential, key team members are identified and recruited. The team will decide on what the essential services/functions are, and the ranking or areas affected and degree of influence on the business. Action plans should be considered for all identified critical business elements. Some suggestions are:

Activation of plan

Action Plan for Maintaining Essential Service/Activity: Company

Action Plan for Maintaining Essential Service/Activity:  Key Customers

Action Plan for Maintaining Essential Service/Activity: Critical Suppliers

Action Plan for Maintaining Essential Service/Activity:  Business Partners

Action Plan for Maintaining Essential Service/Activity:  Support Providers

All Hazard – Emergency Preparedness Workbook

It is imperative that organizations not only develop a DRP but also test it, train personnel and document it properly before a real disaster occurs. You have worked hard to develop your business. Don’t let a disaster destroy your dream, plan for the impact of an emergency on your business.

 

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