In Australia, many companies and organizations are vulnerable to a variety of natural disasters, including earthquakes, landslides, cyclones, floods, and bushfires. According to Hunt and Knaus (2017) in the Guardian News, Queensland, specifically Brisbane, is one of the disaster zones owing to flash floods and ongoing floods brought on by Cyclone Debbie. Natural disasters cause a disruption in business. For instance, when flash floods hit Toowoomba's core business areas in 2010, there were serious repercussions, including the loss of property and the temporary inability of many commercial groups to continue providing services (Hunt and Knaus, 2017).
Cromwell Property Group's Vulnerability to Natural Disasters
Cromwell Property Group is one of the business organizations that have consistently faced severe consequences resulting from natural disaster occurrences in Brisbane. The company services are disrupted whenever floods occur, and in some cases, the risks are enormous. It is on these grounds that preparing this business continuity plan will be instrumental in moderating the level of risk that Cromwell Property Group will be exposed to upon an occurrence of a natural disaster. It will also ensure that there is consistent delivery of services to clients in the face of disruptions.
Risk Management Plan
Cromwell Property Group operates in the Australian real estate industry (Daquino & Ricket, 2016). When natural disasters such as cyclones occur, the floods destroy their corporate assets such as facilities, support services, and tools. They are further exposed to risks such as loss of data, lack of transportation means as well as communication disruptions due to power shortages. The risk management plan for the organization encompasses five major aspects that are:
Risks and Consequences
The occurrence of cyclones which result into floods subject Cromwell Property group into several risk categories that are low, medium, and high risks. For instance, the flash floods sweep away company vehicles, destroy construction facilities, and damage the power systems. Moreover, the high water levels in the offices can submerge computers and other equipment resulting in the loss of critical data. Some of the constructed homes are also rendered inhabitable, and the customers are displaced or lose their lives.
Probability
The probability column is a quantitative expression of disaster likelihood. Brisbane has been home to bad weather for over an extended period. The Cromwell Property Group has assets spread in several areas. Therefore, there are high chances of floods occurring or property damage resulting from inclement weather. The probability will be expressed regarding percentages.
Impact
The effects vary for different projects that are exposed to risks upon floods. In the case of the Cromwell property, the effect will be leveled on a scale of 1-5 depending on the company's asset and the extents of damage.
Status
The floods expose the organization to several risks as stated above. The risk-status determines the priority areas that are first considered in the event of a disaster. The status is based on a scale of 1-10 whereby higher focus areas are considered first.
Action
The action column also referred to as mitigation or response involves the steps that should be taken to reduce the impacts of a risk resulting from the flood to the Cromwell property or manage the effects. Notably, the management must implement relevant strategies to ensure that the occurrence of floods or stormy weather has limited negative impacts on the assets and facilities of the Cromwell Company.
Cromwell Property Group Risk Management Plan Matrix
S/N Risk and Consequences Probability Impact Status Action
- Loss of lives 20 2 9 Compensation schemes and stress management programs
- Risk of Data loss 30 3 7 Backup records in other station including hard-copy document
- Facility damage risks 90 4 3 Taking insurance cover for the property
- Power interruptions 95 5 4 Having stand-by power generators
- Displacement of customers 95 4 4 Building reserves for displaced customers
- Inability to access offices 85 3 5 Purchase motor-boats, motor-less boats, and other rescue facilities in their building
- Loss of equipment and tools 75 4 3 Stand-by evacuation teams
Source: Own
Notably, the risk management plan matrix for the Cromwell Property will vary in the list of factors incorporated depending on the area of operation and the circumstances resulting from the disaster (Tammineedi, 2010). Meanwhile, the action column identifies possible measures that can be used to provide solutions to the risks emerging as a result of the disaster. The various ways of reducing the severity include the backup records, safety residents for their clients, among others. On the other hand, retention involves the establishment of counseling programs to manage stress for both staff and customers. Finally, the insurance services and compensations, among others, form part of the transfer measures. The risk management plan will incorporate training of employees and clients on the desired procedures to accomplish their roles in case there is an incident of the flood. Additionally, there should be regular refreshments in the form of exercise and audits to review whether the measures are up-to-date.
Business Impact Analysis
The business impact analysis (BIA) examines the external and internal effects that the flood in Brisbane can cause to Cromwell Property Group. It also identifies critical services that should be prioritized in the event of a disaster (Hartman & Juepner, 2014). When the disruptions occur, both clients and staff members cannot access the offices. It implies that the payment and consultation services will have to stop until the floods subside. On the other hand, the clients will not access their homes for some period. The organization cannot operate without the physical office from where activities are coordinated. Similarly, customers will also require other temporary residential places immediately they are displaced.
Moreover, there are several areas of potential revenue loss, including the destruction of assets such as rental buildings and business premises (Hartman & Juepner, 2014). The amounts of income lost by the company due to an occurrence of the flood depend on the number of estates that are affected and the area covered with outpourings. Lack of ready solutions by the Cromwell Property Group to their clients such as temporary accommodations may result in the loss of customer base as people resort to other service providers. Other factors to consider in the impact analysis include additional expenses and intangible losses that the company will incur. Reconstruction of structures and repair of buildings belonging to Cromwell Property is necessary once heavy storms occur in Brisbane. The submerged equipment, tools, and cars also need replacement after the occurrence of the flood. It implies that extra personnel will be necessary to accomplish such tasks. There are also intangible losses such as reduced confidence in the company's property in flood-prone zones, especially areas which experience adverse effects such as Beenlegh (Knaus & Hunt, 2017). As a result, there will be a loss of a significant portion of the market share to competitors and damage to the reputation of the company. The outlined impacts are then used to determine the insurance policy cover which will help the company to settle recovery costs partially or in full.
Business Impact Analysis Table
Event Business activity Operational Loss Financial costs Time /period
- Flood water in the offices All transactions affected Termination of operations $1,500-$2,000 revenue lost 6-8 hrs
- Submerged Computers, vehicles, equipment, and tools Communication, transportation, and construction All activities $30,000 - $50,000 revenue lost 1-4 days
- Destroyed buildings Displaced tenants Inhabitable buildings $100,000 3-7 days
The impact analysis table can hold several elements depending on the survey outcomes. The last column refers to the minimum period needed to undertake operation recovery. The financial losses explain the estimated amounts that are likely to be lost in the case of such incidents. Finally, whenever a disruption occurs due to a disaster, business activities and the normal operations remain dormant until the conditions are controlled.
Incident Response Plan
After establishing adequate plans, measures, and teams in readiness for the occurrence of floods, the Cromwell Property group should accomplish such tasks as an incident, communication, and operations management in their response. In the case of swelling rivers following a massive downpour, the threat should be communicated to all stakeholders that are residents living in the company facilities, staff members in the offices that are exposed to risks, and the management. Notification should occur through a predetermined chain of communication (Tammineedi, 2010). For instance, the company management will receive notification from the central emergency operations center and disseminate the information to all concerned parties. The emergency response department takes the mandate to control the impacts through implementing evacuation plans and coordinating external support.
Communication Plan
Communication management is a critical part of the incident response since it eliminates misleading information and redundancies. Cromwell Property should have a functional communication department that can adequately link to the media, emergency services, and all the affected stakeholders. For instance, there should be proper plans to address the needs of those living in the affected company facilities that are both employees and clients and protect them from unverified information (Tammineedi, 2010). Efficient management of communication demonstrates the company's preparedness to handle risk situations and build trust among the stakeholders.
The communication plan involves the strategy as well as the chain of command (Tammineedi, 2010). The staff and clients should have the updated list of important telephone numbers. The occurrence of floods in Brisbane cannot be accurately predicted since not all heavy storms often result in floods. It is important that police emergency numbers, ambulance service contacts, and Cromwell Property Emergency Operations Center are made available to stakeholders. After the identification of the potential threat, there should be a well-defined chain of communication whereby the information flows from top management to staff and clients. The chain of command also specifies who takes over the disclosure in case of incapacitation. For instance, if the communication director is incapacitated, the assistant becomes the acting team leader. Notably, real estate businesses highly depend on the effective communication between the management and the clients, especially in times of crisis. Therefore, information flow is a critical service that the company must uphold to prevent the loss of customer base and damage to its reputation. It implies that communication team members must be identified, and an authority structure set in the event of a flood. Moreover, the plan outlines the specific task and responsibility for each participant so that there is no role conflict. Finally, training of personnel and teams on their duties and designating alternate members is essential (Hartman & Juepner, 2014). As stated, floods result in loss of lives; in case of such incidents, there will be available substitutes to ensure continuity of the business. In the case of Cromwell Property, offices outside Brisbane or areas that are not affected by floods can serve as alternate facilities to coordinate response activities and ensure continuous operations.
The evacuation plan also forms part of the incident response whereby the displaced persons are taken to a safe environment temporarily. It is part of the operations management in which the Cromwell Property Emergency Operations Center (EOC) coordinates resources. In the event of floods, the company will use motorboats and other means of transport in the evacuation process. Food supplies, medical aid, and power generators are also important aspects needed in planning and executing evacuation upon disruptions. Moreover, the evacuation plan is a joint effort involving internal and external players such as government and volunteer organizations.
Recovery Plan
Recovery is the final stage of the business continuity plan which aims at the restoration of normal operations and service delivery (Rock, 2016). Various efforts such as facility repair, the establishment of new buildings, and re-deployment of the staff are put in place. Since the effects of a disaster, especially floods, are far-reaching, the recovery plans must be based on a checklist to ensure that the resulting consequences are mitigated adequately. The major components of the disaster list include role designation, communication needs, alternatives, and reevaluation process.
Disaster Recovery Checklist
Item Person Responsible Means Purpose
- Role designation Various departments and other stakeholders Decision making Develop a hierarchy of personnel
- Communication needs Executives, managers, and other stakeholders Media, pre-written templates, emails, and phones Backup, data recovery, ease of communication, document protection
- Alternates Management Facilities, additional staff Information stability, Business continuity
- Reevaluation process Executives Training, updates, exercise Readiness for emergency, determination of priority areas
Source: Own
The summary of a sample checklist for Cromwell Property disaster recovery outline some critical aspects. The role designation points out the need to delegate disaster-response duties to particular persons and departments. It involves a prior decision-making process that defines vital operations, such as relocation needs, to ensure adequate monitoring of events before and after the crisis. The communication requirements, which also involve all players, will identify the relevant channels of sending and receiving feedback. In case of power disruption and other challenges when the company has to operate on mission-critical staff, pre-written templates become vital in the passage of messages. It helps in sending the appropriate information to the outside world, protection of documents, accessing backup data, and recovery of lost data to ease the process of recovery. Additionally, alternates that are both facilities and workforce, are important in repair and redeployment after the flood. Finally, the reevaluation process is a management role to ensure that the information and procedures for recovery are updated (Hartman & Juepner, 2014). It also assists in focusing on priority areas such as staff and client safety concerns when floods occur.
Conclusion
Cromwell Property Business Continuity plan outlines five key areas of concern. The risk management plan provides insights into the consequences of floods to the company, impacts, status, probability of occurrence, and the remedial action needed for mitigation. Secondly, the business impact analysis examines both external and internal effects of flooding to Cromwell Property in Brisbane. The key components include events, operational losses, financial costs, and the minimum amount of time for the effects to be controlled. Incident response, evacuation, and the communication plans go together since they are measures the organization puts in place in readiness for a disaster occurrence. Finally, the recovery plan for Cromwell Property Group involves response designation, communication needs, alternates, and reevaluation as the key aspects determining the pace of business continuity during and after a flood.
References
Daquino, L. & Ricket, K. (2016). Brisbane 2016, Australia business news. Retrieved on 28th August, 2017 http://www.businessnewsaus.com.au/articles/2016-brisbane-top-listed-companies—1-10.html
Hartmann, T., & Juepner, R. (2014). The flood risk management plan. International Journal of Water Governance, 2(1), 107-118.
Hunt E. & Knaus C. (2017). NSW flooding sees five areas declared disaster zones after ex-cyclone debbie as it happened. Retrieved on 28th August, 2017 https://www.theguardian.com/australia-news/live/2017/mar/31/ex-cyclone-debbie-deaths-feared-in-lismore-as-80000-lose-power-in-queensland
Rock, T. (2016). The 9- point checklist for disaster recovery plans. Retrieved on 28th August, 2017 http://invenioit.com/continuity/checklist-for-disaster-recovery-plans/
Tammineedi, R. L. (2010). Business continuity management: A standards-based approach. Information Security Journal: A Global Perspective, 19(1), 36-50.
