What mitigation implies

The effects of a disruption can be mitigated, meaning the reduction of adverse effects can only occur with proper implementation.

For example, knowing that no structure can be entirely immune to earthquakes, you can still lease an earthquake resilient building which would fare better than conventional buildings. Here you made an investment in “protecting” your business by reducing the effects from disruptions.

Do notice the overlap between preparedness and protection, they are not independent to each other. With preparedness and protection, you plan with the future in mind. The key difference is that protection grants a passive response to disruption while preparedness requires an action response.

Component redundancy

In engineering having redundancy within your critical components is important in increasing the reliability of your product. The same principle applies to businesses.

This means by having spare equipment or data backups in case primary forms of operations fail, your business can continue its operations.

Insurance

Effective and widely used as a part of risk mitigation. Insurance exists to protect assets from a wide range of possible harm. Insurance can be generally categorised into five sections.

Each category houses different types of individual insurance policies that insurance companies may offer. They really do not serve an important purpose but only to help visualise what they do.

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Insurance companies are also businesses, and they are financially incentivised to upsell insurance policies or bundles that your business may not need. That is where insurance brokers come in. They are the middleman that specialises in catering insurance policies to your business. They are perfect for small businesses owners whose hands are tied up from managing their business and do not have the resources nor knowledge to deal with insurances. However, one of the biggest downsides to insurance brokers when selling policies is the cost to the client.

Business growth can make fundamental changes to your business and its needs therefore it is recommended to annually review and make necessary adjustments to insurance policies.

Two key points to look out for are what content is covered, and what are the conditions required for coverage. Many business owners fall into the same pitfall thinking that their content is covered when it is not. This is due to not reading the fine print on their contracts, not providing the right information, or business changes not being adjusted to their insurance cover.

Other things to consider

It assumes that financial cover is enough for business continuity.

May be delays in processing which lags business continuity.

Insurance policy does not cover everything; therefore, it is imperative to make assessments on what needs insuring and what does not.