In a world that is increasingly digital and interconnected, unforeseen events can have disastrous effects on the real estate industry. Having a strong business continuity plan in place is one of the best ways to ensure that your company can survive these unforeseen events, and thrive during and after them.
What Is Continuity Planning?
Essentially, a business continuity plan is a set of procedures that will allow your real estate firm to cope efficiently with a disruption in service caused by cyberattacks, natural disasters or any other incident that may impact normal operations. These plans typically cover emergency actions as well as service restoration activities essential to ensure a quick recovery from any such event.
Many real estate companies do not have a business continuity plan in place, and this can pose serious problems in times of crisis. In fact, a recent survey conducted by IndustryEdge and Travelers suggests that approximately 57 percent of real estate firms lack such a plan. This is a staggering statistic, and it’s important to take steps to create a business continuity plan for your real estate firm.
A strong business continuity plan will help to safeguard a company’s most valuable assets, such as data and human capital. It will also provide a clear roadmap for restoring services in the event of a disruption. It will also make your firm look more attractive to potential buyers.
There are several major benefits of creating a business continuity plan, including:
Providing reassurance for employees. During the pandemic, for example, many CRE firms shifted to a work-from-home model. This allowed employees to continue to function without having to commute to the office. When a company includes this type of protection in their continuity plan, it shows that they care about their employees and are prepared to help them stay productive no matter the circumstances.
Protecting clients and brokers. In the case of an unforeseen event, such as a power outage or a disaster, a business continuity plan will provide instructions on how to communicate with your clients. This will ensure that you can still provide them with the level of service they expect from your firm.
Training staff. Once a business continuity plan has been created, it is important to train all employees on the plan. This can be done through formal seminars, or it can be a more informal approach like a “dry run” in which staff members practice the plans on a quiet day. This will help to ensure that everyone is aware of what to do in the event of a crisis, and that they will be able to follow the plan without issue.
A strong business continuity plan is a critical part of any CRE firm’s strategy, and it should be reviewed on an annual basis to make sure that it is up to date. If you would like assistance drafting a business continuity plan for your real estate business, contact the commercial insurance and business continuity management experts at CBIZ.
