12/21/2022
The unpredictable nature of business can be daunting, especially in the face of widespread disruption. For RIA’s without strategies prior to a crisis, resilience may seem impossible - often relying solely on reactive instead of initiative-taking measures. While it is difficult to plan for all scenarios ahead-of-time, being equipped with information and a plan on how to respond will power you and your team through turbulent moments. After all preparation breeds success!
1). To ensure the success of your business, it is essential to plan for every possibility. Take time to evaluate strategically, operationally, and financially what can impede progress - from data loss or cybersecurity breaches to losing key clients. Consider risks into categories such as personnel, fraud, and policies; do not let any stone go unturned for your firm to succeed!
2). Having an alternate plan in place is essential for mitigating risks and responding quickly during unexpected events. This strategy outlines step-by-step instructions, responsibilities of each stakeholder involved, as well as preventive measures that can be taken to avoid issues before they arise. Without advance planning you could find yourself struggling with inadequate or slow responses when faced with a crisis - something that nobody wants!
3). To ensure your firm’s success in the event of a disaster, it is vital to do comprehensive due diligence on your software and service providers. Read all SLAs and Disaster Recovery Plans closely: understand what would happen with both their business and services as well as yours if they were to shut down tomorrow? Are there any policies that prohibit you from seeking damages for disruption? Additionally, take into consideration other aspects such as profitability levels, employee longevity—which serves an indicator of stability—and whether application continuity measures are available should something unexpected occur. Doing this homework thoroughly will prove invaluable when worst-case scenarios arise.
4). Have you put your firm’s plan through its paces? Testing is an integral part of ensuring that a plan works as it should, and there are different methods to do this. One option is the tabletop exercise - here key personnel gather in one room and act out how they would respond in certain hypothetical scenarios. You can also take a more hands-on approach by running 'live tests', though these may be costly or disruptive for operations. However important it might feel however, do not forget to regularly test any plans; doing so gives your firm the best chance to remain resilient when faced with challenges!
