Mastering risk management: lessons from martial arts

Establishing a business continuity plan

Completing the perfect kata requires mental and physical preparation. The more you practice, the more proficient you become at performing choreographed movements with precision.

But what about your business? Is it prepared if a crisis hits? According to Risk Management Essentials, “Crisis management is the act or process of managing a crisis to prevent the occurrence of a catastrophic loss, if possible, and reduce the impact of catastrophic losses to the organization.”

Your response to a crisis can significantly impact business continuity. A positive outcome may depend on how frequently you practice responding to different scenarios.

Are you prepared to manage a business crisis? Do you have a plan in place?

Fundamentals of risk management

• - Assess company activities to identify critical staff, materials, procedures, and equipment required to keep the business operating.
• - Identify suppliers, shippers, resources, and other businesses you contact daily.
• - Plan for scenarios where important buildings, plants, or stores become inaccessible.
• - Identify necessary actions to ensure continuity of critical business functions, especially payroll.
• - Decide who should participate in compiling and testing emergency plans.
• - Define crisis management procedures and individual responsibilities for disaster recovery activities.
• - Coordinate with others, including neighbors, utility suppliers, shippers, and key customers.
• - Review emergency plans annually and when the business changes or new staff members are recruited.

Supporting your crisis response

Consider the following in your planning process:

• - Assign specific responsibilities to staff members, clearly identifying who should evacuate employees, records, and crucial business equipment.
• - Develop a communication strategy that engages both internal (employees) and external (business partners, clientele, and the public). A proactive communication strategy should include media engagement. Consider involving an attorney or media specialist to craft your message.
• - Have a backup plan in case critical personnel are unavailable during a catastrophe.
• - Know ahead of time what you need to take with you in an emergency.
• - Identify alternate power sources and evaluate the crisis response capabilities of your vendors.

For more information on crisis management and business continuity planning visit Markel’s Risk Solution Services resources at Risk Solution Services | Markel.

Sources:

- Risk Management Essentials – 2nd Edition. Austin, TX 2014. The National Alliance Research Academy
- Fundamentals of Risk Management – Understanding, evaluating and implementing effective enterprise risk management. Sixth Edition. New York, NY. 2022. The Institute of Risk Management.