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BETTER BUSINESS

The risks faced by the sector said that the factors resulting in the
Of course, every business faces risk closure of the business were “many
and as Robinson knows, most organi- and varied”, with Covid initially
sations have some understanding of responsible for “a serious reduction
those they face. But continuity risk is in turnover that has never really fully
different; he says “it relates only to recovered” alongside increasing
threats that have very low likelihood materials and consumables costs
of occurring and penetrating over the last 12 months “that has kept
defences yet have potentially cata- the market depressed”.
strophic consequences for business. The pandemic serves as a timely
Typically, we can identify tens of reminder to Lipman of the benefits of
these triggers, possibly hundreds, having a business continuity plan in
depending on circumstances, how- place. He details a printer he was
ever, the resulting scenarios we must called in to help that suffered the last-
deal with are relatively few in num- ing effects of Covid: “Following a
ber, and this is key to effective conti- breach of convenant over its CBILS
nuity planning.” loan, an SME print company was
In terms of practicalities, Lipman recently referred to us by their bank.
recommends planning for three dis-
tinct scenarios: a ‘planned’ scenario The company had lost work due to
the pandemic and recovery following
whereby the business continues to
operate as expected; a ‘plan B’ sce- the lifting of restrictions had been
nario for when performance is not frustratingly slow. This left the com-
quite as expected; and finally a plan pany in a precarious financial posi-
for a ‘worst-case’ scenario which can tion.”
be implemented when the business is He tells how, following eight
at real risk of failure due to either months of restructuring advice,
financial or operational challenges. monthly management meetings and
He says to “think of it as a roadmap to support with securing new funding,
success, highlighted with detours to “the company was back on track with
take if the journey doesn’t quite go to increased revenues, strong working
plan”. capital, and a much-improved rela-
As to the detail of what to plan for, tionship with the bank”. In his view,
the most likely are loss of site or part while the specifics of the pandemic
of site; denial of access for two weeks could not have been predicted, “hav-
or more; loss of technology or auto- ing a plan in place for an altered trad-
mation; loss of data or information ing environment – such as ensuring
integrity, including disclosure; loss alternative funding channels to
Lack of true commitment of critical plant, equipment or bridge any unexpected gaps in cash-
resource; loss of a key supplier; and flow are in place, as well as assessing
As Robinson sees it, manufacturers “are generally aware of the risks they loss of product integrity, contamina-
take and insure against them to a level they think will compensate them if tion, and quality. restructuring options ahead of time –
things go badly wrong”. But there is another, alluded to gives a company the best chance pos-
sible of bouncing back swiftly from
However, he adds: “I would say that only a minority truly embrace BCP earlier – the impact of a pandemic whatever challenges it faces.”
and grasp its true value.” He says that those that do tend to be driven toward which can affect supply chains, Those firms without a BCP need to
it by diligent insurers and, increasingly, customers. demand and staffing. And there have set about creating one. “The first
He adds that “the best manufacturing BCPs work hand-in-glove with been cases of Covid-19 felling firms step,” says Robinson, “is to think
in the print sector.
business interruption insurance (BI). This pays out against an agreed profit Take Mediashore Ltd, a multi-ser- about building a management system
projection for maybe 12, 18 or 24 months following a potentially cata- vice London-based printer. It went with clear and enduring scope and
strophic incident, and delivers the profit a firm would have received had no into liquidation in June this year. objectives. This means analysing the
incident occurred.” Fundamentally, BI takes away the financial pressure According to its abbreviated organisation thoroughly because if
and allows plant to be rebuilt. accounts for the year to 30 you don’t understand it, how will you
But even with good BI cover, unless a firm knows what to do – has pre- September 2021, Covid-19 had rebuild it?” The top management
caused significant disruption to the should be involved. Everything that is
pared the ground, documented strategies, sourced plant, trained people and business, with trade much reduced. critical to a product’s creation should
practiced – there’s a good chance they’ll get it wrong. Then there was print management be considered with management
A loss adjuster will guide the firm, but they can’t retrospectively brief cus- service provider Fisherprint that comfortable that a disruption at any
tomers and suppliers on what to expect. Similarly, firms can’t make collabo- went into liquidation two months stage can be dealt with, in an accepta-
rative arrangements with third parties to provide support after the fact. later. Chief executive Miles Fisher ble timeframe.

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