The Retailer Spring Edition 2021

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Insurers are now demanding not just sight of a retailer’s business continuity plans but also hard evidence that the plan has been validated, tested and is fit for purpose”. ‘‘

Four key dependencies The dependencies are made up of four criteria: firstly, there is the environment that the pro - cess functions within (e.g. warehouse, factory floor, office); secondly, there is the equipment needed to carry out that process (e.g. forklift, IT services, automation, laptop); thirdly, there are the people who carry out these processes; and lastly, there are the supply of materials, data and utilities. So, it doesn’t matterwhat type of event happens but rather it is the effect the event has on one, all, or a combination of those dependencies. A retailer will then need to build its recovery strategies on the dependencies associatedwith operational processes rather than developing a plan against a specific scenario. It changes the thinking from having a business continuity plan that fewmay have ever looked at or even tested, to having a formalised and auditable business continuity management system that protects key business processes.

Tried and tested In many ways, business continuity is where health and safetywas in the 1970s. Back then, health and safety was rarely institutionalised whereas now it is a formalised, documented, tried and tested process representing a huge part of a retailer’s corporate governance approach and its legal duty of care to employees and customers. As retailers adapt and build sustainable and profitable business models appropriate for the post-pandemic environment, business continuity must follow the health and safety lead and evolve to that level of integration way beyond representing a rarely dusted off plan filed away.

Patrick Maher +44 (0)7770 544652 patrick.maher@aon.co.uk

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