Minimize Business Interruptions: Calculating the Cost of Interruptions
Six Steps to Minimize Business Interruptions
After the risks have been ranked, analyze the impact of each risk. In calculating cost containment, the following should be considered:
• Lost sales or income
• Increased expenses
• Regulatory fines or contractual penalties
• Delay of business
According to the Federal Emergency Management Agency, 40 percent of businesses never reopen after a disaster. Implementing steps to prepare for and respond to disasters can help to reduce loss. In order to protect your business from unavoidable interruptions, it is recommended that you have a plan in place.