Minimize Business Interruptions: Calculating the Cost of Interruptions

Minimize Business Interruptions: Calculating the Cost of Interruptions


        Six Steps to Minimize Business Interruptions

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Step 2:

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.

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