Wednesday, May 22, 2024

Business should pre-plan to deal with load shedding – BIC

As there is still anxiety on how long will Botswana endures power crises, Risk Management Consultant at Botswana Insurance Company (BIC) Alan David-Andersen says businesses should pre-plan vitally for the risks that may be incurred due to load shedding.
David-Andersen advises and is encouraging the business community in Botswana to engage a back up facilities or a basic Business Continuity Plan (BCP).
He said in an interview with Sunday Standard that even though the recent blackouts have become a harsh reality for Botswana, it should not be surprising that some business do not have back up facilities or a basic Business Continuity Plan.
David-Andersen said this plan must be simple and reviewed periodically. It must be a plan that can be invoked quickly, he said.
He said the creation of a BCP will assist in ensuring the protection and preservation of assets. David-Andersen said this includes IT information and data protection.
He outlined that managing the disasters while minimizing the impact to the business and maintaining continuity maintaining your market share. David-Andersen said this will prevent your customer moving to the opposition.
“It has to be agreed that generators are probably an absolute necessity in the future,” said David-Andersen.
He said it is also important that tenants in shopping complexes meet with their landlords to plan how they are going to avoid a situation like this again.
David-Andersen said he encourages all businesses micro to large, to have a sound BCP which should also entail a detailed risk management plan and an insurance checklist.
“Being underinsured is common, and with the recent unexpected circumstances which could lead to potential workplace misfortunes, preparation and adequate cover is key,” said David-Andersen. \
He also said losses of this nature (load shedding) are generally not covered even where there is a Business Interruption policy in force. David-Andersen said however this is dependent on the type of insurance coverage.
Starting from the last few weeks, Botswana has been reeling from the worst power crisis ever, with no electricity in suburbia and elsewhere. In some instances this has lasted for 16 hours or more and many businesses registered rapid losses in this scenario.


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