Business continuity planning for small and medium companies€¦ · Many small and medium companies Risk management processes should be suitable to scale and complexity Familiar with

Business Continuity Planning for Small and Medium Companies

Agenda

• Introduction• Bahamas perspective• Risk management process• Key features of BCP• Financial flexibility• Helpful checklists• Insurance• Questions

Hosts

Edison Sumner: Founder and Principal of Sumner Strategic Partners. Vice Chairman of Bahamas Venture Fund Ltd. Over 25 years of experience as an entrepreneur, private sector strategist, business development advisor, investment and financial advisor and corporate director having served on numerous boards and committees in the Bahamas.

Rayon Brown: Consultant Actuary with Nichol & Co and a Director of Nassau Captive Management Services Limited. Areas of practice include Enterprise Risk Management, captive insurance and other alternative risk transfer solutions.

Business Continuity Management

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UNDERSTANDING the ORGANIZATION

LEADERSHIP

PLANNING SUPPORT OPERATIONS

EVALUATION IMPROVEMENT

BCP for small Bahamian companies

Many small and medium companies

Risk management processes should be suitable to scale and complexity

Familiar with hurricane preparedness

Fire drills (identify marshals, rehearse exit routes and meeting points, regular system tests)

“Business Continuity Management (“BCM”) is a

comprehensive approach that includes policies,

procedures and standards for ensuring that

specified operations can be maintained or

recovered in a timely fashion in the event of a

disruption” – Central Bank of The Bahamas

Risk management process (BCP)

No plan means the Default Plan was selected

This is where we are in the current

COVID-19 pandemic

We will not be addressing IT issues -intranets, lotus notes, office 365 etc.

Focus instead on the practiced sequence of steps that kick into effect when an event triggers

– e.g. ensure to re-route phone calls to cell or home phones

Risk management processNo plan means the Default Plan was selected RISK ASSESSMENT

What services need to continue, what's most

critical SMALL BUSINESS OWNERS

UNDERSTAND THEIR COMPANY

Who will do what?Hardware, software,

backups, replication, phone systems

SMALL BUSINESS HAS ADVANTAGE OF

MANAGEMENT BUY-IN AND FOCUS

AT THE MINIMUM DOCUMENT WHAT NEEDS TO BE DONE AND INSURE EVERYONE KNOWS WHAT

THEY ARE EXPECTED TO DO

Think FIRE DRILLDone once a year – team

member designated as FIRE MARSHAL

Teams instructed on where to meet and be counted

ALARMS and other systems checked

REVIEW AND UPDATEWhat has worked and what has

not? Is there something that was not anticipated? Are there better

solutions now?

How’s the plan working (including default)?

Able to provide a minimum level of service - BCP may aim for 40% during crisis

In “lock-down” being able to answer customers queries and maintain a presence could be a win

Advised employees on working at home - good ergonomic chair, window, take breaks, Wi-Fi, Laptops

What to do if a key employee gets sick – health insurance, replacement etc.

Pandemic insurance – consider for future

Key person insurance cover – founders and execs may be more at risk for COVID-19

Review succession plans

Financial flexibility

Review secondary risks introduced – especially increased exposure to cyber risks

Helpful checklists for small businesses

Insurance (considering COVID-19)

Business Interruption Coverage – lost income and related expenses where operations of a businesses disruptedby a covered loss but usually requires that there is some physical loss to insured property

Its not clear whether situation with COVID-19 would qualify. There have been some cases in the US with chemical contaminants where the courts allowed a claim to be honored - as the property was not available for use due to contamination

Review all contracts for provisions that may trigger e.g. event cancelation, pollution or contamination, politicalrisk, clean-up related to coronavirus, coverage related to trade credit etc.

Some policies may include cover for infectious diseases – especially in the hospitality and healthcare industries. Some may be triggered but look at scope of cover and exclusions (pandemic may be excluded)

There could be some general liability claims, e.g. failure to use due care and consideration resulting in a customerbeing infected

Workers compensation / short-term sickness contracts may trigger for employees who become sick as a result of exposure at work – keep good records to make the claims filing process easier.

QUESTIONS

THANK YOU FOR COMING!

$20 MILLIONBUSINESS CONTINUITY PROGRAM

MSME COVID-19 RELIEF LOAN

THE GOVERNMENT OF THE BAHAMAS

ACCEPTING APPLICATIONS BEGINNING WEDNESDAY, MARCH 25TH, 2020

WWW.ACCESSACCELERATOR.ORG | (242) 359-0626 | [email protected]

SMALLBUSINESS

LOANS

IN RESPONSE TO COVID-19

The Business Continuity Loan Program

provides micro, small and medium-sized

enterprises (MSMEs) throughout The

Bahamas with loans for working capital to

help overcome the temporary loss of

revenue due to the impact of COVID-19.

BUSINESS CONTINUITY PROGRAM

MSMES IN THEBAHAMASMicro, small and medium-sized

enterprises that operate in The Bahamas

LESS THAN 50 EMPLOYEESBusinesses that are employing less than

50 people

OVER ONE YEAR INOPERATIONSExisting businesses that have been in

operations for more than one year.

Exception for Access Accelerator SBDC

Clients who will be given a letter to exempt

them from this requirement.

LESS THAN $3 MIL IN REVENUEBusinesses having earned less than

$3 million in annual revenue for 2019

LOAN ELIGIBILITY

BUSINESS STATUSCURRENTBusinesses must have current Business

License or V.A.T. returns if applicable.


Revenue TiersGross Sales

$5,000 Max Monthly Loan

$20,000 Max Loan Total4 months operating capital

$0-$100,000GROSS SALES

$100,001-$250,000GROSS SALES








The maximum loans are tied to your 2019 Revenue as filed in your

V.A.T. returns or Business License filing.

$250,001-$500,000GROSS SALES

$500,001-$3,000,000GROSS SALES

PROGRAMREQUIREMENTS COMPANIES APPLYING TO THE

PROGRAM MUST:

Agree to retain 51% of employees

Agree, at signing, to have their credit performance

on the facility shared with the Credit Bureau and

other financial institutions in the future


LOAN PAYMENTSThe first four (4) months of loan payments

will be waived. On the fifth month afterdisbursement, you will enter a 5-year term

loan at 5% interest rate.

LOAN TERMS

Business owners must agree to retain 51%of employees and at signing agree to havecredit performance on the facility sharedwith the Credit Bureau and other financial

institutions in the future.

LOAN DISBURSMENT50% at signing

50% at the beginning of 3rd monthpending proof of expenditures and

employee retention.

LOAN EXPENSESEach month businesses will be required tosubmit proof of payments made. Failure todo so will result in the delay of subsequent

payments. See Eligible Expenses List.


RENT

INSURANCE

SALARIES

Minimum of 51% of employees must be retained

ELIGIBLEEXPENSES

UTILIT IES

SUPPLIES

Estimated 25% in first (2) two months and up to

75% for 4th month in preparation for a market

reboundBUSINESS CONTINUITY PROGRAM

Passport + one (1) other valid form of identification

Proof of residential address

Proof of business address

Business license and/or incorporation certificate (where applicable)

2019 Business license filings or 2019 V.A.T. filings (where applicable)

Proof of the last three (3) months of expenses including:

- Rent payments

- Proof of payroll payments

- Insurance and Utilities

- Proof of monthly inventory/ Supplies purchases

Loan ApplicationDocuments Needed


BAHAMAS DEVELOPMENT BANK BAHAMAS ENTREPRENEURIALVENTURE FUND CASH N GO LTD. F IDELITY BANK (BAHAMAS) LTD. LENO CORPORATE SERVICES LTD. OMNI F INANCIAL GROUP LTD. SIMPLIFIED LENDING LTD.

APPROVEDLENDERS
