COVID-19 Pandemic: Guidelines on Designing Business Continuity Plan
On 17 September 2020, the Minister of Manpower issues a decree that stipulates a guideline for the company to design its business continuity plan amidst the pandemic. The guideline aims to anticipate the impact of pandemic disease in numerous business sectors in order to reduce the spread of pandemic diseases while maintaining business continuity, especially during the unfolding of the COVID-19 pandemic.
Legal Frameworks: Our below executive summary refers to Minister of Manpower Decree No. 312 of 2020 on the Guidelines for the Designing of Business Continuity Plan in Facing Pandemic Disease (“MoM Decree 312/2020”).
Main Keys on Designing Business Continuity Plan: We have managed to provide you the following main keys regarding the guidelines provided by the government in designing a business continuity plan amidst the pandemic.
Forming Business Continuity Team: We note that in preparing a business continuity plan, it is necessary for a company to establish a team (“Business Continuity Team”) that is responsible for: (a) preparing an anticipating/kesiapsiagaan plan (“Plan”); (b) conducting necessary reviews to the Plan; (c) examining the Plan through tabletop, drill, simulation, etc.; and (d) performing required adjustments in order to polish-up the Plan.
Stages in Preparing Business Continuity Plan: We note that the MoM Decree 312/2020 outlines 7 (seven) main stages in preparing a business continuity plan as follows (Point 2 of MoM Decree 312/2020):
1. Evaluating business priorities (“Stage 1”): In this stage, the company should evaluate its current products/services and then determine the core and priority products/services of its business. This stage includes segregating non-priority products/services, identifying the manpower required for the business activities.
2. Identifying the pandemic risks (“Stage 2”): After completing Stage 1, we note that the company must identify the risks of the pandemic of each evaluated component. The company will have to plot scenarios of possible threats that may interrupt the business continuity. These identified threats then must be scored, from a scale of 1 to 5, based on their probability and severity. Afterward, the company must also evaluate its capability in managing each threat according to their level of priority.
3. Planning the mitigation for the pandemic risks (“Stage 3”): In this stage, the company must prepare the mitigation plan for the risks and threats that have been identified in Stage 3. The following are some references to be considered in preparing the risks mitigation plan:
- Preparing standard operational procedures (the SOP);
- Implementing flexible work arrangement;
- Securing the supply chain;
- Establishing an effective communication team; and
- Reevaluate employment policies, such as sick leave, business travel, overtime, etc.
We note that the mitigation plan should specify and include at least: (a) target of mitigation; (b) the mitigation actions; (c) schedule for the action plan; (d) required resources to implement the mitigation; and (e) assign person in charges for the mitigation plan.
4. Identifying the response to the impact of the pandemic (“Stage 4”): The company should identify the events that will trigger the impact of the pandemic and the response to such events. The said response should be determined by considering the geographical situation of the pandemic and/or the severity of the pandemic disease.
5. Designing and implementing the Business Continuity Plan (“Stage 5”): The company with the Business Continuity Team should prepare the plan to ensure business continuity (“Business Continuity Plan”) based on the information identified at Stage 1-4.
The company is also advised to involve its employees in designing the Business Continuity Plan by providing clear classifications of the company’s and the employees’ responsibilities.
6. Communicating the Business Continuity Plan (“Stage 6”): After establishing the Business Continuity Plan, the company should communicate such plan to relevant parties, which among others, its employees and management, impacted customers and suppliers.
7. Assessment on the Business Continuity Plan (“Stage 7”): The company should perform periodical assessments on the Business Continuity Plan. This evaluation is indeed necessary to keep the Business Continuity Plan relevant to the company’s needs.
The article above was prepared by Marshall S. Situmorang (Partner) and Aniendita Rahmawati (Associate).
