CBI and KPMG survey business continuity take-up in London’s businesses

In the past year businesses have had to cope with terror attacks on London's transport network, the Buncefield oil depot explosion, floods, power failures and the continuing threat of theft and fraud, but despite observing such threats at close range almost half of the London's small businesses still do not have business continuity plans in place, according to the latest London Business Survey by the CBI and KPMG.

The survey found that 47 percent of companies with less than £5 million turnover (over 98 percent of the capital's businesses) have a business continuity plan. However, of the 53 percent that don’t, an encouraging 29 percent are in the process of developing plans.

The picture improves with company size: 56 percent of firms with a turnover of £6-20m have a plan, rising to 79 percent for companies with a higher turnover.

Measured by employee numbers, 58 percent of firms with fewer than 250 employees (about 98 percent of firms in the capital) have a contingency plan, rising to 79 percent of businesses with more staff.

Rick Cudworth, Global Service Leader for Business Continuity services at KPMG said: “Surprisingly, these figures are similar to those of last year – and would seem to indicate that whilst there is plenty of guidance and help available in drawing up and testing plans, a proportion of London businesses still believe that it won’t happen to them.

“Typically, lack of resource - or perceived cost - is a barrier for smaller businesses and Government may need to consider what further help can be provided. Recent wide-scale disasters show that whilst a company cannot predict what scenario it might face – it can rehearse for the unexpected. All firms need to work out how to keep a business working during a major operational disruption.”

Retailers, restaurants and hotels are the least prepared companies in London, with just 29 percent having a business continuity plan, compared to 70 percent of professional services firms, and 92 percent of banks and financial services companies.

The CBI/KPMG survey, to be published in full later this month, also reveals that two-thirds of larger firms think that crime is a problem, with banking, finance and insurance most affected (77 percent), followed by distribution and retail (71 percent).

Sir Digby Jones, CBI Director-General, said: "There is a worrying lack of preparedness revealed by companies who too often believe they won't be affected. But whether it is fire, flood, fraud or something more sinister, the need to have tried-and-tested continuity plans is crucial.

"While larger businesses have learned the lessons of last summer's terror attacks, or the Buncefield explosion, there are too many smaller ones who have not yet drawn up a contingency plan. These are the most vulnerable and could be most in need of help in drawing up plans before it is too late."

The London Business Survey will be published in full on Thursday, May 11th 2006.

•Date: 3rd May 2006• Region: UK • Type: Article •Topic: BC statistics
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