When you are looking to build or acquire a new site, it isn’t as simple as getting the keys. The process requires a strong understanding of your organization’s drivers, a comprehensive evaluation of various site risks, a comprehensive look into emergency preparedness, and a clear understanding of the impact a facility may have on the surrounding community and environment.
Incorporating all aspects of assessing risks, conducting due diligence for emergency management and business continuity programs, and identifying community stakeholders must all be part of the acquisition process:
Understanding risk
Establishing or re-establishing what risk means to you and assessing your organization’s risks is crucial when acquiring a new site. Questions to ask when evaluating risk include:
- What is your organization’s risk tolerance?
- Has the site been affected by natural disasters/is it subject to future climate risk?
- Are you subject to supply chain disruption?
- Are controls in place to insulate against cyber risk?
Obtaining knowledge of these risks helps to identify potential hazards, enabling organizations to make informed decisions and implement strong incident plans should risks arise after obtaining the site.
Organizational drivers
Understanding the drivers for why this expansion is happening is an important factor in determining your preparedness approach. Always ask:
- Why is this the chosen location?
- Are you taking over a business and keeping it long term, or is the strategic plan to close the facility and reduce the square footage?
- Are you looking to take over a manufacturing environment or introduce a new business function that will quickly become a critical element of your operations?
Due diligence
Emergency planning and business continuity may not be thoroughly considered in the due diligence process. However, it is important to evaluate any existing programs and carry out a comprehensive evaluation. The due diligence process requires evaluating the efficiency of emergency response protocols, reviewing the comprehensiveness of business continuity plans, and scrutinizing the integration of these initiatives within the organization. This process enables organizations to identify any gaps in knowledge and areas for improvement, meaning that once acquired, overall resilience can be strengthened.
Stakeholder engagement
Engaging with the local community to learn people’s opinions or worries is critical when aiming to construct or obtain a new location or prepare for emergencies and reduce risks. By including this input from the beginning, organizations can cultivate favorable connections, comprehend the unique requirements and susceptibilities of the community, and cooperate to enhance resilience.
The actions taken will be highly dependent on the complexity of the acquisition. Successful acquisition always involves the implementation of business continuity plans to ensure that it is adequate and aligns with your organization. By mastering this and evaluating the risks of a potential acquisition, organizations can proactively assess risk, strengthen resilience, and have positive engagements and impacts on the community. Businesses can navigate the complexities of new ventures while ensuring a safer and more prepared future with careful planning and strategic collaboration.
BSI Principal Consultant David Bernstein addressed this topic during SESHA’s webinar, Assessing the readiness of your newest acquisition: What to be prepared for. Follow along with our Safety and Security & Resilience practice experts in the ongoing business continuity and disruption prevention thought leadership series, including: Back to basics: Business continuity & disruption prevention, and Business continuity and disruption prevention: Supply chain resilience.
For more on other operational risks, watch for our upcoming Extreme weather webinar and download New extreme weather operational risks: How to effectively assess, mitigate and plan responses. Read additional BSI insights on EHS and Digital Trust topics by visiting BSI’s Experts Corner.
