In the dynamic world of financial advising, where building a practice can take decades, protecting that legacy against unforeseen events is not just prudent—it’s essential. As highlighted in a recent InvestmentNews article, continuity planning is often misunderstood or overlooked, yet it is the cornerstone of a resilient business strategy.
Continuity Planning vs. Succession Planning: Know the Difference
While succession planning focuses on the “after”—developing leadership and preparing for retirement—continuity planning ensures that a business remains operational during unforeseen events such as health crises, natural disasters, or unexpected departures. It’s about safeguarding staff, clients, and the enterprise’s value when life throws a curveball.
Recent examples, like the California wildfires, underscore the importance of such planning. Advisors with robust continuity plans ensured their businesses weathered the storm while continuing to serve clients seamlessly.
A Framework for Building a Resilient Continuity Plan
In a recent presentation for a large wealth management firm, we shared a structured approach to building effective continuity plans. Here’s the framework:
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Assessment and Prioritization
- Identify critical business functions, key personnel, and potential risks.
- Prioritize the functions that must continue during a disruption.
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Plan Design and Documentation
- Develop clear protocols for emergency scenarios.
- Assign roles and responsibilities to team members and external stakeholders.
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Stakeholder Alignment
- Align the plan with personal estate planning and organizational succession plans.
- Engage stakeholders to ensure everyone understands their roles.
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Implementation and Training
- Test the plan with real-world scenarios to identify gaps.
- Train team members to ensure readiness.
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Review and Refresh
- Update the plan regularly to reflect changes in the business environment or personnel.
Turning Theory Into Action
Our Business Continuity Builder has already supported the creation of thousands of continuity and catastrophic plans, enabling businesses to protect their legacies effectively. This innovative tool walks advisors through the process, ensuring their plans are tailored, actionable, and comprehensive.
The Time to Act Is Now
For advisors, delaying action is a risk they can’t afford to take. A well-designed continuity plan is more than a safeguard; it’s a promise to clients, employees, and loved ones that the practice will endure, no matter what.
Whether you're just starting or refining an existing plan, taking proactive steps today will ensure your vision and hard work remain intact for years to come. Learn more about how we can help you craft a robust continuity plan tailored to your needs.
