The world is changing faster than ever. Is your business continuity plan keeping pace?

Between the COVID pandemic and ensuing shutdowns, supply chain debacles, labor shortage, gas price hikes, increased cyber threats, the war in Ukraine, catastrophic weather events, and now, uncertainties surrounding the economic environment, the last three years have proven time and time again that continuity planning should be a regular, ongoing part of running a business.

A business continuity plan proactively anticipates internal (i.e., you suddenly become incapacitated) and external (i.e., a global pandemic) events that can disrupt your business and defines how you’ll prevent, mitigate, respond, and recover. At the end of the day, a plan can help you maintain operations, minimize the impact on your business; protect staff, finances, and brand; and return to normal as quickly as possible.

Take a ransomware attack as an example, since it can shut down operations for an average of 20 days. Your plan would detail what you’re doing to prevent an attack; how to minimize the impact should an attack occur; how to keep operations going despite an attack; and what you would need to do to get business operations back to normal ASAP.

Developing the plan should be a team effort among key people in your organization. That way, everyone knows the protocols to follow and can react with speed and clarity should the need arise.

According to InvenioIT – an industry leader in business continuity, data protection, and IT security, your plan should identify objectives and include important contact information; risk assessments; business impact; prevention; response plan; systems planning; backup locations, and assets; communication plan; testing protocols; and gaps and recommended fixes. (Refer to InvenioIT for details.)

The U.S. Department of Homeland Security along with FEMA developed a free, downloadable business continuity planning suite. It includes training resources, a plan template, and test scenarios.

Perhaps one of the most challenging parts of continuity planning is figuring out how to prioritize what your plan should focus on first.

ContinuityCentral.com’s article, “Myth Busters: A Business Continuity Statistical Mystery Solved?” (Geary Sikich, Feb. 19, 2020) includes a list of questions that can help you prioritize – here are my favorites:

• “What are the three to five scenarios that could put our company out of business?
• Do we have a set of early warning indicators for emerging threats to the business?
• Are we developing accurate assessments of the issues facing our organization (direct, indirect)?
• What opportunities have we missed over the past three years due to inaction rather than lack of knowledge?”

You may also want to check out Accenture’s research report on operating through volatility, which includes a five-pillar framework for understanding immediate and potential future risks:

• “The people that power the organization
• The overarching strategy of the organization and how it differentiates the company
• The systems that underpin operations, both internally and with customers
• The supply chain and operational network that allows the company to fulfill customer needs.
• The partner and customer ecosystem and its alignment to business goals.”

Since so many factors impacting business can change on a dime, be sure to review and update your continuity plan at least every six months.

While you’re focused on protecting your business, let RBT CPAs focus on protecting you by providing professional, ethical and top-notch accounting, auditing and tax services. We’ve been serving businesses in the Hudson Valley and beyond for over 50 years and believe we succeed when we help you succeed. To learn more about what RBT CPAs can do for you, give us a call today.

On March 31, 2021, New York State approved the Marijuana Regulation and Taxation Act (MRTA), making adult use of cannabis legal in the state. In October, the New York Department of Labor issued new guidance on adult cannabis use and the workplace, which covers all New York state employers. Here are some highlights…

As reported by the National Law Review, under NY Labor Law 201-D, “Employers cannot discriminate against employees over the age of 21 based on their use of marijuana provided it takes place outside the workplace, outside working hours, and when not using the employer’s equipment or property.”

Does this mean employers can’t have policies against using marijuana? No. An employer can prohibit its use at work, during meal and rest breaks, and when an employee is on call. What’s more, employers can prohibit marijuana possession on company property, including company vehicles. Finally, employers can take action against an employee if his/her use of marijuana outside of work impairs the employee’s ability to perform job duties or interferes with an employer providing a safe work environment.

What’s still a little fuzzy is how an employer can prove impairment, since it will be based on objectively articulable indications (not the very limited instances when a drug test can be used or the smell of marijuana on a person) and could actually uncover a disability. For example, let’s say an employee operates a heavy machine in an unsafe and reckless manner. It may be an articulable symptom of impairment under the law; it could also be due to a protected disability, triggering the process to determine if an accommodation is needed and can be provided.

In New York, an employer:

• Cannot test for it unless required by federal law; an employee is impaired while working and articulable symptoms interfere with the employer’s ability to provide a safe and healthy workplace per state and federal safety laws; or it would result in loss of a federal contract or funding.
• Can test for it when federal or state law makes drug testing a mandatory condition of an employee’s position (i.e., drivers of commercial motor vehicles or for-hire vehicle motor carriers).
• Can take employment action (but doesn’t have to) if an employee is found to have used marijuana at work.

There are still some hazy areas, like New York’s Scaffold Law which puts liability for gravity-related worksite injuries on the construction company or project owner. The jury’s still out on how this will  play out. Unfortunately, it may take some court cases to bring that level of clarity.

In the meantime, employers should:

• Review/update related policies to ensure they’re in
• Identify objectively articulable impairment signals and train managers and supervisors what they are and how to spot them.
• Educate employees on marijuana use policy.

For assistance or answers to questions, contact New York’s Office of Cannabis Management or consult with a legal advisor.

While RBT CPAs can’t provide legal advice related to the NYS marijuana laws, we can help with your tax and accounting needs. Click here to get started.