It is important for every business to have a succession plan. The novel coronavirus pandemic is an unfortunate reminder that it is necessary to have a contingency plan in place in case something happens to the company’s leadership team.
Generally, a succession plan dictates how to transfer ownership of the company. Basically, a succession plan provides guidance on how to conduct business and transition the company to someone or a group of people who will take on a leadership role(s).
CONTINUITY OF OPERATIONS
During a situation like the COVID-19 pandemic, it is possible that all or part of the leadership team could be incapacitated. This would, of course, disrupt the management and daily operations of the business. Contractors should develop a written succession plan that identifies successors and their roles and responsibilities.
Interim personnel and their duties should also be selected in case the owner(s) and other key individuals become sick or must care for a family member that has COVID-19. A plan must be in place that addresses how the company will continue to operate.