Lack of DRP puts over 50% of businesses at risk

A new survey has found that only 27% of small businesses have a Disaster Recovery Plan in place compared with 68% of medium businesses and 75% of large businesses and yet the consequences can be catastrophic.

According to figures from the London Chamber of Commerce, *90% of businesses that lose data from a disaster are forced to shut down within 2 years of the disaster while *50% of businesses experiencing a computer outage will be forced to shut within 5 years.

Across the UK, it is anticipated that 20% of all companies will suffer fire, theft, flood or storm damage, power failures, terrorism or hardware/software disaster. Of those without a business continuity plan, Aveco reports that 43% will never re-open, 80% fail within 13 months and 53% of claimants never recoup the losses incurred by a disaster.

Malcolm Cooke, managing director of Stockport based C&C Insurance Brokers, said: “There are many unexpected occurrences that can lead to a total disruption in operations. A fire on your own or neighbouring premises, a power cut, a chemical spillage or crime scene can all lead to an evacuation of your premises and an inability to trade.

“This highlights the very real need for all businesses to have a robust Disaster Recovery Plan in place.”

A Disaster Recovery Plan is a formal document that businesses create to help them deal with an emergency situation. It is a useful tool that ensures that responsibilities are shared around the team and everyone knows what is required of them when things go wrong.

Malcolm explains further as to what you should consider when creating a DRP:
“Is your data safe and backed up remotely? This can include everything from staff records to customer information and banking details.
“Are you able to access your telephone system and emails remotely? This will enable your staff to work from home and get on with the job of running the business while you start to clear up.
“Do you have a Communication Plan? Communication is critical after a disaster and it’s important to have a process for informing customers, suppliers, investors, employees and the media.
“In a manufacturing company, production line equipment and production control systems are critical. The disaster recovery plan should prioritise resources and include an assessment of the risks and consequences associated with each resource”.

When looking long-term risk to businesses, it is surprising that small businesses often say that they don’t have time to establish a data recovery plan and test its effectiveness. However, with the advent of cloud computing, a disaster recovery plan is no longer an onerous thing to establish. The cost of attempting to recover from catastrophic data loss, and the potential down time that can accompany it will, in many cases, be far in excess of the cost of establishing a disaster recovery plan and keeping it up to date.

Now might be the time for small businesses to take a hard look at the data recovery services that are available.

Source: London Chamber of Commerce