Unfortunately, many businesses either don’t have a plan written up, or the plan they’ve formulated is inadequate for their needs. For example, Nationwide’s Small Business Indicator survey showed that over two-thirds of small businesses lack a written plan, delaying their recovery from natural disasters. And of course, natural disasters aren’t the only kind that businesses face; there are also cyber attacks, equipment failure, loss of data, and employee errors or negligence.
Why is Disaster Recovery Important for Businesses?
- Financial costs. Disasters often lead to staggering costs for companies, sometimes causing them to go out of business. For instance, when it comes to data breaches (a too-frequent kind of disaster), the 2016 Ponemon Cost of Data Breach Study estimated an “average consolidated total cost” of $4 million per data breach.
- Business reputation. Businesses without a strong disaster recovery plan are often left floundering after a disaster, whether it’s a cyber attack or a powerful storm. They may leave their customers’ information unprotected or fail to respond in a timely or effective way to customers’ concerns, questions, and needs.
- Variety of threats. Because of the variety of potential disasters, and the way new threats may emerge, businesses need to make thorough preparations. They must assess the likelihood of different threats and prepare for each in the best possible way.
- Unaffordable delays. The key to not only surviving a disaster, but continuing to thrive beyond it, is to put into play various disaster recovery measures. You can get your business up and running as quickly as possible afterwards and not have to suffer through prolonged downtime and delays.