No Disaster Plan? Could Mean Closing Your Doors!
When was the last time you thought about Business Disaster Planning? For most people the thought only comes to mind when something has taken place that hits close to home. There are many disasters that can strike at any time: earthquakes, floods, hurricanes, fires! And let's not forget cyber-attacks, employee violence, pandemics. Any of these disasters can be dangerous and harmful, but what is even more dangerous is not having a plan in place when the unexpected happens. Something to consider:
- According to the Insurance Institute, more than 25% of all businesses that close down following a disaster never open their doors again.
- According to a recent Touche Ross study, the survival rate for companies who have experienced a disaster and who do not have a disaster recovery plan is less than 10%!
- International Data Corp. estimates that companies lose an average of $84,000 for every hour of downtime.
Without proper planning you leave your company vulnerable to legal and financial problems. A disaster could force you to close operations for a period of time, which could impact your vendors/suppliers, clients and employees. But more importantly, your company may be forced to close its doors indefinitely.
An effective business disaster plan is one that is reviewed and updated regularly and is not just sitting on the top of your office bookshelf. Over the years we have witnessed many devastating disasters and on any given day we too could experience the same devastation. Now is the time to evaluate your disaster plan and plan for the worst because tomorrow does not have a free preview. Here are some questions to consider when evaluating your plan:
- How will you communicate with your employees, clients, vendors in the case of a disaster?
- Are your records kept electronically? Is your data backed up and will you be able to access it?
- How will your employees get to work? Is there a backup location?
- If you have to remain on-site during a disaster, do you have first aid and emergency supplies to last for a week?
- If cell phones and land lines are down, how will you communicate?
- Do you have all your insurance policy information available?
These are just a hand full of questions to consider. Creating a disaster recovery plan is an extensive process that must be reviewed and updated on a regular basis. With proper proactive planning you can keep your business prepared to face any disaster lurking around the corner. After all... "you can't plan for a crisis when you are having one" - Steve Gray.