What if – due to a natural disaster or a crippling cyber-security breach – your company couldn’t function for a day? Or a week? Or a month or more? Could your business survive?
If you have a Business Continuity Plan your chance of success is immeasurably improved.
A Business Continuity Plan is a well-thought-out plan to continue operations if a place of business is affected by any level of disaster such as an extended power outage, virus invasion or network meltdown, a localized disaster such as a hurricane or terrorist attack, a supply chain interruption, or the permanent loss of its building due to fire or flood. It also includes some preventative measures. Without a plan, statistics show, businesses struggle to spring back to life.
According to a report on readysmithadvisers.com:
- Within two years after Hurricane Andrew struck in 1992, 80% of the affected companies that lacked a business continuity plan failed. (FEMA)
- 80% of businesses suffering a computer disaster, but have no disaster recovery plans, go out of business. (“A Bridge Too Far”, IBM Business Recovery Services & Cranfield, 1993)
- About 60% of businesses that experience a major disaster, such as a fire, close within two years, according to the Association of Records Managers and Administration.
- More than 40% of all companies that experience a disaster never reopen, and more than 25% of those that do reopen close within two years, according to Labor Department statistics.
If you’re unsure whether your company needs a Business Continuity Plan, try shutting down your server and internet access for a few hours. If you can continue normal operations, maybe you don’t. But if you and your employees are idle and you’re edging into panic, you most definitely do. Of course, that’s not even considering that your building might be destroyed, or you can no longer purchase the goods you need to operate. (more…)