Many think a Disaster Recovery Plan is the same as a business continuity plan. This is not the case. A Disaster Recovery Plan is just one part of a Business Continuity Plan. A Business Continuity Plan focuses on the continuity of the entire business, whereas a Disaster Recovery Plan focuses on the IT infrastructure and the actions to be taken during and after a disaster so a business can return to normal.
What can happen when your business does not have a disaster recovery plan?
1. Loss of assets
Loss of your business data can cause a loss of revenue and can affect your business reputation, especially if it is confidential data or clients’ data. Data loss could be due to natural disasters, breaches, or human error.
The United States Small Business Administration found that over 90% of companies fail within two years of being struck by a disaster.
2. Effect on Business Operations
When business operations are affected, it affects productivity, which in turn becomes a major loss. This not only affects employee productivity it also affects overall revenue. Without a disaster recovery plan, it becomes impossible to recover without damage.
The average cost of a data breach is $3.92 million, which has increased by 12% over the past five years. - IBM
3. Costly Recovery
The costs of recovering from a breach is exceptionally high, which makes it tough for most businesses to recover. Many businesses are not prepared to handle the costs in case of a disaster and will be forced to close their businesses.
Reports suggest 60% of small businesses face bankruptcy within six months of a cyberattack.
4. Loss of Clients
If your clients know you are not prepared for recovery or that their data was compromised, they will likely take their business to one of your competitors. Your clients have invested a lot of money, time, and trust in your organization. Failing to protect yourself and your clients will result in clients taking their business elsewhere.
No size business or industry is exempt from the threat of a disaster. A Disaster Recovery Plan is an integral part of your Business Continuity Plan.
What safeguards do you take when it comes to your business? Can you afford not to have a Business Continuity Plan?
NDSE can work with you to ensure your Disaster Recovery Plan is properly included in your Business Continuity Plan.