You've probably heard the terms business continuity and disaster recovery. You may have seen them used interchangeably, but they are not the same.
A disaster recovery plan should be part of your business continuity plan. Business continuity is how you plan to return your company to full operation after a disruption in operations. A disaster recovery plan details how your company will bring its critical services back into operation as quickly as possible.
Disaster recovery plans are usually applied after a natural or human-made disaster such as a hurricane, forest fire, or cyber attack. They are designed to make a company operational while mitigating risk, minimizing downtime, and maintaining regulatory compliance.
Without a disaster recovery plan, companies risk damaging their reputation and losing customers. They may even risk their survival.
Mitigating Risk
A disaster that shuts down your business can happen no matter where you're located. Even an online-only business cannot escape the impact of a virtual catastrophe. That's why every organization needs a plan.
No matter how much your customers say they love your company, they are quick to leave if their expectations are not met. Approximately 63% of consumers will move to a competitor if they have a poor customer experience. What could be worse than a company that can't be reached or can't deliver a product or service?
According to an IBM report, one of the most costly aspects of a data breach is the loss of customers. About 36% of the total average cost came from lost customers. Imagine how customers would respond if you told them you had no record of what they'd ordered.
It wouldn't take long for that information to spread through social media and damage your reputation.
Minimizing Downtime
Downtime is costly. Whether it is the result of a natural disaster, equipment failure, or cybercrime, any time you aren't working, you're losing money.
A 2020 survey found that about 25% of small businesses said the per hour cost of downtime was $50,000 or above. Another 25% said their cost was below $10,000. The remaining participants fell between $50,000 and $10,000.
Accessing critical information is essential to getting your business up and running. With a disaster recovery plan, your organization knows where the vital information is located and how to access it. That ability reduces your downtime and enables your employees to continue to service your customers.
Maintaining Compliance
It's hard to imagine an industry that doesn't have come regulatory compliance. It may be protecting personally identifiable information (PII) or card numbers.
More highly regulated industries, such as financial services or healthcare, have multiple standards that must be maintained regardless of the circumstances. Failure to maintain compliance can result in fines and possible legal action.
A disaster recovery plan can identify critical information and outline procedures to secure the data. Having a plan ensures your ability to maintain compliance, even during a disaster. A plan not only saves you money, but it can also protect your company's reputation and customers.
Finding Disaster Recovery Help
Many of today's businesses rely on technology for their day-to-day operations. A disruption in virtual operations can result in a financial disaster.
That's why it's essential to find a technological partner who understands the importance of a disaster recovery plan and has the resources to ensure its successful implementation.
For help putting together your disaster recovery plan, contact Network Connections. With 25 years of experience, we know how to protect your most valuable assets.
