7 Reasons You Need a Disaster Recover Plan

According to Federal Emergency Management Agency (FEMA) roughly 40-60% of small businesses never reopen their doors after a disaster. For this reason, it is smart for businesses to have a disaster recovery plan in place.

Read on to learn why a disaster recovery plan is so important.

What Is a Disaster Recovery Plan?

Also known as a DRP, it’s a business plan that describes how work can be resumed after a disaster in a quick and efficient manner. The plan allows the IT department to recover enough data for a business, and to continue operating after any kind of failure. A disaster recovery plan will have exact instructions on how to deal with an unplanned incident, and how to recover lost information.

7 Reasons You Need a Disaster Recovery Plan

1. Permanent Data Loss

Data loss is detrimental. If a business doesn’t have a disaster recovery plan in place, they risk losing data that is vital to customer satisfaction and continued operations. Having the right plan in place will help a business protect themselves from external threats and internal accidents.

With a DRP, data backups are stored on external devices and cloud backup services. A business can’t afford to permanently lose company and client files.

2. Humans Are Not Perfect

Mistakes happen in the workplace, whether it’s hardware, software, or user error. Any accidental press of a button can cause chaos to a business. Even the most cautious person can make a mistake and place important files at risk.

A disaster recovery plan in place with several data backups will come in handy when these kinds of mistakes happen. DRPs should include preparation for potential cybersecurity threats, an allocated recovery team, and backup solutions for priority files.

3. Customer Re-acquisition Is Expensive

Customer retention is expensive but customer re-acquisition is far more costly. Earning a customer’s trust and loyalty is difficult, which is why taking preventative measures to protect their information and files is essential to standard operating procedures.


In many industries, IT disasters can cost thousands of dollars per minute, depending on the type of data loss. As a result, customers tend to be unforgiving when a managing 3rd party encounters impactful file loss.

4. Broad Range of Threats

With online data come the threat of cybersecurity. A breach in a network equates to a very serious information security risk, and can cause further unwanted destruction to a business’s network.


The average loss from a cyber attack totals over $500,000 on average. This loss can be the beginning of the end, especially for start-ups, causing them to fall into the statistic closed doors and discontinued operations.


Data also has natural disaster threats and technical threats. A thorough disaster recovery plan will have a business back up and running no matter the threatening force.

5. Reputation Damage

Unhappy customers will spread the word fast about their problems. With social media, the word about a bad experience can spread in seconds. Damaged reputation can not only impact the ability to gain new customers, but it can also negatively impact how existing customers feel.


Investing in a disaster recovery plan will reduce the risk of brand reputation.

6. Protect the Business

After spending money and priceless time to build a business, it makes sense to want to protect it. It’s almost like driving a car without insurance. A disaster recovery plan is  like insurance for businesses, bringing peace of mind in the event of undesirable occurrences.

On average, 96% of businesses with a plan are able to fully recover, and get back on track to continued and successful operations.

7. Costs

Unplanned attempts to recover lost data can be very expensive. Demanding a quick recovery is even more expensive. Planning ahead saves this headache for a business owner. Having a plan in hand will have the business prepared in case of a data loss.


This means that the business owner or owners won’t be running around trying to hire expensive professionals to try to recover data in order to get back up and operating.

No Business Is Invulnerable

No matter what industry, there is always a vulnerability to failure. It can be a natural disaster, flood, fire, or even human threat. A disaster recovery plan (DRP) saves priority files from being lost, causing stalled or discontinued operations depending on the severity.

An ideal disaster recovery plan will have the business production servers in a top-tier data center, and the disaster recovery backup servers at a different data center at least 45 miles away in case of a natural disaster striking the area.

It’s likely that all businesses will deal with unplanned incidents at some point, making preparation important. Securing future risk with a disaster recovery plan will help protect yourself and customers from unwanted breaches and occurrences.

Check out our article with 4 takeaways from Cybersecurity Awareness Month for more information about cyber threats, and what to look for in 2019.

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