According to the Federal Emergency Management Agency (FEMA), roughly 40-60% of small businesses never reopen their doors after a disaster. For this reason, it’s smart for businesses to have a disaster recovery plan in place.
Read on to learn what makes a disaster recovery plan so important.
What Is a Disaster Recovery Plan?
Also known as a DRP, a disaster recover plan describes how work can be resumed after a disaster in a quick and efficient manner. The plan allows the IT department to recover lost data, and to continue operating after 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 storage 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 click can cause chaos for a business. Even the most cautious person can make the mistake and place important information at risk.
A disaster recovery plan in place with data backups will come in handy when these 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 any online data, the threat of cybersecurity is always present. 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 loss from a cyber attack totals over $500,000 on average. This can be the beginning of the end for some businesses, especially for start-ups, causing them to seize continued operations.
Data also has natural disaster threats and technical threats that a disaster recovery plan will address.
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 a bad brand reputation.
6. Protect the Business
After spending money and priceless time to build a business, it makes sense 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.
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 owners won’t be forced to hire expensive professionals due to urgency.
No Business Is Invulnerable
No matter what industry, there is always a vulnerability to failure. It can be a natural disaster, flood, fire, or a human threat. A disaster recovery plan (DRP) saves priority files from being lost, and causing stalled or discontinued operations. An ideal disaster recovery plan will have the business’s 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 prevent unwanted 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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