With the worsening climate today, companies now feel the impact of natural disasters in their business. Like in the case of Hurricane Katrina, most cities in the US went underwater, and with no power. Since most firms weren’t really prepared for a great storm, a lot of them experienced heavy losses during this unfortunate event.
Besides the damaged infrastructure, people actually lost the opportunity to rake in profits because their businesses were not operational during the disaster. As such, it is imperative for any company, whether big or small, to prepare for the worst says Prosyn.
Business Continuity in a Nutshell
Business continuity and disaster recovery enables a company to survive and thrive in a disaster. These two systems require businesses to have these three key surviving characteristics, which are the following: resilience, recovery, and contingency.
By resilience, a company should be able to continue its operations by setting up critical systems in another location in case of a disruption. Of course, this won’t work without contingencies in place, such as temporary staffing. More importantly, as the business is operating its skeletal workforce, a team should be in charge of recovery process to bring the business back to normal.
Why Plan for Business Continuity?
Disasters are not limited to natural calamities. It has been reported that at least 20% of companies may suffer from fire, flood damage, power failures, hardware disaster, or terrorism in the duration of their businesses. However, most people fail to realize that these catastrophic events could actually bring their businesses down.
According to the below infographic by ARC Systems, a staggering 80% of companies fail within a year of operation due to lack of a contingency plan. With that, most organizations around the globe have collaborated in order to create better business continuity and disaster recovery plans. Through these continuity systems, firms can turn any catastrophe into a profitable one.1