The animal world boasts an almost endless variety of built-in defenses - often an instantaneous response to danger alerts - to protect against outside threats. The spines of the fast-inflating puffer fish are one such defense mechanism.
When crisis confronts a business and its managers, however, survival depends more on contingency planning than instinct, supported by quick-responding mechanisms in place to protect priority systems and assets.
Businesses need better preparation
Hurricanes, earthquakes and tsunamis are no longer remote threats in our world. Nor, unfortunately, are man-made calamities. The awesome destruction and havoc these catastrophes can cause are well documented. The shocking loss of life and devastation of neighborhoods demand a careful, unbiased accounting from our civic leaders and planners. Where did our preparations fail? How can we prepare better?
Behind the headlines, in the wake of tragedy, are the less-noticed stories of how businesses and government organizations are affected. In a single event, thousands of organizations can suffer damage to facilities, records, precious IT infrastructure and invaluable business intelligence (data). How fast can employers resume operations and get the wheels of commerce turning again? What is the cost of business disruption lasting hours, days, weeks and, in some cases, months? How quickly can government agencies be back online to provide much-needed services?
When you crunch the numbers on business disruption, they're not pretty:
An IBM survey found the cost per week is approximately $836,000 for planned and $600,000 for unplanned, mission-critical application downtime. Moreover, the indirect impacts of downtime - lost market share, decreased productivity, regulatory non-compliance and damaged reputation - are equally important.
Back in 2004, Gartner Group® warned, "Companies that do not have comprehensive Business Continuity or Disaster Recovery programs in place are on a collision course toward destruction."1
Yet, in light of all the risk and warnings, lack of preparation is not rare. Some might argue it is the rule.
A broad assessment from Dr. Irwin E. Redlener, the director of the National Center for Disaster Preparedness™ at Columbia University®, puts it this way: "The unfortunate truth is our ability to imagine and plan for catastrophic disasters is woefully inadequate."2
The Channel Insider™, a computer trade journal, wrote, "Despite a barrage of news reports about the wide range of disasters occurring around the globe, many companies are not adequately prepared, according to industry executives."3
So what gives? Are companies in a major state of denial about potential losses? Is there a misconception that business continuity and disaster preparation are not worth the expense?
1. Gartner Management Update: Best Practices in Business Continuity and Disaster Recovery, C. Claunch, March 17, 2004
2. Business Week®, 9/19/05, p. 35
3. Channel Insider, 10/11/05
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