Many businesses that ought to have a disaster recovery plan either lack one entirely or possess an underdeveloped version. It’s crucial to fully develop your plan to minimize business disruptions in the face of a disaster.
Simply put, a disaster recovery plan comprises activities aimed at minimizing the impact of a disaster on critical business processes and infrastructure. Today, most companies can’t operate if their IT infrastructure is down. Whether directly harmed by a natural disaster or indirectly affected by a power outage, when IT infrastructure is down, revenue takes a hit.
While companies directly affected by disasters are visible victims, nearby companies can also suffer, as seen in the aftermath of events like 9/11. Disaster recovery plans focus on maintaining business continuity during tragic events, with a significant emphasis on IT, given its essential role in daily operations.
Recovering from a disaster without a plan in place is extremely challenging. A quarter of companies affected by Hurricane Katrina, for example, never bounced back. Even those that do recover might lose market share to competitors who recover faster or are unaffected.
These plans typically adopt a tiered system, prioritizing critical processes. Tier 1 contains the most mission-critical processes, followed by Tiers 2, 3, and so on. This tiered approach allows companies to focus on restoring the most critical processes first. Hardware and software can aid in backup and recovery for these processes, regardless of their mission-critical status.
Depending on the company’s size, a well-crafted disaster recovery plan can save millions of dollars in the event of a disaster. The average disaster in the financial sector costs companies $1 million per hour. Considering these potential costs, a disaster recovery plan becomes a small yet wise investment.