3 Ways a Business Continuity and Disaster Recovery Plan Can Protect Your Business
Every year, thousands of companies suffer financial, legal, and reputation damages due to crises including natural disasters, ransomware attacks, or a global pandemic. By nature, disasters like these are impossible to foresee, which makes having a plan in place to respond and recover of utmost importance.
Recent data has shown that 96% of companies with a business continuity and disaster recovery (BC/DR) plan in place make a full recovery after suffering a data breach. On the other hand, 93% of companies experiencing a breach who do not have a BC/DR plan will be out of business within one year.
Thorough business continuity and disaster recovery planning is an imperative step in protecting your business from the often crippling damage that comes along with a crisis. Here are five ways your business can benefit from proper planning and protection.
1. Protect against financial losses
In 2021, average cost of a data breach reached a new high of $4.24 million (IBM). From start to finish, the financial losses that often accompany a crisis can have long-term consequences on your business.
Downtime is a major factor in financial losses after a crisis. The amount of time a breach or disaster leaves your business unable to operate as normal directly translates to lost revenue. Data shows that businesses have lost more than $70 million as a result of downtime, without counting in the many other financial burdens that come along with most crises.
Implementing a BC/DR plan can get your business back up and running quicker and smoother than competitors who neglect to prepare. Protect your business and your bottom line with a thorough BC/DR plan and face your financial future with confidence.
2. Protect your reputation
A crisis can leave your business unable to deliver on its promises, meet deadlines, and satisfy clients. Without a proper BC/DR plan in place to get things back on track efficiently, you may damage or even lose relationships with customers who have trusted you to provide services you are now unable to deliver.
When you cannot serve your clients, you risk tarnishing your reputation as a trustworthy and reliable business. This can compromise future recommendations from current customers, your online reviews, and the overall perception of your company by clients and competitors in your industry.
Don’t put your reputation on the line. Protect your brand by ensuring a timely return to business as usual when disaster strikes.
3. Protect against third-party risk
Even if your business has a comprehensive BC/DR plan in place, your third-party vendors might not be as careful. It is your responsibility to ensure that the vendors you do business with are just as prepared to respond to a crisis as you are, or their vulnerabilities will become your own.
A thorough assessment of your vendors’ approach to BC/DR protects your business from suffering losses in the event that they suffer a crisis. By holding their plan’s standards to your own, you make sure that your shared data is as protected in their hands as it is in your own.
With Privva, assessing BC/DR plans for your business and the vendors you work with can be both comprehensive and simple. If you’re ready to streamline your risk management process, reach out today to see how Privva can help.