DISASTERS, as we all know, only happen to someone else - unless you’re playing for the Scottish football team - and there is little point throwing good money after bad on something that is highly unlikely to occur.
But with a war on Iraq moving ever closer to the point of inevitability, and with warnings about the possibility of a major terrorist attack in the UK, planning for disaster is - or should be - firmly on the agenda of all companies, large or small.
Of course, a disaster need not be anything as dramatic as a terrorist attack. It could be that your office suffers fire, storm or flood damage, hardware or software failure, power disruptions, hardware upgrades, telecom failure, theft, industrial sabotage or vandalism, rendering it inoperative.
Research shows that 80 per cent of businesses will fold within two years of a disaster through the combination of a lack of planning, negative publicity, damage to reputation and the loss of skilled personnel.
Burying our heads in the sand is not a viable option, particularly if we take into account the inexpensive cost of putting a disaster recovery plan into place.
Disasters jeopardise the very survival of companies, even though simple and relatively inexpensive business continuity services would allow them to transfer their communications and IT functions to a remote location and be up and running the day after, with no disruption apparent to clients.
While it might sound straightforward, investment in a recovery plan requires detailed forward planning and rehearsal.
Although many small businesses might lack the budget required for a disaster recovery suite, there remains a variety of no cost, practical stop-gap measures that can be undertaken with immediate effect. Chief among these is establishing procedures to transfer phone lines to an affiliate’s premises, or even to a director’s house, to ensure clients can still contact key members of staff.
It is also vital that companies establish regular procedures for backing up their data. There are alarming numbers of companies who still lose the use of their IT systems as a consequence of fire and flood only to discover they have lost all records of client details and invoicing.
Many insurance companies will now request details about their client company’s business continuity provisions as part of their audit process. Where there is found to be no viable continuity plan, then the client’s insurance premiums may rise as a direct consequence.
This, together with the fact that forthcoming European Union legislation requires every company, regardless of size, to have some form of continuity plan, means demand for business continuity services is bound to rise.
Many senior executives and business managers consider business continuity to be the responsibility of the IT department. But when a company’s reputation, customer base and, of course, revenue and profits are at stake, is that really the case? Corporate directors can be held liable for the consequences of business interruption or loss of critical information.
If we really want to see a significant shift in corporate culture that will inspire SMEs throughout Scotland to recognise the need to establish disaster recovery plans, then we need the introduction of a new public sector initiative that will effectively subsidise part of the costs of a disaster consultancy service. Progressive companies, however, recognise they cannot afford to wait for such an initiative.
Disasters can and do happen. Our own premises were broken into several years ago and we learned about the importance of having a disaster recovery plan the hard way. The easy way is to devise your plan now.
Contrary to popular myth, a disaster can happen to you - not just Berti Vogts.
Graeme Muir is technical director with NVT, the computer network support and business continuity company. The views expressed are his own and not necessarily those of the company.
