Disasters can strike at any moment. Cyber attacks can halt operations and put customers at risk. Businesses must be able to continue operations despite looming threats.
After a major disaster, 40% of small businesses will never open their doors again. Unfortunately, 77% of shopkeepers do not have natural disaster plans in place.
Businesses need disaster recovery and business continuity plans. These processes enable companies to work through events beyond their control. Without these plans, businesses crumble.
Let’s explore these processes and the difference between business continuity and disaster recovery.
What Is Disaster Recovery?
Disaster recovery (DR) takes place during an unplanned event. The process recovers resources and operations at risk. The types of unexpected events, or disasters, vary. They can include:
- Natural disasters (fires, earthquakes, hurricanes that disrupt business operations)
- Human errors
- Cyberattacks
- Hardware failures
A DR plan outlines actions to take before, during, and after a disaster. It should include a complete inventory of assets. DR processes outline a communication plan and assign role responsibilities. Every office should have a disaster recovery team.
Disaster recovery keeps a company running as close to normal as possible. No matter how big or small the business, all companies should have a disaster recovery plan in place.
What Is Business Continuity?
A business’s infrastructure may not be intact, but it can still operate. That’s where a business continuity (BC) plan comes in. The disruption prevents users and employees from coming to the business. Business continuity circumstances include blizzards or the COVID-19 crisis.
Business continuity plans on how to perform essential business functions during an emergency. Business continuity requirements include:
- How to continue vendor, employee, and customer communication
- Required technology to support business functions
- Workaround processes
- Employee relocation strategies and support
- Supply chain management to ensure continued delivery of services and products
Companies should run exercises to ensure functional continuity plans. A BC process documents the necessary steps and actions to continue business operations.
Disaster Recovery vs. Business Continuity
Companies should have a business continuity plan and disaster recovery plan. The plans may look similar, but they come into play in different circumstances.
Disaster recovery refers to external events that cause physical damage to a business. In these scenarios, you will need to move operations to another facility. Host sites may be required to continue business functions.
Business continuity plans are used when employees are unable to get to the facility. The business is still intact, but the workers are unable to get there. A business continuity plan uses technology, like virtual desktops, to keep operations moving.
As a business owner, you never know what type of disasters could affect your company. It’s crucial to prepare both business continuity planning and disaster recovery processes.
Prepare Your Disaster Recovery and Business Continuity Process
Natural disasters cause physical damage. A virus prevents travel. Different types of emergencies impair businesses. Unfortunately, not all companies recover.
Disaster recovery and business continuity processes save businesses. They are essential plans that all companies must have in place. Recovery and continuity plans protect a business’s operations, employees, and customers.
Learn more about business continuity and how to prepare your company. A smart business owner is always prepared, and we can help you develop a successful BC process.