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Business Disaster Recovery 101: What You Should Know

by Kelsey Yurek • 2020-03-22

Building a business is a complex process. From personnel to finances, you want to make sure all the elements align, and if all else fails, you also want to ensure you have the proper insurance should anything go wrong. Your business disaster recovery plan is part of your insurance strategy to secure yourself from major loss if something disastrous occurs. So, here's everything you need to know about a business disaster recovery and why it's so important.

What is a business disaster recovery plan?

A business disaster recovery plan is a system or strategy of prevention and recovery that you can use to protect your company from potential threats. They take into account the protection of both personnel and assets and are often devised by key stakeholders in advance of any type of disaster.

What types of disasters or risks require business disaster recovery?

Defining what a "disaster" is in advance can be essential to having members of an organization act according to plan when the disaster occurs. Disasters can apply to both physical/natural disasters like fires, floods or other weather related events in addition to cyber attacks.

Steps to consider for business disaster recovery

When creating a business disaster recovery plan, you won't be focusing on a single event. Thus, your plan must be broad enough to address all types of disasters but also specific enough that personnel understand how to follow protocol. Here are some basic steps to keep in mind when writing your business recovery plan. Remember, your goal overall should be continuity so that your company doesn't suffer drastic impacts.

1. Determine. Ask yourself, "How will the risk at hand impact operations?" This will differ if a fire occurred versus a cyber attack. When creating your business recovery plan, you'll want to consider each of these carefully. That way, if/when the time does come, you'll have options in place for reach that allow your company to survive and thrive.

2. Implement. The next step in business disaster is actually implementing safeguards and procedures to mitigate any risks you can in advance. While you may not be able to prevent an act of God, there are certain measures you can take to prevent a cyber attack or to practice fire safety. A couple ways you may consider doing this is by creating a continuity team which can manage the disruption when it occurs. You'll also need to train this team and set aside time to go over any plans and strategies so that they're prepared to institute them. Furthermore, they'll be instrumental in testing your business disaster recovery plan in step #3.

3. Test. More often than not, companies will institute procedures and never go through the process of testing them. A business disaster recovery plan is only effective if your procedures will work when the time comes to implement them. Thus, it's worth taking the time to see to it that your recovery plan will help your through anything from a minor hiccup to a true catastrophe. Utilize your continuity team here to make sure they're secure in their roles and ready to take on any unforeseen events that may come their way.

4. Review. Continually review your business disaster recovery plan to ensure that it is up to date. As your company changes (size, leadership, assets, etc.), your disaster recovery plan should as well. Make this at least an annual process, and more frequently if a large change occurs at your company.

Final thoughts

Business disaster recovery plans are crucial to any business. They can prevent and mitigate any threats and disruptions that cause a loss of revenue or higher costs. When all of this impacts your bottom line, you don't want to leave it up to your insurance alone. Your business disaster recovery plan allows for continuity which alleviates the impact you may feel from customers who move to your competitors during a crisis or the extent of your losses.

Abundant Funding is here to help with all things business. From financing and lending to loans and credit repair, your business has never been in better hands. Reach out to us today for real business solutions, including help from our extensive network of lenders and financial experts!

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