“Disaster Recovery Planning” It sounds a bit melodramatic, but disasters come in many forms, but all can be terminal for an SME or a new company. A brief glance at any newspaper will show that “disasters” of one kind or another are more or less the norm today. In any case, for the creation of a company or any small business, a “disaster” does not have to be very big to be very disastrous.
Normal insurance, if you have it, will compensate you for physical damage or injury, but unless you purchase specific insurance, it will not compensate you for the ‘Consequential loss’ defined by Investopedia ace
The amount of loss incurred as a result of being unable to use business property or equipment. If property or equipment is damaged in a natural disaster or accident, only certain types of insurance can cover the homeowner for loss of business income.
‘Direct damages’ They are covered by different types of insurance, such as property / casual or fire insurance, but when your business is closed for days, weeks or months while you are struggling to get everything working again and all the time you spend money and lose income.
Just sit back at your desk and see how little you would have to “get lost” to stop your business: your address book, your address book, your laptop, your server.
And what happens if you, or a key worker, get sick? Can your business continue to operate?
And if you lose your data, it may not even be possible to “get back to where you started” unless you have an effective Disaster Recovery Plan, ideally in written form, in place. Even small setbacks can cripple your business.
When you set up your new business, you generally have little time and even less money to spend evaluating the impact of critical incidents, let alone planning how to respond to and recover from them. However, it is critical that you have some type of disaster recovery plan on hand, sometimes known as business continuity.
As a generality, this plan needs two main axes:
- Can your business function if you are disabled?
- Is there a team without which your business would be paralyzed?
- Which members of your staff are key to running your business?
- Could an unavailable piece of equipment or location mean the loss or inaccessibility of your key data?
- Is there someone within your organization other than you who knows how to access your data?
This list is not intended to be exhaustive. Each business is unique and each will have its own list of risks. At a minimum, you should define and protect your organization’s critical areas, people, equipment, and data.