From hacking to server outages and floods, well-planned IT disaster recovery is absolutely critical to overcoming major setbacks.
Without it, your company could easily be ruined by hackers, poorly-implemented IT initiatives, or natural disasters.
4 Ways IT Disasters Can Negatively Impact Your Business
When creating an IT disaster recovery plan, consider all the possible ways that problems and calamities could impact your business.
Proper risk management includes looking at all the potential variables and planning recovery options way ahead of time.
Some of the areas to look at include:
1. Financial Risk
- Clearly, if your website is down and you can no longer take orders, you may be losing money by the minute.
- Consider also the negative impacts of a larger scale disaster.
- Can you pay your vendors? Are you able to manage accounts receivable?
- Money flow is often the first thing looked at when disaster strikes, but fixing this must still be tempered with other considerations, such as reputation (see below).
- If your online shopping cart was hacked, restoring reputation first might be more important than immediately gunning for more sales.
2. Regulatory Risk
Regulatory risk involves anything that requires compliance with government regulations. This includes everything from filing taxes on time to ensuring you are meeting compliance obligations.
Let’s say your web server had a glitch and is now double-charging customers or miscalculating the fees on credit card transactions. You could be running afoul of government regulations, such as Australia’s recent ban on excessive surcharges for credit card purchases.
3. Reputational Risk
Even large corporations you’d expect would have bullet-proof IT security have fallen prey to hackers, including Yahoo and Equifax. Such massive data breaches not only destroy consumer confidence in your brand, they can impact your stock.
Equifax further ground salt into their customer wounds with dubious “fixes” – including asking customers for more data to determine if they were affected, only to upsell them on a premier membership.
4. Operational Risk
Disasters can have a long-term impact on business operations.
If you spent significant time and money building a smart office filled with the latest technologies, and a fire swept through it one night, you may have to start from scratch.
Ideally, before disaster strikes, your company will have well-thought-out recovery plans as well as back-ups.
Just remember, that if all your main records are locally based with no back-up in the cloud, when a fire strikes, you won’t have anything left.
Planning Ahead with IT Disaster Recovery
As we’ve learned from the Equifax example, even major corporations entrusted with sensitive data often have poor IT disaster recovery plans.
Don’t be another Equifax.
Make sure your organisation is prepared for disaster before it strikes, so you can recover quickly and move forward, rather than remain in fire-putting-out mode.