Test your disaster recovery planning IQ with 10 questions

by | Jul 7, 2016 | Business Continuity

Take this test to grade your disaster recovery planning skills.

First, what exactly is  a disaster? Today, disasters come in all forms. Here are a few that should be on your radar: hurricanes, floods, power outages, tornadoes and fires. In addition, malwares such as cryptolocker as well as human errors and mechanical failure can prove costly. Ok, that was easy. Now, let’s really test your disaster recovery planning IQ with this short quiz:

Question 1. In any given year, how many businesses will experience a disruption lasting more than a day?

Answer: About one-third of small and mid-sized businesses will experience a disruption to their operations lasting 24 hours or more. When the National Federation of Independent Business surveyed its members, 30% reported that in the past year, they had experienced a disruption to their operations lasting at least 24 hours. The disruptions arose from a range of causes, such as storms, power outages and the like.

Question 2. How many businesses will not re-open following a disaster?

Answer: According to the U.S. Federal Emergency Management Administration (FEMA), 43% of businesses will not re-open following a major disaster. This alarming figure does not take into consideration the consequences of disasters that were not designated “major” disasters by the federal government, such as fires and power outages, which can be devastating to small and mid-sized businesses.

Question 3. If you cannot get your business back online within 5 days of a disruption, what are the odds that your business will survive?

Answer: About 10%. A survey of small businesses in the immediate vicinity of the World Trade Center at the time of the 1993 bombing found that of those businesses that could not resume their operations within five days, 90% were out of business a year later.

Question 4. How many businesses worry about the loss of unrecoverable stored data and information?

Answer: 50% worry a “great deal” about the risks of losing stored data and not being able to recover it, according to the 2015 Travelers Business Risk Index.

Question 5. How many businesses have a written business continuity plan?

Answer: Only 50%, according to the 2015 Traveler Business Risk Index which surveyed 1200 businesses to gather this information.

Question 6.  What are the most common reasons that small and medium-sized businesses fail to take measures for business continuity planning?

Answer: Lack of knowledge, lack of time and lack of resources are the three top reasons cited by small and medium sized business owners to explain why they don’t have business continuity plans. This information was gathered in surveys conducted by local chapters of the American Red Cross.

YOU MIGHT ALSO LIKE:  A deep dive into the new Datto products and offerings
Question 7. How many work-hours does the typical small business lose each year when IT systems fail and employees cannot access their files?

Answer: According to information published in “IT Pulse”, 552 employee work-hours are lost annually. That is more than one-quarter of the year for a single employee of a typical small business!

Question 8. What is the average cost of hourly downtime when employees cannot access their computer data?

Answer: Survey results show that a small business that has an hour of “down time” will lose, on average, $20,000 due to the disruption. But if the disruption extends to three hours and employees cannot get back online and resume work, that hourly loss rises to $75,000.

Question 9. There are additional costs when small businesses lose access to their data. What are they?

Answer: The costs include damage to the company’s reputation, customer loyalty and staff morale. These issues were specifically cited by small businesses that had sustained data loss.

Question 10. How many outages does the average small business experience each year?

Answer: Six.

Be honest. How many of the answers did you get correct? How many were shocking? How many made you a little fearful that your disaster recovery planning skills need to be dusted off? Don’t be overwhelmed with disaster recovery planning. Seek the help of a professional today.

Tracy Rock is the Director of Marketing at Invenio IT. Tracy is responsible for all media-related initiatives as well as external communications—including, branding, public relations, promotions, advertising and social media. She is one busy lady and we are lucky to have her!

subscribe

Business Continuity Newsletter

Join over 17,000 subscribers and receive weekly business continuity news, tips & advice to protect your business.

You have Successfully Subscribed!