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While human errors cause 5 times more outages than natural disasters, only 50% of enterprises have a business continuity plan and only 59% test their plans regularly. Downtime costs businesses significantly, from $90k per hour for media companies to $6.48 million per hour for brokerages. Non-compliance with industry regulations on business continuity and disaster recovery can result in fines up to $250k or imprisonment of up to 10 years. Assessing readiness and outsourcing options to a provider like HPE Continuity Services can help businesses ensure they are prepared for inevitable disruptions.
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Introduction
Organizations grow by providing needed products and services. Overtime, successful
companies will grow as they continue to fill the need of their customer base. This
includes providing the product and services in a predictable fashion that the client base
has grown to expect. Sometimes disasters occur which are unexpected. These disasters
take various forms and can be caused by various events. Some disasters are manmade and
some are not. Generally, the disasters are not predictable when they happen.
Organizations need to prepare for these disasters. They need to have a plan that protects
their assets, the assets of their clients and provides for continuing business according to
their service level agreements.
The outages that result from a disaster can range from a nuisance to a full blown
catastrophe. Consider an outage that occurs to a computer system that is controlling an
online gaming site, versus an outage to a computer system controlling a nuclear reactor or
hospital intensive care until.
If something interrupts an organizations ability to provide their product and services
clients will quickly seek other alternatives.
Sudden interruptions in the delivery of an organizations product and services can occur in
a variety of ways; consider the following few:
Natural disasters such as earthquakes, fire, floods.
When Japan was hit by an earthquake, tsunami and nuclear plant breach their
infrastructure was devastated. Many dependent businesses thousands of miles
away were affected by the inability of the Japanese manufacturers to deliver on
manufacturing commitments such as automobiles and auto parts. The lack of parts
impacted car dealers and car users the world over. Similarly, when Thailand was
hit by floods their ability to deliver disk drives and other semi-conductor parts to
computer manufacturers forced these manufacturers to seek alternate suppliers.
In both these cases organizations that relied on Japan and Thailand to deliver
products to them had to have contingency plans in place for their supply chain.
Without a business continuity plan that had contingencies for alternate suppliers
customers would turn to other alternatives.
Job actions such as: strikes, slowdowns, walkouts
Airline pilots go on strike; forcing customers to seek alternate means of travel for
personal use and business. In some cases, people were forced to seek alternatives
to travel. In some cases business travel was replaced with technology alternatives
such as video conferencing, messages and email. Personal travel was supplanted
with train travel and trips closer to home that could be done with an automobile.
There isn’t much of a contingency for not having trained pilots. But part of a
disaster recovery plan would be to have some good-will gestures in place to win
back the customer base ...
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disaster-recovery-online
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Whitepaper : Building a disaster ready infrastructure
It’s not just hurricanes, fire or other natureal disasters that can bring a business to its knees. Everyday problems such as bad software, misconfigured networks, hardware failures or power outages are much more common. In fact, power failures accounted for nearly half of the declared disasters reported in a recent survey conducted by Forrester
HUB International: "Broker Insight Report: Business Interruption Insurance"
You’ve Experienced a Critical Event. What Do You Do Now?
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Ready or not?
- 1. vs. 50% of enterprises activate business continuity plans within one calendar year1 Ready or not? “If”vs.“When” The next business disruption is not a matter of “if” but “when.” How ready or not you are all depends on how you answer six simple questions: 5x Human error more often than natural disasters $ Did you experience a major disruption? Fact: Outages caused by human errors happen 5x more often than by natural or man-made disasters.2 Do you know the financial impact of an IT outage to your business? Fact: The cost of downtime per hour across US industries:3 1 2 Brokerage service: $6.48M Energy: $2.8M Telecom: $2M Manufacturing: $1.6M Retail: $1.1M Healthcare: $636K Media: $90K Fines $10K $250K Prison up to 10 years Do you comply with your industry regulations defining business continuity and disaster recovery (BC/DR)? Fact: Non-compliance penalties can be significant. Fines can range from $10K to $250K with possible imprisonment of up to 10 years.4 59% Only 50% Only 59% Only Only 55% Only 32% Do you have a BC/DR plan in place? Fact: According to Aberdeen Group Do you regularly update and test your BC/DR plan? Fact: According to Aberdeen Group Have you assessed outsourcing your BC/DR? Fact: Forrester revealed that of enterprises doing DR in-house When a disruption hits, are you confident in your continuity? It just might be time to re-evaluate your continuity strategy. have a BC/DR operations procedure document in place5 have a BC/DR plan that can be measured5 educate their IT staff on how to proceed during a crisis5 4 5 6 have tested their BC/DR plan regularly5 were somewhat successful in meeting recovery objectives during testing6 34% 34% Only Atleast have tracked and reported their BC/DR plan performance5 are not sure they could respond to a real disaster6 ?? © Copyright 2015 Hewlett Packard Enterprise Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HPE products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HPE shall not be liable for technical or editorial errors or omissions contained herein. Find out more. Schedule an assessment today: https://www.hpe.com/services/continuity Sources: 1. KPMG Business Continuity Management Benchmarking Study, 2010 2. Acronis—Ponemon Institute Survey, 2012 3. Network Computing, the Meta Group, and Contingency Planning Research 4. Business Continuity Institute, 2014 5. Aberdeen Group, 2013 6. Forrester Consulting, 2013 HPE Continuity Services can help you assess if you’re ready or not. From tailored engagements to fully managed programs, we can design a solution specifically for your needs. 3