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Disasters can happen at any time and to any business. A fire, a robbery, a global pandemic—no business is immune from the potential for disaster. In the event of a natural or man-made disaster, it is essential that your business have a continuity plan (BCP) in place.
A continuity plan will help your business get back up and running as quickly as possible after a disaster occurs. Not only will this save you money in the long run, but it could also mean the difference between surviving and going out of business altogether.
What Is Business Continuity?
Business continuity is the ability of an organization to keep functioning despite major disruptive events. A business continuity plan is a document that outlines how a business will continue operating during and after an unexpected event. The purpose of a BCP is to minimize the impact of disruptions on the business and to protect its critical functions.
A well-developed BCP can help a business to continue operating during and after a disruptive event. This can minimize the impact on the business, its employees, and its customers.
When the COVID-19 pandemic hit global businesses, a study found that a little over half of organizations did not have a business continuity plan in place. And 75% of business without a continuity plan fail within the first three years after a disaster.
How Do Business Continuity Plans Keep Organizations Protected?
BCPs not only help organizations stay protected from natural disasters, but also protect against hardware failures and cybercrime.
Ensure Compliance
BCP can help organizations to comply with both internal and external regulations. For example, if your organization is required to maintain a high level of privacy for protected information, a BCP can help to ensure that these requirements are met in the event of a disaster.
Non-compliance can be expensive. For instance, HIPAA compliance requires that documents for each patient be kept for at least seven years. If your organization experiences a disaster and loses those files, you could face a fine of about $50,000 per violation.
Prevent Downtime
A BCP can also help to prevent downtime that often occurs after a disaster. In the event of a power outage, a business continuity plan can help to ensure that critical operations can continue. This can help to avoid lost revenue and productivity.
According to Gartner, the average cost of downtime is $5,600 per minute. For some organizations, this can be much higher.
Protect Your Reputation
A continuity plan can also help to protect your organization’s reputation. In the event of a data breach, a BCP can help to ensure that your customer’s data is protected. This can help to avoid negative publicity and legal penalties.
In 2018, a power outage cost Delta over $50 million dollars. The company’s backups were also destroyed in the incident, leading Delta to cancel over 1,400 flights and experience thousands of angry customers.
Save Money
BCP can also help organizations to save money. In the event of a disaster, for example, a BCP can help to ensure that operations can continue with minimal disruption. This can help to avoid lost revenue and productivity.
A study by IBM and the Ponemon Institute found that the average cost of a data breach in 2021 was $4.24 million. And the average cost of a data breach for a healthcare organization rose to $7.13 million in 2020. These are extremely devastating costs that can hurt not only your business but your clients.
Business continuity plans are important for any organization. They can help to protect against disruptions, ensure compliance, prevent downtime, and protect your reputation. And they can also help you to save money. If you don’t have a plan in place, now is the time to develop one.
Prepare Your Business with eMDTec
At eMDTec, we can help your organization protect your future. Our team of experts can help you to develop a comprehensive business continuity plan that will keep your business running during and after a disruptive event. Contact us today to learn more about our services.