When you think of business continuity and disaster recovery, brand reputation is most likely not the first thing that comes to mind. However, the impact of interrupted operations is higher than ever before. According to IT World Canada, “…the average cost of an outage from a security breach is $4 million. The damage to a company’s brand can be even more serious. When business operations are halted, word goes viral across media and could become a major hit to organizations’ reputations.
The impact of disasters on small businesses can be damaging and occur more often than you think. According to the Federal Emergency Management Agency, “Small businesses are particularly vulnerable to the high costs of weather damages. Almost 40 percent never reopen after a disaster.” And a recent January 2017 survey from FM Global’s “Finances Role in Operational Risk Management – CFO Research on Building a Resilient Company” noted that impacts of a loss event can include:
- Damage to customer service/relationships (47%)
- Threat to employee’s health and well-being (43%)
- Harm to my company’s brand or reputation (36%)
- Unplanned cost increases (24%)
- Compliance problems (22%)
- Reduction in market shared (14%)
So what can you do to protect your business and your brand reputation? You can take action by developing your business continuity/disaster recovery (BCDR) strategy for mitigating interruptions and ensure your business has a short-term and long-term recovery strategy in place. At the time of interruption, your business will have needs that cannot be guaranteed nor effectively implemented without a partner.
Here are just a few initial steps you can take: