Disaster preparedness and recovery describes a set of protocols and systems put in place in order for a business or organisation to continue following any natural or man-made disaster.
As IT systems have become critical to the operation of many companies and organisations, the importance of ensuring the continued operation of those systems, or the rapid recovery of the systems, has increased.
It is estimated that most large companies spend between 2% and 4% of their IT budget on disaster recovery planning, with the aim of avoiding larger losses in the event that the business cannot continue to function due to loss of IT infrastructure and data. It is accepted knowledge that companies which have had a major loss of business data, 43% never reopen, 51% close within two years, and only 6% will survive long-term.
Conversely, following the 9-11 attacks in New York in 2001 many businesses were forced to close down or relocate and start from scratch, however business owner Donna Childs was well-prepared for a disaster, and was able to keep her financial services business, Childs Capital LLC, operating nearly without interruption.
Childs said she had previously spent time working for a large reinsurance company, where she learned the importance of having contingency plans in place.
Following the terrorist attacks, she immediately activated her previously prepared business and communication backup plans. Those included access to all of the company's computer files, which had been backed up off-site.
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