Continuity Corner #4
Tuesday, September 4th, 2007Statistics of Failed
Businesses Who are
Without a Plan
We have blogged about the frequency of significant business disruptions. Now, lets blog about what happens to a business that doesn’t have a plan. In 2005, Cummings, Haag & McCubbrey said, "It is believed that some companies spend up to 25% of their budgets on disaster recovery planning. Of companies that had a major loss of computerized records,
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43% never reopen,
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51% close within two years, and
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7% will survive long-term.
An older study conducted by Security News Magazine found
- 93% of companies without a recovery plan go out of business within five years of a loss or disaster.
- 50 percent of those businesses who do not recover their data within 10 business days never fully recover.
- Critical business functions cannot continue for more than 4.8 days without a data recovery process. (K. Sibley, “ Data Recovery: How Safe is Your Business?”, Computing Canada, Volume 23, Number 21, pg. 16, October 14, 1997.)
Unfortunately, whether we are looking at the 1990’s or today, the statistics haven’t changed. Chances are if you don’t have a plan you won’t have a business!
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