Disaster recover should be key New Year resolution

30% of companies surveyed In the wake of the devastating Buncefield oil depot fire in Hemel Hempstead say they could not recover if their paper business documents were destroyed by any event. A further 32% say they would take at least 12 months, while the remaining 38% would take some six months to recover. This is despite 60% of organisations claiming to have business continuity plans. Those are the worrying key findings of research by document management systems firm Version One – one of many advising manufacturers to think of Buncefield a wake-up call. Rotherham-based ERP software developer IMS reminds those with inadequate disaster recovery plans of IBM research some time ago that revealed some 20% of businesses suffering an IT disaster are in chaos within two hours – and that 70% cease trading within 18 months. Business continuity systems provider ICM says many are taking heed – listening to the CBI’s advice that business continuity should be treated as a New Year’s Resolution – and has already seen increased levels of interest. Version One’s study shows that with paper destruction, all organisations believe they would incur costs – with 45% estimating at least £50,000. 32% £100,000 to £800,000 and 15% more than £1 million. Says Version One director Tony Bray: “Many organisations think disasters just won’t happen to them. This mentality is extremely alarming! The only way organisations can ensure all business documents are protected in the event of a fire or flood, is by electronically storing all documentation from invoices and purchase orders through to despatch notes and technical drawings – as well as keeping back-up copies off-site.” CBI director general Digby Jones adds: “Evidence suggests that not as many companies had computer back-ups and other financial records stored off-site, as they should.” IMS sales director David Hurst says: “Companies rely so heavily on IT these days that anything from extreme weather to fires and burglary can have a devastating impact. For most, it is not the loss of the equipment, but the loss of the intellectual property it holds that is the most damaging. “All of the businesses caught up in the Hemel Hempstead fire will have lost everything, but it will be the ones who had disaster procedures in place that will make the fastest recovery. I cannot emphasise enough how important it is to be prepared for the unexpected.” ICM Computer Group operations director Mike Osborne concludes: “We are now at a critical point where businesses are more aware of the issues than ever, and are realising that adequate consideration must be given to business continuity. We fully support the CBI’s insistence that this issue be treated as a matter of urgency. “