8 reasons businesses have no DR plan (and why they're wrong)
In today's interconnected world, disaster recovery planning is not a luxury but a necessity for safeguarding the future of any business. Don't make the mistake of being unprepared.
Businesses hinge on data availability and uninterrupted service delivery. The adage "failing to plan is planning to fail" holds particularly true in the context of disaster recovery. So why is this critical component of business strategy so often neglected?
According to the Federal Emergency Management Agency, nearly 40% of small businesses never reopen following a disaster. This is partly because of the serious costs associated with downtime. IDC reports that as of 2022, on average, an hour of downtime can cost companies $250,000.
In addition to costs, cyberattacks are increasingly rampant. According to the University of Maryland, a hacker attack occurs every 39 seconds, impacting one in three Americans each year.
The decision to have no disaster recovery plan can be attributed to several factors, including misjudged risk and financial shortsightedness. Below are eight common reasons why businesses might decide against a strong DR strategy. IT and DR teams need to understand the thinking behind these decisions to avoid making the same mistakes.
If an organization has never experienced a significant disruption, there might be a lack of urgency to prepare for one.
1. Misunderstanding of risk
A prevalent reason for the lack of investment in DR planning is a misunderstanding of risk. Some organizations view disasters as rare anomalies rather than integral parts of risk management. This leads to a dangerous underestimation of the probability and impact of potential disasters.
2. Cost concerns
Investing in DR is often perceived as a significant financial undertaking with no immediate return. Businesses operating with tight budgets might find it challenging to allocate funds for something that does not contribute directly to day-to-day operations or revenue generation. Unfortunately, this is an extremely common scenario. The result is a bias for investing in areas that promise tangible and short-term benefits over the long-term benefits of disaster recovery.
3. Complexity of DR Planning
DR planning can be complex and resource-intensive. It requires a thorough analysis of business processes, identification of critical systems, and the development of detailed response protocols. For many companies, particularly small to mid-sized ones, the challenge of creating and maintaining a comprehensive DR plan can be daunting, leading to procrastination or half-hearted measures.
4. Rapid technological change
Technology evolves at a breakneck pace. The threats also change. Some organizations might put off DR planning, thinking that any investment could quickly become obsolete. This wait-and-see approach can leave businesses with no disaster recovery plan vulnerable to current threats while they focus on potential future risks.
5. Lack of expertise
DR planning is a specialized field, and not all organizations have the in-house expertise to develop an effective plan. The shortage of qualified professionals who can understand and implement disaster recovery strategies can discourage businesses from engaging in the planning process.
6. Overreliance on insurance
Many companies rely too much on insurance as their safety net, mistakenly believing that financial reimbursement post-disaster is equivalent to recovery. While insurance is crucial, it does not address the operational continuity and data integrity aspects, which are essential for a business to survive in the immediate aftermath of a disaster. Without the data, the business will not be able to conduct business.
7. Inadequate testing and maintenance
A DR plan requires regular testing and updating, tasks that can fall by the wayside in the daily grind of business operations. This perceived ongoing commitment can deter organizations from initiating a DR plan.
8. Psychological distance: "It won't happen to us"
Disasters are often thought of as abstract events, both geographically and mentally. If an organization has never experienced a significant disruption, there might be a lack of urgency to prepare for one, as the threat does not feel immediate or real.
How to overcome these common mistakes
The costs of DR preparation pale in comparison with the potential losses if there is no plan in place. An effective DR plan serves as an insurance policy for operational continuity, preserving customer trust, protecting market share, and, ultimately, ensuring long-term viability.
The first step toward overcoming the hesitance to invest in DR planning is education. Businesses must understand the realities of disasters -- their frequency, potential impact and the true cost of waiting and seeing. This awareness, combined with a shift in mindset from viewing DR as a cost to considering it an essential investment in business continuity, is critical.
Furthermore, simplifying the DR process through modular, scalable fixes can help make DR planning more accessible and less intimidating. Cloud technologies, for instance, can provide cost-effective, flexible, and resilient DR capabilities suitable for businesses of all sizes. Start with the most critical systems, plan, create, test and then rinse and repeat.
Stuart Burns is a virtualization expert at a Fortune 500 company. He specializes in VMware and system integration with additional expertise in disaster recovery and systems management. Burns received vExpert status in 2015.
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