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Even the savviest business owners cannot foresee disaster, but they can plan for it. This is especially true when it comes to safeguarding the data a business relies on. Disaster recovery is an essential corporate function. Given the many threats a 21st-century business faces, it is almost inevitable that a business will face data loss. This loss can be caused by data corruption, software glitches, power loss, viruses, natural disasters, cyberattacks, or, most commonly, human error.

In each of these instances, a carefully thought out, efficient, and professional disaster recovery plan and backup systems are the keys to preventing the organization from suffering both financial and reputational loss, both of which will severely affect company competitiveness. Reputational loss is often underestimated by organizations. However, a loss of trust can be devastating. A recent survey by the Ponemon Institute, a globally respected think tank, put the losses from reputational damage at a staggering 40% of the total losses caused by a data breach.

The Benefits of a Disaster Recovery Plan

Data is the lifeblood of any modern organization. However, the reality is that business data is constantly under threat. Data breaches alone cost companies an average of $9.48 million in 2023, and there is every indication that the problem will only get worse.

Data breach is only one of the threats that companies face. There is also the risk of an IT infrastructure failure. Developing a carefully considered disaster recovery plan will not only help an organization recover from criminal activity and other data loss scenarios but can have numerous other business benefits.

Dealing With Reputational Risk

Companies invest a lot in building a reputation, and the results pay dividends. A recent study revealed that a flawless reputation can contribute around 3-7.5 percent of business revenue annually. A professional disaster recovery plan can help organizations weather the storm of data loss or system failure, allowing the organization to resume business as normal in the shortest time possible. This will ensure that the business’s reputation does not suffer and that the level of trust between the company and customers or clients remains healthy.

Companies need to react extremely quickly to any disaster that affects data integrity. The lack of a world-class plan can have ramifications far beyond the time lost recovering data that has not been securely backed up. According to the experts at TechRadar Online, 2 in 5 American businesses do not have a structured disaster recovery plan. A survey revealed that 1 in 20 organizations that did not have a disaster recovery plan never recovered from data loss, and many disappeared from the competitive landscape.

Enabling Client-Centric Focus

Consumers are becoming increasingly demanding when it comes to the products and services they enjoy. They expect delivery when they want it and where they want it. In short, customers are impatient. Any disruption to data access or the proper functioning of an IT system risks client dissatisfaction, motivating customers to migrate to the competition. A well-structured and easily implemented disaster recovery plan will prevent the shrinkage of the client base and the resultant effect on the bottom line.

Reducing Regulatory Risk

Data loss or IT systems failure can have severe impacts on the business. A disaster recovery plan reduces the threat of non-compliance with regulatory requirements and lowers the risk of legal action.

For example, a disaster affecting data integrity or the loss of data can open a business up to lawsuits, and non-compliance with data security regulations such as the GDPR (General Data Protection Regulation) or the CCPA (California Consumer Privacy Act) can result in hefty fines. Having a disaster recovery plan in place is better than trying to deal with the potentially expensive fallout of not having one.

Prioritizing Company Growth

In a highly competitive business environment, a business must ensure that it stands out from the crowd. A company with a carefully considered and comprehensive disaster recovery plan is far more attractive to consumers, investors, or financial institutions. It gives customers and clients the peace of mind that is so important to growing sales. Nurturing investor and financial institution trust is also essential if the business is to have access to finance for growth initiatives.

However, disaster recovery does more than just make an organization more attractive to stakeholders; it preserves the foundations of growth. Without access to current and legacy data, an organization cannot analyze data sets over time. The results of that analysis are vital for forward planning. A company that has lost this foundation is navigating blindly when it comes to medium- and long-term planning.

Finding the Right Disaster Recovery Service Provider

Planning for disaster will almost inevitably reveal any IT weak points, from system and data vulnerabilities to corruption or criminal activity. However, preparing a comprehensive disaster recovery plan helps a company recover from disaster and is also proactive. By revealing system weaknesses, the organization can dramatically reduce the potential for disaster. But, before the proactive approach can become a reality, these experts should:

• Have a world-class methodology for conducting a comprehensive business analysis.
• Have the expertise and experience required to identify key risk points. Conducting a thorough risk analysis is essential to the success of any disaster recovery plan.
• Provide class-leading backup systems.
• Be flexible enough to develop solutions suited to the unique requirements of the business.
• Have a track record of success.
• Have a spotless reputation for trustworthiness and prioritizing data security.
• Provide exceptional value for money.

When evaluating a disaster recovery company, it is essential to read reviews of the company. There are a number of easy-to-find internet sites that have feedback from clients. In addition, always request a face-to-face meeting with a senior company representative so that any questions or concerns can be raised before signing on the dotted line.

Resilience in the Face of Disaster

The only thing predictable about business in the 21st century is the fact that it will continue to be unpredictable. But finding the right advisors is the key to success.

If your Houston company does not have a disaster recovery plan, it is in danger of potentially catastrophic financial and reputational losses. Stay safe and profitable by contacting Stargel, the data recovery solutions expert.