Disaster Planning – Business Continuity Cost of No Plan

Cost of no Plan

CIO and the organizations they manage need to place a high value on being prepared for disasters of any kind because the practical ramifications of failing to do so can be very high indeed:

  • Lost revenue: Even the loss of a single mission-critical service, such as e-mail or web connectivity, can cost some companies millions of dollars in revenue. Avoiding this downtime with a business continuity and disaster recovery plan in place is a clear benefit.
  • Customer confidence: When a company experiences an interruption in services or suffers a loss of data, customers can lose confidence in that firm’s viability in a crisis and its ability to meet their needs and protect their personal information.
  • Compliance penalties and fines: Government regulated businesses found to be in a state of noncompliance could be subjected to lawsuits, fines and penalties.
  • Staff confidence and effectiveness: As technology becomes an even greater part of business operations, users have come to rely more and more on services and technologies to do their jobs. When those services or technologies become unavailable, even for short periods of time, users suffer major productivity losses.
  • In addition to the direct costs of lost productivity, long-term damage can result in low staff morale and confidence in the organization, extending the monetary damages well into the future, even after services have been restored.


Disaster Planning – Business Continuity Tutorial.

Author: Victor Janulaitis

M. Victor Janulaitis is the CEO of Janco Associates. He has taught at the USC Graduate School of Business, been a guest lecturer at the UCLA's Anderson School of Business, a Graduate School at Harvard University, and several other universities in various programs.