---
title: What Is The Impact On My Business Of Not Having A Disaster Recovery Plan?
description: In this article we look at the theory behind disaster recovery planning & the evidence to show the impacts that organisations have experienced by not having one.
image: https://blog.tmb.co.uk/hubfs/What%20Is%20The%20Impact%20On%20My%20Business%20Of%20Not%20Having%20A%20Disaster%20Recovery%20Plan.jpg
---

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- What Is The Impact On My Business Of Not Having A Disaster Recovery Plan?

# What Is The Impact On My Business Of Not Having A Disaster Recovery Plan?

- [Technology Means Business](https://blog.tmb.co.uk/author/technology-means-business)
- [September 30, 2019](https://blog.tmb.co.uk/archive/2019/09/30)
- 10:20 AM
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Are disaster recovery plans worth it? If you are a responsible business leader, the only way to answer that question is by knowing the facts. Here, we take a look at the theory behind disaster recovery planning and the evidence to [show the impacts](https://blog.tmb.co.uk/impacts-of-a-disaster-recovery-plan) that organisations have experienced by not having one.

## [![New call-to-action](https://no-cache.hubspot.com/cta/default/5264661/e81e1f92-5fe3-439f-99a5-efa85e9c2074.png)](https://cta-redirect.hubspot.com/cta/redirect/5264661/e81e1f92-5fe3-439f-99a5-efa85e9c2074) What Is A Disaster Recovery Plan?

[Disaster recovery planning](https://offers.tmb.co.uk/disaster-recovery-and-business-continuity) is becoming an essential tool for organisations. Navigating business in a turbulent landscape of shifting technology, a Wild-West-style cyber space, and increasingly complex legal rules, is one of the biggest threats to contemporary companies. [Disaster recovery plans involve](https://blog.tmb.co.uk/when-does-disaster-recovery-matter) predicting threats, minimising risks, and having a solid and well-oiled plan in place in case the worst should happen.

## Complete Data Loss

Data loss is one of the most fear-inducing threats that businesses face. As little as a decade ago, the most prominent form of data loss was a company executive leaving a sensitive USB stick [on a train](http://news.bbc.co.uk/1/hi/uk/7514281.stm). Although this threat still exists (Heathrow Airport [was fined £120k](https://www.bbc.co.uk/news/business-45785227) in 2018 for a “highly regrettable” data stick loss), the majority of serious data losses now occur remotely. Data loss equates to more than just high-profile fines. [Studies](https://link.springer.com/chapter/10.1007/978-3-319-94268-1_81) suggest that companies that lose their customers’ data often slip silently off the information superhighway and into the organisational equivalent of tumbleweed. Studies also show that customers are [very forgiving](https://www.usenix.org/conference/soups2018/presentation/zou), as long as the problem is fixed rapidly. Disaster recovery planning makes this happen.

## Business Interruption

In every epoch, there are vulnerabilities that can bring companies to their knees. In the Industrial Revolution, a coal shortage could put factories, shipping and transport rapidly out of business. Today’s equivalent is IT. Digitisation is now “necessary”, according to [business commentators](https://www.telegraph.co.uk/business/business-reporter/digitisation-and-marketplaces-become-necessity/). This is supported by [Statistica figures](https://www.statista.com/statistics/883832/company-benefits-selling-e-commerce-marketplaces-marketing-professionals/), which show that “reaching customers where they want to buy” is vital for 76% of surveyed organisations. When the digital artery is severed, it does not take long for the downtime costs to begin. Disaster recovery plans are designed to immediately reconnect a company with its audience, minimising downtime and maximising efficiency.

## PR Woes

IT is so important that an inability to deal with a disaster can have serious consequences. Paul Pester, CEO of banking group TSB, found himself before Parliament in 2018 having to explain their [high-profile IT mistake](https://www.theguardian.com/business/2018/jun/06/timeline-of-trouble-how-the-tsb-it-meltdown-unfolded). With a little time, large corporations can generally bounce back from these kinds of incidents, but SMEs have a much bumpier ride when things go wrong. This is worrying, as research by the [Association of British Insurers](https://www.abi.org.uk/globalassets/sitecore/files/documents/publications/public/migrated/liability/insurance-for-small-businesses-a-guide-to-protecting-your-business.pdf) shows that “80% of businesses that suffer a major incident fail within 18 months.” [Interviewed by HSBC](https://www.business.hsbc.uk/en-gb/gb/article/qa-disaster-recovery-planning), management consultant Hedley Basford explains that a lack of disaster recovery planning underpins this loss.

## Find Out More

If you want to learn more about the risks that face your industry sector, [have a chat](https://www.tmb.co.uk/contact) with one of our experienced disaster recovery professionals today.

*Image source: [Pixabay](https://pixabay.com/photos/concept-man-papers-person-plan-1868728/)*

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