Page 81 - Cyber Warnings

The Why and How of Business Continuity for Your Business

Introduction

Per the statistics published by Insurance Information Institute, up to 40% business are
affected by a disaster because of which 35% never reopen. Such disasters not only disrupt
the trade, travel but also adversely impacts the operational workplace, with the typical cost
of recovery running into millions of dollars (downtime cost, effort, alternate site costs (both
triggering and usage), penalties, SLA breaches and regulatory violations), loss of business
reputation, reduced staff morale, hampered customer confidence and penalties and
regulatory sanctions

Background

Annual cost of data loss to US businesses is $12 billion. Following are the top reasons for
data loss –

1. Hardware/System malfunctions (44%) – head/media crash, electrical failure, brownouts
2. Human Error (32%) – accidental deletion, data formatting, trauma caused by drop/fall
3. Software corruption (14%) – compatibility issues, failed backups/restoration, corruption
caused by diagnostic/repair tools
4. Malware (7%) – rootkits, worms, logic bombs
5. Natural disasters (3%) – Fires, floods, tornado

Despite the above facts available, the following statistics reveal the laxity towards ensuring
adequate uptime and business continuity –

81 Cyber Warnings E-Magazine February 2017 Edition
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