Only half of all organisations test BC plans-IDC
Only half of all organisations test BC plans-IDC
Despite the increase in awareness of the need for a business continuity (BC) plan, after the events of September 11, 2001 and the recent power outages in Sydney, New York and London brought the need for a BC plan sharply into focus, only half of the Australian organisations that have a BC plan in place have actually tested it for effectiveness.
That is according to a new report by analysts IDC, entitled: "Keeping the Engine of Commerce Running."
While global events have forced organisations to place an even greater focus on business continuity with 85 percent of organisations having plans in place, only half of those have tested those plans to find out if they will be effective enough should the unthinkable happen.
This study was conducted as part of IDC's end-user research to understand how Australian companies are dealing with the risks to vital IT systems. Interviews were conducted with some of Australia's largest company CEOs, CIOs and CFOs. The study revealed that if Business Continuity plans are not in place or tested, the risks to Australian enterprises can include business disruption, corporate liability and loss of shareholder confidence and customer loyalty.
To mitigate such risks, the report offers practical advice for companies to protect themselves from threats inhibiting them from operating normally in the event of a disaster striking.
The report found that the finance and manufacturing sectors are the most prepared if a disaster strikes, and identified that for most Australian organisations, the most critical business processes to be protected from risk include financial systems, human resources and payroll functions.
The study reveals critical risk reducers and a prevention and planning framework to assist organisations with two goals. Firstly, to ensure all relevant preventative measures are in place to minimise the risk of disruption, and secondly, if disruption occurs, to ensure critical business operations can continue.
"Executives must ensure attention is given to an enterprise's business continuity and disaster recovery plans, given our continued reliance on technology for major business functions," said Catherine Bennett, Director User Programmes, IDC. "When technology fails for any reason, business must continue."
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