accidents and disasters happen

The insurance industry estimate that the number of possible risks for a business operation is about 300. In IT the most common disruptions come from power failures and hardware problems. How do you handle disasters in your business?

EMC has estimated that more than half of all business operations in Europe had systems down or experienced data loss last year. That equals 400 GB or 10 000 Word documents. The most common reasons was power failures and hardware problems. The consequences were productivity and customer losses. The average downtime was 48 hours.

After the fire in the Philips component plant in New Mexico in year 2000 the production of Ericsson mobile phones was shut down for months. The economic loss was 4 billion SEK (575 million USD). Meanwhile Nokia managed to ensure access to components with better planning and after negotiations with Philips. The result was ensured Nokia production and additional market shares on Ericsson's expense according to MSB - The Swedish Civil Contingencies Agency and their report Business Continuity - an introduction.

Companies with effective crisis management can already after 50 trading days show increased stock values. Companies with ineffective crisis management lose market capitalization up to a year after a disaster and need up to three years to regain market credibility according to The Swedish Civil Contingencies Agency. 80 percent of the companies affected by the World Trade Center bombings 1993 dissapeared efter a week according to Paul Anderson, Tech Solution Program Manager at EMC.

A toolbox for continuity planning

Accidents always happen. The solution is to be prepared and make the consequences manageable. For that you need a plan. At EMC's roadshow The IT NonStop Tour you will get a toolbox including a startkit with the necessary ingredients to implement a business continuity plan for your operations.

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