How do you calculate the financial Impact of a disaster to your Business?
From minor incidents to major disasters, there is no doubt this event will have a financial impact on your business. To evaluate the cost to your business you need to work out the following:
- Building damage
- Equipment damage
- Stock/material loss/damage
- Staff downtime
- Loss of production time
- Loss of sales
- Temporary relocation costs
The real impact to the business will depend on what it does and how. For example, a company with a higher than average reliance on power; such as technology, production, and refrigeration, will suffer more than a business that provides an off site service at its client premises.
These high power demand businesses will be affected by something as small as a dip or glitch in power quality, and may need a protection process in addition to a disaster recovery plan.
Your business should have a disaster recovery plan, but is it tested? Testing can identify any issues in the plan, but it can also help you identify the potential financial impact a disaster will have on the business, and how to reduce the risk.
For further guidance on your business continuity, have a read of one of our current Whitepapers