We have witnessed seismic disruptions shake the stability of global e-commerce trade in recent years. As we have grown so dependent on data and technology to drive operations, we also become exposed to the risks of substantial downtime due to disruptions, such as cyber-attacks or natural disasters.
What’s needed to minimise the impacts in the event of a disaster?
A disaster recovery strategy is the first place to start. It is more than just a contingency plan; it is a proactive approach to ensuring business continuity in the face of unexpected events such as cyber-attacks, natural disasters, or system failures. This article explores what you stand to lose if unprepared and outlines the key components to protecting your operations.
1. Substantial data loss
A cyber attack or natural disaster can lead to large amounts of lost data, which can render your business unable to perform essential functions. For example, if a ransomware attack encrypts your only copy of organisational data, then you have no way of using it or guaranteeing its return.
Cyber attacks are not the only risk to your data. Natural disasters such as fires or floods can physically damage servers and storage devices, leading to irretrievable data loss. Without a disaster recovery strategy, your business risks losing valuable data and experiencing downtime.
Types of information stolen in data breaches
The Australian Signals Directorate (ASD) conducted a detailed analysis between 1 November 2021 and 30 October 2022. They found that the average amount of data stolen during a breach was 120 gigabytes. This data primarily consisted of:
2. Business continuity and revenue
Data loss can significantly disrupt business continuity as operations halt. This downtime directly translates into lost revenue, as the business cannot process transactions, fulfil orders, or provide services. While the cost of downtime will look different for every business and industry, even a few hours can result in substantial financial losses. A recent survey found that downtime costs Australian organisations an average of $7,011 per minute. Each incident takes an average of 148 minutes to resolve.
3. Lost customers
How your organisation responds to a disaster can impact customer trust and retention. Failure to recover quickly can impact your customers and lead to dissatisfaction, and they may turn to competitors. The long-term impact on customer relationships and retention can be devastating for businesses without an effective disaster recovery plan. Even if you recover quickly, you cannot guarantee customer retention, but you might minimise the fallout.
4. Vendors and partners lose trust
In addition to customers, you could also lose the trust of vendors and partners you rely on for supply chain and operational needs. Trust is a crucial component of these relationships, and any loss of trust can have long-term repercussions. Disrupted business continuity can strain relationships with vendors who may become impacted by your business experiencing downtime. They may also hesitate to engage with your company if you experience prolonged downtime due to a lack of preparedness.
5. Reputational damage and ongoing financial losses
The financial implications of data loss and operational downtime extend beyond immediate revenue loss. Failure to comply with data protection regulations can prove costly, with hefty fines and penalties for your business. For example, your organisation might need to comply with regulations such as the Privacy Act 1988, the SOCI Act, or the Defence Industry Security Program (DISP). If you experience a data breach due to non-compliance, your company can incur significant fines.
Moreover, the reputational damage from a high-profile data breach can be long-lasting. The negative publicity can deter potential customers and investors, making it challenging for the business to recover its standing in the market.
How a disaster recovery strategy protects your business
A disaster recovery strategy minimises data loss and operational disruptions. It focuses on protecting data through a range of key components including regular data backups, off-site storage, and clearly defined recovery protocols. With a disaster recovery plan in place, your critical data is protected and can be quickly restored, minimising the impact on business and revenue.
Key components of a disaster recovery strategy
- Data backup: Regularly scheduled data backup ensures that the latest data is always available for recovery.
- Off-site storage: Having backup copies stored off-site in a secure, remote location protects against local disasters.
- Recovery protocols: Defined procedures for restoring data and systems ensure swift action during a disaster.
- Testing and updates: Regularly testing and updating the disaster recovery plan ensures effectiveness and relevance.
- Employee training: Ensuring that employees are trained on disaster recovery protocols and can facilitate a coordinated response.
Types of disaster recovery plans
- Data centre disaster recovery: Focuses on protecting and recovering data centre resources.
- Cloud disaster recovery: Uses cloud services to back up and recover data.
- Virtualised disaster recovery: Leverages virtual machines to enable quick recovery and flexibility.
- Network disaster recovery: Ensures network infrastructure can be restored to maintain connectivity and communication.
Conclusion
A disaster recovery strategy is not just a precaution but a necessity for Australian businesses to protect data, maintain operational continuity, and protect their reputation. The potential losses from data breaches, natural disasters, and system failures carry ramifications too dire to chance. Deploying a comprehensive disaster recovery plan can minimise substantial data loss, financial repercussions, and damage to customer and partner relationships.
Amidata can help build your disaster recovery strategy
When the stakes are this high, proactive measures are the best way to protect your business. Amidata offers expert services to help build and deploy your disaster recovery strategy. Our Backup-as-a-Service solution ensures your business data is securely stored, maintained, and easily retrievable, allowing you to focus on core operations without the burden of complex data management.
Visit our Backup as a Service page to learn more about our backup and disaster recovery solutions.
