How to Develop a Small Business Disaster Recovery Plan

Emergencies, disasters, and severe weather are normal — and it pays to be prepared. But according to a recent survey, only 24% of businesses have an up-to-date disaster recovery plan.1 Disaster recovery planning should focus on protecting and sustaining a business’ four most important assets during a crisis – employees, customers, physical property and data.

Here's how to get started.

1. Assess business risks.
   Every business is vulnerable to different risks. Determine which factors, such as weather, cyberattacks or other risks, could adversely impact your business. Key questions to ask include:
   • Are my employees at risk of injury?
   • Can we continue operations if the building, machinery or inventory is destroyed?
   • What resources, including staff, would be needed to operate at minimum capacity and/or full capacity?
   • Is our data backed up and will we have immediate access?
   • If our suppliers are affected, do we have alternatives?
   • Will our customers be able to continue purchasing our goods and services?
   • How will a shutdown affect cash flow?
   
   Understanding the implications for each area of your business will help to determine how to respond.


2. Review insurance coverage and adjust as needed.
   Will you be able to cover the costs of business losses or additional costs to restart? This doesn’t just mean physical property like building, cars and equipment, but also loss of income during the disaster and the time it takes to recover and service interruptions. Depending on your business and location, you may need to purchase additional policies or coverage (e.g., flood or earthquake insurance, tenants, improvements, etc.).


3. Secure important records.
   Ensure that copies of business licenses, insurance policies, identification, customer data and tax records are stored in at least two physical locations with fire and waterproof accommodations. Also keep digital copies in cloud storage. IT should also regularly back up data to an offsite location in case servers or computers are damaged or inaccessible.


4. Install and regularly test emergency systems.
   If you have physical locations, it's important that emergency solutions are installed, functioning properly, and regularly tested. These include but aren't limited to smoke detectors, sprinklers, carbon monoxide detectors, and generators.


5. Develop a communication plan.
   Who should be notified in case of an emergency? Ideally, your contacts should include employees, emergency responders, insurance brokers, legal counsel, key customers and lenders. Collect and centralize access to all key contact information. Verify the information at least quarterly so it's always current. Don't forget to use easily accessible channels (such as social media, websites, prerecorded phone lines and blogs) to communicate updates with customers and suppliers.


6. Formally document planned responses.
   Once you understand business risks and how you’ll respond, it’s important to develop a written plan that establishes necessary actions, roles and responsibilities. This ensures all team members know what is expected when emergencies arise. Lay out step-by-step instructions for evacuations, safety and security procedures, systems maintenance, alerts – all the ways in which the company will address unexpected incidents.


7. Train employees.
   Distribute the written plan to each employee and train them, including regular practice drills.


8. Regularly reevaluate the disaster recovery plan.
   Your business will change. So, periodically reassess your disaster recovery plan to confirm it still meets your needs.

The time to create a plan to recover from a catastrophe is before it happens.

Our banking professionals can assist with your business financial needs. If you’d like to learn more visit your local branch or call 1-888-SYNOVUS (1-888-796-6887).