Disaster Recovery Planning for Small Business
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Disaster recovery is something that most small business people fail to
give adequate consideration. They are so busy running their business and
planning for future growth that they just dont stop to think about what
would happen if something went wrong. It is important, though, to think
about disaster recovery and put plans into motion for dealing with it.
What is disaster recovery planning?
Put simply, disaster recovery planning is the organized process of
anticipating a wide array of potential failures that
could occur and putting plans in place to keep your business running in
case any of those failures do occur.
Think of it as a part of risk management in strategic planning. Most companies have some sort of risk management policy or process in place. Disaster recovery would fall under this protocol and every business should look into an audit of risk management process.
Disaster recovery planning is a major activity for businesses of all
sizes. Large corporations often have designated teams devoted specifically to the task, and government entities devote a great deal of
their energy and resources to the task as well. Small business owners,
regardless of the size or type of business, would be wise to pursue
disaster planning as well.
Identify key items
The first step of disaster recovery planning is to identify those key items that, should they be lost or damaged, would cause great harm to you, your employees, or your business. Here are some examples to get you
started:
Financial records This category includes all of your
accounting records, loan records, credit information, customer accounts,
and anything else to do with the financial health of your business.
Customer records This category includes contact information, purchase records, customer profiles, and customer lists.
Inventory records This category includes all records
used to track perform inventory management activities.
Personal records This category includes any personal
records that, if lost or damaged, would inhibit your ability to recover. Social security cards, birth certificates, marriage licenses, etc. are
common examples.
Personnel records This category includes everything
related to your employees, past and present. Examples include employment
files, applications, benefits forms, etc.
General business records This category includes anything else related to your business, such as your business license, incorporation papers, lease agreements, etc.
This list of key items is a good start, but do not depend on it to be
100% complete for your particular business. Make your own list, keeping
in mind your industry and anything especially unique that might need to be addressed.
Think of likely and unlikely scenarios
This part can actually be kind of fun. It is an opportunity to use your
imagination to come up with as many disaster scenarios as you can. Here
are some common ones to get you started:
Natural disasters Lightning, flood, fire, earthquake, tornado, hurricane, snowstorm, heat wave.
Equipment failures Computer, cash register, vehicle,
air conditioner, furnace, boiler, fax machine, printer, lawn mower, forklift.
Infrastructure failure Power outage, gas main break,
sanitation breakdown, sewer back up, water line break.
Theft Burglar, employee fraud, identity theft, shoplifting
Medical emergency Flu epidemic, key staff member in
an accident, temporary or permanent disability
Its okay if you come up with other scenarios that may seem far-fetched or silly. In fact, you should do that kind of brainstorming and record the results.
Once you have put together what you feel is a comprehensive list, do
some prioritizing. Divide your scenarios based on their likelihood of
occurring and decide which ones to focus on first.
Establish backup and recovery procedures
Now that you have prioritized your scenarios and determined which ones to
work on first, you are ready to establish your backup and recovery
procedures.
Go back to your list of key items that need to be protected, and for
each one answer the following questions:
What to backup Paper files, computer files,
instruction manuals, pictures, diagrams, procedures, processes, etc.
When to do it Hourly, daily, weekly, monthly,
quarterly, semi-annually, annually, whenever changes are made, when new
records are added, when old records are deleted, etc.
How to do it Scan into a database, burn copies onto
CD or external hard drive, file copies with your bank, lawyer or
accountant, etc.
Where to keep it Onsite, off site, in a fireproof safe, in a safe deposit box, in your home, in the warehouse, in your desk, in a locking file cabinet, etc.
Who has access Partners, owners, key staff, lawyer,
accountant, spouse, legal heir, etc.
Now you are ready to outline a specific backup and recovery procedure
for each key item. These procedures should detail what to do, when to do
it, who is responsible for doing it, and how to access it following a
disaster or breakdown.
Practical application
At this point, it might be helpful to look at an example of just what this disaster planning process might look like in the real world. Lets say you have determined that your computer hard drive is a key item to your business and you decide to create and implement a disaster recovery
plan.
Your plan should include specific steps and instructions, such as:
Back up all files on the hard drive each day Will
this be done manually? Will it be handled automatically via special
software? Will you back up every single file, or only those that have
been created, edited or updated on that particular day?
Place back up in designated location This could be as simple as sending the backup electronically to an external server located somewhere else, or it might mean burning a CD that contains the necessary files. Think carefully about the location you designate for storing your back up; it should be safe enough and secure enough that it will not be affected by whatever disaster you are protecting against. In other words, if you are worried about flooding dont back up to an external server located in the basement of your business location.
Assign accountability Decide who is responsible for
completing the back up each day and for ensuring it gets to the designated backup location. Include information about consequences for not completing the back up as defined by the procedures
Define recovery process If you must retrieve your backup for any reason, define who is authorized to do so and how it will
be done. The people authorized to retrieve a backup should be only those
who are trustworthy enough to handle such important and sensitive information.
Summary
Disaster recovery planning should be a high priority activity for every
small business owner and is a vital part of the basics of risk management. While it may seem to be a waste of time that could
be spent actively operating your business, it really is important. You
wouldnt drive your car without insurance or own a home without insurance, so why would you run your business without the extra insurance of being able to recover key items in the case of a disaster or problem?
Keep in mind, too, that disasters and problems occur suddenly and
without warning. You must prepare yourself in advance to deal with a
variety of scenarios, because if you wait until they actually occur it
will be far too late.
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