Why does your business need a plan? Because LIFE is UNPREDICTABLE

Need More Reasons?

Regulatory Compliance
The Foreign Corrupt Practices Act of 1977 (amendment to Securities and Exchange Act of 1934) deals with the fiduciary responsibilities of officers and directors towards the assets of the corporations and states that “The directors and officers owe a duty to the corporation . . . if a loss results from their negligent failure to perform their duties . . . they are liable provided such losses were the natural and necessary consequences of omission on their part.” Financial institutions and health care agencies have even more stringent regulations.

Legal Necessity
All businesses have contracts, some of which require suppliers to perform come “hell or high water.” Businesses do not want to be affected because a supplier failed to deliver after a disaster and may require that suppliers develop business recovery plans. Some governmental agencies have the same requirements and many bid requests require evidence and contractual guarantees of a bidder’s recovery capability. If you want to win a bid, your business may need to provide evidence of recovery capability.

Common Law
Under common law, your business may have certain fiduciary obligations and “duties of care” to customers and shareholders. “Good business judgment” extends, in some circumstances, to disaster recovery.

Cost of Lawsuits 
Considering the costs of defending corporate lawsuits and the cost of losing such suits, business recovery planning is not only smart, it’s a bargain.

Electronic Information 
With increased dependence on electronic information systems’ ability to provide instant information, the losses associated with each unplanned outage can grow and compound at an alarming rate.

Direct and Measurable Losses

  • Lost revenue
  • Falling stock prices
  • Multitude of costs related to outages and reconstruction

Intangible Impact

  • Damaged business reputation
  • Lost customer loyalty
  • Reduced customer satisfaction and confidence
  • Increased risk for business loans
  • Reduced employee moral