Daily Insurance Industry News
Daily Insurance Industry News
Wednesday 18th of July 2018
February 11, 2011

SME wake up call on business continuity plans

by Gill Montia

Story link: SME wake up call on business continuity plans

SME wake up call on business continuity plans

Small and medium-sized businesses (SMEs) are putting their livelihoods at risk by not taking the time to prepare disaster recovery and business continuity plans (BCP), claims Aviva.

In a recent survey by the insurer, half of SME owners asked about BCPs stated that they had no such plan in place, and a further 16% said they didn’t think they needed one.

However, a study by the Federation of Small Businesses indicates that 80% of small firms affected by a major incident close within 18 months, while 90% of businesses that lose data from a disaster are forced to shut within two years.

Aviva’s commercial product manager, David Bruce, comments: “A disaster or crisis can strike a business at any time and failing to plan for such an event can undo years of good work and hard trading in an instant.”

He adds: “If the worst does happen, then having a business continuity plan in place may be the difference between your business recovering or failing.”

The research also revealed a lack of knowledge as to the role of a BCP with only 36% of respondents aware of them confident that they knew their purpose.

Furthermore, just a quarter of businesswomen confirmed they had a BCP and kept it up to date, compared to 40% of businessmen.

To improve matters, Aviva has designed a new SME BCP template which can be downloaded free from its website.


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