Security Newswire

Study Says Small, Mid-Sized Businesses Not Prepared For Disasters

January 16, 2011

Small and mid-sized businesses still haven’t recognized the tremendous impact a disaster can have on their businesses. Despite warnings, it seems like many still think it can’t happen to them, says a study by Semantec Corp.

The 2011 SMB Disaster Preparedness Survey, which measured the attitudes and practices of small- and mid-sized businesses (SMBs) and their customers toward disaster preparedness. The survey findings show that though SMBs are at risk, they are still not making disaster preparedness a priority until they experience a disaster or data loss. The data also reveals that the cost of not being prepared is high, putting an SMB at risk of going out of business. According to the survey, downtime not only costs SMBs several thousands of dollars, it also causes their customers to leave.

The study found that 41 percent of SMBs do not understand the importance of disaster preparedness. Half of the respondents do not have a plan in place and 40 percent stated that disaster preparedness is not a priority for them. Yet, 65 percent of respondents live in regions susceptible to natural disasters. In the past 12 months, the typical SMB experienced six computer outages, with the leading causes being cyberattacks, power outages or natural disasters.

The survey revealed that the information that drives most SMBs is simply not protected. Less than half of SMBs back up their data weekly or more frequently and only 23 percent back up daily. Respondents also reported that a disaster would cause information loss. About 44 percent of SMBs said they would lose at least 40 percent of their data in the event of a disaster.

According to the survey findings, half of the SMBs that have implemented disaster preparedness plans did so after experiencing an outage and/or data loss. Fifty-two percent put together their plans within the last six months. However, only 28 percent have actually tested their recovery plans, which is a critical component of actually being prepared for a potential disaster.

Lack of Preparedness Impacts the Business

Disasters can have a significant financial impact on SMBs. The median cost of downtime for an SMB is $12,500 per day. Outages cause customers to leave—54 percent of SMB customer respondents reported they have switched SMB vendors due to unreliable computing systems, a 12 percent increase compared with last year’s survey. This downtime can also put them out of business. Also, 44 percent of SMB customers surveyed stated that their SMB vendors have temporarily shut down due to a disaster.

Customers of SMBs also reported considerable effects to their own businesses. When SMBs experience downtime, it costs their customers an average of $10,000 per day. In addition to direct financial costs, 29 percent of the customers surveyed lost “some” or “a lot” of important data as a result of disasters impacting their SMB vendors.


 

Did you enjoy this article? Click here to subscribe to Security Magazine. 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

ASIS 2013 Product Preview

ASIS International 59th Annual Seminar and Exhibits, September 24-27 in Chicago, Illinois, will include an exhibit hall packed with innovative security solutions. Here are some of the products that will be shown at ASIS this year.

Podcasts

Virtualization and Data Center Security: What You Need to Know for 2014

Data centers are increasingly becoming the center of the enterprise, and data center and cyber security is following the same path for security departments. According to Justin Flynn, a consultant at the Burwood Group, the virtualization of data centers allows enterprises to scale more easily and faster, with a smaller footprint.

However, hosting enterprise data in the cloud can make intrusion detection more difficult – how can enterprise security leaders team up with other departments to keep aware of cyber risks and traffic, and physical and data compliance during the virtual transition? How can CISOs and CSOs discuss cyber threats with the C-Suite to get the resources they need? And how can the proper infrastructure test and verify possible malicious attacks? 

More Podcasts

THE MAGAZINE

Security Magazine

April 2014

2014 April

In the April issue of Security magazine, read about integration partnerships and their growing success. The Boston Marathon bombing has changed the way integrators look at security for sporting events, see where they are one year after the tragic incident. Read about the 2014 RSA conference and this year's theme of "Threat Intelligence. Also, read about the latest products and news in the security industry.

Table Of Contents Subscribe

Background Checks

Who conducts background checks on new employees and contractors in your enterprise?
View Results Poll Archive

THE SECURITY STORE

comptiahighriseproductphoto
CompTIA Security+ Certification Study Guide
CompTIA's Security+ certification is a globally-recognized, vendor neutral exam that has helped over 60,000 IT professionals reach further and higher in their careers. The current Security+ exam (SY0-201) focuses more on being able to deal with security issues rather than just identifying them.
More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Vertical Sector Focus: Critical Infrastructures

criticalhomepagethumbFrom terrorism to vandalism, it’s preparedness, response, training and partnerships. Learn about some of the critical security issues facing this sector.

Visit the Critical Infrastructure page to read more.  

STAY CONNECTED

Facebook 40px 2-12-13 Twitter logo 40px 2-12-13  YouTube  LinkedIn logo 40px 2-12-13