Disaster is considered as an uncertain risk that cannot be handled suddenly by the organizations. Companies make proper plan in order to overcome with the future contingencies. In this paper, importance of disaster recovery planning is identified. Along with this, different guidelines for maintaining the business continuity and its consequences are also identified by the researcher in this paper.
Disaster Recovery Planning
Disaster recovery is the plan that is focused towards business continuity during the event of disaster. Due to the disaster, organization faces various problems, such as wastage of business resources which includes IT equipment, data records and physical space. After globalization, environment became polluted that creates various disasters. Business firms have to face huge loss due to the disasters (Gregory, 2011). Therefore, it is necessary for the organizations to make reserves for future contingencies. With the help of disaster recovery plan, organization can be able to cope with the external environmental changes.
In case of 9-11 attacks, companies suffered with huge loss in America and were not able to sustain their businesses. These types of disasters take place easily, but cannot be handled easily once occurs. Therefore, it is necessary for the companies to make proper reserves in order to overcome with these problems. Disaster Recovery Planning is an effective approach; in which company make short term and long term recovery plan. With the help of this, company can make decisions such as how to return to normal business operations and prioritize the resources accordingly (Snedaker, 2011). In the disaster recovery plan, organization test, maintain and update the plan according to changes in business.
Guidelines for Business Continuity
Organization should develop different approaches in order to maintain the business continuity. Consultant should give advice to maintain the appropriate reserves in order to meet the future contingencies. Company should also select the plant location, where chances of disasters are less. Further, company will also not face many problems due to the disasters (Hiatt, 2000). Apart from this, company should frequently update and test the plans and all types of threats should be considered. Consultant should also advice the organization that employees should be supportive and develop a healthy working environment.
Company should also identify the impacts of disruptions, so that plans can be made accordingly and controlling techniques can be adopted. In order to focus towards financial performance, organization analyzes the different areas such as potential revenue loss; identify additional expenses and intangible losses. With the help of such type of information, company can take decisions effectively, and also continue its business during the disasters (Wrobel, 2009). Consultant also advice that company should make insurance of all its tangible assets. With the help of this, company can be able to recover its losses. Company should also develop a crises department, so that this department can separately focus on the management of crises.
Company should also develop a plan for business continuity management in order to handle the situation in effective manner. In the process of business continuity management five steps are included; program management, risk and business impact analysis, identification of response plan options, development of Response plan, and exercise and maintain. With the help of these steps, company can become able to select appropriate method for business continuity (Smith, 2012). It is identified that creating the business continuity plan helps the institution to ensure that company has resources and information that is needed in order to deal with emergencies. Thus, all these guidelines will be useful in achieving the long term growth and provide business continuity.
There are various consequences that organizations face, if they do not follow all these guidelines. Organizations will suffer with huge loss and will not be able to sustain its business in the market. It will also create health problems for the public and also destroy the various equipment and other resources of the companies. It is necessary for the organizations to handle the situation and make reserves for the disaster management (Wallace, Webber & Webber, 2010). Disaster also affects the economy of the country, which in turn put indirect impact on the income of people. Avoidance of all these programs will create problem in managing the overall activities. It will be beneficial for the companies to make reserves for such type of disasters.
It is because organizations cannot be able to handle the situation on the spot. Guidelines will be helpful in taking corrective measures during the time of contingency. Some organizations set up business without analyzing the problem areas and its location (Blokdija, Brewster & Menken, 2008). Such type of action sometimes create problem for the companies. It is identified that natural disasters will greatly affect the community health. It is necessary for the organizations to make effective strategies for business continuity.
From the above discussion, it is concluded that disaster recovery plan helps the organizations to overcome with future contingencies. Different guidelines such as selecting appropriate plant location, reserves for future contingency etc. are the key guidelines that should be followed by the organizations. Therefore, it is identified that organization should make reserves for addressing the future contingency and handle the situation in order to sustain the business continuity.
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Snedaker, S. (2011). Business Continuity and Disaster Recovery Planning for IT Professionals. USA: Butterworth-Heinemann.
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