Why and how to develop a company disaster recovery plan

1. HOW TO DEVELOP A COMPANY DISASTER RECOVERY PLAN (aka: Planning to Survive) Jennifer H. Elder, CPA, CMA, CFF Copyright Jennifer Elder, CPA October 27, 2008

2. Charlie: August 9 – 15, 2004 Cat 4 Jeanne: September 25, 2004 Cat 3 Phone System: August 2007 Frances: September 4 -5, 2004 Cat 4 Copyright Jennifer Elder, CPA October 27, 2008

4. What do you need to plan for?

5. How do you create a plan?Copyright Jennifer Elder, CPA October 27, 2008

6. WHAT DO YOU KNOW ABOUT DISASTERS? DISASTER TRIVIA!!! Copyright Jennifer Elder, CPA October 27, 2008

8. Health – swine flu

9. Accidents – fire, explosion, equip failure

10. Terrorism - ????

11. IT - cyber attack, equipment malfunction

12. Workplace Violence - shootings

13. Contamination - chemical, biological

14. Loss of key personnel – sudden death

15. Sabotage – product poisoning

16. Utility Interruption – loss of power, phone

17. Scientific Discoveries – health issuesCopyright Jennifer Elder, CPA October 27, 2008

18. WHAT IS A DISASTER? “An unplanned interruption of normal business function or process for an unacceptable period of time” Copyright Jennifer Elder, CPA October 27, 2008

19. RATE OF DISASTERS By what % has the natural disaster rate increased over last 15 years? 40% Copyright Jennifer Elder, CPA October 27, 2008

20. IMPACT ON BUSINESS? How long can you operate your business without access to critical data before suffering permanent damage? 48 – 72 hrs Copyright Jennifer Elder, CPA October 27, 2008

21. IMPACT ON BUSINESS? According to the IRS what % of businesses never reopen after disaster 35% Copyright Jennifer Elder, CPA October 27, 2008

22. IMPACT OF FIRE What % of businesses close within six months of fire 75% Copyright Jennifer Elder, CPA October 27, 2008

23. HOWMANY PLAN ? 2005 Ad Council Survey 92%said planning was important What % actually had a plan? 39% Copyright Jennifer Elder, CPA October 27, 2008

24. IMPACT OF PLANNING Every $1 spent on preparedness saves how many $ of economic loss $7 Copyright Jennifer Elder, CPA October 27, 2008

25. RECOVERY TIMING? When does disaster recovery begin? Before the disaster! Copyright Jennifer Elder, CPA October 27, 2008

27. Loss of cash flow

28. Loss of vendors/increased materials cost

29. Decrease in productivity/loss of employees

30. Damage to reputationCopyright Jennifer Elder, CPA October 27, 2008

32. planning will keep you in business

33. planning will save you money

34. prevents chaos

35. NEW BILLABLE SERVICE!!!Copyright Jennifer Elder, CPA October 27, 2008

37. communications

38. business records – old & new

39. out of pocket costs/insurance

40. employeesCopyright Jennifer Elder, CPA October 27, 2008

42. Consider Likely Disasters

43. Create an Emergency Plan

44. Create a Continuity PlanCopyright Jennifer Elder, CPA October 27, 2008

46. all levels

47. key suppliers

48. key customers

49. local Gov’t, Red CrossCopyright Jennifer Elder, CPA October 27, 2008

51. What would be the extent of the impact (in dollars)?

52. What is the likelihood of each potential threat occurring (%)?

53. Rank your threats – R = P% x I$

54. Address the riskiest firstCopyright Jennifer Elder, CPA October 27, 2008

58. immediate responses to mitigate potential & actual impact

59. protection – P.D.A. People – Data - Assets Copyright Jennifer Elder, CPA October 27, 2008

65. keep copy of plan off-site & readily accessible to allCopyright Jennifer Elder, CPA October 27, 2008

67. Rate of disasters increasing

68. Can take as little as 48 hrs to damage your business

69. 35% businesses fail after disaster

70. 75 % fail after fire

71. Every $1 spent on planning saves $7 in loss

72. NEW BILLABLE SERVICE!!!!Copyright Jennifer Elder, CPA October 27, 2008

73. FINAL ADVICE Best way to prepare for disasters is to AVOID them in the first place! Failure to plan is planning to fail! Copyright Jennifer Elder, CPA October 27, 2008

75. floridadisaster.org

76. fema.gov

77. ibhs.org (Institute for Business & Home Safety)

78. sba.gov

79. disastersafety.org

80. redcross.org

81. mema.state.md.us (Maryland Emergency Management Agency)

82. mdinsurance.state.md.us (Maryland Insurance Administration)

83. choosemaryland.org (Maryland Dept of Business & Economic Development)Copyright Jennifer Elder, CPA October 27, 2008

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