6 potential disasters every business should account for
Disasters, both natural and man-made, have always posed significant challenges to societies worldwide. In recent times, ransomware attacks have emerged as a prominent form of disaster, wreaking havoc on various sectors. For instance, in 2023 alone, there were over 800 reported ransomware attacks on critical infrastructure in the United States, causing an estimated $4 billion in damages. Notable incidents included the Colonial Pipeline attack, which led to fuel shortages across the East Coast, and the JBS Foods incident, which disrupted meat supply chains.
Disasters are an inevitable part of life and business. However, this does not mean that there’s nothing businesses can do about it. With proper preparation, risks can be mitigated and worse outcomes can be avoided. Let’s delve deeper into the different disasters that should be on every business’s radar:
1. Natural disasters
Natural disasters, ranging from earthquakes and tornadoes to hurricanes and floods, can strike without warning, wreaking havoc on businesses. To ensure resiliency, enterprises should create a comprehensive disaster recovery plan. The plan is a document that outlines procedures and protocols for maintaining essential business functions during and after disruptive events, and it should include a step-by-step guide on what to do in the event of a disaster. During major earthquakes, for example, a disaster recovery plan must include an alternative safe office location, open communication channels, and ample internet access.
Another important aspect of a disaster recovery plan is the virtual platforms where workers can collaborate and perform their tasks no matter where they are currently stationed. Using an all-in-one backup and recovery system like the one that Quorum.com provides, you can have your operation or production running without missing a beat. For most backend business processes, all your employees need are their laptops and a stable internet connection.
2. Cybersecurity threats
Presently, some of the most concerning threats to businesses can be found in cyberspace. According to data collected by AAG-IT, an estimated 236.1 million ransomware attacks occurred globally during the first half of 2022. What’s more, data breaches in 2022 cost businesses an average of USD 4.35 million.
To enhance resilience against cyber threats, it is crucial to establish strong cybersecurity protocols. One solution provider in this space is Quorum.com, known for their high performance backup disaster recovery appliances for disaster recovery. These solutions offer a user-friendly backup and recovery system designed to safeguard databases and servers. Utilizing military-grade encryption and an air-gapped network, their backup and disaster recovery appliances ensure that your data remains secure by keeping backups isolated from external networks.
3. Physical security threats
Physical security threats, such as mass shootings, robberies, and vandalism can inflict losses on your business. As such, you have to fortify your workplaces to ensure the safety of your employees and assets.
For the best outcome, consult with professional security experts to develop a plan for scenarios where the physical security of your business is threatened. You can start with the installation of surveillance systems and the implementation of access controls to secure your workplace.
4. Financial crisis
Economic downturns or recessions are considered to be a normal part of an economic cycle. These events occur when there is a prolonged decline in economic growth. According to the World Bank, the world has undergone 4 global recessions in recent memory—in 1975, 1982, 1991, and 2009.
During these challenging economic times, a lot of businesses closed, although resilient ones survived and even thrived. Through strategic financial and disaster risk planning, these businesses weathered financial storms to come out stronger.
5. Supply chain disruption
Supply chain disruptions, whether due to geopolitical tensions, natural disasters, or events of global consequence like the COVID-19 pandemic, can cripple businesses. That’s why it’s critical for you to develop agile supply chain strategies. The ability to adjust your processes according to changing circumstances is crucial for maintaining resilience and ensuring uninterrupted operations.
To prevent delays to your production, your business should consider diversifying suppliers and creating robust contingency plans. By having multiple sources for materials or finished goods, you can continue production if one of your suppliers fails to deliver.
In terms of other contingency strategies, you can consider alternative transportation for your vital materials or products. If you foresee that shipping your materials or products through the usual shipping route or method will cause delays, exploring alternative routes and modes of freight transport, or even establishing local distribution centers can help mitigate the risks. If the additional cost is worth the timely production, then the change in logistics already paid for itself.
6. Legal and regulatory challenges
Legal and regulatory issues, from compliance challenges to lawsuits, can impact businesses. This is why it’s essential to stay informed about changes in laws and regulations in the jurisdiction where your business operates, helping you build a strong legal foundation for your enterprise.
For instance, workplace safety laws in the United States change regularly and varies from state to state. To stay compliant, your legal team should be following OSHA’s official announcements for worker safety. Another example are changes to labor laws. Keep your business protected against lawsuits by implementing proactive measures such as regular legal audits and updating employee handbooks.
Adapting swiftly to these changes not only allows you to mitigate risks, but it also fosters a culture of accountability within your organization.
Disasters, whether it’s small or big, will happen eventually to any business. As they say, it’s not a matter of if, but when. The only way for your business to survive and thrive in challenging situations is to be prepared for it. With tools and solutions at your disposal, you’ll be ready for whatever disaster may come your way.
