DETROIT – Nearly a year after the blackout that left 2.3 million Michigan customers without power, a new survey of Detroit companies finds that nearly 30 percent of businesses surveyed are without business continuity plans that ensure networks are protected, applications are secure and mission critical data are available.
The survey, done by the Partnership for Public Warning and AT&T, also notes that 30 percent of the 100 executives surveyed in the Detroit area say business continuity is important, but not a high priority, and 3 percent admit it isn’t important at all. The businesses surveyed all had annual revenues of $25 million or more.
“These numbers are disappointing,” said Mike Heath, regional vice president, AT&T Business. “Business continuity plans are vital to a company’s survival in the event of an unforeseen incident or disruption.”
But the survey indicated more than a quarter of Detroit companies participating had once suffered from a disaster resulting in an interruption in business, with some saying they lost more than a million dollars a day during the interruption.
Of those experiencing an interruption, 62 percent cited a blackout as the cause of their business disruption. The 2000 blackout, which lasted two days and forced Detroit’s school system to shut down, caused 4,500 buildings to lose power, while last summer’s blackout cost the Detroit Metropolitan Airport almost $300,000 dollars in lost landing fees.
The study also found that while nearly 20 percent of companies surveyed suffered an interruption because of a computer virus or cyber attack, nearly 40 percent have yet to establish firewalls, intrusion detection, hacker protection and/or password authentication.
Ken Allen, executive director, Partnership for Public Warning, warned that all companies must develop, implement and regularly test business continuity plans to ensure continual business operations during any disaster.
“Plans have to go beyond the obvious ‘make sure your flashlights have new batteries,'” said Allen. “They need to address how your company will function if your network crashes under a cyber attack or how can you stay in contact with customers if the phone lines go down.”
20 percent of respondents said they haven’t updated their plan in more than a year and 25 percent haven’t tested it over a year.
While some companies are taking business continuity very seriously, “too many are not,” warns Heath. “The best piece of advice is for companies to start thinking the unthinkable and plan accordingly.”
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