Disasters, both physical and virtual, are a major threat to a business’s health. Natural disasters and cybersecurity risks can impact sales, customer service, and the goodwill you have with your customer base.
In 2023, 34.5 percent of executives reported that cyber adversaries targeted their organizations’ accounting and financial data, with 22 percent experiencing at least one cyber event. But that’s not all that can affect your data. The 2021 Small Business Credit Survey (SBCS) revealed that one in ten small employer businesses suffered losses from natural disasters within the prior 12 months.
Preparing a business disaster recovery plan is essential for safeguarding against cyberattacks and natural disasters. Here’s why this is a crucial step in securing your business.
The Inevitability of Disasters
Natural disasters are common and costly. With so many small businesses affected by natural disasters, it is wise to have a plan if there is a need. The U.S. experienced 20 billion-dollar natural disasters in 2021, including Hurricane Ida and the Texas cold wave. It doesn’t take an earth-shattering event to cause damage. A heavy rainstorm that causes a roof leak can take out a server, and a downed powerline can cut power to your facility. Larger events threaten your business opportunities, but even small disasters can be significant for your company. A business disaster recovery plan is needed to prepare for the inevitable challenges that come from bad actors or nature itself.
Impact on Sales and Customer Service
Natural disasters (such as hurricanes, floods, or fires) can damage infrastructure, rendering businesses unable to operate. They can also disrupt supply chains, affecting the availability of products or services. Physical damage or theft during disasters can result in inventory loss. In the case of retail businesses, natural disasters can lead to store closures, reducing foot traffic and sales.
Cyberattacks can also affect your bottom line. Ransomware attacks or system breaches can cause website downtime, disrupting your operations and online services . Customers may need help making purchases or seeking assistance, causing decreased user engagement. Cyberattacks result in financial losses (e.g., lost sales, stolen funds and fraudulent transactions). Reduced revenue can affect your ability to grow and scale your business. Finally, cyberattacks can overload customer service channels, leading to delays in resolving issues and frustrating customers.
Lost Customer Trust
Cyberattacks and disasters have an indirect cost: a loss of trust. Your customers need to feel that their data is safe with you and that you are resistant to potential service interruptions.
Cyberattacks compromise customer data, eroding trust. Customers fear their personal information getting misused, and disasters tarnish a company’s reputation. Customers may associate the brand with adverse events. During disasters, businesses may also struggle to communicate with customers. A lack of updates or misinformation also damages trust. If events cause service disruptions, customers experience inconvenience and frustration. Supply chain disruptions lead to delayed deliveries, impacting customer satisfaction.
Lost trust can take a long time to recover. Data breaches or downed services can easily scare customers off and cause legal and compliance issues. A robust business disaster recovery plan can bolster customer trust, even if you never need to use them.
Create a Business Disaster Recovery Plan Today
A strong business disaster recovery plan is essential for safeguarding your business against cyberattacks and natural disasters. As we’ve seen, these events can cause significant harm to your operations, sales, and customer trust. In the next blog of this series, we’ll explore the benefits of having a business disaster recovery plan. Stay tuned to learn how this plan can help your business thrive even in the face of challenges.
Learn more about Xtel’s solutions that safeguard your data, explore our website today. Don’t leave your sensitive information vulnerable, take action now and protect your business with Xtel.
