Ron Miller calls on insurers to encourange the use of continuity planning.
People liken business continuity planning to an insurance policy, but this is a misconception. The two are very different.
We all know that an insurance policy transfers financial responsibility for indemnity to the insurer, but does not remove the risk of disaster. In the event of an incident, there is a delay before any compensation is released.
However, a business continuity (BC) plan can significantly reduce this delay. A BC plan reduces the impact of a disaster and would enable an organisation to restart its key activities as quickly as possible.
If an organisation without a business continuity plan were to have a flood in a comms room, it might take several days to repair. It may then be up to a week to recover any data and weeks before the insurance is paid out.
Without a BC plan the business interruption claim can be substantial. With an effective BC plan in place the overall business interruption claim is considerably reduced.
BC plans also enable companies to protect their intangible assets such as staff loyalty. A BC plan can also ensure adherence to rules laid down by relevant regulatory bodies.
It doesn't take a huge mind-leap to realise that insurance companies should therefore have a vested interest in encouraging their customers to think about BC planning.
Despite this many have not realised they can reduce exposure to their customers' risks by developing a BC plan. By encouraging this approach, insurance companies can only benefit.
You can contact Ron Miller at SunGard Availability Services on
ron.miller@sungard.com
