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SMALL BUSINESS CONTINUITY IN THE FACE OF DISASTER

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Ellen Bailey

on 18 November 2015

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Transcript of SMALL BUSINESS CONTINUITY IN THE FACE OF DISASTER

Inn By The Sea
Pass Christian, MS
August 29, 2005
HURRICANE KATRINA
SMALL BUSINESS CONTINUITY IN THE FACE OF DISASTER
Fire
Tornado
Hurricane
Flood
Earthquake
Wild Fire
Mudslide
Other


TYPES OF NATURAL DISASTERS
AFTER Data-Erasing Disaster . . .
November 2006


Only exception . . . 6 mo old backup of accounting software
NO fixed assets records
NO inventory records
NO receipts/invoices
NO personnel records
NO vendor records
NO customer records
NO tax records
NO DATA BACKED UP
May 22, 2011
Joplin, MO
Office of SNC Squared
SNC Squared
IT Services, Joplin, MO:
Recovered 100% of customers' data within 72 hours
Medical vertical
Helped non-customers
Pass Christian, MS
27.8' Storm Surge
(highest documented in US)
22.6' Storm Surge
(previous record -- CAMILLE)
CEO
WILL
BANKING
 Loans
 Line of Credits
INSURANCE

OTHER DATA-ERASING DISASTERS
CYBER CRIME
Malware
Firewalls
OTHER DATA-ERASING DISASTERS
YOU and YOUR EMPLOYEES
Why do businesses want to recover data?

DELETIONS
According to DATTO:
97% due to deletion
"At least one employee will click on anything."
WSJ -- May 19, 2014 quoting Chinese hacking firm
Business:
"How quickly can my business be up and running again?"
Questions for business:
"What has your business done to get back up and running quickly in the face of a data erasing disaster?"

"How quickly does it need to be up and running?"

INSURANCE
Review Insurance Annually
Insure for Replacement Value
Business Interruption Rider
Building and Contents
INVENTORY
Inventory ALL Fixed Assets, Inventory, and Supplies
o Update annually
o Give a copy to insurance agent
o Keep one copy off site

DATA BACKUPS
Back Up Data Each Day of Operations
Back Up Automatically
Test Back Up Monthly
Security Updates
Types of Backups
NONE!!!
Flash Drive
Hard Drive
NAS
Tape Drive
Online Backup
BDR Device
BEFORE Data-Erasing Disaster . . .
"Why is it that some people resist taking steps on a clear sunny day to protect themselves on their darkest days?"

Rob Rae, VP Business Development at DATTO
RESIST PROTECTION
Apathy
In Denial
Arrogant
DISASTER RECOVERY PLAN
Keep It Simple!
Contact List
Communication
Emergency Kit
Back Up Data
Alternative Workplace
Prioritize Essentials To Restore Operations
Test
CONTACT LIST

Employees
Vendors
Customers
COMMUNICATION
Establish where to access updates
Restore phones
Connectivity to internet (and even electricity)

EMERGENCY KIT
Disaster Recovery Plan
Contact list
Important records/documents
Basic office supplies
OS and software disks, including keys
Spare key to office
Flashlights and extra batteries
Petty Cash


BACK UP DATA
Test Regularly
Back Up Regularly
Store Offsite
ALTERNATIVE WORKSPACE
Plan A and Plan B
Server, Computers, Office Equipment
Agility
VPN
PRIORITIZE ESSENTIALS
Assign employee(s) to handle
Phones
Access to data

TEST!
Insurance Policies
Fixed Asset Inventory
with Scanned Receipts
Contracts
Lease Agreement
Tax Information

Over 40% of small businesses do not recover from a [catastophic] disaster, particularly those that do not have a plan in place.


No authority to provide resources or funding to a private entity during the first 72 hours after a disaster.
FEMA 72 Hour Rule
David Paulison, Administrator FEMA (2005-2009)
"You are on your own. You have to have a plan in place."
BUSINESS IMPACT ANALYSIS
https:www.fema.gov/media-library/assets/documents/89526
John Motazedi
CEO, SNC Squared
Joplin, MO

To tell everyone they must make a backup and disaster recovery plan. NOW.
A new career objective:
Joplin Globe/B.W. Shepherd
DATTO completes backups at a rate of 15/second, 52,000/hour, or 8,700,000/week.
Where
To
Start?
SMALL BUSINESS CONTINUITY
IN THE
FACE OF DISASTER

Ellen Bailey
Hardware Independent Restore
Party rental business lost $2.1 million in inventory.
Insured for $1.5 million.
Recovery Time Objective (RTO)
Recovery Point Objective (RPO)
How quickly does a business need to recover?
Determined by time between backups and amount of data lost.
How much time can a business afford to spend reconstructing missing data?
www.assetbusinesscomputing.com/resources
Average flood claim in 2006-2010

$85,000

According to FEMA:
Business Continuity: Make Plans Instead of Excuses


Creating a plan takes too much time

Creating a plan takes too much money

We thought we had no risks

We had more important things to think about

We thought our Internet Technology was fine

We thought we could deal with a crisis when it happened

We thought we were too small to need a plan

We couldn’t find the right solution

We already backed up our data and thought that was the same as business continuity

We didn’t know where to go for help

Insurance Institute for Business and Home Safety
Find a mentor!
Find a mentor!
www.agilityrecovery.com

www.assetbusinesscomputing.com/resources

www.disastersafety.org

www.fema.gov

www.preparemybusiness.org

www.ready.gov

www.sba.gov

www.storagecraft.com

www.score.org
17.82 hrs/yr
Average SMB downtime
NATIONWIDE INSURANCE SURVEY
July 2015
Businesses with fewer than 50 employees
18% -- Disaster Recovery Plan
50% -- At least 3 months to recover
38% -- Not important to have
34% -- Low priority
Hackers are the new hurricanes

"
-- at least from the underwriters' perspective."
Insurance Companies Are Treating Hackers Like Natural Disasters
-- Jeff Stone
"Data breach forecasters predicted that a month-long outage on the Amazon Cloud would be the cyber equivalent of Hurricane Andrew, pictured here at its peak strength on Aug. 23, 1992."

-- Wikicommons
DOWNTIME COSTS
Annual Gross Revenue
----------------------------------------------------- = Lost Income per Hour
Number of Annual Operational Hours



(Average Annual Employee Salary + Overhead) X Number of Employees
-------------------------------------------------------------------------------------------------------- = Lost Labor Cost per Hour
Number of Annual Operational Hours



Lost Income per Hour + Lost Labor Cost per Hour = Downtime cost per hour

Inventory
INVENTORY

Equipment
Software
Other Fixed Assets
Critical IT Info
Product
Supplies
Full transcript