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SMEs 'failing to establish business continuity plans'

10 February 2011

Disaster recovery and business continuity plans is placing many of the UK's small and medium-sized enterprises (SMEs) under threat, a report warns.

Research by insurer Aviva indicates half of all smaller firms in the country do not have such policies established and the company is urging those that are without them to put strategies in place during 2011.

According to its bi-annual SME Pulse, 16 per cent of businesses surveyed said they did not believe they needed a business continuity plan.

This is despite the risk such enterprises run of a crisis or disaster potentially destroying years of work.

Figures from the Federation of Small Business show a major incident leads to the closure of 80 per cent of firms within 18 months of it taking place and 90 per cent by the time two years have elapsed.

"A disaster or crisis can strike a business at any time and failing to plan for such an event can undo years of good work and hard trading in an instant," Aviva commercial product manager David Bruce warned.

Business continuity planning involves identifying and managing potential risks to an organization in order to reduce the impact of an incident on operations.