So you think you’re prepared for a disaster? Well you’d better be, because even the heartiest companies are likely to suffer serious hardship due to catastrophe. And even the bravest CEOs should take note of these disaster-related statistics, compliments of the Business and Industry Council for Emergency Planning and Preparedness.
- Eighty-five percent of businesses affected by disaster shut down within five years. As many as 70 percent close their doors within two years.
- The average disaster causes the equivalent of 4.8 down days.
- The average Fortune 500 company loses more than $78,000 per hour of disaster-related shutdown.
- Ninety-three percent of businesses that lose their data center for more than 10 days file for bankruptcy.
- Seventy-five percent of computer-dependent businesses would suffer crippling losses if their electronic data processing systems were down for more than 14 days.
- Between 67 and 72 percent of Fortune 500 companies do not have or do not test their disaster recovery strategies.