2005
(04/08/2005) Nearly one in five businesses has suffered from a disaster
- Less than half of all businesses have a business continuity plan in place
Alarming research from AXA reveals that 46% of businesses do not have a business continuity plan. The insurer says that this is a worrying statistic especially because 17% of businesses claim to have been affected by a disaster in the past and that just over one in five of these companies took longer than a week to recover. Around 8% claim it took them over six months before they were up and running again.
| Length of time it took a business that has suffered a disaster to recover | Percentage of businesses that have suffered a disaster |
|---|---|
| A day or less | 35% |
| More than a day but less than a week | 43% |
| More than a week but less than a month | 8% |
| One to six months | 5% |
| 6 months to a year | 3% |
| More than a year | 5% |
Doug Barnett, risk control strategy manager at AXA said: “Businesses face a number of challenges and risks, and they need to do everything possible to reduce the chances of these happening. They also need to have an effective plan in place to deal with them if they do. Every year, thousands of enterprises fold but some of these could be saved if they had a strong business continuity plan in place.”
Even if a business does have plans in place it is important that companies tweak them so that they are prepared for potential seasonal risks. At this time of year most people take their annual holiday so owner/managers need to ensure that appropriate measures are put in place - for example, that key staff have access to contact details, such as mobile number and hotel details, and that they have delegated authority to a responsible member of staff who is familiar with the company's continuity plans.”
On a regional basis, businesses in the Midlands and South West appear to be the most prepared for managing disasters as 63% of enterprises there have business continuity plans. Companies in the South East appear to be the least prepared as only 48% have these in place, the lowest in the country. Worryingly, given the recent events in London less than half (49%) of those surveyed in the capital had a plan in place.
| Region | Percentage of businesses that have a business continuity plan in place |
|---|---|
| Midlands | 63% |
| South West | 63% |
| Scotland and N Ireland | 58% |
| Wales | 56% |
| The North | 52% |
| London | 49% |
| South East | 48% |
In addition to urging organisations without business continuity plans to develop them, AXA is also encouraging those businesses with plans to review them as it is concerned that many are insufficient.
AXA's research found that of those businesses with a plan in place, only 43% obtained professional advice in developing them and that only 30% have actually been tested. Furthermore, of those that have been reviewed, one in five has only ever been tested once and a further 40% are only tested once a year. This might help explain why only 42% of companies that have suffered a crisis in the past and which had continuity plans in place said that they had been effective.
A comprehensive business continuity plan is about anticipating the events or circumstances that could hinder the running of an organisation and having plans in place on how to respond to these. AXA's website www.axa4business.co.uk offers free advice to businesses on a range of issues including developing business continuity plans. This includes a business continuity calendar which highlights everyday business risks, a business continuity guide for small businesses and 'Business 4 Tomorrow Toolkit' that draws on AXA's wealth of experience and expertise to provide small businesses with a simple and practical approach to business continuity planning.
- Ends -
Notes to Editors
The study by market specialists Vanson Bourne was conducted from June 2004 - October 2004 among a nationally representative sample of decision makers at 840 small and medium-sized UK enterprises spanning industries including finance, retail and manufacturing.
More information
If you are a journalist with an enquiry, please contact one of our media team
About AXA
AXA is a world leader in financial protection. AXA's operations are diverse with major operations in Western Europe, North America and the Asia/Pacific area. AXA employs 120,000 staff and tied agents and, as of 31 December 2004, had €869 billion in assets under management. Reported total revenues for 2004 were approximately €72 billion. Our previous company performance is not a guide to how we may perform in the future.
AXA ordinary shares are listed on the Paris Stock Exchange; AXA American Depositary Shares (ADSs) are listed on the NYSE under the ticker symbol AXA.