AXA - Be Life Confident

For the third year running, small businesses have told AXA that IT systems failure is the most feared threat to their ongoing health and profitability. 91% of respondents identify IT failure as a threat with 23% of these believing it to be significant. IT problems were also identified by a quarter of respondents as the most common cause of total business failure.

The stability and availability of IT systems is considered a key business continuity issue. Despite recognising the importance of IT systems to their businesses, 39% of those questioned had no plan in place to protect them in the event of IT and other business failure issues.

In addition to the risks, respondents also recognised that investment in the right technology is a key factor influencing their success – 94% considered it important with 20% saying extremely important.

Doug Barnett, risk control strategy manager, AXA, commented on the findings: “Fear of IT failure keeps small businesses awake at night. It has consistently topped our list of major worries. One thing is clear, if your IT systems fail and you aren’t prepared, this is probably the one risk most likely to put you out of business. Businesses need to consider all the risks they face and prepare a business continuity plan. How you would cope with an IT failure is one of the most important areas to consider. If you plan for it you can cope with it.”

AXA advises all small business people to look closely at the impact IT failure would have on their business and put solutions in place without delay. Factors for consideration include:

• How long could you afford for your systems to be unavailable? Do you have a back-up solution in the event of your main systems failing?
• What do your IT system control? If you are a retailer and have your products linked to electronic scanning & payment tills do you have procedures understood by all staff what they should do if the IT system fails?
• What level of IT support do you have access to; do you have a formal contract? Is it sufficient? Do you have access to expertise out of office hours? Can critical support be accessed quick enough to get you back online before severe damage is done to the business?
• Is your most important data regularly backed up, stored offsite and available to you quickly in the event of system failure, theft or damage? Have you kept information on key services you may have to reinstall e.g. broadband account details; security settings.
• Are you systems protected from theft, virus infection or systems hacking? Do you have up to date virus software and internet firewalls installed? Do you control what access your staff have to the internet and what they are permitted to open or download?
• Do you have up to date copies of all your software easily available should you need to reinstall them on new systems – do you know how to reinstall software? Have you kept details of all required documentation e.g. licensing agreements? How often has the original software being updated and do you have licence to upload the most recent updates? Have you installed protection against Spyware?
• If you have custom designed software is the supplier still in business should you need it reinstalling or updating?
• When did you last test your back-up procedures or your business continuity plans?

For more information on business continuity planning please go to www.axa4business.co.uk.