Discussion_Week1_CSIA310
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University of Maryland, University College *
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Course
310
Subject
Information Systems
Date
Apr 3, 2024
Type
docx
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3
Uploaded by gnomechild666
Businesses rely on Information Technology (IT) more than ever before. In fact, 95% of small businesses utilize at least one type of technology system and 23% are utilizing artificial intelligence (AI) (U.S. Chamber of Commerce, 2024). The point could be made that, with our reliance on technology to conduct successful business operations, it could be considered a risk as well. Any hiccup could be a direct cause to interruptions of business operations. Therefore, it is imperative to have business disaster recovery and business continuity plans in order to mitigate the associated risks.
Cyber attacks pose a significant threat to organizations and they come in a variety of attack methods. These include, but are not limited to phishing, ransomware, malware, and denial of service
attacks. Phishing, for example, is the most common form of cyber attack, causing around 36% of data breaches and targeting 84% of organizations in 2022 (Smith, 2024). Attacks such as these can compromise critical IT systems and disrupt business operations. Disaster recovery and business continuity plans are essential for recovering from these types of attacks, and it’s not a matter of
if
, but
when
an attack will occur.
Natural disasters should also be considered as they can lead to
massive disruptions in operations, data loss, and financial losses to the organization. These can include hurricanes, earthquakes, wildfires, floods, and more. 90% of small businesses shut down within a year if they cannot resume their operations within the first 5 days after a natural disaster (Rock, 2024). Furthermore, not only is it essential to have a disaster recovery plan, but all preventative steps, data backup solutions, and protocols need to be specified within your disaster recovery and business continuity plan(s) (Rock, 2024). A major data loss from a natural disaster could cripple a business and cause it to shut down permanently.
The resiliency of an organizations IT services and infrastructure
are integral to a successful business model. Additionally, it is a direct reflection of the organizations reputation. Service disruptions and downtime for customers can cause in lost business as well as
damaged partner-company relationships. This could also be in direct violation of pre-established and agreed-upon Service Level Agreements (SLAs). Customers and stakeholders expect reliability, security, and continuity. Without these, the organization’s reputation is at stake. Prioritizing disaster recovery and business continuity plans will help to protect and possibly even upgrade the organization’s image.
Disaster recovery and continuity planning is not all based on image and reputation, however. Another significant, related outcome is a significant financial liability. Every moment that there is loss of a service, this could mean customer dissatisfaction in addition to reputation. This can directly translate to potential losses in revenue for both the short and long-term. Establishing disaster recovery and continuity planning not only gives you peace of mind, but a competitive edge over other organizations.
Another major piece to consider is the effect that your organization may have on other partner companies. For example, a disruption within a supply chain could cause a massive ripple effect within that ecosystem. This could cause a major hit to relationships with organizations that you do business with, and possibly termination of that business relationship. Depending on the context,
this could cause the downfall of an organization, not to include a massive financial hit to establishing new contracts with other vendors. Keep in mind that the hit taken to the organizations reputation will incur higher costs based on a history of unreliability.
In conclusion, disaster recovery and business continuity plans are essential for a well-functioning organization. Lack thereof can lead to not only legal and financial repercussions but could cripple the organization as a whole. It is imperative to establish these plans
in order to build customer and client confidence as well as gaining an edge over competitors. This will best ensure that your organization is set up for success for both the short and long-term, especially with the risks that climate change bring with more volatile weather and the ever-growing landscape of cyber crime.
References
Rock, T. (2024, March 18). 7 Strategies to Avoid Data Loss from Natural Disaster. Invenio IT. https://invenioit.com/continuity/data-
loss-from-natural-disaster/
Smith, G. (2024, February 16). Top Phishing statistics for 2024: latest figures and trends. StationX. https://www.stationx.net/phishing-statistics/
U.S. Chamber of Commerce. (2024, March 8). New study finds Technology Platforms—Including AI—Enable Growth, optimism among American small businesses. https://www.uschamber.com/technology/new-study-
finds-technology-platforms-including-ai-enable-growth-optimism-
among-american-small-businesses
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