- Category: Widget
- Published on Wednesday, 06 August 2014 16:30
- Written by Isaac
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Rebound After Adversity Hits Business
Staten Island commercial bank extols planning to recover from disaster
STATEN ISLAND, N.Y. – As reminders of the current hurricane season, Victory State Bank observes that the two named storms to date point up the merits of preparedness against being hobbled.
Two major challenges small business owners face after disasters are sales losses and a diminished customer base, according to the federal Small Business Administration (SBA).
In a survey of 7,500 small and medium-sized businesses by the National Federation of Independent Businesses (NFIB), 62 percent said losing profits and clients was their biggest post-disaster challenge.
Whether it’s a fire, flood or tornado, small businesses face an uphill trek when it comes to rebuilding in the aftermath of a disaster. That’s why it’s important to have a recovery plan in place.
Assessing your company’s risks is one of the first steps in creating an effective business continuity plan.
After finally achieving your dream, don’t lose it to a power outage, hacker disruption, fire, earthquake or other disaster.
If you’re not prepared, the SBA says a disaster could put you and your employees at risk, possibly shutting down your business forever.
Roughly 40 to 60 percent of small businesses never reopen their doors following a disaster. But you can.
Disaster planning and preparedness can be your lifeline to staying in business. The SBA points out that with proper education, planning, testing and disaster assistance, you will be able to stay in business through any interruption and beyond.
Major disasters, such as earthquakes and large-scale power outages, are rare. Smaller disasters, such as server failure, burst pipes and fires however happen every day.
Companies often prepare for the worst but forget the everyday challenges, which can be just as crippling.
When disaster strikes, having a plan and being able to put it into immediate action can mean the difference between staying open to service the needs of your customers and community or shutting down for a few days.
Following a disaster, statistics show ninety percent of companies fail within a year unless they can resume operations within five days. Having a plan can ensure that you’re back in business quickly and able to provide products and services to your community.
Testing is a critical component of business continuity planning. If your systems went down, how long would it take to get them up and running again, and what would be required to achieve that goal? Where are the gaps in your recovery plan and how can you close those gaps before a disaster strikes?
Testing your continuity plan is the best way to ensure that your business will remain in operation no matter what, or that it can be quickly restored under any circumstances. For many companies, testing is necessary for meeting compliance requirements.
- What to test
You should test all critical functions, particularly those that would be most vulnerable during an attack or disaster. This includes servers, PCs/workstations, network/Internet, building security, phones/communications, supply chain, workflow/staff procedures. Some managers phase their testing procedures, for instance, running a data recovery test one month and network/Internet recovery another month.
- Where to test
Testing can be done in one of three places: At your facility, at your backup center, or at an offsite testing site. You can choose to do a table-top-meeting-style run through or a full-scale hands-on test, using canned or live data.
- How often to test
The SBA recommends that you do a full-scale test annually for a wide range of critical functions, including electricity, water, gas, facilities/spacing, staffing, technology, telecommunications and more. A full-scale test will help ensure that your business not only survive but thrive in any unexpected situation.
- Who should participate
A testing team should include all the people on your disaster recovery team or who are in charge of critical areas within the company. If you have one or more of such functions, these should include, but not be limited to facilities manager, IT tech, HR manager, senior management, brand management, third-party support and a sampling of critical clients.
When faced with a disaster, remember that you are not alone. Resources available via the SBA include information to help you prepare ahead of time, free sample emergency plans, business preparedness checklists, and templates, as well as assistance to help you get back on your feet after a disaster has struck.
About Victory State Bank
VSB Bancorp, Inc. (OTCQB: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online www.victorystatebank.com.