thedrifter
04-30-05, 05:20 AM
Are US Businesses Unprepared for Terrorist Attacks, Disasters?
New Jersey Used As Example in Corporate Report
by Jim Kouri, CPP
Companies in the New Jersey are less prepared than most
other markets in the country to face business interruptions,
with nearly 30 percent saying that they have yet to create
business continuity plans, and 33 percent claiming they do
not consider such planning a "high priority."
According to the report issued today by AT&T and the
International Association of Emergency Managers,
New Jersey companies rank 8th in disaster
preparedness out of 12 markets surveyed during the
past year. Additionally,even those companies directly
impacted by Hurricane Floyd or the 9/11
terrorist attacks were less likely to have business
continuity plans than companies in other parts of
the country.
New Jersey companies also scored the lowest of all
12 markets when it comes to testing the integrity of
their business continuity plans, with 49
percent saying they tested them within the past year,
compared to the national average of 59 percent.
"Disaster Planning in the Private Sector: A Post 9/11
Look at the State of Business Continuity in the US"
surveyed 100 senior technology executives who
have direct business planning responsibilities throughout
New Jersey. More than 1200 executives have thus far been
interviewed from companies with more
than $10 million in annual revenues, representing
a broad cross section of industries and markets. Up to
ten additional markets will be surveyed in 2005.
"The fact that organizations in New Jersey have such
a relatively low level of disaster preparedness is not
only surprising, but dangerous," said
Mary Livingston, regional vice president at AT&T.
"While we saw a spike of business continuity planning
immediately following 9/11, it seems that the
urgency has greatly worn off."
According to the survey, New Jersey ranked behind
seven other cities in its level of disaster preparedness --
even ranking behind such markets as Dallas, Houston and
Philadelphia -- with only 71 percent that currently have a
plan in place. This compares with 74 percent for companies
in both New York and Washington, DC Only 66 percent
of the New Jersey respondents claim
business continuity is a high priority, a finding
considered surprising given the state's proximity to the
9/11 attacks. Additionally, only 16 percent say
they would take action if the terrorist alert level
were raised, two or three percentage points higher than
most of the markets.
Livingston recommends that every company, regardless
of size, geography or industry, make business continuity
an integral part of their business. Among
the preventive measures Livingston suggests are to
establish back up networks, identify alternative work sites,
create protections for vital business
processes, and develop a program for post-disaster
employee and customer communications.
Even with the most robust business continuity plans,
companies need to ensure that their plans are up to
date and reflect changing circumstances and
risks. The survey found that nearly 40 percent of the
executives who do have an existing business continuity
plan have not tested the plan in more than a
year, with nearly 20 percent of those saying their
plans have never been tested at all. Livingston recommends
that the plans be retested every six months.
"A business continuity plan is only as good as its last test,"
said Livingston. "With so many changing circumstances
and fluctuating levels of risk, companies have got to look
at these plans as a living, breathing document that
must be modified according to even the slightest changes
in the network, market and external environment.
The report also found that only 23 percent consider
cyber security to be a top concern, despite security
breaches known to be a chief cause of business
disruptions in the state. In fact, nearly 30 percent
of companies have not integrated cyber security plans
into their overall business continuity
planning. Nearly 25 percent currently use an
outside service provider to manage their network
security.
Nearly 30 percent of New Jersey companies also tend to
utilize outside service providers for business continuity
planning, a figure expected to grow
given the increasing complexity of measuring and
managing risk today. However, most other markets
have a higher rate of companies using outside
service providers.
While New Jersey companies may lag behind many
other markets in planning, 71 percent of executives
have taken some precautions to protect against
business disruptions, and 26 percent plan to do
so in the next six months. These measures include
protections against cyber security breaches and
establishment of redundant network servers and
back-up sites.
Ellie
New Jersey Used As Example in Corporate Report
by Jim Kouri, CPP
Companies in the New Jersey are less prepared than most
other markets in the country to face business interruptions,
with nearly 30 percent saying that they have yet to create
business continuity plans, and 33 percent claiming they do
not consider such planning a "high priority."
According to the report issued today by AT&T and the
International Association of Emergency Managers,
New Jersey companies rank 8th in disaster
preparedness out of 12 markets surveyed during the
past year. Additionally,even those companies directly
impacted by Hurricane Floyd or the 9/11
terrorist attacks were less likely to have business
continuity plans than companies in other parts of
the country.
New Jersey companies also scored the lowest of all
12 markets when it comes to testing the integrity of
their business continuity plans, with 49
percent saying they tested them within the past year,
compared to the national average of 59 percent.
"Disaster Planning in the Private Sector: A Post 9/11
Look at the State of Business Continuity in the US"
surveyed 100 senior technology executives who
have direct business planning responsibilities throughout
New Jersey. More than 1200 executives have thus far been
interviewed from companies with more
than $10 million in annual revenues, representing
a broad cross section of industries and markets. Up to
ten additional markets will be surveyed in 2005.
"The fact that organizations in New Jersey have such
a relatively low level of disaster preparedness is not
only surprising, but dangerous," said
Mary Livingston, regional vice president at AT&T.
"While we saw a spike of business continuity planning
immediately following 9/11, it seems that the
urgency has greatly worn off."
According to the survey, New Jersey ranked behind
seven other cities in its level of disaster preparedness --
even ranking behind such markets as Dallas, Houston and
Philadelphia -- with only 71 percent that currently have a
plan in place. This compares with 74 percent for companies
in both New York and Washington, DC Only 66 percent
of the New Jersey respondents claim
business continuity is a high priority, a finding
considered surprising given the state's proximity to the
9/11 attacks. Additionally, only 16 percent say
they would take action if the terrorist alert level
were raised, two or three percentage points higher than
most of the markets.
Livingston recommends that every company, regardless
of size, geography or industry, make business continuity
an integral part of their business. Among
the preventive measures Livingston suggests are to
establish back up networks, identify alternative work sites,
create protections for vital business
processes, and develop a program for post-disaster
employee and customer communications.
Even with the most robust business continuity plans,
companies need to ensure that their plans are up to
date and reflect changing circumstances and
risks. The survey found that nearly 40 percent of the
executives who do have an existing business continuity
plan have not tested the plan in more than a
year, with nearly 20 percent of those saying their
plans have never been tested at all. Livingston recommends
that the plans be retested every six months.
"A business continuity plan is only as good as its last test,"
said Livingston. "With so many changing circumstances
and fluctuating levels of risk, companies have got to look
at these plans as a living, breathing document that
must be modified according to even the slightest changes
in the network, market and external environment.
The report also found that only 23 percent consider
cyber security to be a top concern, despite security
breaches known to be a chief cause of business
disruptions in the state. In fact, nearly 30 percent
of companies have not integrated cyber security plans
into their overall business continuity
planning. Nearly 25 percent currently use an
outside service provider to manage their network
security.
Nearly 30 percent of New Jersey companies also tend to
utilize outside service providers for business continuity
planning, a figure expected to grow
given the increasing complexity of measuring and
managing risk today. However, most other markets
have a higher rate of companies using outside
service providers.
While New Jersey companies may lag behind many
other markets in planning, 71 percent of executives
have taken some precautions to protect against
business disruptions, and 26 percent plan to do
so in the next six months. These measures include
protections against cyber security breaches and
establishment of redundant network servers and
back-up sites.
Ellie