Survey: Most Midsize Businesses Have Continuity Plans But Few Have Tested Them
July 29 2015 - 9:05AM
Business Wire
- More than one-third unable to meet
client need due to interruption
Most midsize businesses have business continuity plans but few
have tested them, according to The Hartford’s survey of midsize
business owners and C-level executives. This shortcoming presents
potential risk for businesses, which may be unable to meet client
needs due to an interruption in their operation or lose revenue due
to a supplier issue.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20150729005913/en/
While the majority of midsize businesses (59 percent) surveyed
had a formal, documented continuity plan, one-third (33 percent)
had an informal, verbal plan, and 8 percent reported having no plan
at all. Just 19 percent of businesses had tested their plan.
“Weather-related events, fires, thefts and supplier
interruptions are just a few of the issues that can impact a
business,” said Eric Cannon, assistant vice president of property
underwriting at The Hartford. “While many midsize businesses have
taken the important step of developing a formal continuity plan,
testing and updating that plan on a regular basis can mean the
difference between a business’s ability to recover quickly versus
being unable to meet client needs.”
The Hartford survey found that more than one-third (36 percent)
of midsize businesses had been unable to meet a client need due to
an interruption in their operation, putting their relationship with
that client at risk. Of those businesses:
- A majority (57 percent) used an
alternate supplier and avoided any direct impact on their
clients.
- 39 percent lost business to other
suppliers but had clients return once their business resumed
operations.
- 9 percent lost clients that did not
return.
Role of suppliers in continuity planning
Most midsize businesses surveyed (84 percent) rely on suppliers,
vendors or consultants. Four in 10 had suffered a supplier
interruption and almost one-third (32 percent) had lost revenue due
to a supplier problem.
“Even the smallest vendor or that vendor’s supplier can impact a
business’s ability to meet its customers’ needs. The savvy business
owner must take the time to understand the continuity plans of its
suppliers and their suppliers in order to fully know who is at the
table and who can step in when back-ups are needed,” said Cannon.
“It is also important for business owners to speak with their
insurance agent about their continuity plans and business
interruption coverage.”
Cannon discusses business continuity planning and suppliers at
www.thehartford.com/midsizemonitor.
For information about business continuity planning, visit
http://www.thehartford.com/business/disaster-planning-for-businesses.
To download a business continuity plan worksheet, visit
http://www.ready.gov/sites/default/files/documents/files/BusinessContinuityPlan_0.pdf
Survey Methodology
The Hartford’s 2014 Midsize Business Monitor was fielded from
September 16-23, 2014. More than 500 owners and C-level executives
of midsize businesses headquartered in the U.S. with annual sales
or revenues of $10 million to $1 billion participated in the online
survey, which had a margin of error of +/- 4.3 percent at the 95
percent confidence level.
More information about this survey, including an executive
summary and infographics available at
www.thehartford.com/midsizemonitor.
About The Hartford
With more than 200 years of expertise, The Hartford (NYSE: HIG)
is a leader in property and casualty insurance, group benefits and
mutual funds. The company is widely recognized for its service
excellence, sustainability practices, trust and integrity. More
information on the company and its financial performance is
available at www.thehartford.com. Join us on Facebook at
www.facebook.com/TheHartford. Follow us on Twitter at
www.twitter.com/TheHartford.
HIG-M
Some of the statements in this release may be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. We caution investors that these
forward-looking statements are not guarantees of future
performance, and actual results may differ materially. Investors
should consider the important risks and uncertainties that may
cause actual results to differ. These important risks and
uncertainties include those discussed in our 2014 Annual Report on
Form 10-K, subsequent Quarterly Reports on Forms 10-Q, and the
other filings we make with the Securities and Exchange Commission.
We assume no obligation to update this release, which speaks as of
the date issued.
From time to time, The Hartford may use its website to
disseminate material company information. Financial and other
important information regarding The Hartford is routinely
accessible through and posted on our website at
http://ir.thehartford.com. In addition, you may automatically
receive email alerts and other information about The Hartford when
you enroll your email address by visiting the “Email Alerts”
section at http://ir.thehartford.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150729005913/en/
Media Contact:The HartfordPamela Rekow,
860-547-8990pamela.rekow@thehartford.com
Hartford Financial Servi... (NYSE:HIG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hartford Financial Servi... (NYSE:HIG)
Historical Stock Chart
From Apr 2023 to Apr 2024