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Pre-Katrina Survey Finds Almost Half of State Companies
Say Continuity Planning Not a Priority
MILWAUKEE, Dec. 20, 2005 — Ten years after an epidemic severely disrupted Milwaukee businesses, more than one-third of Wisconsin companies do not have a business-continuity plan, according to a report released today by AT&T Inc. (NYSE: T) and the International Association of Emergency Managers (IAEM).
Despite the fact that one in 10 Wisconsin businesses suffered a disaster of sufficient magnitude to cease operations for a time, 47 percent stated that continuity planning was not a priority. Nearly 60 percent of Wisconsin companies do not have business-continuity plans.
The report, “Disaster Planning in the Private Sector: A Look at the State of Business Continuity in the U.S.,” surveyed 100 senior technology executives throughout Wisconsin with direct business-planning responsibilities.
“What concerns me is that the data suggests that Wisconsin’s level of preparation is one of the lowest in the United States,” said Philip Ross, regional vice president of AT&T Business. AT&T also surveyed more than 1,200 businesses around the country.
Of the Wisconsin companies that have business-continuity plans in place, 55 percent report testing them in the last year and only one-quarter of those in the last six months. Both figures are below the national averages. The consensus of business-continuity experts is that plans should be tested at least every six months.
“Preparation and practice are critical for weathering disasters,” Ross added. “Fortune always favors the prepared company, even in the most chaotic situations.”
Recognizing the increasing importance of their networks to their day-to-day operations, more than three-fourths (77 percent) have implemented Internet security precautions, such as firewalls, intrusion detection, hacker protection and password authentication, or plan to do so in the near future.
More than one-third (38 percent) of companies who include cyber security as part of their business-continuity plan have contracted with an outside service provider to manage communications security.
“Wisconsin companies should be better-prepared than they are,” said Elizabeth B. Armstrong, executive director of the International Association of Emergency Managers (IAEM). “There are still too many companies without plans and where continuity planning is too low a priority. Wisconsin is relatively safe from such threats as hurricanes or earthquakes, but the epidemic in Milwaukee, the spate of recent natural disasters, and the possibility of terror attacks should remind everyone that business disruptions can arrive unexpectedly and that preparation is the best defense.
“The results of this survey show that companies are taking an unnecessary gamble with their futures,” Armstrong added. “The cost of developing a business-continuity plan and implementing a technology infrastructure to support the plan is minimal when compared with the daily financial impact once disaster strikes.”
All companies, regardless of size, need to identify their critical business components and effectively manage the risks around them. Plans should specify redundant systems, backup sites, employee communications and alternative work sites. They also should include a process for maintaining customer communications immediately following the disaster and until things return to normal.
An increasing number of companies today are turning to experts to handle business continuity planning. Building on years of experience in managing and maintaining some of the world’s largest networks, including its own, AT&T offers a wide array of business-continuity services designed to help ensure the continuous operation and availability of customers’ critical business processes, applications, data, work centers and networks.
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AT&T Inc. is one of the world’s largest telecommunications holding companies and is the largest in the United States. Operating globally under the AT&T brand, AT&T companies are recognized as the leading worldwide providers of IP-based communications services to business and as leading U.S. providers of high-speed DSL Internet, local and long istance voice, and directory publishing and advertising services. AT&T Inc. holds a 60 percent ownership interest in Cingular Wireless, which is the No. 1 U.S. wireless services provider with more than 52 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.TheNewATT.com.
