Four critical reasons why financial companies prioritise disaster recovery today
By Catherine McFarland • 07 Oct 2014
Financial organisations are increasingly reliant on IT. Regulatory bodies like the Financial Conduct Authority (FCA) encourage the financial sector to take action to protect their IT systems, and they specify the standard of disaster recovery expected. But technology moves fast. Data and services are growing too. Hence our extreme dependence on IT systems. But what if we’re hit by flood, fire, a computer virus or corruption due to upgrades?
Consider a situation where your critical servers are down. If this hasn’t happened in your organisation then you’re fortunate -- the average mid-sized company experiences downtime of at least half an hour every year. And while 30 minutes is bad enough, what happens when minutes turn into hours and then days?
The impact of poor disaster recovery on financial organisations
1. Loss of productivity
With IT system failure, employees simply can’t function. They can’t access email, database servers, file servers, terminal servers, Citrix environments - or any other applications such as Bloomberg or Thomson Reuters.
2. Financial loss
There are direct revenue implications from billing and investment losses, which can also lead to the business having to pay compensation and suffer the loss of future revenues
3. Additional costs
It isn’t just financial losses that are a concern. Poor IT disaster recovery can generate additional costs involving reduction in revenue recognition, cash flow, payment guarantees, credit rating and stock price
4. Damaged reputation
The reputation of your business is key to its success, not just among clients, but with suppliers, financial markets, banks and business partners. The more dependant we become on IT, the more important its availability becomes. In the financial sector, there tends to be a higher cost of downtime due to the nature of the business, as direct costs can be magnified.
So, what does ‘good’ disaster recovery look like for a financial organisation?
Primarily, it’s critical that you protect your business against downtime. All in all, look for a solution that provides you with the following benefits
- The lowest possible downtime to minimise the cost of business disruption
- Minimal loss of data – keeping your reputation secure
- Ease and simplicity of set-up, testing and recovery
Disaster recovery for the finance sector as a packaged cloud service
As cloud technology continues to prove itself cheaper, faster, simpler, more flexible and secure, more and more financial organisations are choosing a packaged cloud solution to support their business continuity and disaster recovery. This means they get a top-end enterprise-level solution and, if things do go wrong, their business is back up and running almost instantaneously. They get the lowest possible downtime and fastest possible recovery, so their business and reputation remains intact.
Find out what happens when Campbell Lutyens, the private equity firm, loses all its servers. In the meantime, check out how Cloud Direct’s packaged cloud solutions rescued accountancy firm McParland Williams when their computer system was damaged beyond repair.
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