Too long to get operational after disaster

The study by IP communications company Mitel, revealed that 68% of UK businesses with a £1 million plus turnover would be out of operation for at least two days, despite the fact that the number of firms with business continuity plans had almost tripled in the last six years.

The retail industry was the least prepared to cope with disasters, according to the study, with 64% expecting to take more than 48 hours and 28% requiring over a week to get back up and running.

Over a quarter (26%) of senior managers told researchers they would attempt to rely on mobile phones to keep their business running, pointing to the lack of planning around telecoms protection.

Mitel said that while the use of mobile phones seemed like a straightforward solution, it was not only costly but networks could quickly become jammed in the event of a full-scale disaster, as evidenced by last years bombings in London.

'Higher priority'

Graham Bevington, UK managing director at Mitel, said: "The sheer number and variety of disasters that hit during 2005, from the London bombings to the explosion at Buncefield, sent a shock wave through UK businesses.

"Although business continuity has become a higher priority, it's clear that the vast proportion of UK firms are ill-prepared to maintain operations if employees are unable to get to work."

He added: "Ultimately, there is no point in having a plan on paper if it takes days to put into action. With the threat from disease and terrorism ever prevalent, it is important to understand that relying on mobile phones is not enough to safeguard the business."

Larger companies, with a turnover of over £20 million, were better prepared to address business continuity planning, the study showed, with two thirds (66%) estimating they could resume operations within 24 hours.

Buncefield aftermath

Last week the East of England Development Agency (EEDA) revealed that the fallout from the Buncefield oil depot blast had already cost nearby businesses more than £70 million.

The Maylands Estate, which borders the north and west sides of the Hemel Hempstead oil terminal, bore the brunt of the December 11 blast when leaking aviation fuel ignited in the early hours of the morning.

Many of the 630 businesses employing 16,500 people were destroyed or badly damaged in the explosion, with more than four-fifths of those surveyed having to move out of the area to continue trading, said a report from the Agency.

The cost to those firms in lost business, moving and relocating or rebuilding properties is more than £70 million. The report also showed that 90 businesses were seriously affected by the blast and 1,422 jobs had to be relocated. There were seventy-nine reported redundancies.

David Marlow, chief executive of EEDA, said: "One of the important lessons that we have learnt from this study is that small firms have been especially hard hit as they often operate from one single site, therefore it is imperative that future measures are put in place to combat this."