February 16, 2004—A new study commissioned by Strohl Systems finds that the majority of organizations located in the World Trade Center complex that had a business continuity plan on Sept. 11, 2001 have been able to regain their pre-disaster business potential.
The study, conducted by Dr. Effy Oz of Penn State University, found that of the 25 organizations that participated, 20 regained their potential to do business at the level of Sept. 10, 2001 and five have yet to regain their full potential. All that had a business continuity plan at the time of the disaster have regained their pre-disaster business potential, except for two organizations. Two of the four organizations that did not have a BCP have not regained their business potential.
The sample size was limited to organizations in the destroyed or severely damaged buildings. Since the sample size was limited by design, no definitive, statistically valid conclusions can be drawn, but general impression can be made. The following statements can be made from the study:
- Most study participants suffered a decrease in their annual sales after Sept. 11;
- The majority of the organizations that responded increased their insurance spending both as a percentage of the annual budget and the annual sales;
- Organizations that responded increased their BCP spending between 2001 and 2003;
- The cost of recovery reached millions of dollars in some cases, even when an organization did not regain its Sept. 10, 2001 potential.
“Companies that maintain and test a comprehensive continuity plan should be able to recover quicker and more effectively than those who don’t,” said Brian Turley, President of Strohl Systems.
For more information, including a full text of the study, contact Strohl Systems.
