The threat of cyberattacks is rife in the digital world. Oftentimes, businesses, both large and small, are targets of various forms of cyber attacks. And these attacks, usually resulting in financial loss, data breach, user loss, and even legal sanctions, most specifically create undesired user disruptions which are usually worse for large scale corporations. This can be said to be the dilemma that CDK Global, software service provider for a large client base of automobile dealers, has found itself in, after falling victim to a “ransom attack” last week. And even into this week, the company is yet to fully recover and resume service provision.
According to a note sent out to their clients, CDK acknowledged that the hackers had indeed impacted their management system software, which is used by about 15,000 different car dealerships, and that the platform may be unavailable for days, with no imminent timeframe expected for resumption. While cyberattacks may never fizzle away, this situation shows the dire need for alternative solutions developed as contingency strategies, as situations of such kind, and others which may cause service disruption, could arise unexpectedly, and without prior indications. Therefore, in our article today, we shall be discussing how SaaS can be helpful in such situations, perfect for contingency planning.
Contingency planning involves the preparation of possible solutions to potential emergencies or disruptions that can have a negative impact on business operations. Especially for high-end service providers, contingency plans are almost as important as the original strategy, albeit reserved as alternative solutions, should the main strategy fail. This basically summarises as developing strategies and procedures to ensure that a business’ operation can continue to or resume quickly should an unforeseen collapse occur. The process of development for such strategies involve risk assessment, identifying essential operations, and creating response plans according to various scenarios.
For businesses that rely on Software-as-a-Service (SaaS) providers for critical operations, contingency planning is a must. This is because they depend on external providers for internal essential functions such as data storage, customer relationship management, and communication, which means that a disruption in these services can severely impact operations, just as it has happened with car dealers across the USA. When businesses have limited control over their infrastructure, and mostly rely on SaaS providers, having no contingency plan to issues like outages or cyberattacks could highly affect sales and user satisfaction. As is with these car shops, imagine the inability to close a big purchase deal just because your platform is not responding.
Usually, when such attacks happen, everyone suffers. However, when the service provider is unable to meet your needs, the responsibility falls on you, to find an alternative means of providing your own services. Contingency planning ensures that personal data isn’t lost, and helps maintain operational continuity. It also minimises downtime and the negative impact of disruptions on both customers and business revenue. Without contingency plans, businesses will face multiple significant risks leading to loss of revenue, productivity, company's reputation, and customer trust. Hence, individual SaaS users are expected to come up with their tailored plans for averting danger, even when disruptions occur.
Effective contingency planning involves several key elements. First, conducting a thorough risk assessment is essential to identify potential risks and vulnerabilities, such as natural disasters, cyberattacks, hardware failures, and issues with SaaS providers. According to the Ponemon Institute, 77% of organisations have experienced at least one cyberattack in the past year, highlighting the importance of robust risk assessment. Second, identifying and prioritising critical business functions ensures that essential operations receive the most attention in the planning process. Third, developing specific response strategies for each identified risk is crucial to maintain or quickly restore critical functions and minimise disruption impacts. Additionally, a clear communication plan must be established to keep stakeholders, including employees, customers, suppliers, and partners, informed during disruptions. Effective communication helps manage expectations and maintain trust.
Implementing robust data backup and recovery solutions is another critical element, ensuring that data can be quickly restored in case of loss. According to a report by Datto, 91% of businesses experience downtime due to data loss, emphasising the need for reliable backup systems. Regular testing of backup systems is necessary to verify their reliability. Sufficient resource allocation, including personnel, technology, and finances, is also vital to support the contingency plan, encompassing backup systems and alternative suppliers. Employee training and awareness are essential, with regular drills and simulations ensuring preparedness and swift action in emergencies. A study by the Disaster Recovery Preparedness Council found that 73% of organisations are failing in terms of disaster readiness, underscoring the need for continuous improvement. Regular review and maintenance of the contingency plan are necessary to address new risks, changes in business operations, and lessons learned from drills or actual incidents.
Building an effective contingency plan involves several strategic steps. Developing a comprehensive framework outlining the objectives, scope, and key elements of the contingency plan serves as the foundation for detailed planning. Conducting a Business Impact Analysis (BIA) helps understand the potential impacts of disruptions on business operations, aiding in prioritising critical functions and allocating resources effectively. Forming a cross-functional contingency planning team ensures diverse perspectives and responsibilities in developing, implementing, and maintaining the plan.
Implementing redundancies in critical systems and processes, such as backup servers, alternative communication channels, and secondary suppliers, is essential to ensure continuity in case of primary system failures. A study by Aberdeen Group found that businesses with redundancy measures in place experience 5x less downtime. Developing detailed action plans for each identified risk, with step-by-step response and recovery procedures and assigned responsibilities, is crucial. Leveraging technology solutions, including cloud storage, automated backup systems, and cybersecurity tools, enhances resilience. These technologies must be regularly updated and tested.
Regular testing of the contingency plan through drills and simulations helps identify gaps and areas for improvement. According to Gartner, organisations that conduct regular drills and simulations improve their response times by 50%. Involving all relevant stakeholders ensures comprehensive preparedness. Working with external partners, such as SaaS providers, to align contingency plans and ensure robust measures are in place is also vital. Regular review and updating of service level agreements (SLAs) to reflect contingency requirements are necessary. Documenting the contingency plan in detail and ensuring its accessibility to all relevant stakeholders is crucial, along with communicating its importance to foster a culture of preparedness. Treating contingency planning as an ongoing process, regularly reviewing, and refining the plan based on new risks, changes in the business environment, and feedback from drills and actual incidents, continuously enhances the plan's effectiveness.
Establishing and maintaining clear communication channels is the primary medium for supporting users through contingency plan execution. Usually, users may be unfamiliar with the changes that come with contingency plans. However, service providers can maintain accurate information dissemination using email updates, internal messaging systems, and dedicated hotlines. Doing this, they provide real-time updates to ensure that users are aware of the situation, the steps being taken, and what they need to do while interacting with the new system.
Providing comprehensive documentation is also necessary to support users by outlining the contingency procedures in an easily accessible format. This should include step-by-step guides, contact information for key personnel, and FAQs. Clear, concise comprehensive instructions help users understand what is expected of them during an emergency, making it easy for them to also manage their expectation when such issues arise. These materials provide information on backup systems and understand how to use them, such as pre-configuring user accounts, ensuring remote access capabilities, and providing training on the use of these systems. Quick access to these data (and systems) is crucial for maintaining continued productivity during an actual contingency event.
And with dedicated user support teams, service providers can ensure users feel more confident and supported as they still possess sufficient resources to support them during a contingency event. This may include setting up temporary help desks, increasing IT support staff, and providing necessary equipment to remote workers.
In conclusion, despite diverse safety strategies employed, hacks and breaches remain unavoidable, making contingency plans a must. And especially for clients of SaaS providers, it is even more important to avoid utter disruption, to ensure they do not suffer user or financial loss. This is because their dependence on external platforms for their operations exposes them to second hand threats, where they may have not been the initial target. However, by following carefully curated steps to design specific alternative strategies, they can ensure that their operations remain up and running, and their business isn’t hindered when breaches do happen.
