Return on Investment (ROI) Calculator
We hear the same story ALL THE TIME! There is no budget for BCP! No buy-in from Senior Management! Maybe running your business through the Return on Investment (ROI) calculator will get some attention. No matter if it’s a disaster (hurricane, tornado, earthquake, flooding, pandemic) or just a simple incident (power interruption, computer failure, snowstorm) the statistics of possessing and executing a quality business continuity plan overwhelmingly increases the likelihood of getting your business operational faster.
Take a few seconds to put business continuity planning efforts into perspective.
You will be amazed to learn the cost of just one hour of lost productivity. Estimate the impact of each hour that your business is trying to recover without a Business Continuity Plans (BCP) to determine the “budget” for your BCP.
A very basic calculator that we have used for years is as follows:
Total Gross Income per year / 1950 (Work hours in a year) = The income lost per hour of downtime
|Total Gross Income for your company, in dollars:|
If you want the number to get even bigger, add the following:
Average Income (Estimate is fine) x number of employees / 1950 (Work hours in a year) = Salary expenses incurred per hour of downtime
|Average Salary Expense||Number of Employees|
|for your company, in dollars:||in your company:|
Add the two numbers to determine your lost cash per hour of downtime.
NOTE: This estimate does not take into account your paid expenses, such as rent, utilities, taxes, misc expenses, etc ...