Study urges businesses to invest in disaster recovery

MANILA, Philippines - Think tank Institute of Development and Econometric Analysis (IDEA) said almost half of the 18 cities all over the country serving as sites for call centers and other business process outsourcing (BPO) firms are disaster-prone areas.

In a study entitled “Innovative Industry Insights on Disaster Recovery,” IDEA said the areas that have high to very high risk of climate-related disasters such as tropical cyclone and heavy rainfall include Metro Manila, Naga, Angeles, Cavite, Sta. Rosa, Lipa, and Legazpi.

The study commissioned by Lopez-owned Bayan Telecommunications Inc. further showed that seven cities including Baguio, Subic, Malolos, Bacolod, Dumaguete, Cebu, and Davao have a moderate risk of climate-related disasters.

On the other hand, only Iloilo, Cagayan de Oro and General Santos were the only three cities that have very low to low risk of climate-related disasters.

Of the 18 cities, IDEA said Cebu, Manila, and Clark are established information technology – business process outsourcing (IT-BPO) areas while the next wave cities included Davao, Sta. Rosa, Bacolod, Iloilo, Cavite, Lipa, Cagayan de Oro, Malolos, Baguio, and Dumaguete.

The study classified Dagupan, General Santos, Legazpi, Subic, and Naga as next wave aspirants to become IT-BPO centers.

IDEA chair Dr. Raul Fabella said there is a need to be properly prepared for disasters and at the same time to adequately assess the risks faced by organizations throughout the country.

The Philippines is at risk of various natural disasters, ranging from climate-related risks to geophysical hazards as around 20 storms batter the country every year while earthquakes, volcanic eruptions, and landslides are also common.

The country is situated along the Pacific Ring of fire making it one of the most disaster-prone countries in the world.

 “The Philippines is no stranger to a wide range of disaster events. Apart from the loss of lives and property, disruptive events can result in significant direct and indirect financial losses for business organizations,” Fabella stressed.

The study showed that 35.5 percent of the respondents have yet to develop business continuity plans while 44 percent have yet to come up with disaster recovery plan.

Furthermore, the study showed that only 32.4 percent of the respondents are very comfortable in their adequacy of preparedness for disruptions.

For his part, Bayantel vice president Chito Franco said the study was aimed at alerting businesses on the need to expand and refine analysis on risk assessment and disaster recovery.

“We want to encourage business organizations to adopt a proactive stance and invest in data recovery infrastructure now, as investing after a disaster already struck would be more costly for them,” Franco said.

The Philippine Disaster Report revealed that the country was the most disaster-hit economy in the world last year with economic costs reaching P26 billion.