Influence of Contingency Recovery Plans on Performance of Processing Firms in Brazil

Abstract

Contingency recovery plans refer to a collection of measures, either written down or communicated to all that shows how the firm will react when calamity or challenges strike the firm. The study examined the influence of contingency recovery plans on performance of processing firms in Brazil. A disaster can happen anytime, and a company should be ready for it and a firm should create an ideal strategy to reduce the impact of disaster and proceed on with the critical functions. A contingency plan is a back-up strategy, activated in case of an incident that disrupts firm’s operations and puts staff members at risk. The study discovered that firm continuity planning and disaster recovery planning are the most vital aspects of a firm but are often ignored. Firms need to make a well-structured strategy and document for calamity recovery and firm continuation, even before a catastrophe happens. The research concludes that contingency recovery plans and firm performance is positively and substantially related. It was noted that a unitary improvement in contingency recovery strategies boosts the processing firm's performance. It is additionally concluded that contingency recovery plans include having a disaster recovery group, the development of preventative measures to reduce the effects of a disaster and creating a time frame for the recovery plans in the firm. The research recommends that there should be a disaster recovery group which is always prepared for the recovery plans within the firm. Furthermore, there is the need to have preventative measures established in the firm to reduce the effects of a certain calamity. A written recovery strategy that defines how the firm will respond when a calamity or disaster strikes should be prepared.