MANY firms could lose business if they fail to put a disaster recovery plan in place, a Kent firm has warned.

ICM Computer Group in London Road, Sevenoaks, says that more than half have not heeded the warning of 9/11 and have done nothing to prepare for a crisis.

The firm cites not only terrorism, but also bad weather such as the flash floods in Boscastle, Cornwall, landslides in the Scottish Highlands, and trains stranded in Devon.

They all highlight the need for "business continuity planning," ICM says, to ensure that the enterprise can carry on despite unexpected fire, flood or power failure.

A new Civil Contingency Bill will compel major public services to have plans in place to ensure continuity in the event of a disaster.

Mike Osborne, operations director of ICM Computer Group, said: "This means that local authority procurement officers may, in future, choose suppliers and contractors with tested business continuity plans in place over those who do not.

"This is not just about satisfying government ministers, this is about recognising the importance of business continuity issues impacting on the whole supply chain and local business communities."

John Sharp, from the Business Continuity Institute, reckons as many as 57 per cent of companies do not have viable plans in place.

He said: "Every five years, 20 per cent of UK companies will suffer a major disruption through fire, flood or storm, power failures, terrorism and hardware or software failure. Of those companies who do not have plans in place, 80 per cent fail within 13 months of such an incident."

Mr Osborne added: "It beggars belief the number of companies with no plans in place should disaster strike.

"The fact is that if a business does not have a continuity plan and it is hit by a disaster or crisis, it is left exposed to potentially enormous losses.

"Not only are there financial implications but there's also a strong chance of a business going under permanently, as a result of customers having to go elsewhere."

Solutions range from replacement IT systems to providing secure, off-site data management centres and relocating personnel to alternative workplaces.