IT systems failure is the most feared threat to ongoing health and profitability of small businesses, according to a survey by Axa.
At total of 91% of respondents identified IT failure as a threat, with 23% of these believing it to be significant. IT problems were also identified by a quarter of respondents as the most common cause of total business failure.
Despite recognising the importance of IT systems to their businesses, 39% of those questioned had no plan in place to protect them in the event of IT and other business failure issues.
In addition to the risks, respondents also recognised that investment in the right technology is a key factor influencing their success – 94% considered it important with 20% saying extremely important.
Doug Barnett, risk control strategy manager at AXA, said: “Fear of IT failure keeps small businesses awake at night. It has consistently topped our list of major worries. One thing is clear, if your IT systems fail and you aren't prepared, this is probably the one risk most likely to put you out of business.
“Businesses need to consider all the risks they face and prepare a business continuity plan. How you would cope with an IT failure is one of the most important areas to consider. If you plan for it you can cope with it.”
