Five Common Disaster Recovery Mistakes Businesses Make

When disaster strikes—whether it’s a hurricane, cyberattack, or power outage—the difference between quick recovery and total chaos often comes down to preparation. Unfortunately, many businesses believe they’re prepared, only to discover during a crisis that their disaster recovery (DR) plan has serious gaps. Even well-meaning strategies can fall apart due to common oversights. Below are five of the most frequent disaster recovery mistakes businesses make and how to avoid them.

1. Not Having a Documented Plan

One of the most basic, yet surprisingly common, disaster recovery mistakes is failing to create a documented plan at all. Verbal agreements and general ideas don’t count. If your team doesn’t have a written, up-to-date DR strategy, you’re leaving your business vulnerable.

A well-documented plan should include:

Step-by-step procedures for different types of disasters
Emergency contact lists
Inventory of IT assets
Data recovery procedures
Clear roles and responsibilities for staff

Without documentation, confusion reigns during a crisis. Key personnel may not know what to do or in what order, increasing downtime and risking permanent data loss. Regularly reviewing and updating this document is equally important—it should evolve as your systems and infrastructure do.

2. Overlooking Regular Testing

Too many organizations create a disaster recovery plan, then never test it. That’s like buying a fire extinguisher but never checking if it works.

Testing your plan regularly helps you:

Confirm that your backup systems actually restore data correctly
Identify weaknesses in the recovery process
Ensure that staff understands their roles during an emergency

Failing to test can lead to delays and confusion when a real event occurs. In some cases, companies have discovered too late that backups were incomplete or corrupted. Avoid this common disaster recovery mistake by scheduling routine tests—at least annually, if not quarterly—and simulating different disaster scenarios to ensure everyone knows what to do.

3. Relying Solely on On-Premise Backups

Many businesses still store their backups only onsite. While this may seem convenient, it poses a serious risk in the event of physical damage to your building—think floods, fires, or earthquakes. If your primary systems and backups are in the same location, you could lose everything in one incident.

The best approach is a hybrid model that includes:

On-site backups for quick restores
Cloud-based backups for geographic redundancy
Offsite physical backups stored in secure facilities (if necessary)

Using cloud backup and disaster recovery solutions ensures your data is accessible even if your local systems are compromised. This level of redundancy is critical for maintaining business continuity during a regional disaster.

CTA Need to know more about why on-premise backups might not be enough? Explore the benefits of cloud-based protection in our comprehensive guide.

4. Underestimating Recovery Time Objectives

Another common disaster recovery mistake is assuming that recovery will be faster than it actually is. Every business should determine its Recovery Time Objective (RTO)—how quickly systems must be restored after a disaster—and Recovery Point Objective (RPO)—the maximum acceptable amount of data loss measured in time.

Too often, businesses don’t calculate these objectives realistically, assume backups can restore full systems instantly, and fail to prioritize mission-critical systems over less essential ones

By underestimating recovery time, companies set themselves up for extended downtime, lost revenue, and frustrated clients. Work with an experienced IT provider to set achievable goals and build your DR plan around them.

5. Failing to Assign Clear Roles and Responsibilities

Disaster recovery is not just a technical process—it’s also a human one. One of the most overlooked disaster recovery mistakes is failing to assign clear responsibilities during a crisis.

Key roles might include a DR coordinator to oversee the recovery process, IT leads responsible for restoring systems and data, or communications staff to keep clients, vendors, and employees informed.

Without clearly defined roles, teams can duplicate efforts—or worse, miss crucial steps entirely. When every team member knows their part, your organization can act quickly and with confidence during an emergency.

How Disaster Recovery Mistakes Increase Downtime and Data Loss

Each of these mistakes has one thing in common: they delay recovery and amplify risk. Whether it’s due to slow response times, missing backups, or confused staff, the result is often extended downtime and financial loss. According to FEMA, 40% of businesses never reopen after a disaster. Of those that do, another 25% close within a year if they don’t recover quickly.

Every minute of downtime costs small to mid-sized businesses hundreds (if not thousands) of dollars. That’s why it’s so important to be proactive. The consequences of overlooking these disaster recovery mistakes aren’t just technical—they’re operational, financial, and reputational.

Homepage Front View Of Two People Looking At Laptop Computer

Best Practices to Strengthen Your Disaster Recovery Strategy

Avoiding common disaster recovery mistakes doesn’t require a massive budget—just a thoughtful, thorough approach. Here’s how to build a stronger strategy:

Keep Documentation Current

Update your disaster recovery plan as your business evolves. When you implement new systems, hire new team members, or expand operations, your DR plan should reflect those changes.

Schedule Regular Drills

Hold recovery drills to test how well your systems and staff respond. Practice both full and partial recovery scenarios to prepare for different disaster levels.

Implement Cloud Backup Solutions

Cloud backup and disaster recovery provide scalable, secure protection for your data. These solutions enable fast recovery and reduce your dependence on physical infrastructure.

Define RTO and RPO Metrics

Take time to assess which systems are mission-critical and how quickly they need to be restored. Communicate these expectations clearly in your DR plan.

Partner with Experts

A trusted managed IT services provider like NIC can help you avoid disaster recovery mistakes and build a solution tailored to your business’s unique needs.

What a Resilient DR Plan Looks Like in Action

Let’s say a mid-sized retail business is hit by a flood that damages both its servers and local backup drives. With only on-premise storage, it could take weeks to rebuild systems and customer data—assuming any data is recoverable at all.

Now imagine the same business has a hybrid disaster recovery plan in place. This company could enjoy:

Daily incremental backups to the cloud
Clear documentation outlining each team member’s recovery duties
Regular testing of systems to ensure recoverability

Overall, this results in minimal downtime. The business restores operations remotely within hours, maintains customer trust, and avoids costly data loss. This is the power of a well-crafted DR plan—and the high cost of disaster recovery mistakes when they’re ignored.

Be Proactive, Not Reactive

Disasters aren’t a matter of “if”—they’re a matter of “when.” And when they hit, your ability to bounce back depends on the strength of your disaster recovery plan. By identifying and avoiding the common disaster recovery mistakes outlined above, your business can minimize downtime, protect critical data, and recover faster.

Don’t wait for a crisis to realize your strategy has holes. Take action today to audit, update, and reinforce your disaster recovery plan with help from experts who understand the stakes.

Build a Stronger Disaster Recovery Strategy With NIC

Need help strengthening your disaster recovery strategy? NIC is here to guide you through every step of the process. With over two decades of experience and a reputation for reliability, we offer the support, planning, and solutions your business needs to stay resilient—even when the unexpected happens. Book your free consultation today!