Safeguarding Your Future: How Australian Businesses Can Prepare for Business Disruptions

As we move through 2025, Australian businesses face a growing number of threats that can disrupt operations, from financial instability to cyberattacks and natural disasters. To ensure long-term resilience, organisations must focus on Business Disaster and Recovery strategies that minimise downtime and maintain continuity. 

The rising threat of business disruptions 

Disruptions come in many forms, but a few key risks stand out for Australian businesses in 2025: 

• Financial Pressures & insolvencies: Business closures are on the rise, projected to hit 5.6% this year. Sectors such as construction and hospitality are particularly vulnerable due to late payments and increased tax collection efforts. 
• Cybersecurity attacks: The Allianz Risk Barometer ranks cyber incidents as the number one business risk globally, with 38% of business leaders citing data breaches and ransomware as their top concern. 
• Climate-related disruptions: Natural disasters continue to disrupt supply chains and infrastructure. With climate change intensifying, businesses need to prepare for prolonged recovery periods after extreme weather events. 

These risks underscore the importance of Business Disaster and Recovery planning. Without a proactive strategy, companies risk significant financial loss, reputational damage, and even permanent closure. 

How to build business resilience 

A well-designed Business Disaster and Recovery plan can be the difference between survival and failure during a crisis. Here’s what businesses should prioritise: 

1. Establish a business continuity plan (BCP) 

Shockingly, only 25% of small businesses have a documented business continuity plan. This is a critical gap, as disruptions can strike at any time. A strong BCP should: 

• Identify key business functions and their risk exposure. 
• Outline contingency plans for financial disruptions, cyber incidents, and supply chain failures. 
• Establish roles and responsibilities for crisis response teams. 
• Include backup strategies for IT infrastructure, ensuring critical data remains accessible. 

2. Regularly test and update your disaster recovery plan 

Having a Business Disaster and Recovery plan is not enough – it must be tested and updated frequently. The Victorian Auditor – General recommends businesses conduct a business impact analysis every two years to reflect evolving risks. 

Regular simulation exercises help ensure staff are prepared to act quickly in an emergency, minimising confusion and downtime. 

3. Strengthen cybersecurity measures 

With cyber incidents ranked as the top business risk for 2025, companies must prioritise cybersecurity as part of their Business Disaster and Recovery strategy. Key measures include: 

• Multi-Factor Authentication (MFA) to prevent unauthorised access. 
• Regular cybersecurity training to reduce human error. 
• 24/7 monitoring and incident response to detect and neutralise threats before they escalate. 

4. Develop financial resilience strategies 

Financial disruptions can cripple businesses, especially small and medium enterprises (SMEs). Strategies for financial resilience include: 

• Diversifying revenue streams to avoid over-reliance on one client or market. 
• Building cash reserves that cover at least three to six months of operating expenses. 
• Exploring government grants and financial assistance available for businesses affected by natural disasters or economic downturns. 

5. Implement cloud-based and hybrid IT solutions 

Businesses relying on traditional IT infrastructure may struggle with recovery after a disaster. Cloud-based solutions and hybrid Virtual Desktop Infrastructure (VDI) provide: 

• Remote access to business data, enabling employees to work from anywhere. 
• Automated backups to prevent data loss from cyberattacks or hardware failures. 
• Scalability to adjust IT resources based on business needs, ensuring cost efficiency. 

The future of business resilience in Australia 

Looking ahead, Australian businesses will need to navigate additional complexities: 

• Geopolitical risks: Global supply chain disruptions and trade tensions could impact local businesses. 
• Digital transformation challenges: While technology adoption is accelerating, businesses must ensure it delivers a return on investment rather than adding unnecessary complexity. 
• Regulatory changes: Compliance requirements for cybersecurity, financial reporting, and sustainability will continue to evolve. 

By proactively investing in Business Disaster and Recovery strategies, businesses can protect themselves from these risks and maintain stability in an unpredictable world. 

Conclusion 

The cost of inaction is high. Australian businesses that fail to prepare for disruptions risk severe financial and operational consequences. By implementing a Business Disaster and Recovery plan that includes cybersecurity measures, financial resilience strategies, and IT modernisation, companies can safeguard their future and thrive despite uncertainty. 

Learn more about how VITG can help your business build resilience through Business Continuity as a Service (BCaaS).  

References 

1. https://www.insurancebusinessmag.com/au/news/professional-liability/australian-businesses-brace-for-financial-strain-in-2025-518107.aspx 
2. https://www.finance.gov.au/sites/default/files/2019-11/comcover-dps-case-study.pdf 
3. https://www.insurancebusinessmag.com/au/news/cyber/cyber-tops-business-threats-in-2025-as-climate-risks-surge–allianz-520738.aspx 
4. https://www.audit.vic.gov.au/report/business-continuity-during-covid-19 
5. https://kpmg.com/au/en/home/insights/2025/01/australian-business-leaders-top-five-challenges.html 
6. https://www.asbfeo.gov.au/media-centre/media-releases/only-one-four-small-businesses-have-disaster-plan 
7. https://www.money.com.au/research/australian-business-statistics