Every business has its own tolerance for risk, but few can afford the cost of being unprepared. When systems go down, data is lost, or operations are disrupted, the damage goes beyond IT. It affects cash flow, customer trust, regulatory standing, and in some cases, long-term viability. For CFOs, that makes disaster recovery and business continuity more than a technical issue. It is a financial one that demands planning, investment, and executive ownership.
While IT teams may be responsible for the mechanics of backup and recovery, the implications of failure fall directly within finance. Business continuity planning is ultimately about safeguarding value—protecting revenue, maintaining liquidity, and ensuring the organisation can continue to meet its obligations even in the face of disruption. CFOs have a central role to play in making sure that happens.
Understanding the real cost of downtime
The financial impact of an IT outage is often underestimated. According to Gartner, the average cost of IT downtime is approximately $5,600 per minute, or over $300,000 per hour. There is the immediate loss of revenue when systems are unavailable, but also the ripple effects that follow. These include lost productivity, delayed projects, reputational damage, and the cost of recovery itself. Depending on the industry, downtime can also result in contractual breaches or non-compliance with regulatory obligations, which may carry fines or penalties.
Even brief disruptions can create lasting consequences. When customers cannot access services, or when staff cannot access critical systems, the loss of trust can be difficult to repair. For listed companies or those operating in regulated sectors, the reporting and legal obligations triggered by data loss or system failure can add a layer of complexity and expense that extends long after the technical issue is resolved.
The CFO’s role in continuity planning
Business continuity is often seen as an operational function. However, without financial oversight and clear priorities, even the best technical plans can fall short. CFOs are uniquely positioned to bridge the gap between what is operationally possible and what is financially justifiable.
That begins with understanding which systems and processes are most critical to sustaining operations. Not all applications need the same level of protection, and not all risks carry equal impact. By working with business and technology leaders, CFOs can help define priorities and allocate resources where they are needed most.
This includes evaluating the cost-benefit of different recovery strategies. Investing in redundant infrastructure or cloud-based recovery solutions comes with upfront costs, but these may be far outweighed by the losses avoided in the event of disruption. Financial modelling plays a key role in helping leadership make informed, balanced decisions about risk and resilience.
CFOs also bring a governance perspective that is often missing from technical planning. Ensuring that continuity frameworks are reviewed, documented, and tested regularly is part of sound financial management. Yet, research shows that 23% of businesses never test their business continuity plans, leaving them vulnerable when disruption strikes. It also provides assurance to investors, regulators, and insurers that risk is being actively managed.
Building a culture of readiness
While tools and processes are essential, a resilient business is ultimately built on culture. The organisations that recover most effectively from disruption are those that treat continuity as a shared responsibility, not a checklist.
CFOs can influence this by embedding continuity into financial planning, investment decisions, and risk assessments. They can ensure that teams are trained, that scenarios are tested, and that response plans are integrated into operational procedures rather than stored in isolated documents.
This level of preparedness reduces panic in moments of crisis. It provides a clear roadmap for decision-making under pressure. And it gives leadership the confidence to act quickly and with clarity when disruptions occur.
Aligning continuity with broader strategy
Business continuity is not a standalone initiative. It should be integrated into broader planning around digital transformation, risk management, and long-term growth. As businesses move more of their operations to the cloud or rely on third-party platforms, the continuity challenge becomes more complex. CFOs must be confident that vendors have appropriate protections in place, that contractual terms support recovery objectives, and that the business is not overly dependent on any one service or infrastructure provider.
At the same time, continuity planning must evolve alongside the business. As new products launch, systems change, or operating models shift, continuity plans need to be updated to reflect new dependencies and priorities. This requires cross-functional collaboration and regular review, both of which benefit from strong financial leadership.
