Evaluating the disaster preparedness of SMEs in Metro Manila for disaster recovery and business continuity

• Main Authors: Alea, Alyanna, Chan, Theodore, Lim, Jeric, Sadornas, Krisha
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Emergency management > Philippines > Metro Manila; Database management > Philippines > Metro Manila; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7236
• Institution: De La Salle University

The integration of information and communications technology (ICT) into core business processes today have increased companies' dependence on the continual function of such for survival. However, there is a blatant lack of evidence to confirm that businesses are prepared to face challenges that threaten ICT's regular operation. This is especially alarming for professionals who are in the field of accountancy, which largely banks on the accurate, timely and complete flow of information. Framing this dilemma in the Philippine setting causes even greater apprehension, granted that the Philippines is one of the most disaster prone countries in the world as stated by recent studies. Moreover, businesses in the Philippines also face additional threats such as viruses, software malfunction, etc. A comprehensive study is needed to assess the actual disaster preparedness level of businesses in the Philippines, particularly SMEs, in order to educate all stakeholders and emphasize the necessity and benefits of disaster preparedness. Thus, this study aims to measure the disaster preparedness of SMEs in Metro Manila, and to identify the factors that affect it. The study used a survey questionnaire in order to obtain information about the company profile and disaster risk perceptions of the respondents. In addition, a measure of disaster preparedness was obtained using a framework from past studies. The data are summarized using descriptive statistics and consequently, analyzed using the Pearson correlation analysis and the OLS approach to multiple linear regression. Accordingly, the paper provides general awareness to all parties involved to facilitate the initiation of corrective actions. The results of the study determine that majority of the SMEs surveyed had weak to failing disaster preparedness scores. An average preparedness score of 64.8% was obtained, with the plan initiation component having the highest average of 73.3% and with training having the lowest average of 59.5%. This shows that companies exert satisfactory effort in establishing their disaster recovery plans however fail to follow this up with implementation, development and maintenance procedures. It was also determined that only reliance on IT had a significant impact on and relationship with disaster preparedness scores while firm size, industry, past disaster experience and risk appetite do not.