Incapacity of men or machines need not be the end of the road for a business entity. If adequate measures are taken for the continuity in business, it will ensure smooth functioning.
However, most business entities fail to foresee a crisis situation where their contingency plans will be thoroughly tested. Without adequate preparation, sudden disasters cause problems to the crucial clients, who they deal with, resulting in loss of credibility for those who run the business.
This is especially true in the case of small businesses that for short-term gains ignore long-term safety. If the backup is not available at the most crucial time, there is a far greater risk of losing vital data and even the business itself.
On the other hand, visionary corporate entities always expect the unexpected and get ready with measures to survive a disaster or an emergency. If the aim is to chalk out a plan to ensure survival in case of disaster, it is natural to think of predetermined scenarios and plan future courses of action.