Risk assessment and BIA

What a day of business downtime costs: a case and how to calculate it

"How much do you lose for one day of downtime?" Most owners have never counted. They should: this single number changes how you treat risk. Here is a real case showing how to calculate it and what to do next.

Updated: June 28, 2026 · Author: Evgeny Telenkov · ≈ 6 min read
What a day of business downtime costs: a case and how to calculate it

A case: two weeks in firefighting mode

A small logistics company, twelve people. One of its key suppliers suddenly declared bankruptcy — with no warning. Everything you needed to know about backup contacts, alternative chains and arrangements with clients was held in one employee's head. And he happened to be on holiday, answering calls only now and then.

For two weeks the company ran in firefighting mode: clients waited for explanations, money was stuck, and the team did not understand who was even making decisions.

The first question — what a day of downtime costs

We started with a simple question: how much does one such day of downtime cost? The company had never counted. When we did, it came to about 180,000 rubles a day. And as soon as the figure was on paper, it was clear: there was no financial reserve for such a scenario, which meant the next crisis could cost far more.

How to calculate the cost of a downtime day: add up the revenue not earned that day, the payroll (people sit idle but are still paid) and possible fines and penalties under contracts. For critical processes, add the churn of customers who switch to a competitor.

What we did — without heavy procedures

The result

When a few months later another counterparty pulled out of a contract, the company coped in two days. Not by luck — because it knew what to do and had a buffer to act without panic.

Systematic risk work is not about foreseeing everything. It is about not being caught off guard. One story with a good ending is worth more than dozens of arguments about the importance of resilience.

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FAQ

What should be included in the downtime cost?

At minimum — revenue not earned, payroll for the downtime period and contract penalties. For key processes, add losses from customer churn and the reputational effect.

Where to start if there are many processes?

Take three processes the business cannot run a day without and calculate the downtime cost for each. That already shows where the main risk sits.

How big should the financial cushion be?

A rule of thumb — the cost of several days of downtime of a key process plus a margin for recovery. The exact amount is calculated from an assessment of critical functions.

Evgeny Telenkov
Evgeny Telenkov
Chief Risk Officer · PhD in Economics · "Best Risk Manager of Russia 2020"
20 years in risk management. Led risk management at Beeline, Nornickel, Rosneft and EY. Built business continuity plans for Nornickel, Rostec, NSD and DIA. Trained 300+ risk and BCM specialists.
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