Firms are over-optimistic about their ability to manage business continuity risks, a new study has found.

The research by insurance and risk management firm Marsh, found that while three-quarters of firms believe their business continuity plan is capable of dealing with any problems, this is often not the case.

Martin Caddick, Leader of Marsh's Business Continuity Management team, said: "Our research suggests that organisations which believe their approach to business continuity management is mature or very mature are generally being optimistic.

"It seems that many businesses overrate their own level of BCM and their perceptions do not match the reality."

However, he added that it is "encouraging" that many firms are now aware of the importance of business continuity planning and should seek help in implementing it properly.

Yesterday, a survey by PricewaterhouseCoopers warned that more than a quarter of British firm have not yet put a disaster recovery plan in place.

New research from Connect found that, on average, it takes businesses that use backup tapes take 11.6 hours to retrieve and restore files. Connect is now recommending that SMEs switch to www.totalrecall.co.uk