When an organization—whether a public institution, government body, or private company—falls victim to a ransomware attack, one of the first pieces of advice from law enforcement agencies and cybersecurity experts is usually the same: do not give in to the ransom demands of hackers. Paying the ransom does not guarantee that the attackers will restore access to the encrypted data, nor does it ensure that sensitive information will not be leaked or misused.
However, a newly released study highlights a more worrying reality: even organizations that refuse to pay—or successfully negotiate with ransomware groups—may struggle to fully recover their operations.
According to the State of Recoverability report released by Tennessee-based disaster recovery firm Fenix24, only a very small number of organizations affected by ransomware were able to restore their business operations completely. The company analyzed more than 500 ransomware recovery cases as part of its research.
The findings indicate that ransomware recovery remains a significant challenge for businesses, with many organizations able to restore only a portion of their critical operations after an attack. In one analysis involving 800 clients, Fenix24 found that only four organizations were able to recover their operations, and even those recoveries were only partial.
The report also points to a major weakness in organizations’ preparedness: recovery planning. According to Fenix24, 99% of clients did not have a documented identity recovery plan, highlighting how difficult it can be for organizations to regain control of user accounts, systems, and digital identities following a ransomware incident.
Identity recovery is particularly important because modern ransomware attacks often go beyond simply encrypting files. Attackers may compromise administrator accounts, credentials, authentication systems, and other critical components of an organization’s IT infrastructure. As a result, restoring files from backups alone may not be enough to bring an organization back to normal operations.
The findings also suggest that negotiating with threat actors does not necessarily solve the underlying problem. Even when organizations can negotiate with ransomware groups or obtain decryption tools, they may still face lengthy recovery processes, damaged infrastructure, compromised credentials, and uncertainty over whether attackers have retained copies of stolen information.
Ransomware attacks have therefore evolved into a broader business continuity and disaster recovery problem rather than being merely an issue of encrypted files. Organizations need to ensure that backups are protected, regularly tested, and isolated from their primary networks. They also need clear recovery procedures that cover not only data restoration but also identities, credentials, applications, infrastructure, and business processes.
The Fenix24 report serves as a warning that having a backup strategy alone may not be sufficient to survive a serious ransomware incident. Businesses must regularly test their recovery capabilities and establish detailed plans for restoring their entire digital environment.
As ransomware attacks continue to target organizations across industries, preparedness could ultimately make the difference between a temporary disruption and a prolonged operational crisis.
