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Disaster Recovery Planning

Disaster Recovery Planning Can your company survive a computer systems disaster? Nearly 90 % of U.S. companies don't have adequate disaster recovery plans in place. How important is your company's information system to the success of your business? If your business is like most, your information system is critical.  Without a properly functioning information system and the data it contains, how long could you operate? How much revenue would you lose for every hour and every day of downtime?

A study by the University of Texas showed that, of U.S. businesses suffering catastrophic data loss, 43 percent were forced to close at the time of the disaster, 51 percent continued operating for a maximum of another two years, and only 6 percent of these businesses survived.

 

Consider These Facts:

92% of Internet Businesses Are Not Prepared for a Computer System Disaster. 

Source: IBM survey of 226 business recovery corporate managers

82% of Companies Are Not Prepared to handle a Computer System Disaster.  

Source: Comdisco 1997 Vulnerability Index Research Report

 

Disasters Burn Dollars

Why Should You Care About Disaster Recovery Planning?


Disaster recovery planning is a complex, time and resource consuming process with little obvious benefit. So why bother? Here are a few reasons to consider:

 

Your business survival might depend on it. How long could you stay in business without your mission-critical applications? A day, two days? Probably not very long. Fast recovery after a disaster or system failure can mean the difference between business as usual and business failure. 
 
It could cost you money. Downtime results in increased expenses, lost revenue, and lost customers. Rack up enough downtime and you risk poor profitability and potential business failure.
 
It might be a contractual obligation. Most companies stipulate in their contracts that suppliers must deliver the services or products they've contracted for -- no matter what. Your warehouse is suddenly under water. So what.
 
It might be required by law, particularly if you're a public company, a bank, a utility, or a government agency.

 

 

Disaster Recovery Planning

Once you have decided that your business or organization needs a disaster recovery plan, where do you begin?  Disaster recovery planning originally was the responsibility of the information systems -- the keepers of the mainframe. Today, because of the nature of distributed information systems and the interconnected nature of business processes, disaster recovery planning has evolved into business recovery planning. At the planning level, this shift translates to a need to develop an organization-wide business recovery plan that takes into account every critical function of your business, including manual, paper-based systems.  The following steps should be included in a comprehensive planning process. 

  1. Build senior management support and define recovery goals, objectives, and assumptions.
  2. Conduct a Business Impact Analysis  of functional requirements.
  3. Determine business recovery strategies.
  4. Prepare and implement the plan.
  5. Perform realistic testing.
  6. Update and refine the plan.
  7. Be prepared to declare a disaster.

Build Senior Management Support

Build Senior Management Support

While senior managers within any industry should be aware of the need for disaster recovery planning, many avoid or overlook the issues for a variety of reasons, including misconceptions about potential threats, planning costs, and human resource requirements.

Several effective methods can be used to help you gain support for organization-wide recovery planning. For instance, pick up any major newspaper and you will find the following "This could happen to us!" stories. Sunday, September 13, 1998, hacker attack that brought down the New York Times Web site on a day that would typically see about 150,000 visitors. Relate these disaster stories to your own situation.  A major crisis can mean a loss of vital corporate assets, market share, and business momentum. 

Senior Management Responsibilities for Disaster Recovery

  • Demonstrate concern for employee safety and well-being.
  • Champion the company policy statement and organizational commitment.
  • Be responsive to board-of-director mandate for disaster recovery preparedness.
  • Help establish and review the plan's scope, objectives, and design.
  • Protect assets and value by preventing or limiting loss of vital business functions.
  • Accept the business and legal risk of any deficiencies.

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Business Impact Analysis

Business Impact Analysis

The likelihood of a catastrophic business disaster is remote.  Yet, the probability that your business will be impacted bysome type of natural or manmade calamity is very high.  Disasters themselves are unpredictable; however, the effects of disasters on your business can be predicted with some accuracy by conducting a business impact analysis.

Each functional area within an organization should be evaluated to determine the impact on business operation if that area is not recovered. This evaluation, known as a business impact analysis, looks at the impact on revenue, customer service, legal liabilities, and other aspects that affect the health of your operation. A BIA results in the assignment of a hard dollar value to downtime. Using a BIA, every functional area within your organization should be evaluated and rated as critical, necessary, or optional in terms of recovery following a disaster.

A thorough BIA should answer critical questions, such as:

  • What is the cost in lost revenue, market share, and penalties you can expect if your computer system goes down for an hour, a day, a week?
  • How much can your company afford to lose? How fast do you need to recover? A speedy recovery generally correlates to reduced recovery costs.
  • How should you prioritize your functional systems during an actual disaster? What must be recovered first, second, and third, and what can wait until later?

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Risk Analysis

Risk Analysis

Along with a Business Impact Analysis, your should also conduct a risk analysis to evaluate and plan for the disasters that can be anticipated. For instance, is your company headquarters located in a hurricane-prone area, on a floodplain, or near a geologic fault? It is important to consider geographical scope of your organization when you build a business recovery plan.  Many  organizations are either true multinational corporations, or have significant international ties. Does your plan address a disaster that has an impact on single, multiple, regional, or even international operations?

There's no getting around the fact that disaster recovery planning poses a huge challenge. Simply gathering, organizing, and maintaining the information needed for a comprehensive recovery plan can be a daunting challenge. 

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Develop A Plan

Develop a Plan

A successful business continuity strategy begins with planning and analyzing the entire enterprise - from computer systems to business workgroups.  Software tools and consulting assistance can help companies determine critical business functions and develop information system recovery and business continuity plans that incorporate all critical.

 

 

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Test Your Plan

Test Your Plan

The most important step in any business continuity planning is testing the plan.  Unless your plan has been tested under a variety of conditions and situations, you won't know for sure whether it will work in an actual disaster.  You have to prove that your plan will work in an actual disaster by thoroughly testing it.  Start with simple tabletop walk through of departmental recovery procedures. This will uncover any hidden problems. Once you're comfortable with your procedures, go for the biggest tests you can muster. Be sure to include your hot site and data archives in major testing. Use your test results to refine and improve your plan.

Not only does testing confirm that the plan will work, but it acts to bolster the confidence of front-line employees and management alike. There is no such thing as a failed test. When you experience a sudden, unexpected outage of a critical application - you will be glad you tested your plan.

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Refine Your Plan

Refine Your Plan

The plan is a living document that must be continually updated and tested to be of true value. Your organization is dynamic and constantly changing. People and processes change and new applications and equipment are added. It is especially important to keep your list of team leaders and call numbers up-to-date. 

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Disaster - Fire

Declare a Disaster

You need to be prepared to declare a disaster.  Selected members of senior management need to declare a disaster since it involves the expenditure of money, manpower, and corporate resources. A small problem such as a power outage or leaking pipe could escalate into a full-blown disaster.  You must establish procedures for escalating to a disaster declaration, including notification of appropriate recovery team members, senior management, outside vendors, and others involved in business recovery.

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Note:  These steps represent a simplified overview of the planning process. In reality, you should have a  disaster recovery planning expert help you with your program.  Runestones Development Corporation specialize in Business Resource Planning and the development of Disaster Recovery Plans. If you would like further information on our Disaster Recovery services, please do not hesitate to contact us.


Business Continuity Planning - Lightning

For more Information About Disaster Recovery Planning

    • ProveIt - an on-line resource  sponsored by Quantum Corporation.  It helps businesses better prepare for computer data related disasters by providing information on planning and preparing for disasters.  The site also has numerous tools in the interactive Prove It Toolkit, which help you assess your situation, construct a plan, and then implement your plan.  Recommended.
    • Disaster Recovery Journal - a professional journal dedicated to disaster recovery and business continuity.  They provides numerous articles and tools useful for writing a disaster recovery plan, including sample disaster recovery plans and numerous technical white papers.
    • Disaster Recovery Institute - an organization which provides information on contingency planning, as well as administrating professional certification and education in business continuity / disaster recovery.
    • Disaster Resource Guide Online - a comprehensive resource of articles, products, and services on contingency planning.
    • Federal Emergency Management Agency - FEMA is an independent agency of the federal government, which builds and supports the nation's emergency management system.  
    • Before Disaster Strikes -  An article by John Parker for PC Week Online (August 9, 1999), which discussing the importance of having a disaster recovery plan.

 

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