Steps in Planning a Disaster Recovery Public Entity Business Interruption

Business interruption is a common disclosure of all businesses and public entities regarding loss of critical
functions caused by natural or human-induced disasters (such as terrorism, earthquakes, hurricanes, fires
and explosions, hazardous waste spills, workplace fatalities and product tampering). As a result, such
business interruption can negate company market share and profit margins, growth rate and sales volume,
stock shares, and corporate repute. To limit loss of share value and earnings, businesses obtain traditional
insurance to compensate them for the disasters inherent in normal financial difficulties. But traditional
transaction insurance does not suffice for the restoration of business operations (particularly when unnatural
disruptions occur.) Hence, disaster recovery is desirable to compensate businesses and public entities from
business hazards. Disaster recovery is the ability to respond to an interruption of business operations by
implementing disaster recovery plan to restore the business critical functions.

Disaster recovery planning (sometimes also called a business process contingency plan) is a process
inclusive of a business vulnerability assessment, development of a disaster recovery framework, a written
disaster recovery plan encompassing the recovery strategies, and an advance information system in
conveying DRP. The purpose of vulnerability assessment is to determine the relative monetary and
functional contribution of the business, and its business interruption, and impact analysis. Subsequently, the
Recovery Time Objective (RTO) and Recovery Point Objective (RPO) are used to develop a disaster
recovery framework. The RTO entails how long the intervals between the disaster and post-disaster
resumption of function to restore data actually take, while RPO describes how current the data has to be.
On the other hand, a written disaster recovery plan should detail the strategies of response, recovery, and
resumption of services. Advance information systems can make disaster recovery easier include
consolidation of servers and data, perhaps inclusive of an archival storage method such as a Storage Area

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