“Two out of five enterprises that experience a disaster go out of business within five years. Business Continuity plans and Disaster Recovery services ensure continuing viability.” -Gartner, Disaster Recovery Plans and Systems as Essential

by Roberta Witty, Donna Scott

Business Continuity and Disaster Recovery:A primer and discussion session

Crisis ManagementAllows Management to focus on the initial response to a threat or failure and determines when to implement the Disaster Recovery and Business Continuity Plans.

Business ContinuityPlans for resumption of business with alternate processes and procedures that bypass systems affected by a disaster

Disaster RecoveryFocuses on recovering specific applications, servers, data and all of the required IT infrastructure necessary to use a system at an alternate site.

Technical Facilities and IT Infrastructure

Individual Systems, Applicationand DRP

Personnel Resourcesand Workspaces

BusinessProcesses

& BCP

CMPContingencyPlanning

(Tactical Management)

CrisisManagement

Plan

BusinessContinuity

Plan

BusinessRecovery(Operations)

DisasterRecovery(Infrastructure)

DisasterRecovery

Plan

Crisis Management ModelA common definition

• Cost of outage:– 24-48 hours $15,450– 5 days $71,985– 14 days $313,345– 30 days $4,133,550– 60 days $25,670,020

Other factors not quantifiable: -Loss of stock value/marketable status

-Failure to meet agreements

-Increased cost of borrowing

-Increased churn rate

-Increase in bad debt

-Negative employee moral and churn

-Personal liability to Corporate Officers per the Foreign Corrupt Practices Act of 1977

Other factors not quantifiable: -Loss of stock value/marketable status

-Failure to meet agreements

-Increased cost of borrowing

-Increased churn rate

-Increase in bad debt

-Negative employee moral and churn

-Personal liability to Corporate Officers per the Foreign Corrupt Practices Act of 1977

Sample - Business Impact Analysis

Sample Disaster Recovery cost/response presentation

Where is the logical choice for your company?

1st 7th 14th 21st 28th 4th 11th 18th 25th 4th 11th 18th 25thTimeframe

1. Total Manual Recovery Plan

4. Disaster Recovery Plan + Core

2. DR Vendor Outsource Option

Circuit Delivery Window

X Online Restored

X Batch & Usage RestoredOutage

Outage

3. Vendor Quick- Ship Option

5. DRP + Core + Move Non-Prod

6. Big $$$ Firm Recommended Plan

7. DRP + Core + Move + Quick- Ship

8. Fully Redundant D.R. Plan

Up Front Capital: $03 year Expense: $0

Up Front Capital: $400,0003 year Expense: $850,000

Up Front Capital: $03 year Expense: $1,200,000

Up Front Costs: $03 year Expense: $1,200,000

Up Front Capital: $600,0003 year Expense: $1,400,000

Up Front Capital: $2,100,0003 year Expense: $1,400,000

Up FrontCapital: $1,600,0003 year Expense: $1,400,000

Up Front Capital: $8,600,000 3 year Expense: $1,400,000

January February March

31st

30 days

$4,272,500

60 days

$25,670,020

Circuitsdelivered

Circuitsdelivered

Circuit Delivery Window

Circuitsdelivered

X Online Restored

X Batch & Usage Restored

Circuit Delivery Window

CircuitsdeliveredX Online Restored

X Batch & Usage RestoredOutage

OutageX Batch & Usage

RestoredX Online Restored

Outage

X Batch & Usage

Restored

X Online Restored

Outage

Outage

Circuitsdelivered

Circuitsdelivered

X Batch & Usage

RestoredOutageX Online Restored

X Batch & Usage

Restored

X Online Restored

All X Restored

90 days

$100,000,000

Cost ofOutage

5 days

$71,985

10 days

$207,500

1-2 days

$15,450

14 days

$313,345

X OnlinePartial Restore(Staggered by

RTO)

X OnlinePartial Restore(Staggered by

RTO)

Does not meetRTO

MeetsRTO

Q2 0X Q3 0X Q4 0X Q1 0X Q2 0X Q3 0X Q4 0X

Business Continuity Business Continuity

Disaster RecoveryDisaster Recovery

CrisisManagement

CrisisManagement

Y ManualDisaster Recovery

Y ManualDisaster Recovery

Schedule of ImplementationX Manual

Disaster RecoveryX Manual

Disaster RecoveryX

Disaster RecoveryX

Disaster Recovery

YDisaster Recovery

YDisaster Recovery

Z ManualDisaster Recovery

Z ManualDisaster Recovery

ZDisaster Recovery

ZDisaster Recovery

X Business Continuity

X Business Continuity

Y Business Continuity

Y Business Continuity

X Crisis Management

X Crisis Management

YCrisis Management

YCrisis Management

Z Crisis Mgmt

Z Crisis Mgmt

Z Business Continuity

Z Business Continuity

Is DR only for earthquakes or 9/11?

• Service tech accidentally overwrites all live and online snapshots of data.

• Backhoe pulls up both Telco “redundant” circuits to datacenter and oil refinery control room.

• Sprinkler system activates…• Wow, the “100 year” flood is happening

now!

Discussion• Who’s responsible for DR/BC and BIA

programs? CEO, CIO, Auditors, the Board? • Where do you draw the line for “reasonable

cost vs. loss?”• Does the US economy dictate changes in

philosophy?• Do you think Washington businesses are

ready?• Any other discussions…