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What is a Disaster?
What is Business Continuity Planning (BCP)?
Who is responsible for the BCP?
Does the absence of Business Continuity Planning affect corporate profitability?
Will I get a Return On my Investment (ROI)?
What is Recovery Time Objective (RTO)?
What is Recovery Point Objective (RPO)?
What is a Disaster Recovery Plan (DRP)?
What is the difference between Disaster Recovery and Business Continuity?
What are the different types of off-site information processing facilities?
Do I need to test the Business Continuity plan(s)?
How often should I test my Business Continuity Plan?
Is Business Continuity Planning applicable to all organizations?
Are there any regulatory requirements for implementing a Business Continuity Plan?
 
 
What is a Disaster?

For the purposes of Business Continuity Planning, the definition of a Disaster is:

Any incident that causes a severe disruption to a Business Unit’s working environment, facilities and personnel which results in an inability to function or to provide service to internal or external customers.


 
What is Business Continuity Planning (BCP)?

It is the preparedness of an organisation to ensure continuity/ resumption of critical business processes at an agreed level and limit the impact of the disaster on people, processes and infrastructure.

Business continuity should be focused on entire business processes rather than solely on specific assets such as IT systems.


 
Who is responsible for the BCP?

You will need someone who is responsible for Business Continuity at a very senior level. You will also need someone who is responsible for the planning, testing and training aspects, the business continuity function. Depending on the size and complexity of business this may be a full time role but probably for most small-to-medium sized enterprises (SME’s) not necessarily so by any means. Again it comes down to what is appropriate for your business or organisation. It is highly likely that the business continuity function will form part of one or more staff members’ job descriptions.


 
Does the absence of Business Continuity Planning affect corporate profitability?

Risks to today's businesses arise from many sources (operational, strategic, financial, informational or environmental) and can impact key performance indicators such as profitability, share price, quality, brand image and company reputation, market share, etc. Today's consumers get easily discouraged when they can't get what they want immediately. If you don't have a tested Business Continuity Plan in place you're likely to experience a greater loss of revenue or market share, and possibly failure of the business, if a disaster strikes.


 
Will I get a Return On my Investment (ROI)?

BCP efforts make money for a firm as they serve to minimize disruptions and financial loss during even minor events. This means increased reliability and productivity, a competitive advantage and increased market share.


 
What is Recovery Time Objective (RTO)?

During the execution of disaster recovery or business continuity plans, the time goal for the re-establishment and recovery of business function or resource is the Recovery Time Objective.

RTO has to be set in tune with requirements of business and should ensure that services to clients are not disrupted beyond agreed time period. If this time period is exceeded, the organization could suffer significant financial, regulatory or reputation damage.

RTO also helps in determining which continuity strategy would be best for the recovery of each business activity or business function. Strategies might include moving to another location, delaying the performance of some tasks, or transferring some work to another office.


 
What is Recovery Point Objective (RPO)?

Recovery Point Objective ("RPO") defines the point in time to which systems and data must be restored after a disaster. It is typically measured in minutes, hours or days depending on the criticality of the system or data. For e.g., if an organization needs to restore at a minimum the prior end of day's backups in the event of an emergency, their RPO is 24 hours.


 
What is a Disaster Recovery Plan (DRP)?

A written plan for processing critical applications in the event of a major hardware or software failure or destruction of facilities.


 
What is the difference between Disaster Recovery and Business Continuity?

Disaster Recovery is the activity that takes place during and after a catastrophic event to minimize business interruption and return the organisation as quickly as possible to a state of normalcy that existed prior to the event.

Business Continuity is the process of planning to ensure that an organisation can survive, by providing an acceptable level of service throughout, an event that causes interruption to normal business processes.


 
What are the different types of off-site information processing facilities?
    Hot Site: 

     A site (data centre, work area) that provides a BCM facility with the relevant work area recovery, telecommunications and IT interfaces and environmentally controlled space capable of providing relatively immediate backup data processing support to maintain the organization's Mission Critical Activities.

    Cold Site:

A site (data centre/ work area) equipped with appropriate environmental conditioning, electrical 
connectivity, communications access, configurable space and access to accommodate the installation and operation of equipment by key employees required to resume business operations.

    Warm Site:

Computing facility that has some equipment available although it may not be powered up and running. Some special equipment may need to be procured. Systems and applications have to be setup and installed.

    Reciprocal agreement:

An agreement between two organizations whereby each organization agrees to share the other's computing facility in the event of a disaster.


 
Do I need to test the Business Continuity Plan(s)?

A business continuity plan is not complete until it is tested. Untested business continuity plans cannot be relied upon following a business interruption or disaster. A formal BCM testing process provides management, customers, suppliers and employees with the assurance that the plan will work as documented.


 
How often should I test my Business Continuity Plan?

The majority of organizations test business continuity processes one or two times a year; however, this can be increased by such factors as:

           Changes in business processes
           Changes in technology
           Change in BCM team membership
           Anticipated events which may result in a potential business interruption

 
Is Business Continuity Planning applicable to all organizations?

Business Continuity Planning addresses three core componenets of an organisation: People, Processes and Infrastructure. No organization can claim readiness for large-scale disasters without addressing these core components. BCP solutions are scaleable and can be tailored to meet any company’s needs, whether it is a small-to-medium sized business(SMB) or a large organisation.


 
Are there any regulatory requirements for implementing a Business Continuity Plan?
   According to the Reserve Bank Of India Notification dated 15th April, 2005; 
It is advised that banks may put in place a BCP including a robust information risk management system, if not already implemented, within a fixed time frame. They may implement such BCP and thoroughly test it to verify its full capability against the changing scenario and assumptions at frequent intervals, as per the policy. The plan may also be subjected to review annually.
The notification also states what the BCP methodology should include.
A copy of the BCP approved by the Board may be forwarded to the RBI.

Visit Reserve Bank Of India Notification (Ref.RBI/2004-05/420, DBS.CO.IS Audit.No. 19/31.02.03/2004-05) for further information.

 
   The Federal Financial Institutions Examination Council (FFIEC) is a formal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions. The FFIEC booklet provides guidance and examination procedures to assist examiners in evaluating financial institution and service provider risk management processes to ensure the availability of critical financial services.

Visit FFIEC for further information.

 
    On April 7, 2004, the Securities and Exchange Commission (SEC) approved rules proposed by National Association of Securities Dealers (NASD) and the New York Stock Exchange (NYSE) (File Nos. SR-NASD-2002-108 and SR NYSE-2002-35), which require NASD and NYSE members to develop business continuity plans that establish procedures relating to an emergency or significant business disruption. 
Visit http://www.sec.gov/news/press/2004-53.htm for further information.
 
 
 
  
  
  
 
  
 
 
 
  
 
 
 
 
  
 

 

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