What is Disaster Recovery Planning?
Disaster recovery planning is a strategic approach to prepare for, respond to, and recover from events that may disrupt an organization’s operations. These disasters may range from natural occurrences like hurricanes and earthquakes to those caused by humans, such as power outages, economic downturns, and cyber breaches. The carefully developed Disaster Recovery Plan (DRP) ensures the organization can resume its function and preserve business continuity.
Benefits
Disaster recovery planning has evolved over the decades. Before the mid-twentieth century, businesses focused on physical threats like fires and environmental phenomena. By the 1950s, technological failures became a more pressing issue. With globalization, climate change, and never-ending digital transformations, companies across industries should include DRPs in their disaster preparedness plans to help them react quickly and recover faster.
Here are other benefits of disaster recovery planning:
- Enhanced Resilience – Business continuity and disaster recovery planning are directly related. When the organization can withstand disruptions, it can minimize financial losses despite the disaster and maintain operations.
- Regulatory Compliance – Today, tech-based threats are so prevalent that governments enforce laws (e.g., General Data Protection Regulation (GDPR) in the European Union (EU), Health Insurance Portability & Accountability Act (HIPAA) in the US, and the 1988 Privacy Act in Australia) to protect the general public. With DRPs, companies can conscientiously abide by these regulations.
- Improved Customer Confidence – Companies that have proven their ability to prepare for disasters and rise above them are more trusted by the general public. Those that failed faced bankruptcy, shutdown, and even legal repercussions.
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Explore nowSteps in Developing a Disaster Recovery Plan
Following a structured approach when developing a DRP ensures that the organization minimizes operational downtime after an unexpected and unfortunate incident. Here’s the step-by-step guide to the most reliable disaster recovery planning process:
1. Assess risks and analyze business impact.
Risk management teams and business continuity planners should first identify all potential threats that may disrupt their operations. Alongside this is determining Critical Business Functions (CBF) or the processes that should be restored if and when a disaster strikes.
- Cover all bases by including all threats (e.g., natural, human-induced, and technological) and vulnerabilities.
- Evaluate the disaster’s impact on various factors, including operational efficiency, revenue, compliance, and reputation.
2. Clearly define recovery objectives.
A crucial element in a Business Continuity Plan (BCP) is establishing measurable goals for recovery. These objectives serve as a guide for administrators so they don’t stray when they create the DRP and help stakeholders get a clearer picture of the plan’s purpose and scope.
- Set Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO) for every critical business function.
- Rank recovery objectives based on the company’s priorities and impact analysis.
- Assign personnel to be part of the disaster recovery team and define their roles to ensure prompt response and avoid confusion.
3. Detail recovery strategies.
This step is vital because it outlines every step required to resume normal operations in various disaster scenarios. Every event should have a clear roadmap that the appointed team can easily follow, allowing them to manage emergencies, recover data, and restore systems.
- Diversify strategies to address different types of disruptions.
- Allocate the necessary resources (e.g., personnel, technology, budget) to support the recovery efforts.
- Partner with third-party vendors, such as Disaster Recovery as a Service (DRaaS), especially for tech-related disasters.
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Browse Business Continuity Plan templates4. Create back-up for data protection.
Cyberattacks and data breaches aren’t the only disasters that require fail-safe backup plans. Hurricanes, floods, and earthquakes can also cause damage to structures that physically house the organization’s critical data. In this day and age, having this is non-negotiable.
- Encrypt backups for solid data security and regulatory compliance.
- Schedule frequent backups.
- Store backups in secure offsite locations or on the cloud, in case of local disasters.
5. Develop a communication plan.
Communication is imperative during and after any disaster. The intention and processes of the organization must be disseminated to stakeholders immediately, maintaining transparency and accountability.
- Develop templates for critical communications to ensure speed and consistency of messages.
- Utilize various channels (e.g., email, phone, social media) to ensure everyone affected knows what’s happening and that support is available.
- Facilitate top-down and bottom-up information, accepting feedback and suggestions from stakeholders.
6. Conduct regular testing and training.
Validating the plan’s effectiveness is a must as this identifies unexpected challenges, weaknesses, and areas for improvement. Periodic exercises validate the recovery strategies and help risk and compliance managers adjust based on lessons learned.
Training workers for disaster response and recovery is crucial in this phase, ensuring everyone involved can act swiftly and efficiently.
- Conduct regular drills and simulations to test the DRP’s effectiveness.
- Provide targeted training to the teams responding to disasters and those who need to work on recovery.
7. Document, maintain, and improve the DRP.
Comprehensive documentation ensures that future teams know the ins and outs of the DRP even when key personnel leave the organization. This also reflects changes throughout the years and how the company adapted accordingly. Most importantly, this makes the document accessible to the right people, especially regulatory agencies and stakeholders.
- Store all DRP and related records in a centralized information hub.
- Implement version control to track changes and updates.
- Schedule reviews to ensure the DRP’s effectiveness in the current climate.
FAQs About Disaster Recovery Planning
Yes. Although the two are similar because both help restore normal business and organizational operations, each has a different purpose, scope, and goal:
- BCP takes a more holistic view, addressing a wide range of disruptions and covering all aspects of businesses.
- DRP focuses on what the company has to do to restore normal operations. Incident Response Plan (IRP) is under the umbrella of DRP, focusing on various threats to IT systems.
These are two of the most important metrics in disaster recovery and business continuity planning. RTO is the maximum acceptable time to restore the organization’s processes and systems while RPO is the maximum amount of loss to tolerate. Companies should determine these values based on their goals, business requirements, and risk tolerance.
Many organizations today outsource their disaster recovery processes, particularly to manage complex IT infrastructure. Companies without funds for a dedicated team composed of tech experts, risk managers, and business continuity planners can benefit from DRaaS.
Choosing between traditional DR and outsourcing is straightforward as long as the company understands its needs, resources, and priorities. Here are some factors to consider:
- Budget
- IT expertise
- RTO and RPO tolerance
- Industry regulations
- Critical business functions and operations