Having a comprehensive disaster recovery plan is crucial for any business to protect itself in the event of a disaster. An effective disaster recovery plan outlines the necessary procedures and resources needed to resume normal business operations as quickly as possible after a disaster occurs. Here are some key steps to follow when creating a disaster recovery plan for your business:
1. Identify Potential Disasters and Risks
The first step is to identify potential disasters and risks that could impact your business. These may include natural disasters like floods, fires, hurricanes, or earthquakes. It also includes IT security threats like malware, hacking, or data corruption. Consider the likelihood and potential impact of each scenario. Focus your plan on the highest risk disasters relevant to your business location, industry, and operations.
2. Determine Recovery Time Objectives
Once you’ve identified your highest risks, determine your recovery time objective (RTO) for each disaster scenario. The RTO is the maximum tolerable time you can be without access to a resource before unacceptable consequences result. For example, if your website or online ordering platform is down for over 2 hours, you may start losing significant sales. Or if your accounting system is unavailable for over a day, critical functions like payroll may be impacted. Define RTOs for all critical systems and resources.
3. Document Your Disaster Recovery Process
The core of your disaster recovery plan is the detailed strategy for restoring business functions during and after a disaster. Document the detailed steps and resources needed to resume critical operations within the defined RTO. This should cover:
- Emergency response – Procedures to protect employees, property, data, and equipment during the initial disaster.
- Assessment – Steps to assess the damage and determine which resources are unavailable.
- Activation – When and how to activate the recovery plan, who has authority to activate it.
- Relocation – If needed, how staff will be relocated to alternate facilities.
- Roles and responsibilities – Who leads response efforts, who restores each system/function.
- Communications – How to notify employees, customers, vendors of plan activation status.
- Recovery procedures – Step-by-step procedures to recover operations, restore systems from backups.
4. Protect Critical Data And Systems
A key component of disaster recovery is preserving access to the data and IT systems needed for critical functions and operations. Make sure to:
- Back up data regularly and store backups offsite so they are isolated from any on-premise disasters.
- Consider using cloud computing services so data and systems remain available if on-premise resources are damaged.
- Outline how backups will be used to restore systems after data loss or corruption.
- Document all information needed to access backups and recover data if original servers/computers are unavailable.
5. Prepare Alternate Workspaces
If your primary workspace is seriously damaged or unsafe to occupy, operations may need to temporarily shift to an alternate facility. Consider preparing options such as:
- Alternate business location that could be used to set up temporary operations.
- Remote work arrangements for employees using virtual networks.
- Shared office space arrangements with other companies.
- Using excess capacity at other company locations.
- Alternate production/shipping locations through partners or suppliers.
6. Define Emergency Decision Authority
Your disaster recovery plan should clearly establish who has the authority to make critical decisions during emergency situations, including:
- Who can make the call to activate the recovery plan.
- Who leads and coordinates disaster recovery efforts.
- Who decides when it is safe to return to normal operations.
- Who decides when to engage external emergency services, contractors.
- Who communicates decisions internally and externally.
7. Communicate The Disaster Recovery Plan
Once you have documented your disaster recovery plan, it is crucial that all leaders and staff are aware of the policies and procedures. Make sure to:
- Distribute the recovery plan to all key stakeholders and leadership.
- Train employees on the procedures they are responsible for.
- Conduct regular training updates and disaster scenario exercises.
- Have printed copies in accessible locations if electronic versions are unavailable after a disaster.
- Highlight that following procedures will be critical to reducing risk exposure after a disaster.
8. Regularly Test And Update The Plan
A disaster recovery plan is only effective if it is kept current. It’s essential to:
- Review and update the plan at least annually and whenever business operations change.
- Test disaster scenarios and walk through the procedures.
- Evaluate and update emergency contact lists quarterly.
- Sign contracts with vendors critical for recovery.
- Rotate backups and test data restoration from backups regularly.
- Conduct periodic tabletop exercises to test responsiveness.
- Update the plan with lessons learned from any disaster events or tests.
Key Elements To Include In Your Plan
To help guide the creation of your detailed disaster recovery document, be sure to include the following elements:
Emergency procedures to protect life and assets
Document procedures needed to protect employees, property, data and equipment during the initial emergency incident. This may include:
- Evacuation routes and critical personnel needed to coordinate evacuations.
- Locations for staff to assemble for headcounts and triage.
- Emergency equipment locations like first aid kits, fire extinguishers.
- Instructions for safely shutting down equipment and securing facilities.
- Coordination procedures with first responders and local authorities.
Activation criteria and procedures
Outline the exact situations and loss impacts that will trigger implementation of the plan. Define procedures to rapidly notify and assemble key stakeholders to coordinate the plan activation and response.
Restoration procedures for each critical system/function
Provide detailed technical step-by-step procedures needed to recover critical systems from backups, restore data, activate alternative facilities, and resume operations. The procedures should cover initial assessment, restoration activities, and transitions back to normal facilities when appropriate.
Roles and responsibilities matrix
Include a table/matrix that maps out key recovery roles and which team members are assigned to fill each role. Common recovery roles include:
- Executive decision-maker
- Recovery coordinator/director
- IT restoration team
- Operations restoration team
- Communications coordinator
- Facilities/equipment coordinator
- Human resources coordinator
- Legal counsel
Communication procedures
Define communication methods, key contacts, and message templates to rapidly notify internal staff, customers, partners, vendors, authorities, and other stakeholders of the plan activation, status updates, and eventual termination. Methods may include emergency notification systems, website banners, phone trees, automated calls/texts, email, social media, local media, and more.
Vendor and contractor contact info
Include a section with contact information for vendors and contractors critical to recovery operations. This may include IT/data recovery services, equipment repair/replacement, temporary labor, facilities contractors, transportation/logistics companies, and others vital to restoring business functions in a disaster scenario.
Key contacts list
Assemble a contact list including employee emergency contacts, key company stakeholders, insurance providers, utilities, regulators, emergency services, response contractors/vendors, disaster recovery teams, nearby medical facilities, and critical partners/suppliers.
Critical supplier list
Create a list of all critical service providers, equipment suppliers, distributors, shippers, resources, and contractors essential to maintaining business operations. The list should include contact info and any priority service agreements needed to expedite restoration of critical products/services after a disaster.
Off-site data backup info
Document details on your off-site data backups including:
- Data backup schedule and procedures
- Description of systems covered
- Data storage locations
- Encryption methods used
- Restoration hardware required
- Data recovery procedures
- Backup test/verification procedures
Having well-documented backup details will aid recovery of your critical systems from available data copies.
Applications and data priorities
Create a table/matrix that objectively ranks and prioritizes which business applications, systems, and databases are most critical for near-term restoration. This helps guide recovery teams on where to focus their efforts first.
Some factors to consider when assigning priorities:
- Revenue impact – Systems tied directly to sales/orders
- Legal/compliance impact – Systems containing sensitive regulated data
- Customer impact – Systems supporting customer portal/interactions
- Business operations impact – Systems needed for accounting, logistics, etc.
Alternate/replacement equipment list
Make a list of equipment and supplies that may need replacement after a disaster. For each item, list vendors, model details, licensing information, and configuration specifics needed to obtain rapid replacements.
Financial procedures for emergency spending
Outline purchasing authority policies and available emergency funds or credit to rapidly acquire essential goods and services for disaster response without delays for budget approval cycles. Further identify high-limit company credit cards or processes to increase purchasing limits as needed.
Business interruption insurance
Include your insurance policy number, insurance provider contacts, and procedures for quickly submitting a claim against your business interruption insurance to recover losses related to disaster-related disruptions.
Table 1 – Disaster Risk Analysis Matrix
| Potential Disaster Scenario | Likelihood | Potential Business Impact | Recovery Time Objective |
|---|---|---|---|
| Severe thunderstorm, tornado, wind damage | Moderate | Damage to facilities, equipment. 3+ days downtime. | Resume critical operations in 48 hours |
| Major IT system hacking, ransomware attack | High | Loss of critical data, 5+ days downtime | Recover critical systems within 24 hours |
| Major fire or explosion at primary facility | Low | Complete loss of primary facility. 1+ month downtime. | Resume critical operations within 1 week |
Table 2 – Recovery Roles Matrix
| Role | Responsibilities | Primary Contact | Secondary Contact |
|---|---|---|---|
| Executive Decision Maker | Activates plan, high-level decisions | Jane Doe, CEO | John Smith, COO |
| Recovery Director | Leads overall coordination | Bob Miller, CTO | Susan Clark, CIO |
| Communications Lead | Internal/external communications | Mark Jones, Marketing Manager | Lisa Davis, Public Relations |
Conclusion
Developing a detailed disaster recovery plan is a critical part of managing risk and safeguarding your business against unexpected emergencies and disruptions. Be sure to invest the necessary time and resources into carefully assessing your risk exposures, documenting robust procedures, securing your data assets, training your staff, and regularly testing and updating your disaster recovery plan. An up-to-date recovery plan that addresses your specific business risks and needs will help minimize the impact of any major disruptions and enable your organization to be resilient and bounce back as quickly as possible.