BC – DR – BIA What Does It Mean?

Most companies instinctively know that they need to be prepared for an event that will compromise business operations, but it’s often difficult to know where to begin. We hear a lot of acronyms: “BC” (Business Continuity), “DR” (Disaster Recovery), “BIA” (Business Impact Analysis), “RA” (Risk Assessment), but not a lot of guidance on exactly what those things are, or how to figure out what is right for any particular business.

Many companies I’ve met with are not really sure what components to implement or what to prioritize. So what is the default reaction? “Back up my Servers! Just get the stuff off-site and I will be OK.” Unfortunately, this can leave you with a false sense of security. So let’s stop and take a moment to understand these acronyms that are tossed out at us.

BIA (Business Impact Analysis)
BIA is a process through which a business will gain an understanding from a financial perspective how and what to recover once a disruptive business event occurs. This is one of the more critical steps and should be done early on as it directly impacts BC and DR. If you’re not sure how to get started, get out a blank sheet of paper, and start listing everything you can think of that could possibly disrupt your business. Once you have your list, rank each item on a scale of 1 – 3 on how likely it is to happen, and 1 – 3 on how severely it would impact your business if it did. This will give you some idea of what you need to worry about first (the items that were ranked #1 in both categories). Congratulations! You just performed a Risk Assessment!

Now, before we go much farther, you need to think about two more acronyms: “RTO” and “RPO.” RTO is the “Recovery Time Objective.” If one of those disruptive events occurs, how much time can pass before you must be up and running again? An hour? A half day? A couple of days? It depends on your business, doesn’t it? I can’t tell you what’s right for you – only you can decide. RPO is the “Recovery Point Objective.” Once you’re back up, how much data is it OK to have lost in the recovery process? If you have to roll back to last night’s backup, is that OK? How about last Friday’s backup? Of course, if you’re Bank of America and you’re processing millions of dollars worth of credit card transactions, the answer to both RTO and RPO is “zero!” You can’t afford to be down at all, nor can you afford to lose any data in the recovery process. But, once again, most of our businesses don’t need quite that level of protection. Just be aware that the closer to zero you need those numbers to be, the more complex and expensive the solution is going to be!

BC (Business Continuity)
Business Continuity planning is the process through which a business develops a specific plan to assure survivability in the event of a disruptive business event: fire, earthquake, terrorist events, etc. Ideally, that plan should encompass everything on the list you created – but if that’s too daunting, start with a plan that addresses the top-ranked items. Then revise the plan as time and resources allow to include items that were, say, ranked #1 in one category and #2 in the other, and so forth. Your plan should detail specifically how you are going to meet the RTO and RPO you decided on earlier.

And don’t forget the human factor. You can put together a great plan for how you’re going to replicate data off to another site where you can have critical systems up and running within a couple of hours of your primary facility turning into a smoking hole in the ground. But where are your employees going to report for work? Where will key management team members convene to deal with the crisis and its aftermath? How are they going to get there if transportation systems are disrupted, and how will they communicate if telephone lines are jammed?

DR (Disaster Recovery)
Disaster recovery is the process or action a business takes to bring the business back to a basic functioning entity after a disruptive business event. Note that BC and DR are complementary: BC addresses how you’re going to continue to operate in the face of a disruptive event; DR addresses how you get back to normal operation again.

Most small business think of disasters as events that are not likely to affect them. Their concept of “disaster” is that of a rare act of God or a terrorist attack. But in reality, there are many other things that would qualify as a “disruptive business event:” fire, long term power loss, network security breach, swine flu pandemic, and in the case of one of my clients, a fire in the power vault of a building that crippled the building for three days. It is imperative to not overlook some of the simpler events that can stop us from conducting our business.

Finally, it is important to actually budget some money for these activities. Don’t try to justify this with a classic Return on Investment calculation, because you can’t. Something bad may never happen to your business…or it could happen tomorrow. If it never happens, then the only return you’ll get on your investment is peace of mind (or regulatory compliance, if you’re in a business that is required to have these plans in place). Instead, think of the expense the way you think of an insurance premium, because, just like an insurance premium, it’s money you’re paying to protect against a possible future loss.

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