Business Continuity Plan and Disaster Recovery Plan are two essential components of Risk Management. They help in ensuring resilience at times of unexpected disruptions. A Business Continuity Plan (BCP) is a risk management strategy that outlines the procedures and protocols of an organization, ensuring continuous operation within the company, during and after disruptive incidents. However, a Disaster Recovery Plan (DRP) is a structured approach outlining the procedures and protocols of an organization, ensuring recovery and restoration of critical IT systems and infrastructure, after a disruptive incident.
What is a Business Continuity Plan?
A Business Continuity Plan (BCP) is a thorough plan detailing steps to guarantee that corporate activities can go on both during and after a disruption or tragedy. These disruptions include both natural disasters, like hurricanes, tornados, earthquakes, etc., and man-made incidents like supply chain disruptions, cyberattack, etc. An organization forms a Business Continuity Plan to minimize downtime, safeguard its critical functions, and protect its reputation ad financial stability.
Key components of a Business Continuity Plan include:
- Risk Assessment and Business Impact Analysis (BIA): A BCP identifies the potential threats and risks to the organization, conducts a Business Impact Analysis to understand the potential impact of the disruption on its functioning, and prioritize risks according to the severity of disruptions.
- Business Continuity Strategies: It includes developing strategies and plans for the mitigation of identified risks and ensuring continuous business functions.
- Crisis Management Plan: A BCP includes establishment of a crisis management team which is responsible for the coordinating response efforts at the time of emergencies. It also lays down the roles and responsibilities of the team members and establish proper communication channels.
- Communication Plan: A BCP establishes proper communication protocols for the internal as well as external stakeholders, including customers, suppliers, and employees. It also maintain contact information and establish communication channels so there can be fast and easy dissemination of information at times of emergencies.
- Training and Testing: It includes training of employees on te procedures and protocols of a Business Continuity Plan. Under this, an organization conducts regular drills, exercises, and simulations of the emergencies to test the effectiveness of the plan.
What is Disaster Recovery Plan?
A Disaster Recovery Plan (DRP) is a strategy particularly designed to minimize downtime by restoring data and IT infrastructure following a disaster. It includes steps minimizing the effects of a disaster in a way that the organization can continuously operate or quickly resume its essential and critical functions. Different types of a Disaster Recovery Plan are Network Disaster Recovery Plan, Virtualized DRP, Cloud DRP, and Data Center DRP.
Key components of a Disaster Recovery Plan include:
- Risk Assessment and Business Impact Analysis (BIA): A DRP identifies the potential threats and risks to IT systems and Infrastructure, assess the potential impact on IT services, data, and applications, and prioritize the risks according to the severity of disruptions.
- Recovery Strategies: It defines Recovery Time Objectives and Recovery Point Objectives for the critical IT applications and systems, and develops strategies for the achievement of recovery objectives.
- Backup and Recovery Procedures: A DRP implements backup systems and procedures to ensure that the data, applications, and configurations are regularly backed-up. It includes defining backup schedules, retention policies, and storage mechanisms.
- System Redundancy and Failover Mechanisms: It includes implementation of redundant systems and components for minimizing single failure points, and configuration of failover mechanisms for the critical IT systems and applications. It helps in quickly switching over to the backup components or alternate data centers at the time of failure.
- Data Protection and Security: It includes implementation of different measures to protect data integrity, confidentiality, and availability; encryption of sensitive data; implementation of access controls; and establishment of security protocols to avoid data breach.
Difference between Business Continuity Plan and Disaster Recovery Plan
|
Basis |
Business Continuity Plan |
Disaster Recovery Plan |
|---|---|---|
|
Meaning |
A thorough plan detailing steps to guarantee that corporate activities can go on both during and after a disruption or tragedy. |
A particular strategy designed to minimize downtime by restoring data and IT infrastructure following a disaster. |
|
Scope |
Includes people, procedures, technology, facilities, and communication in all facets of company operations. |
Primarily concentrates on applications, data, and IT systems. |
|
Objective |
Reduce the overall effect on the company and keep up essential operations in the event of disruptions. |
Reduce downtime and data loss by returning IT infrastructure and services as soon as possible. |
|
Time |
Long-term viewpoint that takes into account both immediate and long-term problems. |
A short-term viewpoint that emphasises a disaster’s immediate recovery. |
|
Components |
Risk evaluation, business effect analysis, crisis management, backup plans, communication tactics, etc. |
Methods for backups, data recovery, restores systems, failover strategies, etc. |
|
Involvement |
Involves all organisational departments and stakeholders. |
Mostly involves associated technical staff and IT personnel. |
|
Testing and Maintenance |
Tested and updated often to guarantee performance in a range of situations. |
Data and IT system backup and recovery processes are the main focus of testing. |
|
Communication |
Discusses communication with all parties involved, including as the public, suppliers, customers, and employees. |
Primarily concentrates on communication with pertinent vendors and service providers as well as inside the IT department. |
Business Continuity Plan and Disaster Recovery Plan – FAQs
Why Business Continuity Plans and Disaster Recovery Plans are important?
Business Continuity Plans and Disaster Recovery Plans are important because they help an organization in preparing for the unexpected disruptions, respond to them, and minimize their impact on the critical operations, reputation, and financial stability of the organization.
What types of disruptions do a Business Continuity Plan and a Disaster Recovery Plan address?
A Business Continuity Plan addresses disruptions including both natural disasters like hurricanes, tornados, earthquakes, etc., and man-made incidents like supply chain disruptions, cyberattack, etc. However, a Disaster Recovery Plan addresses disruptions related to IT infrastructure and systems.
Who is responsible for the development and implementation of BCPs and DRPs?
Both the plans are usually developed and implemented by the cross-functional teams of the organization. They consist of representatives from different departments such as operations, IT, and risk management.
How often should an organization test and update BCPs and DRPs?
A BCP and DRP should be regularly tested (at least on an annual basis) for ensuring effectiveness and reliability of the plan. They should also be updated regularly in order to reflect the changes in the organizational operations and technologies.
How can an organization ensure employee awareness and readiness for BCPs and DRPs?
To ensure employee awareness and readiness, an organization can conduct training sessions, drills and exercises on a regular basis to educate the employees about the procedures and protocols of BCP and DRP.