Hurricane season is officially upon us, and experts predict that the East coast will experience one of its harshest seasons yet.
Just how prepared are you and your business to weather a storm? If the power went out in your home or office right now—what would you do?
- Kick back and relax because your data is stored in multiple offsite locations. You know that as soon as the power comes back on, you’ll be able to pick up where you left off.
- Mutter in frustration because you’re not sure what else there is to do.
Maybe the power comes back on after a few hours—but what if it doesn’t?
What if your computer or server suffered water damage and won’t turn back on, and critical client or customer data was erased?
Protecting your data from these “what-if” scenarios requires planning, preparation and strategy. And it goes without saying that it should be your business’s top priority. Because without data, a business ceases to exist.
In this post, I’ll walk through:
- What a disaster recovery plan is.
- Why disaster recovery planning should be your top priority.
- How to build an ironclad disaster recovery plan.
What is a disaster recovery plan?
A disaster recovery (DR) plan is a strategy an organization uses to respond to and recover from an event that negatively affects its operations.
The goal of a disaster recovery plan is threefold. Should a disaster—whether natural or prompted by black hats—occur, the plan in place should take effect immediately, ultimately:
- Reducing downtime.
- Preventing data loss.
- Minimizing disruptions.
7 types of disaster recovery plans
Disaster recovery plans vary greatly in technology and cost, but the common thread is this: They protect data and ensure business continuity.
Here are seven of the most common types of disaster recovery plans available to businesses today:
| Disaster recovery plan type | Description | Key features |
| Data backup and restore | The most basic form of disaster recovery, focusing on regularly backing up data and having a process to restore it when needed. |
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| Cloud-based | This plan leverages cloud technology for data backup and system recovery. |
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| Virtualization | This approach uses virtual machines to replicate entire systems, including operating systems, applications and data. |
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| Hot site | This involves maintaining a fully operational alternate site that can take over operations immediately. |
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| Cold site | This plan involves having an alternate site with basic infrastructure, but without hardware. |
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| Hybrid | This combines elements of both on-premises and cloud-based recovery solutions. |
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| DRaaS (Disaster recovery as a service) | This is a cloud-based service that provides all the components needed for disaster recovery. |
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Why disaster recovery planning should be your top priority
“Disaster recovery” isn’t exactly an exciting topic, but it is absolutely critical to your business’s health and longevity.
Here’s why it needs to be one of your top priorities:
Reason 1: Cyberthreats
Cyber attacks have been increasing in North America, posing significant risks to businesses of all sizes. A disaster recovery plan helps mitigate the impact of potential cyberthreats, ensuring that vital data and systems can be quickly restored in case of a breach.
Reason 2: Natural disasters
Natural disasters can cause extensive damage and long recovery times. Without a proper disaster recovery plan, businesses struggle to reopen after extended closures, potentially leading to permanent shutdowns.
True story: Learn what Gene Marks, CPA and president of The Marks Group, did when he descended his basement steps only to find his business’s servers partially submerged in rainwater…and fully out of commission. Get the full story here.
Reason 3: Minimizing downtime and financial losses
A well-designed disaster recovery plan enables businesses to:
- Resume critical operations quickly after a disaster.
- Reduce overall downtime.
- Minimize financial losses associated with business interruptions.
Studies show that 93% of companies that suffer an extended period of data loss are out of business within 12 months, and 50% immediately file for bankruptcy.
Why risk it?
Reason 4: Maintaining customer trust and reputation
When disasters strike, customers expect quick responses and minimal service disruptions.
A solid disaster recovery plan helps businesses:
- Retain customers during challenging times.
- Maintain their market reputation.
- Provide timely answers and solutions to customer concerns.
Reason 5: Compliance and legal obligations
Many data privacy laws and industry standards now require organizations to have disaster recovery strategies in place. In fact, Publication 5708, the FTC Safeguards Rule, Publication 1345 and IRS 4557 guidelines the requirements regarding data security extremely clear.
Failing to comply with these requirements could result in an FTC investigation, plus:
- Substantial fines: Many jurisdictions have data protection laws that require businesses, including accounting firms, to safeguard client information. Without a disaster recovery plan, firms may fail to meet these requirements, leading to potential fines and penalties.
- Legal repercussions: Accounting firms without proper disaster recovery plans are at higher risk of client lawsuits. If a disaster leads to data loss or service interruptions, clients may sue for damages related to financial losses, missed deadlines or compromised confidential information.
How to build a ‘safe-from-any-threat’ disaster recovery plan
Floods. Accidents. Cyberattacks. All span the ‘reasons for a disaster recovery plan’ threat gamut, but they’re data threats nonetheless.
Earlier, we talked about the different types of disaster recovery solutions a business can put into place to mitigate any data loss or downtime. And while your disaster recovery strategy depends on the size of your business, your budget, industry regulations and how long you can stand to be down—it really comes down to this:
What disaster recovery solution will give you the most bang for your buck? Put differently, what is the best way that any-sized business can ensure business continuity, should a disaster strike? Which method(s) will maintain their data—even while the power is out—so when power’s restored, they can get right back to work?
Here’s how:
- Avoid paper: You’d be surprised how many professionals are still sending and receiving documents to and from clients via snail mail. Terrible! Digitizing paper documents is such an easy way to make sure your records are safe from any type of accident. Check out a few cloud-based options here.
- Employ the “3-2-1″ backup rule: This strategy suggests replicating your data by three, storing it in at least two different ways, and keeping one of those copies offsite. Learn more about the “3-2-1” method here.
- Use cloud technology: Your apps, software and data storage should all be cloud-based. A good cloud provider will automatically back up your data for you and then make it easy for you to restore. (They’ll also go above and beyond the “3-2-1” rule, FYI.) Learn more about how cloud technology helps protect your data from threats and the five things to look for when evaluating cloud providers.
Don’t delay disaster recovery planning one moment longer
For expert advice on protecting your infrastructure with an ironclad disaster recovery plan, reach out to us today.
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