This presentation will introduce you to the concepts and terminology related to disaster recovery planning for businesses.

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1 1. An Introduction This presentation will introduce you to the concepts and terminology related to disaster recovery planning for businesses. This presentation was prepared by the South Central Economic Development District. The recommendations are those of the author and do not necessarily reflect any federal, state or local regulations that may apply to your facility or industry.

2 2. Overview 1. What is disaster recovery planning? 2. Our primary objective 3. Why do you need to plan?

3 3. Disaster Recovery Planning The ultimate goal of disaster recovery planning is to get a business back up and running in the event of an interruption and return to a state of business as usual. The problem causing the interruption could be one computer crashing or an entire network crashing. Or it could be an electrical outage or the result of a fire. The goal is to have some contingency plans in the event of a problem. A disaster recovery plan exists to assist a business in continuing to operate and offer its services. What kind of business disruptions or disasters are we referring to in this scenario? Any event that creates an inability for a business to provide critical business functions for some predetermined period of time. In addition, the event is considered critical when, if not handled in an appropriate manner, has the potential to dramatically impact a business profitability, reputation, or ability to operate.

4 4. Disater recovery plan A disaster recovery plan is an umbrella term for the strategies used by businesses in the response and recovery of an unexpected event. Previously, a disaster recovery plan was linked primarily to an IT recovery strategy but today the terminology is used in a broader sense of a business recovery strategy. The two types of plans your business should be concerned with are an emergency response plan and a business continuity plan. It is also important to note that recovery planning is not a project with an established finish line at the end; it is a continuous process of planning that requires regular the review and revision of documents.

5 5. Emergency response plan An emergency response plan is the immediate action required due to potential threat to health, safety, or property. Emergency scenarios include naturally occurring events such as tornadoes or floods and human caused events such as fire or violence in the workplace. Components of an emergency response plan typically include the following: Emergency procedures and protocols for the evacuation of your building or facility as well as for sheltering-in-place The establishment of an internal warning or notification system Contact information for all employees and a system of checking in with employees An emergency supply list and knowledge of where items are kept in business Measures to promote individual preparedness among employees

6 6. Example Video The Office Fire Drill Season 5, Episode 13 When was the last time you practiced an evacuation of your business? Would your employees know how to react?

7 7. Business continuity plan A business continuity plan is the strategy to help a business continue being operational or return to operational status as soon as possible in the event that the operations have been disrupted. This does not mean a business is 100% operational but rather operational in the sense that critical business functions are being restored for the business. Operations can be disrupted for a variety of reasons including naturally occurring events such as tornadoes or floods and human caused events such as a cyber security attack or an extended power outage. Components of a business continuity plan typically include the following: Listing of critical business functions Hazard and vulnerability assessment The establishment of a delegation of authority Contact information for employees, customers and vendors as well as a communication plan to stay in touch Detailed information about facilities and equipment A plan for storing and backing up vital records and data Listing of essential personnel Insurance information in addition to an understanding of your insurance policy

8 8. Example Video Business Continuity Wars September 12, 2011 Business continuity plans are not just for those of us on Earth!

9 9. The difference An emergency response plan addresses the initial response to an incident. A business continuity plan addresses the recovery to an incident if business functions are impacted by the disruption or incident.

10 10. Emergency management cycle Another way to think about disaster recovery planning is through the four phases of emergency management: 1. Prevention/Mitigation 2. Planning/Preparedness 3. Response 4. Recovery The emergency management cycle is a continuous loop as prevention and preparedness often occur at the same time, response and recovery overlap each other during an event and recovery should include prevention measures for future events.

11 11. Prevention & Preparedness The prevention phase includes many regulatory and safety measures that help businesses avoid hazards and hopefully lessen the impact of an unexpected event. Examples include the installation of smoke detectors and fire extinguishers, safety procedures and protocols for responding to an event, as well as carrying the proper types of insurance for your business. The preparedness phase includes many of the items we ve already discussed in terms of an emergency response plan and a business continuity plan. Some examples you may already have in place at your business include a communication plan (for contacting employees, customers/clients or vendors), providing training and drills for your employees and having emergency kits on-site.

12 12. Reponse & Recovery Detailed response procedures typically depend on the size and structure of your business. For instance, we are all familiar with the evacuation procedures posted on the inside of the door in a hotel room. In a smaller professional office or in a retail space, this type of posting is less likely to be viewed by customers but the staff should be aware of the response procedure to follow in the event of an evacuation. In both scenarios, a response plan exists but to different degrees of detail. Similarly, detailed recovery procedures are typically found in larger businesses and organizations as well as businesses with regulatory requirements. For instance, the banking industry follows guidance from regulatory requirements for both business and technology recovery procedures to ensure that key processes are up and running for their customers as soon as possible. On the other hand, a small business attempting to recover from an event is less likely to be following a plan for restoring core business functions. A small business is more likely to be attempting to pick up the pieces of their business in order to re-open.

13 13. Business continuity plan The four phases of emergency management is a cycle that applies directly to the private sector but in most cases, the measures and procedures are going to be voluntary actions and they will not be uniform across busineses. Regardless of the size of your business, a business continuity plan should be a part of your business operating toolbox.

14 14. Our primary objective Our primary objective is to provide, as well as develop, resources and tools to reflect the components of a business continuity plan. Our preparedness and education projects are specifically geared toward small business owners and non-profit organizations. Available information is provided both in person and online. Our mission is to lead businesses and organizations in South Central Nebraska in preparing to survive a disaster. Our vision is a well-educated, well-trained and committed community of business professionals prepared to be both disaster resistant and disaster resilient.

15 15. Why do you need to plan? National statistics at one time estimated that 15 to 40% of small businesses, which experience a disaster, never reopen their doors. While this estimate has been floating around for several years and attributed to several sources, there is still some truth to the statistic. Small businesses struggle to stay in business on a day to day basis which also makes them more vulnerable to the effects of major disaster event. A business continuity plan could be just as important as developing a business plan.

16 16. Why do you need to plan? Do any of these events look familiar? From large scale events, such as severe weather storms and flooding, to localized and smaller events, such as a fire or a hardware crash, small businesses are not immune to the effects of a disaster.

17 17. Why do you need to plan? A business continuity plan is not a guarantee for business recovery. Similar to many things in life, a little planning goes a long way and a plan could improve your chances of recovering from a business interruption.

18 18. Why do you need to plan? There are many benefits of a business continuity plan including: Reducing the disruption of business operations by resuming critical operations Minimizing the chaos of the an event by reducing confusion and indecison Protecting facilities, equipment, and assets against liability losses In addition to the indvidual reasons businesses need to plan, businesses need to examine the bigger picture and recognize the important role they play within the Nebraska economy overall and their contribution to their local communities.

19 19. Is this you? Image Dilbert You are not alone if you re disaster recovery plan mirrors Dilbert s plan!

20 20. Take the next step The most difficult part of planning is getting started! The planning process that will ultimately lead to a plan requires preparation and commitment. Unfortunately, there are no standard templates that will apply to all businesses but there are many resources available to get you started on a plan. In addition, there is not one universal plan but there are common elements among plans that will be discussed in additional presentations.

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