The Cost of Business Continuity Planning Versus the Potential of Risk

2930 Words Apr 9th, 2016 12 Pages
The Cost of Business Continuity Planning Versus the Potential of Risk
Though the cost of mitigating risk can be high, the lack of proper business continuity planning and disaster recovery planning will leave a company is at risk of a catastrophic loss of revenue due to the loss of the Information Systems. Any company that relies on its Information Systems for their operations should invest the time and revenue in developing an efficient and effective Business Continuity Plan (BCP) and a Disaster Recovery Plan (DRP). This study will compare the differences in what a Business Continuity Plan is used for and what a Disaster Recovery Plan is used for. Additionally, it will evaluate the risk having a Business Continuity Plan and Disaster
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Business Continuity Planning also helps to identify a company’s exposure to internal and external threats in order to provide effective prevention and recovery for the company, thereby allowing it to maintain a competitive advantage and integrity. Krutz identified four major elements of a Business Continuity Plan, scope and plan initiation, business impact assessment, business continuity plan development, and plan approval and implementation (Krutz, 2003).

The first step to creating a business continuity plan is the scope and plan initiation phase. This phase is the beginning of the Business Continuity Planning process. This phase involves creating the scope for the plan and identifying any other elements needed to define the parameters of the plan. In this phase a detailed examination of the company’s operations and support services must be accomplished. Some of the activities identified in the Scope could include: listing the resources to be used, creating a detailed listing of the work that is required, and defining the management practices to be employed. This phase is usually conducted by a group that has been assigned by the senior leadership of a company. This group should be given the assignment of creating, implementing and testing the plan. The group should be made up of representatives from senior management, all functional
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