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How to weather any storm with a disaster recovery plan

A data loss disaster could shut a business down for good…unless they have a disaster recovery plan in place. Learn what disaster recovery is, why it’s crucial to your business’s longevity and how to begin building yours.

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Last Updated September 5, 2024

An office under water.

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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?

  1. 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.
  2. 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.

A graphic with a list of the seven types of disaster recovery plans.

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.
  • Regular data backups (often following the 3-2-1 rule)
  • Offsite storage of backups
  • Defined restoration procedures
Cloud-based This plan leverages cloud technology for data backup and system recovery.
  • Data and applications stored in the cloud
  • Ability to access systems from anywhere with internet connection
  • Automatic backups and updates
Virtualization This approach uses virtual machines to replicate entire systems, including operating systems, applications and data.
  • Rapid recovery of entire systems
  • Reduced hardware dependencies
  • Easier testing of disaster recovery procedures
Hot site This involves maintaining a fully operational alternate site that can take over operations immediately.
  • Duplicate hardware and software at the alternate site
  • Real-time data replication
  • Immediate failover capability
Cold site This plan involves having an alternate site with basic infrastructure, but without hardware.
  • Lower cost than hot sites
  • Requires more time to become operational
  • Suitable for less time-sensitive operations
Hybrid This combines elements of both on-premises and cloud-based recovery solutions.
  • Flexibility to choose what to keep on-site and what to put in the cloud
  • Can be more cost-effective than full cloud or full on-premises solutions
  • Allows for a phased approach to cloud adoption
DRaaS (Disaster recovery as a service) This is a cloud-based service that provides all the components needed for disaster recovery.
  • Managed by a third-party provider
  • Scalable and often more cost-effective for small to medium businesses
  • Includes regular testing and updates

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:

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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