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Risk Management and Disaster Recovery

16 May 2017Essay Samples

Introduction

Business Continuity can be defined as the progression of developing advanced arrangements along with procedures that facilitate an organization to react to an occurrence in such a way that decisive business functions carry on without interlude or indispensable change (Kaplan R. S., Norton D. P, 1999).

Any company that has executed a business continuity strategy for the whole organization is liable under prepared, or spending money gratuitously, as few organizations have the possessions to declare business continuity correspondence for every purpose. The input, then, to business continuity lies in considerate your business, determining which processes are significant to staying in that business, as well as identifying all the elements, crucial to those processes. By meticulously analyzing these fundamentals, you can precisely recognize potential risks and make well-versed business decisions about accepting, justifying, or transferring those risks. Once you have developed a program for pledging that critical processes will be accessible around the clock, suppose that it will be unsuccessful and consign to keeping your program current with business and technology infrastructure transforms.

The case for implementing a risk management strategy has forever been persuasive. If adversity strikes and an organization can't recuperate in an appropriate way, the consequences can consist of loss of revenue, defection of customers, weakening of brand equity, as well as enduring loss of shareholder value.

Organizations are swiftly sprouting from manually operated standalone entities to information contingent comprehensive enterprises. For these fresh entities, information assist competitive placing, value chains depend on the appropriateness of service, and supply chains are technology-dependent. Trends counseling to this development take in initiatives common in nearly all industries: enterprise resource development, customer relationship management, supply chain management, incorporations and attainments, outsourcing, coalitions, and e-commerce (R. Garcia Diez, R. Iyer. DRJ, Vol 10, 1, p. 35)

Internet-based service suppliers as well as the globalization of business models are also key factors

Close interactions between customers and suppliers are currently common. As a result the extent of continuity plans has extended to clinch dealings up and down the supply chain. Outsourcing also augments interdependencies. Just-in-time account brings hair-trigger confidence on constant delivery. A disturbance anywhere in the supply chain can have ramifications at dozens of companies. When customers as well as dealers rely on their business acquaintances and partners to this degree, they might even inscribe into their contracts inflexible penalties for malfunction to distribute on time.

E-Commerce in business

E-commerce initiates its own new vulnerabilities. Even companies that don't trade over the Internet are hop up and down the supply chain by intranets; extranets or other electronic binds to suppliers, customers as well as dogmatic agencies. Add revelation to interruptions and impending leaks of receptive data used in e-commerce, and it is obvious why continuity plans should take these technologies into deliberations. The prologue of E-Commerce to Business Continuity Management has definitely caused the major shake-up in the restraints history. The exclusive nature of Internet-based operations strains the implementation of an entirely new business model. The initiation of E-commerce and amplified outsourcing are toting up another stratum of intricacy to continuity problems.

E-commerce entails continuous accessibility and radically faster revival times. And the top-line investments of outsourcing have dark side outcome reliance. Adversity impacting supply-chain partners, for instance, can generate destruction far up the chain. That means recuperation plans have to account for partners. E-commerce is the incorporation of people, procedures and technology to conduct business (B. Zalud. Sec, Vol 34, 6, p. 93). There are lots of metrics to determine the value that e-Commerce brings to business. More particularly, e-Commerce allows companies the following:

A company's achievement is built around its dealings with its customers. The stronger relationships, the higher the success. E-commerce improves the boosting of these relationships. It mechanizes the sales process so that customers can simply answer the questions they have in a simple and one to one way.

Research spots that the average cost of electronic orders range from $10 to $75 per order. By mechanizing the order procedure online, a company can lessen these costs from $2 to $5 per order, which is a noteworthy profit for the company

E-Commerce assists companies to promote their products quicker and boost the products demand, by offering the entire essential information about them, including product as well as design details, metaphors, pricing and delivery information, category and accessibility of products. The customers can access this information on a 24x7x365 basis. This verity saves the companies' precious time and increases customer satisfaction.

Some say that this is the main value of e-Commerce. Customers are in a situation to manage the way they shop, by allowing themselves to balance products on an on-demand base, checking the given product information as well as saving precious time.

Through e-Commerce, a company can generate diverse price models based on the wants of each one of its customers (B. Zalud. Sec, Vol 34, 6, p. 93). For instance, a customer is in a place to visit the web store, find the way through its departments, place an order and pay in a manner based on condensed prices specially defined for him only.

Today, all customers are gazing for the greatest and easiest way to complete their needs. E-commerce answers that demand: e-Commerce makes buying and selling earlier and easier. That is as e-shopping improved the customer's buying experience and gives him a one-to-one interface between him and the company.

Customer expectations have risen to the degree that in lots of instances, still the undeviating interruptions of service have turn into unendurable. The restraints this place on operations makes managing the compress, development and ultimate stability of an E-Commerce system complex.

Matching business wants with the system's requirement and design is indispensable in ensuring continuity for E-Commerce service.

Recent study shows that downtime attributable to disaster is in fact a small percentage of general factors.

The preponderance of failures ¬ 60 percent ¬ in the system or environmental section is reason by hardware problems. Overall, it is predictable that less than 5 percent of relevance downtime is attributable to disasters. Management's quandary then, is to poise the cost of inclusive disaster recovery planning adjacent to the rationally remote chance of a disaster-taking place. On the other hand, 11 September events have highlighted the fact that disasters are unexpected, impulsive events that have the capability to cripple an enterprise and even the wider economy if plans aren't in consign to recommence normal business operations.

E-Commerce Increases exposure

The coming of the Internet and e-Commerce has reasoned elemental transforms in the way enterprises consider of business continuity planning (B. Zalud. Sec, Vol 34, 6, p. 93). As enterprises re-engineer business processes, incorporating them with those of customers, dealers and partners, recovery time objectives for mission critical business processes as well as applications has diminished to periods of less than 24 hours, in some cases reaching zero. Business continuity planning in the Internet economy should take a broader state of affairs into account, captivating on e-Commerce precise risks, together with downtime caused by:

• Prepared risk
• Safety risk
• Lack of capability
• Function breakdown
• Partner/outsourcer breakdown
• Loss of physical structures

Incapability to meet customer prospect due to a business commotion typically occurs as management doesn't comprehend how delicate the overall architectures have develop into as they roam more and more towards an e-Commerce model. The bar is continually being hoisted to do things quicker, smarter and more efficiently, and customers persistently demand instant retort(R. Garcia Diez, R. Iyer. DRJ, Vol 10, 1, p. 35).

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The system is fundamental

As a consequence, the network and communications elements are captivating on a more decisive role toward sustaining business functions. The actuality that products and services are sold online augments the dependence upon mechanization and failsafe infrastructure. Today, business areas require to take accountability for ensuring that disaster recovery strategy are in place it is no longer simply the liability of the IT department ¬ and integrate recovery plans into overall risk management.

Managers require a meticulous considerate of the dynamics of their private networks and the Internet. Issues like redundancy, interchange routing, peak traffic, mirroring, as well as single points of failure require to be addressed to generate effective plans. The means that transactions surge from your endeavor to the customer, supplier or partner and back another time should be understood. There are three key areas of flaws in networks. The primary is the admittance line, the subsequent the software that runs on the network devices situated in the service provider's network obscure and the third is problems origin when altering or adapting the network.

Network designers require to effort with network service providers, reviewing network schematics and recognizing frail points moreover single points of breakdown. Where probable, idleness must be planned by constricting with detach network service provider’s all the way through circuits routed through diverse central offices (R. Garcia Diez, R. Iyer. DRJ, Vol 10, 1, p. 35).

Malfunction to do this can consequence in the enterprise losing network connectivity for comprehensive periods and distressing a stern business loss. Putting business 'online' can herald important opportunities such as improved service levels, amplified competence, abridged costs, shorter time-to-market and wider market contact. The expansion of e-Commerce must stem as of the business vision. Managers must expand a holistic loom to ensure that e-Commerce engrosses the whole organization. Although physical security should be measured, e-Commerce opens up the organization to a much broader variety of intimidations. Fundamental security rations consist of discretion, veracity, accessibility and non-repudiation in deference of information. On the other hand, the means that these needs are impartial will diverge from one organization to another for maintaining the discretion of their information is their major precedence, whereas for others it might be more significant to make certain that information is always accessible.

Most companies that go online stumble on that what used to be imperative and desirable in a day or two now needs to be obtainable in less than an hour. That time aspect has amplified the significance of planning and taxing your organization’s capability to recuperate from difficult events, such as floods, tornadoes, or earthquakes. In addition, the utilization of telephone and data lines has also uncovered organizations to new threats they haven’t had to think before such as hacker attacks, viruses, and other related troubles that could interrupt routine dispensation. Business continuity deals with an organization’s capability to carry on execution as usual, not particularly moving the systems data center to a further physical location. This plan contracts with the people that are in general called end-users. Typical mechanism of a business continuity plan comprise:

Physical location.

Reduced “nice-to-haves,” such as particular pricing or discounts. Fundamentally, do you require scaling back to center business practices throughout a contingency era, or do you have to be entirely operational immediately

The contingency plan deals with, where employees details on Day 1 subsequent to an unfavorable event, how they get out where to go, how they acquire sufficient supplies of forms, and comparable information. You’ll require settling on the key processes concerned, which will assist resolve, what the disaster recovery procedure desires to focus on. Disaster recovery addresses your capability to recuperate computer systems, infrastructure, and claims to carry the business. The key components of this plan include:

Physical location

A rational and permitted sequence of scheduled recoveries, preparatory with the fundamental infrastructure for hardware, operating systems, telecomm, networks, functions, and utilities. A rational and approved succession of recuperating end application and recognizing which contingent systems and applications require being in operation preceding to specific application recovery. The concluding constituent of both plans is a custom testing process for the reason that there’s actually no plan until it has been tested.

Captivatingly it is normally recognized that the major threat to precautions is from within the organization. Whereas the instant reaction when considering security for e-Commerce is to center on the troubles of outsiders accessing systems, a security contravene will still be more probable to take place from someone on the inside. On the other hand security has conventionally solved tribulations by restricting access to systems both physically and rationally but e-Commerce security facades some diverse troubles in that your organization will be vigorously encouraging outsiders to access your systems. One of the mainly complex issues is that of securing information that is outside the range of your organization, for instance, information about your organization might be detained on the network of one of your business partners or customers.

A security risk appraisal must be carried out before technical reins are realized. Preferably this will not simply cover the technical infrastructure however also the business processes that it supports. You require thinking regarding how significant these processes are to the business of the organization, how susceptible are they to attack as well as what types of assault might be an intimidation to your business? The risk assessment could engage anything as of a simple pen and paper exercise conceded out in-house, to a inclusive assessment using particular software and carried out by risk assessment consultant. The two primary apprehensions in taking an obtainable business online are

- Sum of access you desire to give your customers to your system.
- Sum of security you require to place on receptive and secret data.

The end-users in this case are your customers, so keeping them knowledgeable and concerned in the process will assist ensure a usable end-result. How you’ll use the system and what you’ll permit a customer to do will decide the best hardware and software pattern to use in these circumstances. When a main change like going online happens, it’s a good time to make certain that business continuity and disaster recovery plans are rationalized to imitate the changes in environment and operations.

You must keep in mind that the key item here is disaster, not problem. If you plan systematically and address these contemplations, adding an online delivery means must increase the return on your investment that you’re expecting. Business continuity is a top of mind subject for today's management and IT managers, particularly in financial services, where fiduciary errands and regulatory restraints make it indispensable to be proficient to reinstate operations with utmost immediacy.

In current years, the center of business continuity planning in the financial services industry has been on information center and call center operations. This has been a suitable focus, since the capability to carry out transactions, supervise accounts and usually conduct business is completely reliant upon the accessibility of computer and telephone facilities. Though, as banks, investment firms and insurance companies do progressively business online, it is now necessary for continuity planners to reassess their e-business risk alleviation strategies.

In meticulous, planners should reconsider how they defend their capability to scrutinize and manage critical e-business operations. That is, in addition to defensive e-business applications and infrastructure themselves, particular attention should be given to defending the management of e-business applications as well as infrastructure. The fundamental steps a company should take to make sure the continuity of its e-commerce goals are:

Put together a detailed continuity plan: when companies take the verdict to initiate themselves into the Internet world, they should take under deliberation that e-Business needs non-stop service. Conventionally, the fundamental concern was to obtain the critical equipment back in operations. Now this apprehension moves towards 100% customer's contentment, which means that the fundamental concern is to avert the customer from ever seeing the disruption of services.

To complete that, a company should principally believe the consequences of a probable downtime. They should understand the existing business risks, in order to choose upon the upturn options in a case of disruption of services. The continuity plan should include a number of prearranged steps that have to be followed to dispose of the consequences of the event.

The company's personnel should be well skilled to contract with possible problems as well. Furthermore, a business continuity plan must include steps to support the customers' belief. The customer should be familiar with every situation that is under power at all times. Data fortification and restitution are obligatory to minimize the cost of a business downtime, with back-up strategies, traffic management and infrastructure preservation.

By securing a eventuality and continuity plan before beginning an accomplishment, the company is further probable to expand projects that uphold center on the business goals and make certain that the company's infrastructure is geared up for the changes e-Commerce will bring.

Embrace contingency planning in the progress phase, developing an e-Business devoid of having a business continuity planning at hand is very dangerous, generally because the whole system has not been intended to give the consequences of a downtime. Sometimes the progression of building a continuity plan prior to developing the system is time-consuming, but every person must keep in mind that having a plan at hand can set aside vital time in a case of emergency

Vigorously transform the plan to maintain it updated, the Internet world changes radically day by day. Technologies measured being the conventional today can be overlooked within an integer of months, not to say weeks. As a result, the company's continuity plan must also be reengineered to trail the aforesaid changes. As these changes influence the company's maneuver, consequently its managers must deem how these transforms affects their e-Business precedence’s and validation, what is the long-term plan as well as timeline for implementing the applications before new transforms appears on the prospect, and what type of e-Business applications make intellect at the time being and why.

If a company ultimately manages to accomplish the aforesaid steps towards the implementation of a business continuity planning, then this company is more probable to make certain the subsistence of five factors that are significant to running a triumphant e-commerce store: accessibility, scalability, consistency, security and modify management.

Taking into account, an e-Commerce store from the consumers' point of view, we discover that on their top deliberation is the site's accessibility on a 24x7x365 basis, which means that there must be an outstanding coordination of all the hardware and software, as well as the network connections. A 24x7 operation, on the other hand, progress the company's dependability and increases the number of happy customers. There are lots of techniques to accomplish scalability, including clustering, network load corresponding and web caching.

Finally, as the Internet world changes radically day by day, change management desires to be a fundamental aspect of a continuity plan. Change management is focused on varying behaviors in the course of a holistic loom to organizational alteration. It focuses on changing business processes as well as technology to attain business strategies. It enables an organization to contract by the collision of change across business, information, expertise, and application domains. The capability to evaluate the collision of potential strategic state of affairs is the means to managing these transforms effectively.

For these causes and others, e-business continuity planners must deem working with an outer e-business operations management supplier. Such a supplier can carry the specialized on-demand management potentials necessary to e-business continuity. The remuneration to financial services firms of such an e-business operations management continuity approach include moderately low-cost protection of decisive revenue, the safeguarding of long-term dealings with customers and partners, and reliability with the public and the industry in terms of their capability to carry stable online services. More prominently, devoid of an effective, on-demand distant e-business operations monitoring and management clarification, financial services companies will linger susceptible to failures in their mechanical infrastructure, natural disasters as well as other disastrous events, and inborn inadequacies in their contingency operational plans.

References

  • http://www.inc.com/articles/it/manage_tech/disaster_prevention/23647.html
  • Kaplan R. S., Norton D. P., Using the Balanced Scorecard as a Strategic Management System, Harvard Business Review, January-February 1996, pp 75-85
  • William R. McDermott, president of Gartner, New York Times, 2001
  • "E-Commerce: New Security, New Threats", B. Zalud. (Sec, Vol 34, 6, p. 93) E-Commerce threats.
  • The Basis of Business-to-Business E-Commerce Security, IPNet Solutions, Inc., Whitepaper, 2001.
  • "Training Your Employees AFTER the Disaster Recovery & Business Continuity Plan Development", R. Garcia Diez, R. Iyer. (DRJ, Vol 10, 1, p. 35)

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