Business continuity vs disaster recovery are two different practices that are closely related. Both support an organization’s ability to remain operational after an adverse event.
Every business, from smaller organizations to multinational corporations, is becoming increasingly reliant on digital technology to generate income, deliver services, and support customers who demand applications and data to be available.
These terms have become increasingly relevant since the beginning of the pandemic, as businesses had to switch from working on-premises to letting employees work remotely in almost no time.
In situations like these, businesses wish they had a business continuity plan in place to deal with adversity.
According to a recent study, just one hour of downtime can cost $10,000 for small businesses. For larger companies, those hourly costs can balloon to more than $5 million.
But what exactly does it mean to have a BCDR plan in place? Are these two practices different? We’ll answer those questions today.
Understanding Business Continuity vs Disaster Recovery
According to Datto, BCDR, or Business Continuity and Disaster Recovery is a set of practices that bring together people, technology, and processes to help an organization continue or recover business operations in a disaster.
Definition and Purpose
Business Continuity: Maintaining Essential Functions During and After Disruptions.
Business continuity focuses on the processes and plans put in place to ensure that essential functions of an organization can continue to operate during and after disruptions.
This includes various strategies and procedures aimed at maintaining critical business processes, operations, and functions, even in the face of adverse events like when natural disaster strikes, cyberattacks, power outages, or other disruptive incidents.
The primary purpose of business continuity plans is to minimize downtime, ensure the continuation of crucial business operations, and mitigate the impact of disruptions on the organization’s overall functionality and productivity.
Disaster Recovery: Restoring IT Systems and Data Post-Disruption.
Disaster recovery refers specifically on the restoration and recovery of IT systems, data, and infrastructure following a disruptive event. It involves the implementation of strategies, processes, and technologies designed to recover critical IT systems and data quickly and efficiently after a disruption occurs.
The main goal of disaster recovery plans is to minimize the impact of disruptions on IT operations, ensure the timely restoration of IT services, and enable the organization to resume normal business operations as swiftly as possible.
This includes recovering data from backups, restoring IT infrastructure, and ensuring the availability of necessary resources and personnel to complete the recovery process effectively.
Key Differences Between Disaster Recovery vs Business Continuity
Focus and Scope
Business Continuity: Broad Approach Covering Operational Procedures, Staffing, and Communication.
A business continuity plan includes a broad focus and scope, covering various operational aspects beyond just IT systems. This includes operational procedures, staffing, communication protocols, and supply chain management.
The goal of business continuity planning is to ensure the organization can maintain critical business functions and operations during and after disruptions. It involves identifying key crucial business functions and processes, assessing risks, developing response strategies, and implementing measures to minimize the impact of disruptions on overall business operations.
Business continuity plans typically encompass a wide range of scenarios, including natural disasters, cyberattacks, power outages, pandemics, labor disputes, and equipment failures.
Disaster Recovery: Specific Focus on IT Systems and Data Restoration.
In contrast, disaster recovery plans have a specific focus on IT systems and data restoration. These plans are primarily concerned with recovering and restoring IT infrastructure, applications, and data following a disruptive event.
Disaster recovery strategies typically involve data backup and recovery, system redundancy, and the implementation of recovery technologies to restore IT systems to a functional state. The scope of disaster recovery planning involves ensuring the availability, integrity, and accessibility of critical IT resources essential for the organization’s operations.
Technology Considerations
Data Backup and Recovery
Data backup and recovery are critical components of both a business continuity strategy and disaster recovery planning. This involves regularly backing up essential data to secure locations and implementing processes to restore data quickly in the event of data loss or corruption.
Organizations often employ various backup methods, such as incremental backups, differential backups, or cloud-based backup solutions, to ensure data integrity and availability.
Infrastructure Redundancy
Infrastructure redundancy is an approach of building duplicate or backup recovery systems and components to be able to carry on the operation even if the hardware or system fails.
Such things can be servers, network connections, power sources, and data centers that are not needed. Redundancy is indispensable for minimizing the risk of single points of failure and for guaranteeing the high availability of critical IT infrastructure in the event of disruptions.
Cloud Computing
By being able to scale up or down whenever needed, cloud computing can be considered a priority for both business continuity and disaster recovery planning. Organizations can use cloud computing services for data storage as well as data backup and recovery.
Even hosting of critical applications and services can be done using the cloud. Cloud computing provides a cheap and stable means for organizations to carry on with their operations and to have disaster recovery capabilities. This makes it easy for them to scale the resources and also access the data from wherever they have the internet connection.
Remote Access
The remote access solutions offer a possibility to workers to use the critical IT resources and applications from a remote location. This is especially important in the context of preserving business operations in cases where physical access to the workplace is impeded, for instance, during natural disasters or epidemics.
Organizations may use VPNs, remote desktops, or cloud-based collaboration platforms to help employees who work remotely gain access to the company resources.
Cybersecurity
Cybersecurity measures are the building blocks for the effectiveness of IT systems and data protection against cyber threats including ransomware, and data breaches. Cybersecurity measures should be observed in both business continuity and disaster recovery plans to make sure that the critical IT assets are protected from unauthorized access or data loss during emergencies.
Such measures may include the installation of firewalls, intrusion detection systems, antivirus software, and encryption technologies aimed at reducing cyber threats and protecting important data from privacy and integrity breaches.
Communication Systems
The communication systems have a profound influence on business continuity and disaster recovery, as they act as a communication medium between employees, stakeholders, and business partners during disruptions.
Enterprises should have alternative communication channels and methods of communication in place that will allow them to stay in touch even when the situation is difficult. The communication tools such as email, phone systems, instant messaging, and collaboration platforms together with having the emergency communication procedures and contact lists ready for a quick communication and coordination in case of emergencies may be used.
Disaster Recovery Plan vs Business Continuity Plan – Main Differences
| Aspect | Disaster Recovery Plan | Business Continuity Plan |
| Focus | Restoring IT systems and data post-disruption. | Maintaining essential functions during and after disruptions. |
| Scope | Specific focus on IT systems and data restoration. | Broad approach covering operational procedures, staffing, and communication. |
| Technology Considerations | Data backup and recovery Infrastructure redundancy Cloud computing Remote access Cybersecurity Communication systems. | Data backup and recovery Infrastructure redundancy Cloud computing Remote access Cybersecurity Communication systems |
| Implementing Process | Typically involves creating contingency plans for IT systems and data recovery, including backups and redundancies. | Involves planning for operational procedures, staffing, communication, and supply chain management to ensure continuity of essential functions. |
| Testing and Evaluation | Critical to validate effectiveness and identify deficiencies in IT system recovery processes. | Essential to simulate various disaster scenarios, assess readiness, and identify gaps in continuity strategies. |
| Compliance with Regulations | Mandated by regulatory requirements for industries reliant on IT systems and data integrity. | Also subject to regulatory requirements, especially in sectors with critical infrastructure or public safety responsibilities. |
| Primary Goal | Minimize downtime and ensure rapid restoration of IT infrastructure and data. | Maintain operational resilience and ensure continuity of critical business functions during disruptions. |
Implementing a Business Continuity Plan and Disaster Recovery Plan
Testing and Evaluation
Testing and evaluation are two vital components of business continuity plans and natural disaster recovery plans, as they are designed to evaluate the plans in real situations to ensure their effectiveness.
Importance of Testing Plans for Effectiveness
Conducting periodic testing of the business continuity and disaster recovery plans is a must to ensure the effectiveness of the plans and to detect any weaknesses before a crisis happens.
During the testing, the organization can experience different disaster scenarios and learn how to respond to them efficiently. Through the execution of tests, institutions can evaluate the work of their plans, find out the areas of improvement, and redefine the response procedures as needed.
Identifying Gaps and Weaknesses
Testing is a tool used by organizations to uncover flaws, shortages, and weaknesses in business continuity and disaster recovery plans. Through disaster scenario simulations, organizations will be able to reveal the holes in their strategies of response, communication channels, availability of resources, or IT systems. Understanding these gaps is crucial for organizations because it helps them deal with them in advance, reinforce their plans, and improve their resilience to the likely disruptions.
Compliance with Regulations
Many industries are subject to regulatory requirements mandating the development and testing of business continuity and disaster recovery plans. Compliance with these regulations is essential to ensure that organizations meet legal and industry standards for preparedness and resilience.
Regular testing and evaluation of plans demonstrate due diligence and help organizations demonstrate compliance with regulatory requirements, reducing the risk of penalties or legal consequences in the event of a disruption.
Which Do You Need?
Determining whether to prioritize business continuity or disaster recovery planning depends on the specific needs and priorities of the organization.
Prioritizing Based on Organizational Needs
Organizations should prioritize business continuity or disaster recovery planning based on their unique operational requirements, risk profiles, and business-critical functions. For example, organizations heavily reliant on IT systems may prioritize disaster recovery planning to ensure the rapid restoration of IT infrastructure and data following a disruption.
Conversely, organizations with complex supply chains or operational dependencies may prioritize business continuity planning to maintain essential functions and operations during disruptions.
Examples of Industries Emphasizing Different Aspects
Different industries may emphasize either business continuity or disaster recovery planning based on their operational priorities and risk exposures. For instance:
Financial Services: Financial institutions often prioritize disaster recovery planning to ensure the availability and integrity of financial systems, transaction processing, and customer data. Rapid recovery of critical IT systems is essential to maintain business continuity and customer trust in the event of disruptions.
Healthcare: Healthcare organizations often prioritize business continuity planning to ensure the uninterrupted delivery of patient care and medical services during emergencies. Maintaining operational resilience and patient safety are paramount considerations, requiring comprehensive business continuity management strategies and response protocols.
Manufacturing: Manufacturing companies center their efforts on both business continuity and disaster recovery planning to mitigate operational disruptions and supply chain risks. Ensuring the availability of production systems, inventory management, and distribution channels is crucial for maintaining the continuity of operations and meeting customer demands.
Different Types of Business Continuity Plans
Crisis Management Plans
Description: Crisis management plans are comprehensive documents outlining procedures and protocols for responding to specific threats or emergencies that could potentially disrupt normal business operations.
Coverage
Identification of potential crises: This includes conducting risk assessments to identify various threats such as natural disasters, cyberattacks, workplace violence, or public relations crises.
Response protocols: Detailed steps for how to respond effectively to each type of crisis, including roles and responsibilities of disaster recovery team members, escalation procedures, and communication protocols.
Evacuation procedures: Instructions for safely evacuating personnel from the premises in case of emergencies such as fires, chemical spills, or security threats.
Communication strategies: Plans for internal and external communication during a crisis, including designated spokespersons, messaging templates, and channels for disseminating information.
Coordination with authorities: Procedures for coordinating with emergency responders, law enforcement agencies, and regulatory authorities to ensure a coordinated response to the crisis.
Post-crisis recovery: Strategies for assessing damage, conducting post-incident debriefings, implementing corrective actions, and restoring normal operations as quickly as possible.
Communication Plans
Description: Communication plans focus specifically on managing communication during a crisis or disruption, with the goal of maintaining transparency, managing public perception, and ensuring stakeholders are informed.
Coverage
Audience identification: Identifying key stakeholders, including employees, customers, suppliers, investors, media, and the public, and understanding their information needs.
Messaging development: Crafting clear, accurate, and consistent messages tailored to each audience, addressing concerns, providing updates, and communicating action plans.
Media relations: Establishing relationships with media outlets, designating spokespersons, and coordinating media interviews and press releases to manage public perception and control the narrative.
Internal communication: Establishing channels for internal communication, including employee notifications, updates, and instructions for maintaining productivity during disruptions.
Social media management: Monitoring social media channels for misinformation, addressing customer inquiries and concerns, and providing timely updates to maintain trust and credibility.
Crisis communication training: Providing training and resources for employees to effectively communicate during a crisis, including media training, spokesperson training, and crisis communication drills.
Network and Data Center Recovery Plans
Description: Network and data center recovery plans focus on restoring IT infrastructure and data systems following a disruption, such as hardware failures, cyberattacks, or natural disasters, to ensure continuity of critical operations throughout.
Coverage
Infrastructure inventory: Documenting all network hardware, software, and data center assets, including servers, routers, switches, storage devices, and backup systems.
Backup and recovery procedures: Establishing protocols for regular data backups, including frequency, methods, and storage locations, and implementing procedures for restoring critical data from backups in the event of data loss or corruption.
Redundancy measures: Implementing redundant network components, such as failover clusters, load balancers, and redundant power supplies, to minimize single points of failure and ensure high availability.
Failover testing: Conducting regular testing of failover mechanisms to verify their effectiveness and identify any issues that need to be addressed.
Disaster recovery sites: Identifying alternate data center locations or cloud-based recovery options to facilitate rapid recovery in the event of a catastrophic failure at the primary data center.
Recovery time objective (RTO) and recovery point objective (RPO): Defining RTO and RPO targets to guide recovery efforts and ensure that IT systems can be restored within acceptable timeframes with minimal data loss.
Virtualized Recovery Plans
Description: Virtualized recovery plans leverage virtualization technology to facilitate rapid recovery of IT systems and applications in the event of a disruption, allowing organizations to quickly resume operations with minimal downtime.
Coverage
Virtualization infrastructure: Deploying virtualization platforms, such as VMware, Hyper-V, or KVM, to create virtualized environments for hosting critical IT systems and applications.
Virtual machine (VM) replication: Implementing VM replication technologies to create copies of virtual machines in real-time or at scheduled intervals, ensuring that redundant copies are available for failover in case of a disaster.
Failover automation: Configuring automated failover procedures to initiate the failover process automatically when predefined triggers or thresholds are met, such as hardware failures, network outages, or application errors.
Recovery point objectives (RPO): Defining RPO targets for virtualized workloads to specify the maximum acceptable amount of data loss in the event of a disaster, guiding the frequency of VM replication and backup processes.
Disaster recovery testing: Conducting regular testing and validation of virtualized recovery processes to ensure their reliability and effectiveness, identifying any issues or gaps that need to be addressed to improve recovery capabilities.
Summing Up
Effective business continuity and disaster recovery planning are vital components of any organization’s risk management strategy. By understanding the differences between typical business continuity plan and disaster recovery plans, as well as the importance of testing, evaluation, and compliance, businesses can better prepare themselves to mitigate the impact of disruptive events.
At Wingman Solutions, we specialize in our business leaders by providing comprehensive business continuity and disaster recovery solutions tailored to your organization’s unique needs. Contact us today to learn more about how we can help you strengthen your resilience and safeguard your business against unforeseen disruptions.
