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The IT auditor should examine the organization s insurance policies related to the loss of property and assets supporting critical business processes Insurance coverage should cover the actual cost of recovery, or a lesser amount if the organization s executive management has accepted a lower amount The IT auditor should obtain documentation that includes cost estimates for various disaster recovery scenarios, including equipment replacement, business interruption, and the cost of performing business functions and operating IT systems in alternate sites These cost estimates should be compared with the value of insurance policies
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Natural and man-made disasters can damage business facilities, assets, and information systems, thus threatening the viability of the organization by halting its critical processes Even without direct effects, many secondary or indirect effects from a disaster such as crippled transportation systems, damaged communications systems, and damaged public utilities can seriously harm an organization The development of business continuity plans and disaster recovery plans helps an organization to be better prepared to act when a disaster strikes A vital part of this preparation is the development of alternative means for continuing the most critical activities, usually in alternative locations that are not damaged by a disaster There is an accepted methodology to business continuity and disaster recovery planning, which begins with the development of a business continuity planning policy, a statement of the goals and objectives of a planning effort This is followed by a business impact analysis (BIA), a study of the organization s business processes to determine which are the most critical to the organization s ongoing viability For each critical process, a statement of impact is developed, which is a brief description of the effect on the organization if the process is incapacitated for any significant period The statement of impact can be qualitative or quantitative A criticality analysis is performed next, where all in-scope business processes are ranked in order of criticality Ranking can be strictly quantitative, qualitative, or even subjective Next, recovery targets for each critical business process are developed The key targets are recovery time objective (RTO) and recovery point objective (RPO) These targets specify time to system restoration and maximum data loss, respectively When these targets have been established, the project team can develop plans that include changes to technical architecture as well as business processes that will help achieve these established recovery objectives Often, project teams discover that establishing specific recovery objectives is too expensive; this requires that the business revisit and consider changing those objectives to more affordable figures Sometimes, however, the organization is able instead to develop new architectures or processes that can help lower costs overall, including the cost of achieving desired recovery objectives Once acceptable architectures and process changes have been determined, the organization sets out to make investments in these areas to bring its systems and processes closer to the recovery objectives Significant investments may take place over a period of years Procedures for recovering systems and processes are also developed at this time, as well as procedures for other aspects of disaster response such as emergency communications plans and evacuation plans Some of the investment in IT system resilience may involve the establishment of an alternate processing site, where IT systems can be resumed in support of critical business processes There are several types of alternate sites, including a hot site, where IT systems are in a continual state of near-readiness and can assume production workload within an hour or two; a warm site, where IT systems are present but require several hours to a day of preparation; and a cold site, where no systems are present but must be acquired, which may require several days of preparation before those replacement systems are ready to support business processes An organization can also establish a reciprocal
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