Disaster Recovery Misconceptions

B.

Disaster Recovery should never be considered a discretionary expense.

It is far too important a task.

In order to maintain the continuity of the business Disaster Recovery should be a commitment of and by the organization.

A discretionary fixed cost has a short future planning horizonunder a year.

These types of costs arise from annual decisions of management to spend in specific fixed cost areas, such as marketing and research.DR would be an ongoing long term committment not a short term effort only.

A committed fixed cost has a long future planning horizon more than on year.

These types of costs relate to a companys investment in assets such as facilities and equipment.

Once such costs have been incurred, the company is required to make future payments.

The following answers are incorrect: committed expense.

Is incorrect because Disaster Recovery should be a committed expense.

enforcement of legal statutes.

Is incorrect because Disaster Recovery can include enforcement of legal statutes.

Many organizations have legal requirements toward Disaster Recovery.

compliance with regulations.

Is incorrect because Disaster Recovery often means compliance with regulations.

Many financial institutions have regulations requiring Disaster Recovery Plans and Procedures.

Disaster recovery refers to the process of preparing for and recovering from a disruptive event, such as a natural disaster, cyber-attack, or equipment failure, that threatens an organization's operations and assets. Disaster recovery planning is an essential part of a company's overall risk management strategy, and it involves identifying potential risks, assessing the impact of these risks, and developing plans to mitigate them.

Organizations should not view disaster recovery as a discretionary expense. Discretionary expenses are those that are not essential to the ongoing operation of a business, and they can be reduced or eliminated in times of financial difficulty. Disaster recovery planning, however, is essential to the ongoing operation of a business, particularly in industries where downtime can result in significant financial losses, damage to reputation, and legal liability.

Furthermore, organizations should not view disaster recovery as merely an enforcement of legal statutes or compliance with regulations. While there may be legal requirements for certain industries to have disaster recovery plans in place, organizations should view disaster recovery as a critical part of their overall risk management strategy, and not just as a compliance exercise.

Organizations should view disaster recovery as a committed expense, which means that it is a necessary and essential cost that must be incurred to ensure the ongoing operation of the business. As such, disaster recovery planning should be prioritized and budgeted for appropriately, with regular testing and updates to ensure that plans remain relevant and effective. By viewing disaster recovery as a committed expense, organizations can ensure that they are prepared to respond effectively to disruptive events, minimize downtime, and mitigate the impact of risks on their operations and assets.