Enter the total business assets value.
Enter the value of critical operations.
Enter the expected downtime in hours.
Enter the estimated recovery costs.
Enter the number of employees affected.
Enter the cost of loss per hour.
Enter the cost of backup equipment and services.
Enter the training and testing costs.
History:

Explanation

What is a Business Disaster Recovery Plan?

A Business Disaster Recovery Plan (BDRP) is a documented process or set of procedures to recover and protect a business IT infrastructure in the event of a disaster. This plan ensures that critical business functions can continue during and after a disaster, minimizing downtime and financial loss.

How to Calculate the Cost of a Business Disaster Recovery Plan?

The total estimated cost of a disaster recovery plan can be calculated using the following formula:

Total Estimated Cost (C) is:

§§ C = (Loss per Hour × Downtime) + Recovery Costs + Equipment Costs + Training Costs §§

where:

  • § C § — total estimated cost of the disaster recovery plan
  • § Loss per Hour § — the cost incurred for each hour of downtime
  • § Downtime § — the total hours the business is expected to be non-operational
  • § Recovery Costs § — the estimated costs associated with recovering from the disaster
  • § Equipment Costs § — the costs for backup equipment and services
  • § Training Costs § — the costs for training staff and testing the recovery plan

Example Calculation

Let’s consider a scenario where a business has the following values:

  • Loss per Hour: $1,000
  • Downtime: 10 hours
  • Recovery Costs: $20,000
  • Equipment Costs: $15,000
  • Training Costs: $5,000

Using the formula:

§§ C = (1000 × 10) + 20000 + 15000 + 5000 = 10000 + 20000 + 15000 + 5000 = 50000 §§

Total Estimated Cost of Disaster Recovery Plan: $50,000

When to Use the Cost of Business Disaster Recovery Plan Calculator?

  1. Risk Assessment: Evaluate the potential financial impact of various disaster scenarios on your business.

    • Example: Estimating costs associated with natural disasters, cyberattacks, or equipment failures.

  2. Budgeting: Plan and allocate resources for disaster recovery efforts.

    • Example: Determining how much to invest in backup systems and employee training.

  3. Business Continuity Planning: Ensure that your business can continue operations during and after a disaster.

    • Example: Developing strategies to maintain critical operations during unexpected events.

  4. Insurance Purposes: Provide estimates for insurance claims related to business interruptions.

    • Example: Documenting potential losses for insurance coverage.

  5. Regulatory Compliance: Meet industry standards and regulations regarding disaster recovery.

    • Example: Ensuring compliance with data protection laws that require disaster recovery plans.

Practical Examples

  • IT Companies: An IT firm may use this calculator to estimate the costs of downtime due to server failures and plan accordingly.
  • Manufacturing Businesses: A manufacturer could assess the financial impact of equipment failure and develop a recovery strategy.
  • Retail Stores: Retailers can calculate potential losses from store closures due to disasters and prepare their recovery plans.

Definitions of Key Terms

  • Downtime: The period during which a business is unable to operate due to a disaster or failure.
  • Recovery Costs: Expenses incurred to restore business operations after a disaster.
  • Loss per Hour: The financial loss experienced by a business for each hour it is non-operational.
  • Equipment Costs: Costs associated with purchasing or renting backup equipment and services necessary for recovery.
  • Training Costs: Expenses related to training employees on disaster recovery procedures and conducting drills.

Use the calculator above to input different values and see the total estimated cost of your disaster recovery plan change dynamically. The results will help you make informed decisions based on the data you have.