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Learn how to develop disaster recovery strategies as well as how to write a disaster recovery plan with these step-by-step instructions. Formulating a detailed recovery plan is the main aim of the entire IT disaster recovery planning project. Once this work is out of the way, youa€™re ready to move on to developing disaster recovery strategies, followed by the actual plans. Once you have identified your critical systems, RTOs, RPOs, etc, create a table, as shown below, to help you formulate the disaster recovery strategies you will use to protect them. Youa€™ll want to consider issues such as budgets, managementa€™s position with regard to risks, the availability of resources, costs versus benefits, human constraints, technological constraints and regulatory obligations.
Once your disaster recovery strategies have been developed, youa€™re ready to translate them into disaster recovery plans. From Table 2 you can expand the high-level steps into more detailed step-by-step procedures, as you deem necessary. In addition to using the strategies previously developed, IT disaster recovery plans should form part of an incident response process that addresses the initial stages of the incident and the steps to be taken. Note: We have included emergency management in Figure 2, as it represents activities that may be needed to address situations where humans are injured or situations such as fires that must be addressed by local fire brigades and other first responders. The following section details the elements in a DR plan in the sequence defined by ISO 27031 and ISO 24762. Important: Best-in-class DR plans should begin with a few pages that summarise key action steps (such as where to assemble employees if forced to evacuate the building) and lists of key contacts and their contact information for ease of authorising and launching the plan. In parallel to these activities are three additional ones: creating employee awareness, training and records management.
As the former 'chief evangelist' at Apple, Guy Kawasaki has had plenty of experience selling the next new thing. As I looked into the dampness outside the plane, I worried about exactly the same subject as discussed in this chapter — business planning for the international company.
What I worried about, however, that particular morning at the airport, was exactly that same question: why not?
So let’s assume you or your client are in the United States developing a business plan for an international business. Currency exchange rates are the first thing that concerns most people as they consider an international-oriented business plan.
The problem with currency fluctuations, however, is a classic problem of guessing the future. In the larger international businesses, predicting and managing currency exchange can be critical. As critical as currency exchange may be in your business, its specific treatment in your business plan is not much different than how a wheat farmer would treat fluctuations in the market price of wheat.
Figures 1-2 show a simple example of how an import business handles its foreign currency costs in a start-up business plan, using LivePlan Premier Sales Forecast and User-Added tables. Figure 1: The sales forecast consists of projections for unit sales, dollar revenues per unit sold, total dollar sales, dollar costs per unit sold, and total dollar costs of sales. Figure 2 shows a simple two-row table for handling the currency exchange rates in the LivePlan User-Added table. Going back then to the sales forecast in Figure 1, focus on the second group from the bottom, the dollar costs per unit sold.
The formula for the first row in costs refers directly to the Peso exchange rate in the User-Added table. With that formula entered in that cell, you can copy to the right (using the command in your Edit menu) to copy it to all the other monthly columns in that same row. You deal with the Quetzal prices with similar formulas, referring to the number of Quetzals required to equal a dollar. Looking at these examples, you can imagine how to handle a situation in which you are exporting United States goods to other markets. The business plan in the example needs to deal with the possibility of changes in exchange rates affecting costs.
Aside from currency exchange, some international business plans must also deal with different tax and accounting practices. In general, as you plan the international business there is more uncertainty than with the strictly-domestic business.
Although the business planning mechanics don’t change as a result, the information gathering for international business is more complex. When preparing this chapter, I was struck by an irony related to planning the international business. I found your statement very useful, but would be nice if you could elaborate more on advantages and disadvantages of choosing weak or strong currency. Bplans is owned and operated by Palo Alto Software, Inc., as a free resource to help entrepreneurs start and run better businesses. Kitchen Area The most important area of any food service restaurant, your kitchen area should include space for all the equipment you need to cook your meals, as well as accommodate the chefs needed to prepare the food.
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It is in these plans that you will set out the detailed steps needed to recover your IT systems to a state in which they can support the business after a disaster.


Then, youa€™ll need to establish recovery time objectives (RTOs) and recovery point objectives (RPOs). Here wea€™ll explain how to write a disaster recovery plan as well as how to develop disaster recovery strategies. Areas to look at are availability of alternate work areas within the same site, at a different company location, at a third-party-provided location, at employeesa€™ homes or at a transportable work facility. Youa€™ll need to identify and contract with primary and alternate suppliers for all critical systems and processes, and even the sourcing of people.
Be prepared to demonstrate that your strategies align with the organisationa€™s business goals and business continuity strategies. Procedures should ensure an easy-to-use and repeatable process for recovering damaged IT assets and returning them to normal operation as quickly as possible.
This process can be seen as a timeline, such as in Figure 2, in which incident response actions precede disaster recovery actions. The next section should define roles and responsibilities of DR recovery team members, their contact details, spending limits (for example, if equipment has to be purchased) and the limits of their authority in a disaster situation. During the incident response process, we typically become aware of an out-of-normal situation (such as being alerted by various system-level alarms), quickly assess the situation (and any damage) to make an early determination of its severity, attempt to contain the incident and bring it under control, and notify management and other key stakeholders.
Based on the findings from incident response activities, the next step is to determine if disaster recovery plans should be launched, and which ones in particular should be invoked. A section on plan document dates and revisions is essential, and should include dates of revisions, what was revised and who approved the revisions. Once the plan has been launched, DR teams take the materials assigned to them and proceed with response and recovery activities as specified in the plans. Located at the end of the plan, these can include systems inventories, application inventories, network asset inventories, contracts and service-level agreements, supplier contact data, and any additional documentation that will facilitate recovery.
These are essential in that they ensure employees are fully aware of DR plans and their responsibilities in a disaster, and DR team members have been trained in their roles and responsibilities as defined in the plans. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Apple Computer, which was then riding the height of its success in the late 1980s, had hired me to travel to Argentina to instruct its local dealers on business planning.
Even though accounting practices and tax treatments may vary widely from country to country, the techniques of business planning are far more international than country-specific. How different is that business plan from a business plan developed for a strictly domestic business? Changes in currency can mean changes in your costs and expenses, your sales, and even the value of your assets and liabilities. When I was consulting to Apple Japan in the early 1990s, chief financial officer Judy David produced substantial profits, occasionally comparable to the profits from the computer business, with astute currency management.
To understand that, you should first recognize that regardless of how international your business might be, you are still going to do your books and report your numbers to the tax authorities in a single currency. In Figure 1 the sales forecast consists of projections for unit sales, dollar revenues per unit sold, total dollar sales, dollar costs per unit sold, and of course total dollar costs of sales. To make that work, start with your mouse selecting in the first column, then type the equals (=) sign, then the number 25.
From then on, when you go to the User-Added table to change your exchange rate forecasts, you will see your dollar cost forecast also changing automatically. Even without the specific details, you can imagine how to handle a business in which currency rates affect expenses instead of costs of goods.
For example, if you’re selling computers in Mexico your costs might be in dollars and your sales in Pesos. The thinking can be quite complex, and the significance of planning and forecasting is huge.
For example, if you are importing goods from Mexico and Guatemala, at what point do you translate their foreign-currency costs into dollars? When doing business in multiple countries, you also have to deal with multiple markets and market trends.
Despite having lived in three countries, and worked in more than a dozen others, I had to remind myself first how planning an international business might be different. I am from Buenos Aires and actually I am doing my first Business Plan for a start up project. I work in a Korean company which pays a lot of money to an Indian company for the services rendered to it by the Indian company.
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Then consider site security, staff access procedures, ID badges and the location of the alternate space relative to the primary site.
Key areas where alternate suppliers will be important include hardware (such as servers, racks, etc), power (such as batteries, universal power supplies, power protection, etc), networks (voice and data network services), repair and replacement of components, and multiple delivery firms (FedEx, UPS, etc). Then define step-by-step procedures to, for example, initiate data backup to secure alternate locations, relocate operations to an alternate space, recover systems and data at the alternate sites, and resume operations at either the original site or at a new location.
Here we can see the critical system and associated threat, the response strategy and (new) response action steps, as well as the recovery strategy and (new) recovery action steps.
If staff relocation to a third-party hot site or other alternate space is necessary, procedures must be developed for those activities. This section should specify who has approved the plan, who is authorised to activate it and a list of linkages to other relevant plans and documents. If DR plans are to be invoked, incident response activities can be scaled back or terminated, depending on the incident, allowing for launch of the DR plans. The more detailed the plan is, the more likely the affected IT asset will be recovered and returned to normal operation. And since DR planning generates a significant amount of documentation, records management (and change management) activities should also be initiated. I was half a day from my starting point and still several hours from my eventual destination, Buenos Aires.
As a consultant, I had helped Apple develop its annual Latin American business plan for four years running. When the peso trades at 3 pesos per dollar, then the hand-painted bowl from Oaxaca that costs you 15 pesos per unit costs you $5 per unit. This involved detailed programs to keep assets in whichever currency seemed likely to increase in value and liabilities in currencies likely to decrease in value. Some businesses buy products in foreign markets and bring them into the United States to sell. Then click the indicated area on the upper right and type in your new currency format, using quotation marks for currency symbols. Notice how these costs change in March when both currencies (looking at Figure 2 again) change.


In this case, for LivePlan purposes, your expenses are included in the Profit and Loss table instead of the Sales Forecast table. Accountants talk about costs as the cost of what you sell, and expenses are the operating expenses related to running the business. You would take your unit price estimate in the second block of the Sales Forecast table and create a formula calculating dollars from Pesos much like your formula that calculates dollars for pesos in costs.
In 1971 the United States dropped the gold standard and currencies began to fluctuate more than they had. When you sell your goods in Japan or Europe, you have a different view of the same problem. Your accountant should be able to help you decide when – and at what exchange rate – to transfer your values to and from dollars.
This makes your business plan preparation harder, even if it doesn’t change the mechanics of business planning. These sample restaurant floor plans allow you to express your creativity while making design decisions fun. These useful tips will help you to design your restaurant and keep hungry patrons happy so they will come back for more.
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I had also developed the specialized software Apple dealers were using to do annual business plans. In the following three years I gave business-planning seminars in eight different Latin American countries, and five in Asia for four different computer manufacturer sponsors. When the peso exchange rate changes and the peso drops to 5 pesos per dollar, then the same bowl costs you only $3 per unit. When I was with McKinsey Management Consulting in Mexico City in 1981, I saw major companies lose millions of dollars when the peso devalued, catching them with assets in pesos and liabilities in dollars. It doesn’t matter how many countries you deal with, you still do your plan in dollars because you pay your taxes in dollars.
You can use a formula similar to the one in the example above to make expenses in the Profit and Loss change when the Peso or Quetzal rates change.
In the import example, an operating expense running in Pesos might be the rental of an office suite in Mexico City, with a voice mail box, for 250 pesos per month. The problem is not a problem of software or formulas; it is a problem of projecting rate fluctuations in the future. By 1976 the peso was still stuck to 12.5 to the dollar despite growing capital flight (Mexicans investing their money outside the country in dollars) and balance of trade problems (Mexico was buying much more than it was selling).
Also, there are factors affected by when you translate your foreign currency elements into dollars.
The markets in Mexico might change because Japanese buyers are affecting supply and demand, which raises prices. I was also involved in smaller start-up companies, mostly high tech, some of them focused almost entirely on the U.S. I have data of average monthly rate of dollar and average monthly rate of rupee for last ten years. Included within this part of the plan should be assembly areas for staff (primary and alternates), procedures for notifying and activating DR team members, and procedures for standing down the plan if management determines the DR plan response is not needed.
Check with your vendors while developing your DR plans to see what they have in terms of emergency recovery documentation. At each one, I dealt with a few dozen computer dealers who ran their small businesses in their local markets. We can look at what kinds of differences there might be and how you might accommodate those differences.
If you think the peso is going to increase in value, you want to buy up bowls and convert them to inventory quickly. You can sometimes be involved in multiple currencies, three or four in a single transaction. Then use your Table menu to select the User Added table, find the peso rate for the first month, and click on it.
Exactly as with the products in the detailed example, the dollar value would change when the peso rate changes.
Guessing currency exchange rates is a major field of study and investment, every bit as much as guessing the future of interest rates. The economics suggested a devaluation by 1975, but politics kept the peso unchanged until the presidency changed hands in 1976. Maybe the government needs to focus its weaving industry on producing low-cost basic goods instead of export items for international markets. If you are buying in Central America, you need to know about market factors that could be affecting your costs.
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In 2003, I did another series of seminars in Europe and Latin America for software company owners. If you think the peso is going to decrease in value, then you want to postpone your purchases to reduce the ultimate cost. For example, you can buy computer circuit boards made in three countries and other hardware made in a fourth and a fifth, and then manufacture computers somewhere else and sell them in more than one country. Factors affecting a change in currency exchange include political factors, economic factors, market factors, even psychological factors. The peso dropped about half its value, meaning it took more than 20 pesos to equal a dollar. For example, the value-added tax (VAT) is a major factor in most European markets, as well as Mexico and Japan. As I presented business planning and we discussed the specifics of their markets and their businesses, the techniques held up. In all these cases, however, if you are based in the United States then you are still going to have to translate all your currencies into dollars for your plan, your accounting, and your taxes. To guess the timing of the devaluation that eventually took place, one had to guess the flow of dollars and pesos and political will as well. A good plan is essentially a good plan, or not, depending on a lot of factors besides tax treatments and accounting practices.
However, in business planning, you are looking ahead and planning business decisions, not reporting to tax authorities. While you might use additional formulas to calculate your taxes, for planning purposes they are still going to be summarized in a single line towards the bottom of your profit and loss statement.
Using LivePlan, you could use the row in the Cash Flow worksheet to calculate the VAT or other taxes in more detail, and then run the results over to the tax line in your Profit and Loss.
Local politics, national politics, and international politics can affect import and export policies, availability, and pricing. Since you are farther from the market, you can expect more trouble estimating future trends.




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