We recently shared a panel with Robert Ehinger of Lee-Nolan Associates to discuss handling worst case scenarios and strategies for balancing investor needs and fund capabilities. The setting was Financial Research Associates’ Due Diligence Master Class in New York City. Questions from the audience centered on the levels of coverage investors expect funds to have in terms of disaster recovery, insurance (key man) and pandemic planning.
At Eze Castle, we’ve seen a dramatic increase in awareness about business continuity planning and disaster recovery strategies, but too often folks just don’t know where to start or fear the price will be prohibitive. Let’s look at those two perceived issues.
Issue #1: Where to Start? Here are four steps to think about when tackling Business Continuity Planning.
- What are you protecting? Determine recovery strategies based on your most critical business components. Some things can wait 24 – 48 hours and some things just can’t.
- How are you going to protect it? Consider the following scenarios and come up with responses:
- #1 Building is still standing but closed to tenants
- #2: Building has been damaged and/or lost power
- #3: Regional impact to the primary office location area
- Educate Employees: People panic, so be sure they are prepared. Hold employee information sessions and conduct table top exercises.
- Validation: Test, test, test. We all know what is said about the best laid plans. Don’t fall into this trap. Disaster recovery systems should be tested quarterly and business continuity plans should be reviewed at least annually.
Issue #2: It’s just too expensive…Not anymore.
The emergence of cloud computing as a viable, secure solution for hedge funds has significantly changed the disaster recovery and IT landscape for firms. Cloud computing is good for disaster recovery and here’s why:
- It delivers increased uptime with redundant systems, automatic failover and backup;
- It lower costs with shared storage and virtual drives for maximum use of system assets; and
- Cloud computing provides grow-as-you-go flexibility with available compute modules and storage drives.
To get deeper into BCP and DR strategies, check out our Knowledge Center for whitepapers, webinars and how-to guides.
Or, view our presentation from the FRA Due Diligence Master Class.
Categorized under: Disaster Recovery
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