Business Recovery Risk - Explained
What is Business Recovery Risk?
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
What is Business Recovery Risk?
A business recovery risk refers to loss arising from a company's temporary disruption of activities, due to a lack of accessibility to things such as physical infrastructure. When a company loses its ability to conduct its day-to-day operations, it may disrupt the supply chain, loss of access to virtual systems, or damage to the physical location(s).
How does Business Recovery Risk Work?
Business recovery risk analysis categorizes threats, according to long-, medium-, and short-term impacts. Short-term threats include things such as the inability to access the job site or damage to computer systems as a result of a natural disaster. Medium-term impact threats may include loss of staff or infrastructure failure. For long-term impact threats, we have things such as extensive property damage. Note that companies address business recovery risk that happens in their business using a continuity recovery plan. This way, firms are able to respond effectively to incidents or crises affecting their business. The purpose of this plan is to make recovery time shorter to ensure loss minimization. In other words, the recovery plan gives firms a chance to consider how they can get their business back on track in case of a crisis. The plan should include:
- Business recovery activities in the quickest time possible
- Key descriptions of equipment, resources, and staff required to recover its operations
- Objectives of the recovery time
- A checklist can use to assess the safety of the premise after a passed crisis before returning to the premises
Reviewing of Time Frame Recovery
Time frame recovery covers the period between an incident happening and business resuming its normal operations. The company's recovery time frame should be guided by the identified critical business activities impact analysis. Each of the critical business activities should have a recovery time objective. It helps in ensuring that business activities are well prioritized. This way, the company will be in a position to attend to its most agent activities in case of a crisis. A recovery plan for a company should be in the form of a business continuity plan and should outline practical strategies that will help it to manage and recover from a disaster. A business continuity plan includes things such as:
- Risk management plan
- Business impact analysis
- Incident response plan
Generally, a recovery plan is a company's step in the preparedness, prevention, response, and recovery model of business continuity planning. Although an incident response plan helps in dealing with a crisis before, during, and after it has occurred, a company's recovery plan usually has longer-term focus and it to get its business on track again.
Related Topics
- Insurance Law (Intro)
- What is insurance?
- Captive Agent
- Independent Agent
- Captive Insurance Company
- Underwriter
- Combined Ratio
- Claims Adjuster
- Capital at Risk
- Assigned Risk
- Contingency
- Incurred But Not Reported
- Actuary
- Qualified Actuary
- Cession (Re-Insurance)
- Burning Cost Ratio
- What is an insurance contract?
- Accidental Means
- Anti-stacking Provisions
- What is an insurable interest?
- What are the common categorizations of insurance?
- National Association of Insurance Commissioners
- Insurance Regulatory Information System
- American Academy of Actuaries Definition
- American Association of Insurance Services Definition
- American Council of Life Insurance Definition
- American Insurance Association Definition
- American Risk and Insurance Association Definition
- LLoyd's of London
- Associate in Insurance Services (AIS) Definition
- Associate in Loss Control Management Definition
- Associate in Marine Insurance Management Definition
- Associate in Personal Insurance Definition
- Associate in Reinsurance (ARe) Definition
- Associate in Risk Management Definition
- Associate in Commercial Underwriting Definition
- Associate in Insurance Accounting and Finance Definition
- Associate in Surplus Lines Insurance Definition
- Chartered Insurance Professional Definition
- Chartered Life Underwriter Definition
- Chartered Property Casualty Underwriter Definition
- Vehicle insurancePrivate Passenger Auto Insurance Risk Profile
- Underinsured Motorist Coverage
- Uninsured Motorist Coverage
- Omnibus Clause
-
Health insurance
- Health Maintenance Organization
- Capitated Contract
- Point of Service Plan
- Children's Health Insurance Program
- Disability Insurance?
- Credit Disability Insurance
- Life Insurance?
- Cash Surrender Value
- Absolute Beneficiary
- Acceleration Life Insurance
- Accelerated Benefit
- Accelerated Option
- Accelerative Endowment
- Charitable Gift Life Insurance
- Incontestability Clause
- Waterfall Concept
- Annuitization
- Assumed Interest Rate
- Clean Sheeting
- Hazard Insurance
- Homeowners, Renters, and Fire Insurance?
- Participating Community (Flood Insurance)
- Insurance Considerations for Business
- Business Liability Insurance
- Commercial General Liability
- Liability Risk Retention Act
- Excess Insurance and Umbrella Insurance Policy
- Business Interruption Insurance
- Key Person Insurance Definition
- Own-Occupation Policy
- Self-Funded Health Insurance Plan
- Basket Retention Policy
- Commercial Blanket Bond
- Alternative Risk Transfer Market Definition
- Commercial Property Casualty Market Index Survey
- What are the primary obligations of the insurer?
- Earned Premium
- Reservation of Rights Letter
- Subrogation
- Collateral Source Rule
- What are the primary obligations of the insured?
- Insurance Premium
-
Cooperation Clause
- Coinsurance
- Co-Pay
- Affidavit of Loss
- What is the general structure of an insurance contract?
- Ambiguity Principle
- Accommodation Line
- What are the common disputed provisions in an insurance contract?
- Absolute Exclusion
- All Risks Clause
- What is required for the termination of an insurance contract?
- Risk Management
- Professional Risk Manager
- Associate in Management (AIM)
- Financial Risk Manager
- Forecasting (Business)
- Objective Probability
- Unconditional Probability
- Enterprise Risk Management (ERM)
- Operational Risk
- Business Recovery Risk
- Political Risk
- Asset Protection
- Performance Bond
- Barra Risk Factor Analysis Definition
- Above Ground Risk (Mining Industry)
- Bumbershoot Policy (Maritime)
- Abandonment Clause (Boat or Vessel)
- Bobtail Liability Insurance (Trucking Industry)
- Anti-Indemnity Statute (Construction)