How do you calculate the Recovery Time Objective and the Maximum Tolerable Period of Disruption?
The Recovery Time Objective and Maximum Tolerable Period of Disruption are units of measure which are defined in a Business Continuity Plan.
The idea behind these measures is to allow an organization to prioritize its Products, Services and Activities to ensure appropriate resource allocation following a disruption.
In the video below, I share my thoughts on the most important things that need to be considered when you are setting these times.
Regulations that you may need to adhere to
In any industry there are certain requirements that you need to adhere to, these may be legal requirements or guidelines. These should be taken into consideration during the planning phase.
Service Level Agreements
These are agreed during Business as Usual, and can include a clause that alters the timescale for a disruptive incident. If this is the case, it needs to be clearly defined and agreed. Either way, whether the timescale is Business as Usual or for a disruptive incident, this should be taken into consideration when setting the Recovery Time Objective and Maximum Tolerable Period of Disruption.
Costs of not providing a Product or Service
Calculating the costs of not providing a Product or Service gives Top Management a clear picture of how badly an incident could impact a company financially. It also gives the organization an opportunity to see what their top performers are and to prioritize these for recovery.
Discussion with Top Management
This is the most important piece of the equation. Once you have gathered all the necessary information, it needs to be compiled and presented to Top Management. They need to decide the recovery priorities so that in the event of a disaster there is no uncertainty about why certain products and services and being prioritized over others.
I have prepared an in-depth article on Calculating Recovery Time Objective and the Maximum Tolerable Period of Disruption for BCP Asia.
This article includes:
- Regulations and Service Level Agreements
- Business Continuity Management Programme
- Alternative Views
If you want to increase your Organizational Resilience, start with preparing a Business Continuity Plan and check out BCP Builder’s Business Continuity Planning Templates.
Download a PDF of this article below: