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Building Effective IT Disaster Recovery Plans

No matter how well-managed IT infrastructure is, there is always the risk that a tiny hiccup could ultimately turn into a real emergency. Given the increasing reliance on technology tools and access to business-critical data to continue operations, every business should have an effective IT disaster recovery plan in place to minimize disruption when disaster strikes. Risk professionals must consider and plan for this situation with regular testing and run-throughs to ensure that all team members understand the recovery plan and know their responsibilities.

As natural disaster season begins, risk professionals should assess the risks and mitigation strategies in place to minimize disruption and losses. The following tips can help ensure that IT disaster recovery plans are as effective as possible:

Plan in the Risk Management Context

Instead of thinking too much about what a disaster would mean for your company, frame your recovery plan in the context of risks. Start by examining which risks your company faces, and what steps you can take to minimize each one. This will ensure that all teams are fully aware of what the risks are, and how they can make a difference in eliminating potential problems.

Prioritize Communication

Nothing exacerbates a disaster like a communications breakdown, so all good recovery plans should focus on communication. The onset of an IT disaster could impact communication systems, so plan an alternative way of communicating with teams in the event of an emergency. Ensure that all team members know the backup communication method, and that everyone understands who they need to contact to inform them of the situation. 

Protect Data Continuity and Backups

Data continuity planning is critical to minimize losses during a crisis. At its essence, data continuity ensures companies have alternative processes and infrastructure in place to allow key IT operations to remain intact, taking into account both hardware and software. A first step is often to invest in failover systems across multiple locations as well as backup generators and power supplies, and ensuring you keep them all in working order.

Data continuity also involves backing up all important data and storing it in a location away from potential disruption. Methods range from server replication to continuous protection (continually backing up data on a separate server). For data back-ups, businesses often choose disk-to-tape or disk-to-cloud models. Either way, the most crucial element of backing up data is knowing what to replicate and what to leave. Archiving everything available can mean greater expense, but being selective can increase the risk of losing information. The rule of thumb is that, as a minimum, any backed-up data should be capable of restarting business operations from scratch.

Define Acceptable Downtime 

The amount of downtime that a company can feasibly take varies considerably depending on the company’s size and the products or services it provides. Think about how a disaster could affect your company, then decide on the steps that you’d need to take in different potential scenarios. In most cases, a few minutes of downtime rarely constitutes a total disaster, so focusing on recovery plans that can get systems back up and running as quickly as possible will help keep losses as low as possible. Cloud-based technology can be very helpful in such disaster scenarios since data is off-site and services stay operational even if your physical location is impacted.

RIMS NeXt Gen Forum Offers Insights for Rising Risk Professionals

“We’re becoming numb to the news,” said risk management veteran and author Joseph Mayo. “We’ve seen a 1,200% increase in daily record loss in the last five years. Globalization has created faster-moving and infinitely more complex risks and that’s what we have to adapt to.

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In his keynote, “Don’t Tell Me What I Know, Tell Me What I Don’t Know,” at last week’s RIMS NeXt Gen Forum 2019 for rising risk professionals, Mayo discussed environmental, social and governance (ESG) risk events and how they will continue to impact the risk management community, noting that a 1,000% increase in ESG events has occurred from 2010 to 2018 compared to each of the three prior decades. 

(Hear a preview from his RIMScast interview.)

Despite flaws in actuarial approaches and the challenges surrounding artificial intelligence such as bias and adversarial machine learning, Mayo said that the profession’s outlook is “not all doom and gloom.”

“The future of risk management is to make decisions with incomplete, inaccurate and obfuscated information,” he said. “We will have to embrace fuzzy logic because decisions need to be made quicker.

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We no longer have decades to develop actuarial models.”

Shortly afterward, Robin Joines of Sedgwick and Kristy Coleman of Turner Broadcasting System hosted risk management “Jeopardy!” While not quite as fast-paced nor as well-funded as the long-running game show, the hosts provided a forum for discussion and debate on explored topics from business travel etiquette and travel risk to communication and corporate politics. Discussing the images people project when they cross their arms, for example, while many agreed that it projects rigidity, one audience member cited a recent Wired video that reported it could also be considered a method of self-soothing rather than hostility or reservation.

Joines and Coleman were open-minded in their scoring and even led a quick tongue twister that kept the atmosphere light and fun. “Final Jeopardy” focused on public speaking, offering some practical speech delivery tips that would benefit any professional. For example, Joines said, “Talk from your knowledge base, and not from your note cards, and you’ll come across as confident.”

The forum closed with “You are Your Brand – How to Distinguish Yourself in Your Career,” presented by Kathleen Crowe, chair of the RIMS Rising Risk Professionals Advisory Group, and Steve Pottle, RIMS vice president.

Despite their differences in age and experience, the duo explained how their careers followed similar patterns. Neither presenter had begun on a risk management track, with Pottle starting out as a budding Canadian radio personality and Crowe initially expecting to work for an incumbent U.S. senator. Taking career risks brought them into risk management, and they shared lessons from their respective journeys that ultimately influenced them to be active leaders in their organizations and the industry at large.

One key tip of theirs was planning a personal goal that aligns with a long-term strategy of an organization, which can be an early indicator of a transition to a leadership role.
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From there, they said, you can build your personal brand regardless of your industry.

“Your personal brand lies somewhere in between how you see yourself and how others see you,” Pottle said. 

Click here for more NeXt Gen Forum coverage on the “Legal Checklist for AI Risk.” 

Click here for “Key Takeaways from RIMS NeXt Gen Forum 2019,” a special RIMScast episode produced live from the event.

Do You Speak Digital?

It has been proven time and time again that communication is a pivotal and essential cornerstone of business and individual professional success. Throughout business, whether in presentations to the board or chatting with co-workers around the Nespresso machine, communication can make or break a relationship. Often, the key to building that relationship is making an effort to learn another discipline’s language.

Today, no matter what industry your company may be in, executives are increasingly focusing on the technological advances that can help achieve a competitive advantage. And just as the insurance industry has its own unique language (and a plethora of acronyms—don’t get me started on that), so too does the digital world. If risk managers want to continue rising in the executive ranks, we will need to get on the same page as the technological innovators changing our world. That means learning to speak digital.

You don’t have to be a developer or coder to have a tech-based discussion. But, you do need to make the effort to understand some key terms and concepts in order to successfully communicate, particularly within your organization.

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You can start simply—find a colleague in your IT group to help bridge the language gap. It can not only help you understand the tech world, but it can also allow others to better understand yours.

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Call it a beneficial opportunity for mutual mentoring.

In my own experience over the past year working with insurtech start-ups, I have found the tech community to be extremely open and receptive, regardless of whether you are speaking with the CEO, co-founder, data scientist or developer.

It can be daunting at first. When I was first asked to review wireframes (website structural plans) or user story mapping (outlines of website visitor behavior) or when they said they’ll “Slack me” (contact me via the popular messaging and file-sharing app Slack), I have to admit, there was a bit of Googling involved. But, what I have found is that they are just as eager to learn about the risk management world as much as they are to impart knowledge and understanding about the technology ecosystem.

If you are still somewhat intimidated about diving into the deep end at the office, get your feet wet by starting small. Read an article on a technology that may resonate with your company’s strategy, current business plan or operational initiative. Attend an industry event that has insurtech or risktech (or whatever-tech) on the agenda. There are events in every geographical jurisdiction from formalized conferences to social meet-ups. If you can’t find one in your backyard, webinars and podcasts are also great resources.

No matter what, it is important to take that first step. It may be scary or uncomfortable, but that’s a good thing.

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You will soon find yourself wading outside of your comfort zone, which means you will be growing professionally and will be on your way to learning that new language.

Q&A with RIMS 2019 Keynote Speaker Dr. Erin Meyer

The RIMS 2019 opening keynote address will be delivered by Dr. Erin Meyer, a professor at the INSEAD school of international business in France, and the author of the Culture Map: Breaking Through the Invisible Boundaries of Global Business. She discussed with Risk Management Monitor the concept of “culture mapping,” and how her upcoming address in Boston will provide risk managers with methods to assess cultural rituals and differences before conducting international business.

Download today’s RIMScast episode for Dr. Meyer’s full interview and a deeper dive into culture mapping.

Risk Management Monitor: What will you discuss in the keynote address at RIMS 2019?

Erin Meyer: I will be talking about globalization and how it is impacting our effectiveness when we work internationally.

Risk professionals might be supervising a building code in Indonesia or leading a global team made up of Brazilians and Polish people, for example, and what it means to communicate effectively or make decisions can vary from one country to another.

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I will be presenting a “culture mapping” model that will help participants decode how these cultural differences are impacting their own effectiveness and then think about strategies for working in a more efficient way.

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RMM: What has your experience with risk managers been like?

EM: I’ve noticed that risk professionals were usually in situations where – if they were working internationally – they were collaborating with just one other country at a time. But that has changed recently. In the last couple of years, they’ve often been in these multicultural environments and that’s where the culture mapping tool becomes so important.

When working in a multicultural team, you’ll find that different members have totally different impressions of the same country that they’re working in. This is all part of the concept of what I call “cultural relativity” – where we might have totally different impressions of what’s going on, based on our own cultural perspective. We will explore all this in the keynote.

RMM: What details of your research have surprised you?

EM:  We’ve researched expatriate failure rates and looked at people moving from one country to another who had to return home early because they weren’t able to integrate into their new society. And what came up is the highest failure rate was not “Americans moving to China” or “Japanese moving to the Netherlands,” for example.

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It was Americans moving to the UK.

And I think that’s very interesting because it represents something called “cultural dissonance,” which arises when we think the other culture is the same as ours because of external indicators, like language. For example, when Americans start working with the British and they’re all speaking the same language and eating the same food they assume things will not be so different from their home country.

RMM: Does that make them seem too lax in their work?

EM: They don’t give culture itself as much thought, and the consequence can be that they are perceived as incompetent [by the new colleagues]. So when you’re looking at the culture map – which we’ll be talking about during the keynote – it’s often those small differences that cause problems. Awareness of those differences is crucial.

RMM: How has technology created communication challenges?

EM: When we’re working at a distance we can lose the visual cues that help us, even in our own culture, to understand what’s going on. And when we bring in technology we all lose those visual cues – especially when you consider conference calls, for example. So, in some ways that kind of brings us back to a more standard communication platform but it does make things complicated because of course, we have different ideas about how to use technology in different parts of the world.

RMM: In the Culture Map, you discuss how even the use of email – merely to sum up a discussion – can lead to miscommunication or even an insult. How can that happen?

EM: If you get off of the phone with someone in India, for example, and put into writing everything that was decided and you send it, that might be considered an indication that you don’t trust the recipient. And I think that’s where working at a distance complicates things because if we’re in the same room we might feel that something wasn’t going well. But we’re working a distance, so we make these “errors” and it might hurt the relationship without even realizing it.