Disaster recovery planning is nothing short of expensive, and understanding who might control that funding formula is an absolute must. Who should really be handling an investment of this significance?
The Board: In almost every case, a company’s board is going to be the one making the decisions regarding funding for disaster recovery. That doesn’t, however, mean that other parties aren’t going to step in to help guide its choices. In some cases, the board members may already be the ones managing the overall risks of the business, which can often mean contemplating a range of scenarios that could threaten the company. By simply considering the location, types and frequencies of common threats, and their actual history of incidents, the board will often be able to make many of the financial decisions when it comes to disaster recovery funding.
The Executive Staff: The CEO and management team are often much closer to the ground than the board, and as a result, they need to have some input to disaster recovery funding. Recovery strategies can often be presented to the board before the decision is made. This group tends to be more in tune with the specific threats and incidents in play each day. It could be weather concerns, age-related changes in the facilities, personnel matters, outside organizations, or even the company’s location itself.
Outside Parties: Without guidance from a board or executives, there are instances where outside parties will help to guide the funding for disaster recovery. For example, stakeholders such as, auditors, lawyers, trading partners and even customers themselves may end up having a say in the plans when board members and executives simply aren’t close enough to the situation to handle it. Everyone has some role in disaster recovery planning, but when it comes to funding, the board should be the primary group involved. The information that comes from others, though, has to factor into that decision.
