Chapter 1. Defining the Problem

Business Continuity Concerns

Common areas of exposure to a disaster for a business include:

  • Telephone communications

  • Computer processing

  • Vital facilities

  • Critical operations

Telephone Communications

Telephones are often taken for granted; they are seldom out of service except for brief periods, such as immediately following a storm. Older electromechanical telephone switching equipment was extremely reliable. However, consumer demand for more sophisticated service has resulted in a conversion from electromechanical to software-controlled switching systems. The advantage of such systems is that they are easily modified to provide more sophisticated options to customers. The downside is increased vulnerability to periodic interruptions in telephone service owing to software malfunction. Every time computer software is changed, the risk of error increases—error that may lie dormant for months until the weakness is exposed. Moreover, it is unrealistic to expect all software changes to be sufficiently tested to preclude failure. Many of the features are new, and models for testing are, by definition, incomplete. Therefore, it is appropriate to prepare a contingency program that will provide minimum voice communication capability during a stabilization period.

Computer Processing

Financial service organizations cannot operate for more than a day or two without computer processing, as they need this capability to service transactions.

Yet for many other organizations, ...

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