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Newsletter - Fall 2007

Preparing for the Worst
Arieh Davidoff, Manager, Computer Forensics Group
Message from the Managing Partner
Preparing for the Worst
Conducting Successful Interviews
Study Focuses on S Corp Compliance
Governance in the Family Business
Planned Giving Program Honors Four Organizations
Rachlin Wins Key Partner Awards
Spotlight On: Fairy Tails

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RachlinNews Fall 2007 Fall 2007
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In today's electronic business environment, having a plan for recovering from potential disasters is not an option- it is a necessity. Consider this: 43 percent of businesses that experience a disaster-related loss of computer records never re-open.

So what is a disaster recovery plan? Simply stated, a disaster recovery plan (DRP) is a formalized set of recovery procedures and protective measures which increase the likelihood that an organization will continue to function or will be able to resume functioning after a disaster strikes.

A disaster in this context is an event that negatively affects business operations by destroying or preventing access to computer records. Disasters can be regional in scale, such as a hurricane or flu pandemic, or small internal incidents like a fire, flooding or even hardware theft. An effective DRP addresses both large and small-scale disasters.

To develop an effective DRP, it is important to understand the information technology (IT) environment as users see it. Users rarely are interested in the number of servers required to make a critical business application work; they simply want to be able to run the software. To keep an application functioning properly however, all of its parts must be functioning properly. These parts, or "tiers," may include Web, application and database servers, and may be accessed using remote tools such as Citrix or Virtual Private Networks (VPNs). All tiers must be protected against a potential disaster. Procedures to protect only a database server housing computer records saves the records, but renders them effectively useless without the other tiers in place.

Building trust and confidence in employees so they believe the business can survive a disaster is another important element of an effective DRP. Communication goes a long way toward instilling this trust. A simple twice-yearly training seminar, for example, could be instituted to give employees an understanding about what may happen in a disaster, what they can expect from the business and what will be expected of them. Multi-lingual phone trees and regularly updated hotlines should be a part of the plan. Of course, testing critical emergency communication equipment and updating phone tree and address lists regularly is critical.

In a disaster, everything becomes more difficult and employees may be injured or unable to travel. Therefore, instructions must be easy to follow and, ideally, in step-by-step format. Copies of recovery procedures should be placed in well-known, secure and easily accessible locations. And, each recovery role should be shared by at least two employees.

While a company's DRP must be in writing, a written plan alone won't suffice- procedures must be regularly tested and employees must be regularly trained to know what to do in an emergency. Critical systems should be tested every six months, and non-critical systems every year. Generators and other backup equipment should be tested under real-world conditions every few months. Further, recovery procedures must be updated every time the IT environment undergoes a significant change.

Bottom line, there is no substitute for being prepared. An effective DRP- one that protects a company's records, applications and employees-- is a company's best defense against a disaster.

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