What expenses are normally associated with disaster recovery budgeting? What expenses might be incurred if a company is specifically worried about losses from cyber attacks such as denial-of-service events?

Question

What will be an ideal response?

Answer 1

The number one budgetary expense of disaster recovery (DR) is insurance. Insurance policies provide for the capabilities to rebuild and reestablish operations at the primary site. Should fire, flood, earthquake, or other natural disaster strike, the insurance carrier oversees the funding of replacement structures and services until the primary site is restored.

One problem with insurance is that much of the damage from electronic attacks is not covered in normal policies. Some forward-thinking insurance companies are starting to roll out data loss policies (hacker insurance). Natural disasters are familiar to insurance adjusters but losses from electronic attacks are not. Some companies are finding it difficult to estimate exactly how much they will need in order to cover expected losses.