Fred C Church

Businesses should carefully weigh the advantages and disadvantages of cloud computing when considering their IT Disaster Recovery and Business Continuity Planning, according to CFO magazine.

IT Disaster Recovery, the source notes, is a subset of Business Continuity Planning that deals with the operation of IT systems after a fire, earthquake, accident or other event that threatens to interrupt business. A halt in operations may be more damaging in the long run than any property losses, particularly with appropriate business property insurance.

Cloud computing, the source suggests, can serve as an effective tool in IT Disaster Recovery. Any problems at the office or site will not necessarily affect stored data and applications needed for operations. In addition, the ability to access those resources from outside the office means that even a catastrophic fire or flood will not necessarily prevent business from continuing.

On the other hand, the source notes, risk management can be difficult because the cloud service provider is also involved. That entity determines the level of risk that is acceptable, and any events that damage or hinder the provider, its property or its ability to provide services may have consequences for the client.

When assessing the risks and planning, it is appropriate to look for a business insurance policy that will cover problems related to the cloud to ensure the financial hardship associated with business interruption is survivable.