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<v Instructor>Business impact analysis.</v>
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In this lesson, we are going to talk about the concept
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of a business impact analysis,
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and this is really focused on
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how do things affect our business.
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Now, when I talk about a business impact analysis,
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this is also abbreviate as BIA.
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This is a systemic activity
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that identifies organizational risks
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and determines their effect on ongoing,
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mission critical operations.
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Let me give you a great example
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of a business impact analysis from my own company.
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My company happens to reside in Puerto Rico.
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Puerto Rico is a small island in the Caribbean.
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Now you can see it here on the screen.
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Now, because our company is in Puerto Rico,
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we have to worry about natural disasters
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and their impact to our business.
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For example, after a massive hurricane in 2017,
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the island of Puerto Rico was without power for months.
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So when we decided to move our company to Puerto Rico,
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we had to consider the impacts
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to our employees and our business
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if another huge storm came through
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because we are in Hurricane Alley
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and we're likely to get more storms.
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Now, another thing we have in Puerto Rico
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that happened recently is earthquakes.
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So, right after I moved my company to Puerto Rico,
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the island started shaking
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and started having a series of earthquakes
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at the southern part of our island.
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Now this started creating damage to many businesses, houses
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and churches, as you can see here.
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Now, because of our choice to be based out of Puerto Rico,
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our company, our employees and my family
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all have to have primary and backup plans
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to continue our operations
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even when the local power grid goes offline
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due to storms or earthquakes or any other reason.
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That is one of the main things we have to think about
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as part of our business impact analysis.
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Now, when you're conducting your business impact analysis,
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this is going to be governed by metrics
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that express your system in terms of availability.
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For example, are you a hundred percent available
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or are you 90% available?
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In our company, we try to achieve 99% uptime,
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meaning we want to be available to you 99% of the time
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during normal business hours.
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Now, when we start talking about these metrics,
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there are lots of different ones we have to consider.
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We have things like our maximum tolerable downtime or MTD.
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We have recovery time objective, RTO;
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the work recovery time, WRT
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or recovery point objective, RPO.
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Let's talk about each of these.
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Now, when we talk about a maximum tolerable downtime or MTD,
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this is the longest period of time
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a business can be inoperable,
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without causing irrevocable business failure.
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Essentially, how long can you be down
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without going out of business?
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Now, the MTD is going to be different for each organization
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and even within each organization,
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each of your business processes can have its own MTD.
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For example, some may be just a couple of minutes
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or a couple hours for critical functions.
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You may have up to 24 hours for urgent functions
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and up to seven days or longer for normal functions.
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It really does depend on your organization
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and you have to figure that out for yourself.
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Now, the MTD is going to set your upper limit
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on the recovery time that the system
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and the asset owners have to have to resume your operations.
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So, keeping that in mind,
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let's take a look at my own business.
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I already mentioned that
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power was a really important thing for us.
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So, we know that power is critical
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to our business functions.
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Without it, we really can't do our job.
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I can't film courses and I can't answer student questions
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if I don't have power to turn on my computers
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and be able to run our internet.
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Now without this power, we can't do our job at all.
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So we have multiple backup systems
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to protect power to our building.
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First, we have power from our local electrical company
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coming through the wires on their grid.
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Then, we have solar power that provides us a backup
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during the day if the grid goes out
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and it actually reacts as our primary electrical source
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during the day
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because it's so bright and sunny in Puerto Rico.
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Now, after that,
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we have some Tesla power walls that we've installed.
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These are batteries and these collect power
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from our solar system during the day
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and that way, even if the grid goes out,
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we can end up having those batteries
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provide the power to us.
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And that can happen at night as well.
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When the sun goes down, we can actually survive
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off those batteries if the grid is gone.
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Now, if it becomes cloudy, then the solar won't work.
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Well, we still have the batteries
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and so we have primary of grid, secondary solar,
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tertiary of batteries.
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But for us, that's not enough.
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We actually, in addition to that,
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have a diesel generator as well,
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and that diesel generator has a hundred gallons of fuel.
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That's enough for us to run seven days straight
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without the need for more fuel.
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So, for us to be without power takes a lot these days
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because we have the grid, we have solar, we have battery,
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we have diesel, we have all of these systems in place
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because we realize
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that is an important mission essential thing for us
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is to have power for us to be able to do our jobs.
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Now, if the power grid goes out for more than 60 minutes,
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we found another issue though
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and that's that our primary internet connection
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from our cable provider dies.
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Now, that isn't a problem for me if I'm filming
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but if I'm trying to answer your questions
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and do student support, we can't do that without internet
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because we have to be able to reach to you, right?
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And so that's another issue for us
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and so we have a secondary service for that.
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We have a cellular modem that we use as a backup.
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Now we realized recently there was a big storm
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that came through and our area lost power for three days.
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Now we didn't lose power
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'cause we had all these systems in place,
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but our internet connection died.
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And so we tried to switch over to the cellular modem
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and we found out the speed was horrible.
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Why?
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Because everybody else was out as well
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and they all went onto their modems
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and because they wanted to a cellular modem,
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the cell towers were being flooded with users.
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And so we were getting speeds that were 10 or 20 or 30
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or 40 kilobits per second
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and we were hardly able to even open up our ticket system
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to be able to answer our students' questions.
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So now that we've learned from that,
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we have a third internet provider as well
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that provides a service over a microwave
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and they have a better backup plan for power outages.
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So they maintain services up
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even when the local cable company is down.
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So this helps eliminate that bottleneck.
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My point here is that you have to do this business impact
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for yourself in your organization
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and figure out what things are critical to your operations
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and put things in place to help protect those.
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So when I look at my support services,
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what is our MTD for our support services?
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Well, we calculated that our maximum tolerable downtime
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is 12 hours.
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Now how do I come up with 12 hours?
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Well, we started thinking about if I was a student,
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what was the longest period of time I would want to go
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without getting an answer to my questions?
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And we figured that 12 hours was a reasonable time
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in an emergency situation.
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Now to accommodate that,
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we actually have our staff split in two parts.
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Half of my team resides in Puerto Rico,
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the other half of my team is in the Philippines.
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They are 12 hours off sync from each other.
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So, when it's daytime in the Philippines,
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it's nighttime in Puerto Rico.
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And when it's daytime in Puerto Rico,
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it's nighttime in the Philippines.
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And so we actually can cover almost 24 hours a day
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using these two locations
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because each side works eight hours
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and there's a little bit of time
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that isn't covered by both teams.
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Now that again works within our 12 hours of time.
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Now the other good thing about this is
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because they're so geographically distanced,
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if there's a big storm that takes out Puerto Rico,
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hopefully it doesn't affect the Philippines.
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If there's a big storm that takes out the Philippines,
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hopefully it won't affect Puerto Rico.
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And so by having our geographic diversity here,
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it allows us to maintain that 12 hour response time
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because even if Puerto Rico was down,
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well in the 12 hours, the Philippines team would be awake
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and they'll be able to take on that load
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of being able to answer your questions.
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And so that's why we do that
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and that's why we break up our company.
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It was a risk management decision that we've made
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to provide better service to our students.
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Now again, you need to figure out what your MTD is
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for your company in the real world
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so you can design your risk management plan
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around supporting that MTD.
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What we've done for us
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was thinking about the biggest threats to us
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which are natural disasters.
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And so we have our MTD built around that
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for our student support services
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and we put power and internet connectivity
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at the top of that list of things that we need to have,
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two and three and four different mechanisms
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to be able to provide backups to our backups
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to make sure we can always support you.
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Now the next one we want to talk about is our RTO.
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This is our recovery time objective.
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Now this is the length of time it takes after an event
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to resume your normal business operations and activities.
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When you start thinking about recovery time objective,
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I want you to think about the fact of something went down,
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we lost power.
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How quickly do you need it back?
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In my case, we have a 60 second time for power.
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We want to make sure our power is back up and online
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within 60 seconds.
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Now, is that achievable?
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Yes.
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If you have a backup diesel generator,
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it will turn on in about 45 seconds
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and transfer power to the diesel generator.
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Now, my wife wasn't happy with 45 seconds or 60 seconds
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and she wanted a recovery time of zero.
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Now, can I achieve that?
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The answer is yes, and that's one of the reasons
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why we have those battery backup systems
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because if power goes away,
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those batteries come on instantly.
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There is zero lag time there.
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And so we're able to hit a recovery time objective for power
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of zero seconds.
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Now the overall power of getting it back to the grid,
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we can't control that.
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That's up to our local power company, but we can make sure
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that we can recover our business
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and make sure we're on battery, on solar
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or on generator within zero seconds
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and that's our recovery time objective.
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Now the next one we want to talk about is work recovery time
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or WRT.
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This is the length of time in addition to the RTO
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of individual systems to perform reintegration and testing
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of a restored or upgraded system following an event.
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So let me give you an example.
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Let's say in my organization, we had a power outage
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and we didn't have the batteries yet.
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We had to rely on those generators.
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So we had a 60 second recovery time.
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Well, in 45 seconds, power comes back up.
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But if those systems went down because of a power surge
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and I had to replace one of my servers,
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well that's going to take additional work recovery time.
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I fixed the main problem,
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the recovery time objective of getting the power up,
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but now I have to fix the second and third order effects
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to get work product going again
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which might be rebooting a computer,
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it might be rebuilding a computer,
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it might be replacing a hard drive.
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Whatever those things are,
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I have to perform that reintegration and testing
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to bring those systems back online
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in an upgrade or restored state
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to be able to get us back to regular work product.
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And our final one we want to talk about is RPO.
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This is our recovery point objective.
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This is the longest period of time
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an organization can tolerate lost data being unrecoverable.
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Now, the way I like to think about this one
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when I think about RPO is think about ransomware.
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If you have ransomware on a system,
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it's going to encrypt your files.
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Now you've got a couple of choices here.
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You can pay the ransom, which we never recommend.
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You could try to crack the ransomware key
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which could take you days, weeks or months or years
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depending on how strong it is
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or you can actually wipe that system
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and recover from a known good backup.
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Well, that's great.
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Let's go ahead and choose that option.
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Well, if we do that, what is the longest period of time
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that we can tolerate data loss?
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Well, there's going to be time that we're going to be lagging
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as we're recovering all that data back
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and that data may have several hours
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since it was last backed up.
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For instance, if you run your backup once a day at midnight,
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that's when your data was backed up.
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And if this ransomware hits you at six in the morning,
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you have six hours worth of lost data
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because you don't have a backup of that.
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This is what we're talking about
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when we're talking about recovery point objective.
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That six hours is going to be lost period of time.
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And so if your RPO was 12 hours, that's fine.
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If your RPO is four hours, you've just broken your RPO.
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So you need to keep that in mind.
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When you're thinking about your recovery point objective,
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you are focused on how long you can be without your data.
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That is the whole idea here.
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Now, when we start thinking about your MTD and your RPO,
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these are key terms that you need to know for the exam.
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They're going to help you determine
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which business functions are critical
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and they're going to specify appropriate risk countermeasures
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to help you make sure that you're going to be able
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to get those systems up and running
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and within those MTD and RPOs.
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For example - if your RPO is measured in days,
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then a simple tape backup will work fine
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or you can use a network attached storage array
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or something like that.
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But if your RPO is zero or measured in minutes or seconds,
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then a more expensive server cluster backup
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and redundancy solution is going to be needed.
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A good example of this is my own company.
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We have a server cluster backup and full redundancy solution
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for our web servers.
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This is because we can't afford to be down for long periods
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of time when over 200,000 students
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are relying on our servers to learn from our videos
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and our practice exams
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to prepare to pass their certifications.
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When I sold you a course, I sold you access to that course.
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We want to make sure you have access and we can't say,
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'Oh! I'm sorry.
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We lost all of your data for the last three weeks.
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We're going to have to have you start over.'
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So we want to make sure we have that set up right.
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And so we've taken the risk management mitigations
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to help make sure we maintain a good MTD and RPO
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based on that need.
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Keeping our MTD very low in time
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and our RPO very low in time so you get a better experience.
