Business Continuity Management Q&A Series
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[BCM] Validating Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO)

Validating Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO) is critical for a compelling business continuity management (BCM) plan.

A Business Impact Analysis (BIA) helps determine how long your business can tolerate an outage and how much data loss is acceptable.

This helps set your ideal RTO and RPO. However, these ideals may need to be adjusted based on budget constraints and technological limitations.  Regularly testing your BCM plan through disaster recovery (DR) drills helps identify gaps between your planned RTO/RPO and the recovery achieved.

Moh Heng Goh
Business Continuity Management Certified Planner-Specialist-Expert

 Validating Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO)

 
 
New call-to-actionValidating Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO) is critical for a compelling business continuity management (BCM) plan.

BCMPedia CM Recovery Time Objective (RTO)A Business Impact Analysis (BIA) helps determine how long your business can tolerate an outage and how much data loss is acceptable.


BCMPedia CM Recovery Point Objective (RPO)This helps set your ideal RTO and RPO. However, these ideals may need to be adjusted based on budget constraints and technological limitations.

Regularly testing your BCM plan through disaster recovery (DR) drills helps identify gaps between your planned RTO/RPO and the recovery achieved.

Use these findings to refine your objectives and ensure your BCM plan remains adequate.
 
This is a crucial step in ensuring the effectiveness of your business continuity management (BCM) plan. Here is a breakdown of the methodology.

New call-to-actionBusiness Impact Analysis (BIA)


This forms the foundation. Conduct a BIA to identify critical business functions, systems, and data. The BIA assesses the impact of downtime on these elements.
Maximum Tolerable Downtime (MTD)
 
This is the maximum length of interruption a business function can withstand before experiencing severe financial or operational losses.  You may want to use the MTPD as specified in the ISO22301.
 

Translate MTD into RTO and RPO

RTO Validation
 
Use the MTD to determine the acceptable recovery time objective.  For instance, if a critical function can only tolerate 2 hours of downtime, your RTO should be set at 2 hours or less.
RPO Validation
 
Analyze how much data loss is acceptable during an outage. This translates to the RPO.  If a system processes financial transactions every minute, data loss exceeding 15 minutes might be unacceptable.  So, your RPO would be 15 minutes or less.

Consider Resource Constraints and Feasibility

  • Achieving aggressive RTOs and RPOs can be expensive.  
  • Validate if your resources (budget, personnel, technology) can support the desired recovery times and data loss tolerances.
  • Conduct a cost-benefit analysis.
  • Balance acceptable downtime/ data loss with the resources required to achieve those targets.

Test and refine


Conduct regular tests of your BCM plan, simulating disaster scenarios. This helps identify bottlenecks and areas for improvement in your RTO and RPO.

Refine your RTO and RPO based on test results.  The initial targets may need adjustments based on real-world execution during simulations.

Additional Factors to Consider


Regulatory requirements: Some industries have compliance mandates dictating specific RPOs or RTOs.
Risk Tolerance
 
Different departments within a company may have varying risk tolerances for downtime or data loss.

Summing Up ...


By following this methodology, you can validate your RTOs and RPOs to ensure they are realistic, achievable, and aligned with your business needs, making your BCM plan more effective.
 

This is a series of questions asked during the monthly BCM Institute's Meet-the-Expert seminar. Questions that were not answered due to the lack of time and their relevance to the speaker's topic will be deferred.

However, I felt this was very relevant, hence the short reply to the questions. I hope it is useful.

Email to Dr Goh Moh Heng

 



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