Financial and investment firms have two things that are incredibly valuable: data and the personally identifiable information of their customers. Without either of these, they would not be able to do business. Because of this, firms need to make sure their data is protected and backed up at all times.
Let’s look at exactly what disaster recovery is and why it is important for financial and investment firms.
The Basics of Disaster Recovery
Disaster recovery is just what its name implies. When a disaster strikes, organizations need to recover their data. Typically, organizations hire a cloud service provider that offers disaster recovery services. The cloud service provider maintains a backup of the organization’s data that is frequently updated. That way, if something happens to the primary data, there is a backup that is ready to go. Disaster recovery is traditionally inexpensive, but many incorrectly confuse inexpensive with "cheap", and thus of little value. The true value of Disaster Recovery is demonstrated when something does go wrong and there is a loss of data. Similar to insurance, Disaster Recovery pays for itself when you can get your data back and in operation quickly.
How it Works
The most common type of disasters that organizations are faced with are natural causes, such as earthquakes, floods or fires. A natural disaster can take out a data center and the equipment inside, either temporarily or permanently. For a business to continue operating, it needs constant access to its data. Any outage, even for a few days, is likely to cause a major disruption.
Disaster recovery facilities are typically located far from the primary facilities. The rule of thumb is at least 50 miles, but it is usually wiser to use a backup facility in another part of the world.
With disaster recovery, the cloud service provider will back up the data on a regular schedule. Depending on the type of package an organization purchases, the backup could occur every day, every hour, or even every minute. The goal is to provide a copy of a client’s data in the event that something happens to the main facility.
The Value for Financial and Investment Firms
The average financial or investment firm has a large amount of data that is of high value. From customer information to financial records to proprietary research about the market, a financial firm relies on the use and protection of its data at all times. If a disaster takes that data offline, organizations will not only lose customer trust but also lose potential business. In a highly competitive marketplace, loss of trust due to carelessness with data is not an option. Disaster recovery is a safe and low-cost option to ensure that never happens.