Preparing for the Worst: A Lesson in DR & BCP Strategies for Hedge Funds

Agenda

The difference between DR & BCP

BCP: A look back at recent events

Four steps to business continuity planning

Disaster recovery misconceptions

Steps to creating your unique DR solution

Disaster Recovery & Business Continuity

Disaster Recovery Plan

• Details implementation/support of recovery infrastructure

• Minimizes/mitigates effects of outages/disasters

• Allows continuation/quick resumption of mission-critical functions

Business Continuity Plan

• Identifies mission-critical services, functions and personnel

• Procedures for successfully recovering people, business functions and systems

• Employee information sessions, table top exercises and testing

Disaster Recovery vs. Business Continuity

InfrastructureLayer

ManagementLayer

PolicyLayer

BC

Policies & Strategies

Risk Management

Business Continuity Plans

Validation & Testing

IT Recovery Processes

Alternative Site

Data Backup Offsite Replication

Servers Storage Network

DR

BCP

Business Continuity Planning

Past Events Japan Earthquake (2011)

UK Olympics (2012)

Hurricane Irene (2011)

San Bruno Explosion (2010)

Step 1: PANIC

Four Steps to Business Continuity Planning1. What are you protecting?

Develop Business Impact Analysis Conducted for each functional area (Research, Trading, Finance,

Operations, etc.). Detailed information about each function’s business requirements

during normal business operations vs. disaster. Identifies critical steps subsequent to a disaster.

A company’s ability to recover is directly related to the preparations done prior to a disaster occurring.

Four Steps to Business Continuity Planning2. How are you going to protect?

Determine Recovery Strategies Scenario 1: Building is still standing but closed to tenants. Scenario 2: Building has been damaged and/or lost power. Scenario 3: Regional impact to the primary office location area.

Establish Communication Procedures Internally: Employees and employee families Externally: Investors, prime brokers, custodians, media, vendors,

etc. Resources: Manual call trees, automated notification system,

conference bridge, wallet cards, etc.

Four Steps to Business Continuity Planning3. Educate employees.

Employee Information Sessions Provide overview of the company’s business continuity and

disaster recovery procedures. Distribute employee recovery procedures, quick reference cards,

wallet cards. Agenda should be focused on employee responsibilities during a

disaster.

Table Top Exercise Scenario based. Informal brainstorming session. Walk through of the company’s business continuity and disaster

recovery procedures.

Four Steps to Business Continuity Planning4. Validation.

Testing Disaster recovery procedures and/or data center. Alternate site. Remote access (home). Distribute test plans for participants. Develop test summary.

Disaster Recovery Planning

Disaster Recovery MisconceptionsDR system testing is unnecessary.

DR documentation is not necessary to read until a disaster strikes.

Third-party vendor communication is not a crucial aspect of DR.

If you have a DR solution in place, you don’t need a BCP plan.

1. Create the scope for disaster recovery.Identify your critical systems:

File shares

Email

Mobile Devices

Accounting

Trading

Voice

2. Identify design requirements (RPO).

Recovery Point Objective (RPO)– The RPO is the point in time to which you must recovery

data as defined by your organization.– This is generally a definition of what an organization

determines is an “acceptable loss” in a disaster situation.

• Nightly backupsRPO = 24 hrs

• SnapshotsRPO < 4 hrs

• Continuous replicationRPO = 0

3. Identify design requirements (RTO).

Recovery Time Objective (RTO)– The RTO is the duration of time and a service level within

which a business process must be restored after a disruption in order to avoid unacceptable consequences associated with a break in business continuity.

– It includes the time for trying to fix the problem without a recovery, the recovery itself, tests and the communication to the users.

• Restore from backupsRTO > 24 hrs

• Hot standbyRTO < 4 hrs

• High availabilityRTO = 1 hour

4. Choose Your DR Method. Traditional Server DR

DR in the Cloud

Traditional DR DR in the Cloud

Cost

Hardware Lifecycle

Ownership

Power/Cooling

Resource Allocation

5. Choose a data center location/facility.Example of a Class 1 data center in Boston:– High security, fully redundant infrastructure: power feeds, fire and HVAC

systems– N+1 infrastructure redundancy throughout– Multiple entry fiber paths– Power supply of up to 100 watts/sq. ft. in place– Multiple power grids for redundant power– Floor-load capacity of 150 lbs./sq. ft.– Line of site for rooftop antennas– 24-hour manned security, cameras and digital

monitoring– Up to 24-day fuel supply on site– Unsurpassed diversity through our 30 network providers– 22 generators and 90,000 gallons of diesel fuel on site

Eze Castle Integration OverviewFounded 1995

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• Private Cloud Services• Business Continuity Planning• Disaster Recovery• Compliance Solutions• Storage Solutions• Colocation Services• E-Mail & IM Archiving

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