Addis Ababa
Tegbare-id
atabase Administration Level-V Prepare Disaster Recovery and
Polytechnic Contingency Plan
College
By:-
1. Elsabet Kinde WDDBAR/004/14
2. Masresha Fentaw WDDBAR/033/14
3. Fatuma Seid WDDBAR/034/14
Operation Sheet 1
Operation Title: Prepare Disaster Recovery and Contingency Plan
Purpose: To Know how to Prepare Disaster Recovery and Contingency
Plan Equipment Tools and Materials:
Computer
Quality Criteria: Assured performing of all the activities according to the procedures
Information: Under this project, you are expected to identify the systems impact on the
business, identify the threats of the system, and develop
Disaster recovery plan, and develop a disaster recovery and contingency
planning checklist.
Assume you are working in a certain financial institution, say Click
International Bank, as head of IT technicians responsible for the smooth
functioning of the core banking system. The core banking system is a web-
based information system installed in the bank’s private network, which enables
the bank to perform transactions across all branches.
The bank has many branches in Addis Ababa, in regions and in neighboring
African countries. Each branch is connected through a Virtual
Private Network (VPN), can access the centralized database and the transactions
are finally send to the central database.
The bank repeatedly suffers interruption network and transactions are often
aborted in the middle of the process.
Instruction: - Under this project you are expected to perform the following four
tasks based on the information provided:-
Task 1: Identify the potential impacts of the
core banking system on the continuity of the
bank’s business.
Task 2: Identify the major internal and external threats to the core banking
system.
Task 3: Develop disaster recovery plan for the system.
Task 4: Develop a disaster recovery and contingency planning
checklist for the core banking system.
Answers
Task 1: Identify the potential impacts of the core banking system on the continuity of the bank’s
business.
1. interruption network And transactions are often aborted
1.1. Operational Disruption: Any downtime or interruption in the core banking system can halt
transactions, leading to delays in customer service and operational inefficiencies across all
branches.
1.2. Financial Loss: Interruptions can result in lost revenue due to unprocessed transactions,
potential penalties for non-compliance with regulatory requirements, and loss of customer trust.
1.3. Reputational Damage: Frequent network interruptions can damage the bank's reputation,
leading to customer dissatisfaction and loss of business to competitors.
1.4. Regulatory compliance issues: Financial institutions are subject to strict regulations. Failure to
maintain operational continuity can lead to non-compliance, resulting in fines and legal
repercussions.
1.5. Data integrity risk: Interrupted transactions may lead to data inconsistencies, which can
compromise the integrity of the bank's financial records and reporting.
1.6. Customer trust and retention: Customers expect reliable banking services. Frequent
disruptions can lead to a loss of trust and customer attrition.
1.7. Increase operational cost: Recovery efforts and additional resources needed to address system
failures can lead to increased operational costs.
2. Task 2: Identify the major internal and external threats to the core banking system.
Internal threats
Hardware Failures: Breakdown of servers, storage devices, or other critical hardware.
Software Bugs: Errors in the core banking software or updates causing system crashes.
Insider Threats: Malicious actions or errors by employees.
Capacity Issues: Overloaded systems during peak transaction periods, leading to slowdowns or
crashes.
Inadequate Security Configurations: Weak authentication protocols or unpatched systems can
leave vulnerabilities.
External threats
Cyber Attacks: Hacking attempts like ransom ware
Natural Disasters: Earthquakes, floods, or fires affecting data centers or branches.
Power Outages: Unreliable power supply causing server shutdowns.
Network Failures: VPN disruptions or internet instability affecting connectivity.
Environmental Issues: Extreme weather conditions impacting connectivity or data center
operations
Telecommunication Failures: Dependency on external internet or VPN providers may lead to
disconnections beyond the bank’s control.
Task 3: Develop disaster recovery plan for the system.
This Disaster Recovery Plan for Click International Bank includes a comprehensive Backup strategy and
recovery strategy detail. The backup strategy focuses on ensuring data availability and integrity, while
the recovery strategy outlines the steps necessary to restore operations in the event of a disaster.
1. Backup strategy
Components Description Frequency Responsible Personnel
Regular backups of the centralized
Data backup database and critical application data Daily Database Administrator
to ensure data availability
System Configuration Backup of system configurations, Daily IT Systems Administrator
Backup including server settings, application
configurations, and network settings.
Offsite Backup Store backups in a secure offsite Weekly IT Manager
location (e.g., cloud storage) to
protect against local disasters.
Data Integrity Checks Regular checks to ensure the integrity daily Database Administrator
and consistency of backup data,
verifying that backups
Backup Maintain comprehensive Weekly IT Disaster Recovery Team
Documentation documentation of backup procedures,
schedules, and personnel
responsibilities.
Monitoring and Alerts Implement monitoring tools to alert Continuous IT Operations Team
IT staff of backup failures or issues,
ensuring timely resolution.
Testing Backup Periodically test the restoration of Daily IT Disaster Recovery Team
Restores backups to ensure data can be
recovered successfully
2. Recovery Strategy
Components Description
Disaster Recovery Plan Develop and maintain a comprehensive disaster recovery
plan outlining recovery procedures, roles, and
responsibilities.
Disaster Recovery Testing Simulate disaster recovery scenarios to test the
effectiveness of the recovery plan and identify areas for
improvement.
Recovery Time Objective (RTO) Assessment Evaluate and document the time required to restore
services after a disaster, ensuring it meets business needs.
Recovery Point Objective (RPO) Assessment Determine the acceptable amount of data loss measured in
time, ensuring it aligns with business continuity
requirements.
Incident Response Plan Develop and maintain an incident response plan that
outlines steps to take during a disaster, including
communication protocols.
Post-Incident Review After a disaster or drill, conduct a review to assess the
effectiveness of the recovery process and identify lessons
Communication Plan Establish a communication protocol to inform
stakeholders, including employees, customers, and
regulatory
Task 4: Develop a disaster recovery and contingency planning checklist for the core banking
system
No Disaster recovery Description Remark
planning ( or )
1 Risk Assessment Identify potential threats to the core
banking system.
2 Backup Procedures Document and establish regular backup
procedures for data and configurations.
3 Backup Schedule Set a schedule for daily, weekly, and
monthly backups
4 Offsite Backup Ensure backups are stored securely
offsite or in the cloud.
5 Disaster Recovery Plan Create and maintain a comprehensive
disaster recovery plan
6 Testing Conduct regular disaster recovery drills
to test the plan.
6 Training Provide training for staff on disaster
recovery procedures.
7 Communication Plan Establish a communication protocol for
stakeholders during a disaster.
8 Monitoring Implement monitoring tools to detect
system failures.
9 Resource Allocation Identify and allocate necessary
resources for recovery efforts.
10 Regular Updates Schedule regular reviews and updates of
the disaster recovery plan.
Summary
This checklist provides a clear and organized approach to ensure that Click International Bank is
prepared for potential disruptions to its core banking system. Regularly reviewing and updating
each item will help maintain readiness and ensure effective recovery in the event of a disaster.
