DEFINITION of 'Business Recovery Risk'

Business recovery risk refers to a company's exposure to loss as a result of damage to its ability to conduct day-to-day operations. Loss of ability to conduct day-to-day operations may result from supply chain interruptions, damage to physical location(s) or loss of access to virtual systems, for example.

BREAKING DOWN 'Business Recovery Risk'

Analysis of business recovery risk involves categorizing threats according to short-, medium- and long-term impact. Short-term threats may include damage to computer systems or workers' inability to reach the job site due to natural disasters. Medium-term impact threats may include infrastructure failure or loss of staff. Long-term impact threats may include extensive property damage. Firms address business recovery risk within their business continuity plan.

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