DEFINITION of 'Business Recovery Risk'

A company's exposure to loss as a result of damage to its ability to conduct day-to-day operations. Analysis of business recovery risk involves categorizing threats according to their short-, medium- and long-term impact. Companies typically include an analysis of business recovery risk in their business continuation plans.

BREAKING DOWN 'Business Recovery Risk'

Short-term impact threats may include damage to computer systems or workers' inability to reach the job site. Medium-term impact threats may include infrastructure failure or loss of staff. Long-term impact threats may include extensive property damage.

Business recovery risk is generally not as damaging as disaster recovery risk, in which wide-scale damage may affect the company's ability to access infrastructure, prevent personnel from doing their jobs for extended periods, or destroy company facilities.

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