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NEW QUESTION: 1
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A department conducts business, Monday through Saturday from 9 A.M. to 5 P.M. each day. The department takes in revenue on an average of $500,000 per week. Employee salaries are approximately $5,000 per week. The department requires the use of a computer system with an RPO of 2 hours and an RTO of 4 hours.
To determine the business impact of downtime, what is the average cost of downtime per hour of the business?
Impact of Downtime The business impact of downtime is the sum of all losses sustained as a result of a given disruption. An important metric, average cost of downtime per hour, provides a key estimate in determining the appropriate BC solutions. It is calculated as follows: Average cost of downtime per hour = average productivity loss per hour + average revenue loss per hour Where: Productivity loss per hour = (total salaries and benefits of all employees per week) / (average number of working hours per week) Average revenue loss per hour = (total revenue of an organization per week) / (average number of hours per week that an organization is open for business) The average downtime cost per hour may also include estimates of projected revenue loss due to other consequences, such as damaged reputations, and the additional cost of repairing the system.
EMC E10-001 Student Resource Guide. Module 9: Introduction to Business Continuity