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Similar to a business continuity plan, catastrophe recovery planning specifies an organization’s planned approaches for post-failure techniques. However, a disaster recovery plan is simply a subset of business continuity planning. Disaster recovery is mainly data focused, concentrating on storing data in a genuine way that may be more easily accessed carrying out a devastation. Business continuity takes this into consideration, but also focuses on the risk management, oversight and planning a business needs to stay operational throughout a disruption.
Clearly not, but we are on the trip. Future writings in this column will try to provide continuing insights into how to take into account these and related issues. I highly encourage questions and extra dialogue around how to use these insights to lead your businesses in formulating the most effective and effective strategies that leverage IT to drive the creation and development of sustainable business value.
The Modigliani-Miller theorem (M&M) states that the market value of an organization is calculated using its earning power and the risk of its underlying assets and it is independent of the way it finances purchases or distributes dividends. There are three methods a company can pick to financing: borrowing, spending profits (versus handing them out to shareholders in the form of dividends), and right issuance of stocks. While complicated, the theorem in its simplest form is based on the basic proven fact that with certain assumptions in place, there is absolutely no difference between a firm financing itself with collateral or debts.