What Is a Recovery Time Objective (RTO)?

A disaster recovery plan (DRP) is a subset of a business continuity plan (BCP) that focuses specifically on the recovery of IT business infrastructure and operations during and after a major incident.

When disaster strikes—whether through cyberattacks, natural disasters, or system failures—the ability to recover quickly determines whether a business survives. The estimated survival rate of companies without a disaster recovery plan is less than 10%.

A disaster recovery strategy utilises various targets and metrics to effectively establish the best route for a business to return to normal operations after a disaster.

A recovery time objective (RTO) is one such metric. Often referenced alongside a recovery point objective (RPO), the two are different yet crucial elements of an effective disaster recovery plan.

What Is the Difference Between an RTO and an RPO?

These two key parameters often work in conjunction as part of a wider plan to recover business processes after a disaster or major disruption.

Recovery Time Objective

A recovery time objective (RTO) refers to the amount of time a business has to restore its critical systems and operations after a disaster before experiencing irreparable damage.

This time frame directly impacts productivity, customer trust, and the organisation's bottom line. Understanding RTO is essential for any business that relies on digital infrastructure.

Recovery Point Objective

A recovery point objective (RPO) establishes the amount of data loss a business can tolerate during a system failure before incurring significant damage. This is measured in time: from when the major incident occurred to the last data backup.

Constantly evolving cyber threats make it crucial for businesses to understand how much data loss can be tolerated during system downtime.

Why Are RTOs Important?

RTOs form a major component of a functioning business continuity plan. Setting an RTO and calculating an RPO prevent businesses from scrambling for answers during disruption.

Fundamentally, an RTO keeps your downtime to a minimum because it establishes just how severe the damage would be. With this information, measures can be put in place to protect the business and ensure systems are up and running within a determined period.

Having an RTO can also ensure the business complies with regulations and avoids penalties, especially if operating in highly regulated industries such as finance or healthcare, where minimising disruptions to services and protecting sensitive patient data is paramount.

Understanding the Relationship Between RTO, RPO, and Business Continuity

RTOs and RPOs form part of the foundation of effective disaster recovery, but they don't operate in isolation. A comprehensive business continuity plan must also consider:

• Hardware and software dependencies that affect recovery speed
• Office and remote work capabilities during disruption
• Employee safety and communication protocols during emergencies
• Cloud infrastructure and storage solutions that enable faster recovery

The cost of downtime extends beyond revenue. Data lost during an outage can impact customer relationships, regulatory compliance, and competitive positioning in the market.

How Do You Calculate RTO?

Different businesses will have unique RTOs depending on the size of their operations and the specifics of their industry; the calculations used to establish an RTO are generally similar.

Setting RTO

First, identify the critical systems in your business. Consider how often systems are used, any potential losses to finances or reputation, or potential regulatory fines if the system goes down (most commonly known as a Business Impact Analysis) and the technical capabilities available.

Once you know your critical systems, you can then calculate the maximum length of acceptable downtime for each system in your business.

To establish the RTO, subtract the maximum amount of acceptable downtime for each system from when the downtime occurred.

Example: Imagine an e-commerce store. During a critical system downtime, it will lose £5,000 per hour. Customer and reputational damage is moderate at two hours of downtime, rising to high after four hours. It has been established that the business can financially tolerate losing up to four hours of downtime without severe impact, but to minimise overall impact, stakeholders agree that two hours of downtime is the maximum acceptable downtime.

Once the RTO has been set, the business can begin to analyse existing recovery capabilities to ensure they align with expectations.

The maximum length of acceptable downtime varies significantly across industries. A financial services firm might establish an RTO of one hour or less, while a manufacturing company might tolerate losing up to eight hours.

The key is understanding your business impact analysis thoroughly and setting realistic recovery objectives.

What Factors Influence RTOs?

Multiple factors shape appropriate recovery objectives. Understanding these factors is beneficial not only to set achievable objectives but also to provide insight into the details of your overall recovery process.

Business Environment

Take into account your operational environment, whether that's on-premises, cloud-based, or hybrid. This will affect recovery time and access to resources. Cloud solutions are increasingly popular as they often provide faster recovery process capabilities.

Regulatory Requirements

Finance, healthcare, and public sector organisations face strict data protection mandates that influence technical solutions and safety measures. Hefty fines and penalties can be levied against companies with inadequate RTOs.

For example, in 2023, the outsourcing company Capita was fined £14m for data protection failings after a cyber attack crippled their systems and caused major disruptions to services as well as a breach of their data, including "special category data".

Resource Availability

The hardware, software, and human resources available during recovery determine realistic RTOs. Can employees access the necessary systems remotely? Do you have redundant network resources to take over operations?

Financial Constraints

Every organisation wants instantaneous recovery, but budget realities require management to prioritise critical systems. A faster RTO requires greater investment in technology and infrastructure.

Should RTOs Be Tested Regularly?

RTOs shouldn't be viewed as static measurements, taken once and considered complete. There are several ways you can ensure your RTO is fit for purpose.

Regularly Review Your Disaster Recovery Plan

Regularly reviewing your disaster recovery plan will ensure that all elements of the plan are fit for purpose. As businesses grow and evolve, elements of the disaster recovery plan may need to be adjusted or new elements included.

Regular testing reveals challenges before they become critical. Create realistic disaster scenarios to verify that your plan actually works. Can you restore from backups within your current RTO? Does your team know which systems to prioritise?

Optimise Your Technology

Having backups is critical for so many businesses, and much of the stress can be alleviated with the right technology. Implement automation for backups, failover, and recovery to speed up processes and give your business more recovery time.

Create Resilience with a Business Continuity Plan

Establishing an RTO is essential, but true resilience requires integrating recovery objectives across all business processes.

Your business will benefit from a comprehensive business continuity plan that works alongside disaster recovery to mitigate risks and establish quick recovery. By regularly analysing risks, testing recovery procedures, and optimising your business continuity platform, you can achieve the durability needed to thrive in an unpredictable world.

Book your C2 demo today to discover how you can streamline processes and embed resilience into the core of your business.