Guest user Created: Jan 13, 2016 Last commented: Jan 13, 2016

Formula for calculating RTO; using turnover

I am not new in this world of standrads, but have difficulty explaining to people how they should calculate their acceptable losses (due to RTO). People waiting to get some kind of formula, though I believe that such a formula does not exist. I'm trying to relate it to turnover (percentage of it) but I´m not sure what is the best practice in that, which percentage is usually preferred. I know that there are many other dependencies too.

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DejanK Jan 13, 2016

Answer:

The calculation of RTO/acceptable losses is best done when taking into account both financial and non-financial inputs. Non-financial could be the deterioration of the company image in the market, difficulty of catching up with the backlog of work, etc.

Regarding the financial turnover, you should calculate how much money did you lose if your company is not operational for e.g. 24 hours, and compare this to your company annual profit - then you should ask your executives which amount of loss is acceptable for them.

You'll find more examples in this article: How to implement business impact analys is (BIA) according to ISO 22301 https://advisera.com/27001academy/knowledgebase/how-to-implement-business-impact-analysis-bia-according-to-iso-22301/

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Jan 13, 2016

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