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Define and contrast a recovery point objective and a recovery time objective. Answer:A recovery point objective is the maximum amount of time that a firm is willing to risk the possible loss of transaction data. A recovery time objective is the maximum amount of time that a firm is willing to risk losing access to its accounting information system due to disaster

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Final answer:

Recovery Point Objective (RPO) defines the acceptable amount of data loss measured in time, while Recovery Time Objective (RTO) defines how quickly a company's functions must be restored after a disruption.

Step-by-step explanation:

Recovery Point Objective (RPO) and Recovery Time Objective (RTO) are two crucial concepts in the field of disaster recovery planning. The RPO refers to the maximum targeted period in which data might be lost from an IT service due to a major incident. In simpler terms, it indicates how much data loss is tolerable, measured in time before the disaster occurs. For example, if a company has an RPO of four hours, then in case of a disaster, they should not lose more than four hours’ worth of data.

On the other hand, the RTO is the duration of time within which a business process must be restored after a disaster or disruption to avoid unacceptable consequences associated with a break in business continuity. This means that if a company has an RTO of one hour, their system and functions should be up and running within an hour after the outage.

Essentially, while RPO is focused on data and how much data loss is acceptable, RTO deals with time and how quickly services need to be back online after a disruption. Effectively managing these objectives is a balance between minimizing potential data loss and the costs associated with achieving such levels of protection.

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