Your Ask Joey ™ Answer

What are alternate processing facilities?

In order to mitigate the risk of exposure to these issues, organizations will need to set forth “back-up” plans. Some of these plans will require the use of alternative processing facilities such as a cold site, a warm site, or a hot site.

Cold site – A cold site is a type of disaster recovery plan that in the event of a natural or human disaster, an organization will have an office space, but it will require that the company provides and installs its own equipment. The advantages of a cold site is that it is generally more cost effective, however it will take longer for a company to get back to functioning as it normally would.

Warm site – A warm site is a type of disaster recovery plan that in the event of a disaster, an organization will have a space that already has the required software and hardware to operate within a reasonable period of time. The main difference between a warm site and a hot site, is that a warm site will usually have required items to operate sufficiently but does not have the exact hardware that an organization would have otherwise used.

Hot site – A hot site is a type of disaster recovery plan that in the event of a disaster, the organization will have a space that is fully equipped to recontinue its business in a nearly instantaneous amount of time.


Back To All Questions

You might also be interested in...

  • Three Reasons to Become an Accountant

    If you’re someone who is intrigued by numbers, enjoys problem-solving and wants to help others, then accounting might be the perfect career for you. While some people may be put off by its unalluring reputation, accounting is an excellent career choice that has many benefits. In this article, we look at three of the reasons...

  • Qualified Retirement Planning: Tax Advantages & Disadvantages

    Home Advantages and Disadvantages of Tax-Free and Deferred-Tax Retirement Plans What are “qualified retirement plans” and how can they be effective for tax planning? Well, there are plenty of tax savings advantages to individuals contributing to tax-free retirement accounts, as well as tax-deferred retirement accounts. However, this doesn’t necessarily mean that there are no disadvantages...

  • CPA Evolution Survival Guide

    Download Your eBook by selecting the download icon in the top right-hand corner