What is Disaster Recovery Risk?

Legal Definition
The RISK of loss arising from damage to physical infrastructure which prohibits use of real estate, plant and equipment, technology and communications leading to a halt in operations; the disaster may be firmspecific, industrybased, regional, or systemwide. Disaster recovery risks can often be covered through specific BUSINESS INTERRUPTION INSURANCE. A subcategory of PROCESS RISK. See also BUSINESS RECOVERY RISK.